Home Management Top Project Metrics You Need to Track

Top Project Metrics You Need to Track

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Top Project Metrics You Need to Track

To be certain that your undertaking is assembly scheduling and funds milestones, you want to have undertaking metrics to measure your progress and efficiency. Project metrics are important to delivering a undertaking on time and inside its funds.

But what are undertaking metrics? Why are they so necessary to a undertaking? We’ll reply these questions and present you some examples of widespread undertaking metrics. Then we’ll clarify what a undertaking metrics dashboard is and why it’s one of many important undertaking administration software program options.

What Are Project Metrics?

Project metrics are information pulled from the efficiency of the undertaking. They are information units, formulation and calculations that present measurements to chart progress, success and far more. Project managers use undertaking metrics to examine their precise effort towards their plan in order that they know in the event that they’re on schedule and conserving to their funds.

They may also be used to preserve undertaking stakeholders knowledgeable, although they’re normally solely curious about two undertaking metrics: time and value. Project metrics are additionally instruments that assist organizations discover, cut back and alleviate dangers in addition to inform efficient strategic growth, steady enchancment and even worker and buyer sentiment.

Project administration software program makes gathering and calculating undertaking metrics simpler. ProjectSupervisor is award-winning undertaking administration software program that has real-time dashboards that robotically collect six sorts of undertaking metrics and show them in easy-to-read graphs and charts. Unlike different undertaking administration software program, our dwell dashboard doesn’t take ceaselessly to arrange. All you may have to do is toggle over for a high-level overview of the undertaking. It’s prepared with real-time information for extra insightful choices each time you’re. Get began with ProjectSupervisor at present totally free.

ProjectManager's dashboard view
ProjectSupervisor has real-time dashboards that seize six undertaking metrics. Learn extra

Why Are Project Metrics Important?

Project metrics are necessary for undertaking administration. Without them, you’re driving blind, with no approach to precisely measure should you’re conserving to your schedule and funds. They’re used to outline a undertaking’s well being, progress and efficiency.

All tasks hit bumps within the highway, however undertaking metrics make it easier to get again on observe sooner. That’s as a result of you recognize you’ve gone off the highway faster and might reallocate sources as wanted to get again on observe sooner.

There can be no approach to know should you’re assembly undertaking objectives with out undertaking metrics till the very finish of the undertaking. At that time, it’s too late. Metrics enhance efficiency which can positively influence a company’s backside line.

Organizations can see the return on funding (ROI) of their tasks. They can use undertaking metrics as the information that drives their decision-making course of. That leads to higher prediction of future outcomes and permits organizations to alter their enterprise methods to keep aggressive.

Project Management Metrics Examples

So what are some examples of undertaking metrics? There are many, however we’ll outline a few of the extra widespread ones which might be tracked when managing a undertaking. Use these undertaking metrics to preserve observe of your undertaking and be sure you ship it efficiently, on time and inside funds.

1. Net Profit Margin

The web revenue margin is the measurement of a company’s web earnings after the bills have been accounted for, together with its curiosity and tax funds. In phrases of measuring a undertaking’s profitability, the online revenue margin is a helpful undertaking metric for conserving observe of the funds towards the precise spending at that time within the undertaking.

2. Gross Profit Margin

The time period gross revenue margin is a monetary undertaking metric that undertaking managers use to assess the undertaking’s monetary well being. To get the gross revenue margin, subtract the direct bills or price of products offered (COGS) from web gross sales, which is the gross revenues minus returns, allowances and reductions. That quantity is split by web revenues, then multiplied by one hundred pc. The undertaking with the upper gross margin is extra worthwhile as a result of it generates extra income and incurs fewer prices.

3. Return on Investment (ROI)

The return on funding is used to decide if the undertaking goes to be definitely worth the effort and time crucial to ship it. It principally calculates the sum of money that has to be spent and the sum of money or advantages that may end result from a profitable supply of the undertaking. ROI is expressed as a proportion and is calculated by dividing an funding’s web revenue (or loss) by its preliminary price or outlay.

3. Cost Variance (CV)

The undertaking metric price variance is used to consider the monetary efficiency of your undertaking. It does this by figuring out the distinction between the budgeted price of labor carried out (BCWP) and the precise price of labor carried out (ACWP). In different phrases, by evaluating the present prices of the undertaking to the place the funds says try to be at this level within the undertaking. If the 2 figures are the identical, then you definitely’re heading in the right direction. However, should you’re spending greater than you’ve budgeted for at that time within the undertaking, then you may have to alter both the undertaking scope or schedule to get again on observe.

