Performance Reporting - Revision history

Paolo M: /* Measuring Progress and Performance */

2017-09-30T09:23:47Z

Measuring Progress and Performance

← Older revision		Revision as of 09:23, 30 September 2017
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	* Actual cost of resources and activities		* Actual cost of resources and activities
	Those measures are then compared with the expected duration, usage and costs defined before the activity execution. When projected and actual data are available is then possible to make a comparison and identify possible deviations.		Those measures are then compared with the expected duration, usage and costs defined before the activity execution. When projected and actual data are available is then possible to make a comparison and identify possible deviations.

			===Other Project Performance===
			However, the performance control process should not just take in account quantitative values. Also inconsistent issues and behaviors can be identified during the execution of project activities in different knowledge areas, such as Project Value, Quality, or Reputation<ref>Definition of a Project Performance Indicators Model: Contribution of Collaborative Engineering Practices, Marcelo Silva Pereira and Rui M. Lima, 2017</ref>.
			Sometimes it is not possible to measure the intended metrics as they do not manifest in quantitative values. For this reason are introduced other metrics, used as proxy for measurement purpose.
			If some deviation manifests (in the ''schedule, resource, expenditure'' or ''other metrics'') it should be possible to locate the problem in the organization. The report should be capable to explicate causes and responsibilities for overrun. Additionally the report should indicate the forecast for cost overrun in case of midway overrun.

	===Technical Performance===		===Technical Performance===
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	In any case is usually good practice to monitor performance metrics. This measures may include weight, transaction times, number of delivered defects, storage capacity and other physically measurable indexes. Deviation demonstrate more or less functionality than planned at a milestone and can be used to forecast the degree of success in achieving the project's scope.		In any case is usually good practice to monitor performance metrics. This measures may include weight, transaction times, number of delivered defects, storage capacity and other physically measurable indexes. Deviation demonstrate more or less functionality than planned at a milestone and can be used to forecast the degree of success in achieving the project's scope.

	===~~Other~~ Performance===		===Human Performance===
	~~However~~, the performance ~~control process should not just take~~ in ~~account quantitative values. Also inconsistent issues and behaviors can be identified during~~ the execution of ~~project~~ activities ~~in different knowledge areas~~, ~~such as Project Value, Quality, or Reputation<ref>Definition~~ of ~~a Project Performance Indicators Model: Contribution of Collaborative Engineering Practices~~, ~~Marcelo Silva Pereira~~ and ~~Rui M~~. ~~Lima, 2017~~</ref>.		At operational level, managers has to create ad-hoc KPIs an monitor the specific working performance through project management information system. The purpose of these KPI is to measure the performance in the execution of specific activities, closely linked to the achievement of organizational goals. In this case, the are defined by the management and their achievement is usually linked with different kind of rewards. The desired target value for KPI has to be set high enough to challenge the employees to fulfill it. At the same time the targets have to be considered achievable by the personnel to be considered meaningful<ref>Jones, G. R., & George, J. M. (2011). Essentials of contemporary management. Boston: McGraw-Hill/Irwin. </ref>.
	~~Sometimes it is not possible to measure the intended metrics as they do not manifest in quantitative values~~. ~~For this reason are introduced other metrics~~, ~~used as proxy for measurement purpose~~.
	~~If some deviation manifests~~ (~~in the ''schedule, resource, expenditure'' or ''other metrics''~~) ~~it should be possible to locate the problem in the organization~~. ~~The report should be capable to explicate causes and responsibilities for overrun~~. ~~Additionally the report should indicate the forecast for cost overrun in case of midway overrun~~.

	==Comparing Plan against Actual==		==Comparing Plan against Actual==

Paolo M: /* Technical Performance */

2017-09-30T09:10:20Z

Technical Performance

← Older revision		Revision as of 09:10, 30 September 2017
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	===Technical Performance===		===Technical Performance===
	In many case technical performance are taken as granted. However, poor performance can have serious consequences on the execution of the project. The scope statement can contain technical specification about the necessary equipment, with indication of criteria and tolerance limits.		In many case technical performance are taken as granted. However, poor performance can have serious consequences on the execution of the project. The scope statement can contain technical specification about the necessary equipment, with indication of criteria and tolerance limits.
			In any case is usually good practice to monitor performance metrics. This measures may include weight, transaction times, number of delivered defects, storage capacity and other physically measurable indexes. Deviation demonstrate more or less functionality than planned at a milestone and can be used to forecast the degree of success in achieving the project's scope.

