Top 10 Project Management KPIs Explained

On this weblog, we’ll discover an important challenge administration key efficiency indicators, generally known as challenge administration KPIs or just challenge KPIs and the advantages of utilizing them in the course of the challenge life cycle.

Consider, say, like your dashboard in your automotive that will help you decide, are you going too quick, are you going too sluggish? Consider a GPS system while you’re driving someplace that helps you realize completely different routes. Possibly challenge KPIs may give you some different routes in your challenge.

Associated: How Undertaking Managers Use Dashboards to Observe KPIs

What Are Undertaking Administration KPIs?

Undertaking administration KPIs assist challenge administration groups maintain observe of essential targets on a challenge. These challenge administration KPIs revolve across the triple constraint, the place we’re continually wanting on the time, the associated fee, the scope and the standard of the challenge.

So the highest three KPIs that we discovered as challenge managers, to assist us gauge our efficiency, are these. To begin with, we take a look at the challenge schedule. We need to know, are we on schedule? Are we delayed? If we’re delayed, what are the issues that we have to do to get it again on schedule?

Then, for the challenge scope, there are challenge administration KPIs that enable monitoring the progress of the challenge crew to make sure that the duties outlined within the challenge plan are accomplished on time, below price range and assembly the corresponding high quality requirements.

ProjectManager is an award-winning challenge administration software program geared up with a full suite of challenge planning, scheduling and monitoring instruments resembling Gantt charts, kanban boards, workload administration charts and lots of different options that will help you handle initiatives from begin to end. It’s geared up with strong challenge dashboards that enable challenge managers to watch challenge progress, budgets and timelines in actual time. Get began without spending a dime immediately.

We additionally take a look at the useful resource allocation all through the challenge. We need to know, do now we have sources which can be over-utilized or under-utilized? If in case you have sources which can be over-utilized, that’s going to extend your price. If in case you have them under-utilized, you could want to have a look at, primary, are these sources that you need to use to assist the others who could also be over utilized? In the event that they’re under-utilized, you’ll want to look nearer to verify, are they really finishing their work? They might want some extra coaching or assist to get their work completed.

And the third one is labor price. You need to maintain a detailed eye in your labor price to see, are you over price range? Are you below price range? And what are the issues you’ll want to do to get it again on observe if there’s a price overrun? However in case you want a software that may aid you handle your KPIs, then join our software program now at ProjectManager.

High 10 Undertaking Administration KPIs

Under are the highest 10 KPIs for challenge administration. Whether or not you’re new to challenge administration or a veteran, these KPIs may help you keep on observe.

1. Internet Revenue Margin

The online revenue margin is a monetary ratio that appears at an organization’s profitability based mostly on the web revenue or revenue generated from every greenback of income. The upper the web revenue margin, the extra worthwhile an organization is.

Internet revenue margin = (Internet revenue / Whole income) x 100

2. Schedule Variance

Schedule variance (SV) is a challenge administration metric that measures the distinction between a challenge’s deliberate and precise progress at any given cut-off date. Use SV to find out whether or not is forward of schedule, delayed or on observe.

Schedule variance (SV) = Earned worth (EV) – Deliberate worth (PV)

3. Value Variance

Value variance (CV) is one other challenge administration KPI that measures the distinction between a challenge’s budgeted price and its precise price at any given time. This KPI helps decide if the challenge is below or over price range.

Value variance (CV) = Earned worth (EV) – Precise price (AC)

4. Schedule Efficiency Index (SPI)

Schedule efficiency index (SPI) measures how environment friendly a challenge’s schedule is. It compares the precise progress to the deliberate progress.

SPI = Earned worth (EV) / Deliberate worth (PV)

 

5. Value Efficiency Index (CPI)

One other essential KPI in challenge administration is price efficiency index (CPI). This metric measures the associated fee effectivity of a challenge by evaluating the budgeted price of labor carried out to the precise price of labor carried out.

Value efficiency index (CPI) = Earned worth (EV) / Precise price

6. Return on Funding (ROI)

The return on funding (ROI) measures the profitability of an funding relative to its price. This is without doubt one of the most essential challenge KPIs to guage the effectivity and effectiveness of an funding.

7. Deliberate Worth (PV)

Deliberate worth (PV) describes the budgeted price of labor scheduled for a selected time interval. It’s also referred to as the budgeted price of labor scheduled.

Deliberate worth (PV) = Budgeted price of labor scheduled

8. Earned Worth (EV)

Earned worth (EV) is a challenge administration approach that measures the precise worth of the work accomplished up to now. This key metric assesses challenge progress and efficiency.