4. Schedule Variance (SV)

Just as price variance tracks the monetary efficiency of the undertaking, schedule variance is used to work out how a lot a undertaking is forward of schedule or delayed. It does this by measuring the precise progress of the undertaking and evaluating that to the anticipated progress, in accordance to the undertaking schedule. As with price variance, if the undertaking is delayed, then the scope or funds of the undertaking has to be adjusted.

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5. Cost Performance Index (CPI)

To measure the fee effectivity and monetary effectiveness of a undertaking, undertaking managers use the fee efficiency index. To calculate this, the formulation is earned worth (EV) / precise price (AC) = price efficiency index (CPI). The price efficiency index ratio with a price increased than 1 indicated that the undertaking is performing properly when it comes to its funds.

6. Earned Value (EV)

Earned worth is used to measure and monitor how a lot work has been carried out on a undertaking as compared to the undertaking plan. You can use it to see should you’re on, behind or forward of your undertaking schedule. To calculate the earned worth, multiply the proportion full by the full undertaking funds. To get extra out of your earned worth undertaking metric, use it with the fee and schedule variance undertaking metrics.

7. Planned Value (PV)

According to the Project Management Institute (PMI), deliberate worth in undertaking metrics is “the authorized, time-phased budget assigned to accomplish the scheduled work.” That means, it’s placing the undertaking price over the time baseline at any level within the schedule. Project managers can use this undertaking metric to establish deviations from the undertaking plan and mitigate points sooner. To calculate this, discover the p.c of the undertaking accomplished (deliberate) multiplied by the funds at completion (BAC).

8. Actual Cost (AC)

When you’re speaking about precise price in a undertaking, you imply the true whole and ultimate prices accrued within the undertaking. It’s made up of such prices as direct labor hours, direct prices and oblique prices. Actual prices ought to be itemized all through the undertaking, not simply at completion.

What Is a Project Metrics Dashboard?

There are many undertaking metrics, every with its personal equation to calculate. That takes time that almost all undertaking managers don’t have. Project administration software program typically comes with a undertaking metrics dashboard, which is a high-level view of the undertaking, providing a look at beneficial information.

Many undertaking metric dashboards ship real-time information, which helps undertaking managers by giving them the present standing of their undertaking as opposed to a snapshot from the previous. This leads to responding rapidly to points as they come up and helps undertaking managers make extra knowledgeable choices.

Some undertaking metric dashboards require a person to set them up earlier than they’ll get an outline of the undertaking, whereas others robotically collect undertaking metrics and share that information immediately. Either approach, the undertaking metrics dashboard is an important undertaking administration software for undertaking managers to successfully measure the triple constraint of scope, prices and time.

How ProjectSupervisor Helps Track Project Management Metrics

ProjectSupervisor is award-winning undertaking administration software program with real-time dashboards that observe undertaking metrics. Our dwell dashboard doesn’t require any time-consuming setup as with light-weight undertaking administration instruments. It options six undertaking metrics: well being, duties, progress, time, price and workload. There are many extra options that make it easier to plan, handle and observe your tasks in actual time, however for now, let’s take a look at how to plan a undertaking to observe undertaking metrics and what instruments may give you extra element than the dashboard whenever you want that deep dive.

Plan on Robust Gantt Charts

Before you possibly can observe undertaking metrics, you may have to have a plan. Our highly effective Gantt charts make it easier to arrange your duties, hyperlink all 4 sorts of dependencies and even filter for the vital path. But most significantly, as soon as the schedule has been created you possibly can set a baseline. This captures your undertaking plan and permits our software program to robotically calculate undertaking metrics reminiscent of price and schedule variance. Now you possibly can be sure you’re assembly milestones and never overspending.

Get Deeper Into the Data With Customized Reports

When you want extra info than you will get from the high-level dashboard, toggle over to the report part of our software. Then you possibly can rapidly generate studies on undertaking standing, or portfolio standing should you’re managing a number of tasks, in addition to studies on variance, duties and extra. All studies may be filtered to present solely the information you’re curious about. Then they are often shared in a wide range of codecs to preserve stakeholders knowledgeable.

ProjectManager's status report filter

Beyond monitoring tasks, our software has a number of undertaking views that enable you to work the way you need. From the visible workflow of kanban boards to activity lists, calendars and extra, cross-functional groups can collaborate as a result of all undertaking views are up to date collectively in actual time. We even have activity administration, danger administration and useful resource administration options to assist management your undertaking and ship it on time and inside its funds.

ProjectSupervisor is on-line undertaking administration software program that connects groups whether or not they’re working within the workplace, on the job website or anyplace in between. They can share recordsdata, remark on the activity stage and extra. Join groups at corporations reminiscent of Avis, Nestle and Siemens who use our software program to ship profitable tasks. Get began with ProjectSupervisor at present totally free.

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