	===Other Performance===		===Other Performance===

Paolo M: /* Risk limitation */

2017-09-30T09:02:19Z

Risk limitation

← Older revision		Revision as of 09:02, 30 September 2017
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	=Risk limitation=		=Risk limitation=
			The measurement of performances can both generate and identify criticality within a project. It is important to be aware which is the best measurement setup and how to use the indicators to spot and act on time on variations.
	==Data acquisition==		==Data acquisition==
	Sometimes exists a trade-off between data detail and acquisition cost. Supervising the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task. Smaller project can reduce this risk by adopting other earned value rules:		Sometimes exists a trade-off between data detail and acquisition cost. Supervising the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task. Smaller project can reduce this risk by adopting other earned value rules:

Paolo M: /* Risk limitation */

2017-09-30T08:52:14Z

Risk limitation

@@ Line 213: / Line 213: @@
 =Risk limitation=
 ==Data acquisition==
 Sometimes exists a trade-off between data detail and acquisition cost. Supervising the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task. Smaller project can reduce this risk by adopting other earned value rules:
@@ Line 222: / Line 218: @@
 *'''50/50% rule''', half of the value of the work package budget is earned when the work starts, the other half is earned at completion of the work.
 Nevertheless, in large process is necessary to use the percent rule to allocate earned value.
 = Notes =
 <references/>

Paolo M: /* Risk limitation */

2017-09-30T08:25:41Z

Risk limitation

← Older revision		Revision as of 08:25, 30 September 2017
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	Before the beginning of every project can be necessary to define a contingency reserve. This found has the purpose of covering unexpected expenses. Its size mirror the risk of the project and it should be directly proportional with the the novelty of the project for the firm.		Before the beginning of every project can be necessary to define a contingency reserve. This found has the purpose of covering unexpected expenses. Its size mirror the risk of the project and it should be directly proportional with the the novelty of the project for the firm.
	==Data acquisition==		==Data acquisition==
	Sometimes exists a trade-off between data detail and ~~the~~ acquisition cost ~~of these~~. ~~Supervise~~ the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task.		Sometimes exists a trade-off between data detail and acquisition cost. Supervising the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task. Smaller project can reduce this risk by adopting other earned value rules:
			*'''0/100% rule''', short duration work packages switch from 0 to 100 of earned value when the work is completed
			*'''50/50% rule''', half of the value of the work package budget is earned when the work starts, the other half is earned at completion of the work.
			Nevertheless, in large process is necessary to use the percent rule to allocate earned value.

	= Notes =		= Notes =
	<references/>		<references/>

Paolo M: /* Risks and limitations */

2017-09-29T18:28:52Z

Risks and limitations

← Older revision		Revision as of 18:28, 29 September 2017
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	This measure indicates which value should have each monetary unit to remain into the budget. This means that if TCPI is equal to 2, any DDK spent should worth the double to remain in the budget.		This measure indicates which value should have each monetary unit to remain into the budget. This means that if TCPI is equal to 2, any DDK spent should worth the double to remain in the budget.

	=~~Risks and limitations~~=		=Risk limitation=
	==Baseline variation==		==Baseline variation==
	When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new information. These changes can have both good or bad consequences, and have internal (e.g. Project Managers decide to change the scope) or external (e.g. due to regulatory change ) causes. However, voluntary changes in the scope should occur just when they are necessary for the survival of the project or when they bring significant improvements. From the accounting point of view, past expenditures should not be edited as transfer from different costs account should not be allowed.		When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new information. These changes can have both good or bad consequences, and have internal (e.g. Project Managers decide to change the scope) or external (e.g. due to regulatory change ) causes. However, voluntary changes in the scope should occur just when they are necessary for the survival of the project or when they bring significant improvements. From the accounting point of view, past expenditures should not be edited as transfer from different costs account should not be allowed.
			==Contingency reserve==
			Before the beginning of every project can be necessary to define a contingency reserve. This found has the purpose of covering unexpected expenses. Its size mirror the risk of the project and it should be directly proportional with the the novelty of the project for the firm.
			==Data acquisition==
			Sometimes exists a trade-off between data detail and the acquisition cost of these. Supervise the monitoring points used for percentage completion of the project can raise the costs when more personnel is required for the task.

