How to Evaluate Project Performance?

How to Evaluate Project Performance ?

Construction Projects Completion requires big-budget and timelines so the Project Planning Control team needs to stick with Project performance evaluation. Project Performance will be calculated with respect to time and project cost. Earned Value Management Analysis is Project Management Process that guides the project team to visualize project performance.

Earned Value Management Analysis:

Earned Value Management (EVM) is a project management Technique that integrates cost, schedule, and Project scope of work, to evaluate Project Performance with respect to Project approved baseline and guide the Project Team with the help of the three Following analysis Techniques

1-Variance analysis

2-Performance analysis

3-Forcast Analysis

Key Performance Indicator:

KPI dashboard will be comprised of visual graphs representing Project Performance same like we see in Cricket Matches to get a quick idea about Cricket Team Performances Whereas Number values will give us insights about the same idea as we are driving car and speedometer tell us how fast or how slow we are driving.

In Put Data for Earned Value Management Analysis KPI Dashboard:

PV (Planned value)

Planned value is the budgeted cost for work scheduled (BCWS). PV varies based on the scope of work in consideration and the point where you’re at in the overall schedule.
PV = Total project cost * % of planned work

For example, let’s say, the PV for your 5-month project is $25,000:
PV for the complete project = $25,000
PV at 2 months = $25,000 * 40% = $10,000
You can also calculate PV for a time period, say, month 2 to month 4 = $25,000 * 60% = $15,000.

EV (Earned Value)

Earned Value (EV)

Earned value (EV) is value to calculate and monitor the quantum of work completed on a project against the Approved Project baseline.

Now, this is where EVM gets interesting. You’ve made a plan to finish some amount of work and budget accordingly. But due to some risk, the project team could not get as it was planned to achieve
The question, then, is, what’s the budgeted cost for this work? EV, also called as budgeted cost for work performed (BCWP), gives you the answer.
In our example:
EV = Total project cost * % of actual work = $25,000 * 30% = $7,500

AC (Actual Cost)

Actual Costs (AC)
Actual costs also referred to as actual cost of work performed (ACWP), is relatively straightforward. If you are using robust project cost management software, tracking actual costs should not be a challenge. However, it’s important to remember to include several hidden costs—material, resources, hardware, software licenses, overheads, etc.
You can look at AC cumulatively, accounting for all the activities done from the beginning of the project to date or over a specific time period.
In our example, let’s assume, AC at the end of 2 months = $15,000

About Trainer

Engr Waqas Ahmed is Professional Seasoned Project Planning Control Trainer along with Construction Management Application on Primavera 6. He worked on Mega oil and gas project while serving in Saudi Arabia UAE Offshore and onshore Projects.

You can connect with him for Training for

Construction Planning Control using Primavera 6
Maintenance Planning Control using Primavera 6
Delay Analysis and Claims Management using Primavera 6

To Learn Variance Analysis ,Performance Analysis and Forecast analysis here are links for Blogs

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