Key Performance Indicator (KPI), as is common in most industries around the world, is a type of performance measurement by which organizations and workplaces review or evaluate success as related to particular activities in the organization.
In the work environment, success may be evaluated by the achievement of laid down organization goals which may include customer satisfaction, on-time delivery, prompt response or even zero defects.
Besides, then you’d appreciate the value of software like the Sinnaps, Project Management tool, that improves KPI measurement for your business.
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KPI in Project Management
KPI in project management refers to specific measures for reviewing success with regards to a particular project. Quality KPI monitoring is often an effective activity to providing a balanced scorecard in project management, throughout the life-cycle of a project. KPI project metrics can help you measure cost, time, scope as well as quality of any given project. Besides, it’s good to know some of these project management functions to improve your KPI.
So what are the types of Key Performance Indicators that project managers should be interested in?
Planned Value: Also referred to as Budgeted Cost of Work Schedule (BCWS), helps you to compare the project activities that have been carried out to see if you’re running ahead of schedule or rather if you have spent more than you were allocated for a particular date.
Formula of this KPI in Project Management:
PV = (Planned % of task left to complete) x (Project budget), Or
PV = (Hours left scheduled on the project) x (Project workers hourly rate)
- Actual Cost: This project metric lets you see how much funds you’ve expended on a project till date. It is also known as Actual Cost of Work Performance (ACWP).
- Earned Value (EV) Project KPI: This KPI schedule metric is also known as Budgeted Cost of Work Performed (BCWP), and lets you see at a glance, what the approved budget of all project activities performed by a specific date. It shows you how much of the planned work you have accomplished as well as the budget.
- Cost Variance (CV): This easily lets you see if you’re still within or have exceeded your budget. In essence, it reflects the projects expenses. This is simply gotten by comparing the planned budget to actual budget at any given time.
- Cost Performance Index (CPI): This gives an indication of the time ahead or behind an approved project schedule. This is an indicator of project efficiency.
Schedule Performance Index (SPI). This KPI in Project Management has the formula:
SPI = (Earned Value)/ Planned Value).
In simple terms, this serves to show you whether the project is moving ahead or below schedule. If the value is less than the value = 1, then it means that the project is potentially behind schedule. While, if it is greater than 1, it means the project is quite ahead of schedule.
Other KPI Project Metrics Include:
- Labor Cost
- On time Delivery KPI
- Resource Allocation
- Return on Investment
- Planned Hour of Work Versus Actual Situation
- PMO KPI Model
- Schedule Variance, etc.
Related links…
Employee KPI (Key Performance Indicator) Examples
One key factor for increasing productivity and lowering production cost is employee engagement. There are certain ways by which business can increase employee engagement to achieve even greater results.
- Time – Bound: Measuring certain factors against time has been found to be very effective. Examples may include setting project targets to be met per day, or month, quarterly or annually.
- Relevant: Project managers must strive to ensure that KPI metrics that have been chosen are in consonance with organization goals.
- Attainable: Setting unrealistic goals the greatest way to demoralize employees. Therefore, managers must ensure that each set target is realizable.
- Measurable: Putting a figure on the performance of employees, such as how many orders an employee processes per day, is the best way to define what is being measured.
- Specific: A clear-cut plan of action on what has to be done, or schedule to be met, will help align employees towards a specific goal.
KPI Format
Various KPI formats exist, and choosing the right one will largely depend on your industry, as each department may measure performance based on distinct goals. Some business KPI example include:
Business KPI examples List
- Sales Metrics and KPI
- Social Metrics and KPI
- Financial Metrics and KPI
- Human Resource Metrics and KPI
Project Management KPI Template Excel
The best way to stay on top of a project schedule is tom have data about it. Several KPI templates lets you see at a glance, whether you’re failing on schedule, so you can take action to get it back on track.
If you report on activities daily, then you’d appreciate the value of a KPI IT software like the Sinnaps Project Management tool that improves KPI measurement for IT departments, allowing them to update project progress in real-time, generate and share reports between teams, and also make quick and informed decisions based on data, and generally encouraging a balanced scorecard in project management.
If you need to control your project’s resources, Sinnaps offers you complete resource reports in just one click.
Project KPI Dashboard Excel
Good project KPI dashboard examples may allow managers to generate progress reports on a project as at when needed. They let you see every aspect of the project based on cost, time, budget, schedule, risks, etc. It enables real-time data delivery with information usually in simple formats and graphs. IT KPI examples for managers can easily let them perform tasks such as generate graphic representations for visual learning. It may also permit you to carry out tasks such as:
- Input tasks: Adding project tasks into project dashboard
- Schedule Task Duration: Specifying how long each task will take
- Workloads: This section is represented by a bar chart, and shows who is doing what, what tasks are complete, ones that have been started or overdue.
- Cost: Easily calculate your planned value, to see if your expended costs are in line with the planned budget.
Whether you’re handling a small business project or not, the KPI factor is one to really consider. This is because they can easily show you whether you’re making headway or not, giving you the room to make the necessary adjustments and improvements when needed.
