2. • When do we say that the performance of any
project is good or not ?
The performance of a project is good when it
is completed based on time constraints,
specified budget and project specifications.
Otherwise the project ends up with failure.
3. • Some of the reasons for the poor performance
of a project are:
If it is abandoned at half the way.
If it is not producing a specified quality of a
product.
If it becomes sick soon after going in to the
commercial production.
4. Performance Indicators
• The investor, project manager and also the
public must be given with some indications
about the management while the project is
still in progress.
5. • Some of the performance indicators are:
Time over-run
Cost over-run
Project sickness
Productivity
Value
6. 1) TIME OVER-RUN:
This basically means not sticking to a pre-planned time schedule of the
project. In order to get the job cleared through the approving authorities,
a schedule may be fixed which can be far away from realistic.
The vendors and contractors may just add to the confusion by promising
deliveries which can make anything possible on paper.
Besides, some subsequent modifications or changes have to be made to
suit the project requirements which in turn increases time and cost.
2)COST OVER-RUN:
Anything done to a project including time over-run would be reflected in
the cost.
Cost estimates in a project are to be revised at various stages to improve
their accuracy.
Cost over-run is used to represent the variance between the original cost
and the final cost incurred.
7. 3)PROJECT SICKNESS:
An efficient project manager is the one who makes the best possible use
of resources for achieving the project objectives.
What ever the project manager does w.r.t the resources will be reflected
in the cost and what the project manager provides in return to justify this
cost is a plan which is to be called successful and must provide a saleable
output.
The ratio of this output to the cost incurred for putting up the plan could
be an indicator of a project management performance.
4)PRODUCTIVITY:
A productivity indicator reflects how the resources have been utilized
either for production of goods and services or for creation of facilities for
the same.
Productivity is mainly measured to ensure the profitability of the plant and
to ward of the sickness.
8. 5)VALUE:
Value in this context, indicates the quality of the
products or services that are the final outcome of a
project.
If the product or services do not meet customers
requirement, then the ideas such as time over-run,
cost over-run, high productivity, all become redundant.
PROGRESS CONTROL:
It requires a continuous monitoring during the
production phase.
There must be a right contractual stipulations
regarding warranties and guarantees.
9. • What are Guarantees and Warranties?
Guarantee is a promise given to the purchaser
that a particular product would work
satisfactorily for a given period of time.
Warranty is a written guarantee given to a
purchaser by a dealer that they would repair
or replace the defective products with out any
charge for a stated period of time.
10. PERFORMANCE PARAMETERS:
These are the parameters which are required to
be identified in a project.
• Some of the critical performance parameters are;
Raw materials
Power consumption per unit of production
Outcome etc….
How ever the design and specifications must be
made to meet these performance requirements.
Thus the critical performance parameters must
be tracked through all the stages of project
execution till the final performance guarantee
confirms the achievement of the performance.