Metric is simply the system of measurement. When managing a project certain metrics are used specifically to meet the goals. Project metrics can be used to keep proper track of project status and better reporting. This makes easy to identify the areas where project requires more attention.
Chapter 15 touches key metrics in depth.
The earned value measurement system: Earned value is a technique that relates resource planning to schedule and technical planning. This metric allows to see what work has been completed and it’s integrating cost, schedule, technical performance, risk management etc. EVMS helps to identify what stage the project is, the problems related to the project and how to fix them.
Variance and earned Value: Variance is a deviation from specific plan which must be tracked and reported.
Budgeted cost for work scheduled (BCWS): is the budgeted amount of cost & level of effort be accomplished in a given time period
Budget cost for work performed (BCWP) sometimes referred to as earned value is the budgeted amount of cost for completed work and effort activity completed within a given time period
Actual cost for work performed (ACWP) is the amount reported as actually expended in completing the work accomplished within given period of time.
Schedule variance: schedule variance compares between planned and actual performance but doesn’t include cost.
SV = BCWP – BCWS
Cost variance: Cost variance compares deviation only from budget
CV = BCWP – ACWP
The articles purchased cost more than was planned, called a “price variance.”
PV = (Budgeted price Actual price) * (Actual quantity)
More articles were consumed than were planned, called a “usage variance.”
UV = (Budgeted quantity Actual quantity) * (Budgeted price)
Variances may be dependent on factors such as:
● Life-cycle phase
● Length of life-cycle phase
● Length of project
● Type of estimate
● Accuracy of estimate
Talking about my experience with metrics, with reference to the project for this course, some of the metrics we used to keep up with the timeline, scope and budget were work breakdown structure and charts. We use the status report based upon the data accumulation to review the program status. This review is normally on the basis of changes required in the project. Regarding the monetary phase the actual cost for work performed on our app was more than budgeted cost for work scheduled. It altered as we proceeded with the updates on the app. Project prices are based upon the best guesses rather than perfect calculations. Some of the typical elements that must be justified are labor rates, overtime which could increase the cost and allowance must be made for possible mistakes made during overtime, scrap factors if the project involves raw materials, risks and hidden costs. For the project I am involved in, our best guess was around $650,000 but as we proceeded with the updates the cost turned out to be nearly $ 720,000. This can be considered as variance. Cost variance in this case is around $82,000 and the schedule variance is increase in timeline i.e. there is an increase in 7 days. Clearly our Cost Performance index = 0.9 <1 that means almost perfect cost performance and schedule variation index = 0.9<1 means the pace of project is under the scheduled time. Tracking these changes and reporting helps us to keep on top of our project status and report each other accordingly.
Metrics helps in analyzing the status of the project. Project management metrics should be chosen carefully and only those that is applicable to the specific project and not the standard industry metrics.
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