9. Useful resource Utilization Charge

Useful resource utilization charge measures the effectivity of useful resource allocation in a challenge or group. It exhibits the share of time a useful resource, resembling a crew member or piece of apparatus, is actively engaged on billable or productive duties.

Useful resource utilization charge = (Precise hours labored / Whole accessible hours)

10. Undertaking Burn Charge

The challenge burn charge is a monetary challenge KPI that appears at how rapidly a challenge is consuming its price range over a selected interval.

Undertaking burn charge = Whole challenge price range / Undertaking length

Why Is It Vital to Use Undertaking Administration KPIs to Observe Undertaking Efficiency?

The KPIs are essential measures that assist us decide, at a fast look, the place we’re. It helps us immediately discern the standing, and it’s merely a tough information. So we continually take a look at these measures to assist us as a guidepost to understand how we have to navigate on our challenge.

For challenge administration KPIs to work as supposed, among the finest practices in deciding on the KPIs on your challenge are that you just develop these KPIs collectively with the people who find themselves concerned. You additionally get the stakeholders to agree on these KPIs. You additionally have to make it possible for they’re related to the challenge. If you happen to’re measuring issues that aren’t relative to the challenge, then you definitely’re going to be spending time with no outcomes. Additionally, once more, you need them particular and measurable.

Learn how to Use ProjectManager to Observe Undertaking KPIs

KPIs in challenge administration are extremely essential, however you want a robust software that may make monitoring them that a lot simpler. That’s precisely what you may count on with ProjectManager, award-winning challenge administration software program. We’ve a number of instruments that accumulate information in actual time so you may work confidently figuring out that you just’re utilizing essentially the most up to date challenge and portfolio information.

Actual-Time Undertaking Administration Dashboards

ProjectManager’s real-time challenge administration dashboards routinely accumulate and observe six key challenge metrics together with information on general challenge well being, duties, progress, time, price and workload. Make the most of the color-coded graphs to rapidly know in case your challenge is progressing because it ought to or if there are bottlenecks that require your consideration.

A number of Undertaking Planning and Scheduling Views

Productiveness can happen no matter how your crew prefers to work. ProjectManager affords a number of challenge views together with the Gantt chart, kanban board, activity checklist, sheet view and calendar. Probably the most highly effective planning software is the Gantt chart view the place the challenge supervisor can add pertinent info resembling deliberate versus precise information, assignee, precedence degree and extra. If one other crew member prefers to work utilizing the kanban board, all the information transfers over in actual time.

Strong Useful resource Administration Options

While you’re onboarding your crew, be certain to set their availability to make it simpler to know when to assign them duties. The crew web page makes it straightforward to determine PTO, trip time and world holidays. To see who’s overallocated or who might use further duties, use the color-coded workload chart that gives simply digestible information at a look. Different useful resource administration options resembling timesheets routinely populate as information is entered into the challenge. ProjectManager makes it straightforward to maintain everybody working at capability so you may hit your goal KPIs.

Video: Undertaking Administration KPIs Defined

Jennifer begins by explaining that KPI stands for Key Efficiency Indicator, in virtually any business. We’ve private KPIs that we’d have to achieve as a part of our efficiency evaluate course of at work. After which there are KPIs which can be used to measure efficiency throughout groups or initiatives or complete sectors and industries.

For challenge managers, KPIs might be these particular measures for figuring out success on a challenge. Jennifer defined which you could use your KPIs as a information that will help you via your challenge. These are the guideposts that may aid you measure the time, price, scope, and high quality of the challenge. So what must you be monitoring?

The highest three stuff you’ll need to maintain observe are as follows:

1. Schedule
2. Useful resource allocation
3. Labor prices

Professional-Tip: Set up particular and measurable KPIs in live performance with the important thing stakeholders in your challenge and your crew. Getting purchase in from all events is important.

Take it additional: If you happen to’re concerned about a extra in-depth take a look at challenge KPIs, learn learn how to set up a framework of KPIs on this article by PMI authors Gareth Byatt, Gary Hamilton and Jeff Hodgkinson

Thanks for watching!

Associated Undertaking Administration Content material

We’ve created a whole bunch of blogs, templates, ebooks and movies on challenge administration matters that will help you handle initiatives efficiently. Listed here are some which can be associated to challenge administration KPIs.

ProjectManager is on-line challenge administration software program that connects groups whether or not they’re working within the workplace, on the job website or wherever in between. They’ll share recordsdata, remark on the activity degree and extra. Be a part of groups at firms resembling Avis, Nestle and Siemens who use our software program to ship profitable initiatives. Get began with ProjectManager immediately without spending a dime.