Performance Management

Question 1

Full Contents

Answer 1

Project performance strategy
Metrics and KPIs (CII and LCI LPS)
PCI tool
Scheins levels of organizational culture

Question 2

Elements of project performance strategy

Answer 2

Goals / critical success factors
Measurement / metrics
Strategy
Monitoring

Question 3

When to create a performance strategy

Answer 3

FEP stage
Feasibility - initiate
Concept - 1st draft complete

Question 4

Steps in creating project performance strategy

Answer 4

Detail data identification process
Define data collection methods
Define data analysis methods
Define reporting tools, processes
Proactively review performance strategy

Question 5

Tools for measuring and managing performance

Answer 5

EVM
Rules of credit
Program Evaluation and Review Technique / PERT - same as Gantt but only shows workflow with activities have no durations
Critical path method
Site conditions reports (daily, weekly etc.)
Start - Finish (used to report progress on activities with small durations, only start and finish reported)

Question 6

Location Based Management Systems

Answer 6

Activities are planned per location

Question 7

Metrics and KPIs

Answer 7

All KPIs are metrics but all metrics are not KPIs

Question 8

05 classes of metrics

Answer 8

Metrics used over life of project - schedule and cost
Metrics used within a phases
Metrics used within a work package
Rolling - wave or moving - window - last 06 month data
Alert metrics - that alert non-compliances or variances

Question 9

Benefits of using metrics

Answer 9

Project status reporting
Project governance
Strategy and planning (helps course corrections)
Goals (improves outcomes)

Question 10

Critical Success Factors

Answer 10

CSF help with definition of success
Once CSFs are agreed then KPIs can be set
CSFs fall into three broad categories
# 1: Execution (schedule budget etc.)
#2 Governance: (gate reviews, approvals and change control etc.)
#3 Risk Management (risk registers etc.)

Question 11

12 characteristics of metrics and KPIs

Answer 11

Strategic
Simple
Owner
Actionable
Timely
Traceable
Accurate
Desired behavior
Compliance
Aligned
Standardized
Relevant

Question 12

CII Core Metrics for performance measurement

Answer 12

Forecasting metrics (performance forecasting, performance assessment and progress measurement)
Diagnostic metrics (schedule diagnostics, cost diagnostics and physical progress diagnostics)
Memorize all metrics given in this section

Question 13

Forecasting metrics

Answer 13

Question 14

Diagnostic metrics

Answer 14

Question 15

LCI Last Planner System KPIs

Answer 15

Learn all KPIs given in this section
Percent plan complete
Cost reporting
Schedule variance
Quality reporting
Planning event reliability
Committed tasks on plan / TOP
Committed tasks not on plan / CNP
Ratio of TOP to CNP
Root cause analysis
Reason summary for noncompletion
Look ahead planning
Ratio of committed tasks on plan to total tasks released

Question 16

CII Project Controls Improvement Tool

Answer 16

Used to assess whether a project is using the relevant and reliable metrics to assess project progress and performance

Metrics gap analysis module - what are the gaps
Reliability gap analysis module - are metrics and data reliable
Metrics definition module - standard definition
Project controls utilities module - how to use the tool

Question 17

Progress measurement

Answer 17

1 Planning: developing a Level 2 or 3 schedule and establishing WBS

Four steps:

#2 Monitoring and Control: measuring progress (see next card)
#3 Forecasting and predictive management: see next card
#4 Reporting

Question 18

Monitoring and control

Answer 18

Core measurement methods

Units completed
Cost ratio: ratio of actual cost to total budget, simple method
Time ratio: actual time to completion time, simple method
EVM and Rules of Credit

Question 19

Forecasting and predictive management

Answer 19

Two methods
Regression analysis
Project scenario planning - uses critical path

Linear regression: independent and dependent variable
Multiple linear - more than one independent variable
Non-linear - more complex models

In regression, prediction means to estimate a value whether it is future, current or past
In time series forecasting means to estimate future values given past values of a time series

Question 20

Fostering the right culture
(Schein’s levels of organizational culture)

Answer 20

Performance strategy will fail without the right culture
Artifacts
Espoused values
Assumptions - unconscious beliefs or bias