Success, when it comes to construction projects is more of a moving target. It is easy to determine success after you have finished your project. However, the real question is, how do you measure it while you are working on the project? This process embraces a large number of variables, and all of these need to be monitored carefully if you wish to attain success beyond the results. This will help you not only keep track of all your movements but to build a better team as well.
Here is what we suggest you for a successful project performance measurement:
Whenever you plan a construction project, it is necessary to find out what expenses might be incurred to determine a specific budget for the project. This specific budget or value is called the Planned Value. When it is calculated before a project is started, it is called Budgeted Cost of Work Schedule. The total Planned Value is also called the Budget at Completion. This is an important factor to measure your performance against. To calculate this number, take the percentage of work completed at any stage and multiply it by the budget at completion or total planned value. The higher this number is, the more value of work you are being done.
When you complete any specific construction project within the required time, you consider it as a huge success. However, the truth is far from that. The Budget is one of the imperative things to consider while completing a project. You must determine how much money you spend versus how much work is accomplished with that money. Spending too much money to accomplish just a small amount of work is harmful to the project.
It is necessary to determine what you actually spent on the project versus what you should have spent. This is known as Cost Performance. To measure cost performance, a factor called cost variance is used. Cost variance is the difference between the actual cost and the earned value. This will help you determine whether you went over budget or under budget during a project. For example, if you planned for the construction of a glass ceiling-ed mini greenhouse to be under $10,000 but after the project, you find you actually spent $11,000, then your cost variance comes up to be $1,000 under budget.
Key Performance Indicators:
A Key Performance Indicator is a value that can be measured to determine how far your project has gotten to achieve its defined tasks. Many organizations and project planning businesses use KPIs to measure their success to achieve their business goals. KPIs are divided into two types. High KPIs focus on the entire organization as a whole, while low KPIs focus on certain tasks within the organization such as sales, marketing etcetera.
The Balanced Scorecard is a strategy design technology that ensures your scorecard of measures or KPI has balance. Although it does not explain how to design or measure KPIs, it does help you to decide which factors are important and should be chosen. To create and use these measures of performance, it is important to integrate a measurement methodology with the balanced scorecard. To learn how to do that for more details you can visit Stacey Barr’s website. Stacey Barr is a performance measurement professional who provides all the insights you need into the world of KPIs. Her website also features a free KPI Training Course.