It can be calculated by dividing the earned value by the actual cost.Ĭost Performance Index = Earned Value / Actual Cost This metric measures how well a project meets or stays within its budget. The higher the cost variance, the more the project is over budget. It is calculated by subtracting actual cost from planned cost.Ĭost Variance = Planned Cost – Actual Cost This measures how much the project budget has changed from the original plan. Schedule Variance = Planned Duration – Actual Duration Cost Variance It is calculated by subtracting actual duration from planned duration. This metric measures how much the project schedule has changed from the original plan.
Some EVM elements include schedule variance, cost variance, and cost performance index. Earned value management provides accurate information in terms of schedule and cost so you can assess performance properly. This allows for the identification and analysis of variances and performance. Key Project Metrics in Project Management Earned Value ManagementĮVM helps measure project performance numerically. The project management metrics should be: Once you understand your requirements, finding your metrics will be easy. Examining the data being collected and used to make decisions.Identifying Key Performance Indicators (KPIs).Asking questions about what you want from these metrics.
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How to Choose Project Management Metricsįirst, determine the objective you want to achieve. No one size fits all, so you must tailor the metrics to suit your requirements. Project management metrics enhance the quality of your deliverables, provided that they are relevant and meaningful to the project. Project metrics allow you to identify issues and opportunities to improve the process. If a certain milestone isn’t met, you should take corrective action. These show you whether you are meeting your planned progress or not. You can use project management metrics to track parameters like resource utilization, cost performance, and schedule projections. Metrics are tracked and validated during each milestone to confirm that everything is going as planned. You will identify them as per your organization’s guidelines in the initiation phase. Project management metrics have a critical role in monitoring and controlling project progress. Project management metrics show you how well you are doing and can help find room for improvements.Ĭost, time, scope, quality, risk, and other data can be metrics, so you must select which ones best suit your objective.
If you are into project management, you know the importance of tracking your progress.
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