Performance Measurement

In: Business and Management

Submitted By pennymyers
Words 834
Pages 4
Performance Measurement
Penny Myers
MGT 437
April 18, 2011

Performance Measurement

Successful companies invest time, money, and resources in projects with the goal of earning a return on investment. The project manager ensures projects stay on schedule and within budget and performance management gives the project manager visibility to ensure they are operating within the agreed upon time and cost constraints and that the project is performing according to plan. Performance measurement is important because it is the process an organization uses to establish parameters to reach desired results (Schied, 2010). Measuring project performance allows the project manager to identify cost and schedule problems and take action to remedy problems quickly. Measuring project performance also provides the organization with a picture of how healthy the project is and can help establish improvement initiatives. When managing a project, triple constraints of budget, time, and performance are important measures. The budget is managed by controlling resources according to the financial plan of the project. Time keeps the team on schedule and allows meeting of deadlines. Performance measurements should be created by project and be based on the scope, goals, and objectives of the stakeholders (Schied, 2010). Measurements are specific to each project but three measurements that could be used to measure performance include speed, accuracy, and volume. Speed shows the rate of movement of the production process or final product made during the project and shows the pace at which the final product functions. Time measures the overall schedule of the project. Accuracy is another performance measure as it shows how well the project that was assembled functions. It measures the correctness or quality of the project’s deliverable. A project team could assemble…...

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