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5. Project Performance Measurement




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


Project Manager


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.



Project Controls


- Responsible to the PM to implement and monitor performance measurement and control requirements effectively.

- 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 and cost.

- Immediately identify changes to the defined scope of work and the impact of the changes.



Link to Section 1. Overview and Function of Project Controls

Link to Section 2. Project Cost Control

Link to Section 3. Project Planning and Schedule Control

Link to Section 4. Risk/ Contingency Management

Link to Section 5. Project Performance Measurement

Project Controls Procedure - Project Performance Measurement


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