	= Notes =		= Notes =
	<references/>		<references/>

Paolo M: /* Baseline variation */

2017-09-29T18:05:54Z

Baseline variation

← Older revision		Revision as of 18:05, 29 September 2017
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	=Risks and limitations=		=Risks and limitations=
	==Baseline variation==		==Baseline variation==
	~~It's quite recurring that~~ the project baseline ~~endure some variations~~. These can have both good or bad consequences, and have internal (e.g. Project Managers decide to change the scope) or external ~~sources~~ (e.g. due to regulatory change ). However, changes in the scope should occur just when they are necessary for the survival of the project or when they bring significant improvements.		When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new information. These changes can have both good or bad consequences, and have internal (e.g. Project Managers decide to change the scope) or external (e.g. due to regulatory change ) causes. However, voluntary changes in the scope should occur just when they are necessary for the survival of the project or when they bring significant improvements. From the accounting point of view, past expenditures should not be edited as transfer from different costs account should not be allowed.

	= Notes =		= Notes =
	<references/>		<references/>

Paolo M: /* Taking Action */

2017-09-29T18:03:53Z

Taking Action

← Older revision		Revision as of 18:03, 29 September 2017
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	<math>TCPI=\dfrac{BAC-EV}{BAC-AC}</math> <br>		<math>TCPI=\dfrac{BAC-EV}{BAC-AC}</math> <br>
	This measure indicates which value should have each monetary unit to remain into the budget. This means that if TCPI is equal to 2, any DDK spent should worth the double to remain in the budget.		This measure indicates which value should have each monetary unit to remain into the budget. This means that if TCPI is equal to 2, any DDK spent should worth the double to remain in the budget.

	~~==Taking Action==~~
	When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new information.
	The project manager should train and communicate the importance of maintaining reporting system to the project members. From the accounting point of view, past expenditures should not be edited as transfer from different costs account should not be allowed.

	=Risks and limitations=		=Risks and limitations=

Paolo M: /* Taking Action */

2017-09-29T18:03:02Z

Taking Action

← Older revision		Revision as of 18:03, 29 September 2017
Line 213:		Line 213:

	==Taking Action==		==Taking Action==
	When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new ~~informations~~.		When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new information.
	The project manager should train and communicate the importance of maintaining reporting system to the project members.		The project manager should train and communicate the importance of maintaining reporting system to the project members. From the accounting point of view, past expenditures should not be edited as transfer from different costs account should not be allowed.

	=Risks and limitations=		=Risks and limitations=

Paolo M: /* Risks and limitations */

2017-09-29T18:01:01Z

Risks and limitations

← Older revision		Revision as of 18:01, 29 September 2017
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	=Risks and limitations=		=Risks and limitations=
	==~~Staff involvement~~==		==Baseline variation==
	~~One of~~ the ~~biggest challenges for a manager is to communicate to the staff the importance of reporting~~. ~~Many times professional tend to consider reporting as a second category activity~~, ~~compared to their other task~~.		It's quite recurring that the project baseline endure some variations. These can have both good or bad consequences, and have internal (e.g. Project Managers decide to change the scope) or external sources (e.g. due to regulatory change ). However, changes in the scope should occur just when they are necessary for the survival of the project or when they bring significant improvements.
	~~For example, a procurement manager requires from his/her buyers~~ to ~~fill into a monthly report~~ the ~~actual purchase value~~.~~However the manager does not communicate~~ to ~~the buyers how the result of the report will be used~~. ~~The buyer will feel~~ in ~~that case really little motivated and will give a low priority to the task.~~
	~~==Metrics and behaviors==~~
	~~The choice of~~ the ~~most suitable KPIs for the achievement of goals and performances is one of the biggest challenge of reporting design. The target of indicators~~ should ~~be to monitor a performance~~ necessary for the achievement of a goal. However, not always the chosen KPIs promote the intended behavior. Indicators measures quantifiable outputs. If reward system is based only on the achievement of that value, employee will do everything in their power to maximize the indicator. This can lead to bigger amount of ~~service, neglecting~~ the ~~quality. For this reason KPI must be monitored and fixed~~ when they ~~generates anomalies<ref>https://www.linkedin.com/pulse/do-your-kpis-performance-targets-cause-crazy-behaviour-bernard-marr/</ref>~~.

	== Notes ==		= Notes =
	<references/>		<references/>