16 Essential Project KPIs
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See the list of essential project KPIs that every manager needs to get a complete overview of your project performance
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You will learn:
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What Is Earned Value?The dollar amount you planned to spend for the work actually completed
Earned Value is the budgeted cost of the work that has actually been performed/completed
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The work that has actually been completed
--- Compared To ---
The work that was scheduled to be completed
Why Is Earned Value Analysis Important?EVA enables the project team to know:If the project is ahead of, or behind schedule
How far the project is ahead of, or behind schedule
If the project is over or under budget
How much the project is over or under budget
Why Is Earned Value Analysis Important?EVA enables the team to address the project’s triple constraints earlier rather than later Scope – re-prioritize/reduce requirements
--- and/or ---
Schedule – adjust the timeline
--- and/or ---
Cost – request additional funding
The Components of Earned Value Analysis WBS – Work Breakdown StructureIdentifies products to be delivered by the project Products or sub-products should be broken down to what can be completed in 80 hours (“80-hour rule”), when applicable
Provides the basis for Distinct products or sub-products – which help to provideValid estimates – which enableTracking earned value / project progress
The Components of Earned Value Analysis Earned Value (EV) ---- or BCWPThe budgeted cost of the work actually performed How much work was actually completed
Planned Value (PV) ---- or BCWSThe budgeted cost of the work scheduled to be performed How much work should have been completed
Actual Cost (AC) ------- or ACWPThe actual cost of the work performedHow much money has been actually spent
The Components of Earned Value AnalysisBudget at Completion (BAC)Dollar amount originally budgeted to complete the project
Estimate at Completion (EAC)Estimate of dollar amount needed to complete the project
Variance at Completion (VAC)Estimate of the dollar amount projected above or below budget
Schedule at Completion (SAC)Projection of the time needed to complete the project
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The Components of Earned ValueSchedule Performance Index (SPI)Utilized to forecast how long it will take to complete the project
SPI = (Earned Value / Planned Value)
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16 Essential Project KPIs
- 1. ESSENTIAL PROJECT KPIs 16 To get a complete overview of your project performance
- 2. Planned Value (PV)1 Also referredto as Budgeted Cost of Work Scheduled (BCWS) The planned value is the estimated cost for your project activities planned/scheduled as of reporting date.
- 3. Compare the Planned Value with other project KPIs to see whether you’re runningahead of schedule or have already spent a bigger slice of your budget than scheduled to date. Planned value = (the hours left scheduled on the project) X (project worker’s hourly rate) Planned Value = (Planned % of tasks left to complete) X (project budget)
- 4. Actual Cost (AC)2 Also referred to as Actual Cost of Work Performed(ACWP) Indicates how muchmoney you have spent on a project as to date,
- 5. Earned Value (EV)3 Also referred to as Budgeted Cost of Work Performed(BCWP) Shows the approved budget for all the performed project activities by a specified date.
- 6. This image cannot currently be displayed.
- 7. WANT TO LEARN MORE ABOUT KPI TRACKING? See the complete guide to KPIs SLIDESHARE CONTINUES
- 8. Return on Investment (ROI) 4 Reflects on the project’s profitability and shows whether the benefits of the project exceed its cost.
- 9. Cost Variance (CV)5 Indicates whetherthe estimated cost of your project is below or above the planned baseline. To calculate the Cost Variance, compare the Planned Budget to Actual budget at a given time.
- 10. Cost Performance Index (CPI) 6 CPI is the ratio of the planned budget to what you’ve actually spent to accomplish these tasks. Shows how much time you’re behind or ahead of the approved project schedule.
- 11. Cost of managing processes 7 Indicates the time and resources spent on supervising and managing the project.
- 12. Planned hours of work vs actual situation 8 Shows how many working hours were plannedfor the project processes compared to the actual time spent.
- 13. Overdue project tasks9 Gives an overview of how many project activities are overdue. This KPI is a calculated percentage of projects with crossed deadlines compared to all the completed project activities.
- 14. Schedule Variance (SV)10 Shows how much ahead or behind of plannedbudget (and scheduled work) your project is running. SV = Earned Value (EV) – Planned Value (PL)
- 15. Schedule Performance Index (SPI) 11 Shows whether you’re ahead or behind the plannedproject schedule. To calculate Schedule Performance Index, divide the project’s Earned Value (EV) with the Planned Value (PV).
- 16. If the Schedule Variance Index is less than one, it indicates that the project is potentiallybehind schedule. If the SPI is greater than one, it indicates that the project is running ahead of schedule.
- 17. Missed milestones12 Indicates whether you’ve overestimated your capacities and are running behind the schedule or you’re doing just fine, never missinga milestone.
- 18. Percentage of tasks completed 13 Measures the time spent on completed tasks. Enter the planned time for each project activity so that the KPI won’t reflect the number of various-size tasks but the time spent.
- 19. Resource utilization14 Measures how the time of team members is used while working on the project. It also implies how much time are people working on billable activities compared to the time spent on non- billable tasks.
- 20. Projects completed on time 15 Indicates the amount of projects completed on time compared to crossed deadlines.
- 21. Number of cancelled projects 16 Indicates the amount of unaccomplished projects. Perceive the percentage of cancelled projects as a reflection on the sustainability of your business decisions.
- 22. THANK YOU! This slideshow is based on the article 16 ESSENTIAL PROJECT KPIs. See the article You can find the article in Scoro blog.