Key Performance Indicators (KPI)

Abstract

Project management is the application of knowledge, tools, skills and techniques to meet project requirements. [1] This article focus on effectively managing different processes during a project by using KPI's to effectively control and monitor different processes during each step in a project.

This article will show how KPIs are used in monitoring and controlling processes in projects, but also provide information of what a KPIs is, and how to visualize the data measured in the KPI. The article will focus on KPIs project management such as; Project time, cost and quality management. These subjects will all be analysed using project control with focus on performance measurements, which will result in the creation of KPIs.

Performance measurement is a fundamental principle of management, it is important to measure performance as it identifies the gap between current and desired performance. Managers can use Key Performance Indicators (KPIs) to identify where to take action in order to improve performance. [2]

Key performance management is used to control stage processes in projects, they are used to assign work, monitor work, deal with issues, report progress to the project board and give better insight to take corrective actions. [3]

Using KPIs enables project managers to track progress in a project, giving them a better overview of deadlines, budgets and more, ensuring that the project stays on track.

Controlling time in a project

The purpose of controlling time in a project is to monitor the status of the activities in order to update progress and manage activities in the schedule. The benefit of monotoring processes are that the project manager can recognize deviations in the schedule, and take actions based on this information.

In order to create the KPIs needed to monitor progress, several input factors should be considered:

- Management of the project work

- Project plan

- organisational assets REF+PIC

The KPIs needed for time management in these input factors should include information on the current status of the project, reviews of the current process, time spent in total or by an individual, adjustments to schedule, days spent or cycle times for repeated tasks/activities.

There are various ways of analyzing the different performances in a project, various techniques can be used in order to analyze the inputs:

• Trend analysis

Trend analysis evaluates project performance over time and shows whether performance is increasing or decreasing

A way to measure this would be through reporting/meetings, where the following questions should provide the necessary insights in comparative and directional analysis of the project:

- Is the project aligned to its goal?

- Where are we compared to last performance check, did we improve? did we deteriorate?

- Did the project minimize risks?

- Did the project maintain standards in planning and communication?

• Critical path method

If the project isn't progressing along the critical path there is is Comparing progress along the critical path determines whether or not the project schedule status is

• Critical chain method

• Earned value management

Knowing the current performance is needed when a project manager has to update the schedule

Some of the information needed here

KPIs used for these different factors

PMI link for writing [4]

Controlling time in a program

PMI link [5]

Controlling time in a portfolio

[6] [7]