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 many different subjects in 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.