Performance Measurement includes the planning and statusing of project progress and
productivity based on the following principles:
- Integration of schedule and cost elements to create performance measurement baselines
using the Work Content Budget and schedule for each account code in the Work/ Cost
Breakdown Structures (WBS/CBS).
- Measurement of subsequent project performance against pre-established baselines.
- Reporting and analyzing deviations.
5.1. Performance Measurement Methods
- Defined at the work operation (Work Ops) level.
- Job leaders are responsible for preparing scope definition (specifications, drawings,
data sheets, etc.) and set-up of the Engineering Performance Measurement.
- Allocate budget and review predetermined milestones with percentage completion
for each work op item.
- Progress percent complete is credited to each work ops item as milestones are reached.
- Physical progress for total engineering measured by adding the earned workhours
for each engineering account and dividing by the Work Content Budget is carried out
by Project Controls Schedulers.
Based on milestones established for performance achievement steps, e.g. inquiry issued,
materials purchased, material delivered and material installed.
Progress is measured by the actual physical quantities installed. Installed quantity
divided by the total quantity adjusted workhour budget gives the physical percent
complete. Earned workhours are calculated by multiplying the installed quantities
by the budgeted unit labor hours for the material.
The sum of the earned hours for the different crafts divided by the total Work Content
Budget hours for all the crafts provides the overall construction completion percentage.
5.2. Performance Measures
The performance measures will be reported for most projects in the monthly Project
Status Report. These factors are ratios of earned workhours versus expended workhours
such that ratios greater than one are good and less than one are poor performance.
5.3. Project Team Roles for Performance Measurement
The Project Manager (PM) is responsible for setting performance standards as a basis
for measuring the performance of the project team during all phases of a project
with a view to maximizing profit, achieving client satisfaction, and rewarding staff
for superior performance.
- The performance standards should reflect the goals, as agreed with the client,
of cost/ schedule/ quality/ safety and operability specific to the project. Overall
responsibility for direction and control of project.
- Approve necessary documents.
- Keep client and COMPANY management informed, utilizing the capabilities of the
project control team to assist with the management of change and to provide analysis
and forecasts to permit any deviations from plan to be corrected.
- Responsible to the PM to implement and monitor performance measurement and control
- Advise Project team of deviations from established plan and possible corrective
action, at as early a point in time as possible.
- Provide reports, as necessary.
Project Team Members
- Support in the above activities, as required, in a timely manner to include providing
deliverable status and estimates to complete as well as verifying reported status.
- Keep PM and Project Control informed of areas of concern, which may impact schedule
- Immediately identify changes to the defined scope of work and the impact of the