Wayne RobertsonDirector of PM/PMO| Infineum USA LPNj, United States
I am interested in any suggestions or best practice - the topic is "Metrics for On Time and On Budget".
Our PMO uses a pretty rudimentary metric -- and we follow the traditional 5 stage/gate project methodology.
For our stewardship, nothing is locked in until Gate 3 (Project Baseline). Gate 3 is where the final budget is established, and the commitments for the duration of the remainder of the project are made, along with appropriate human resource commitments.
A project is considered "on budget" if the total cost (including direct and indirect cost) is within 10% of the 'baseline' established at Gate 3. This is straightforward and works pretty well.
A project is considered "on time" if the actual duration of the project (elapsed days) after Gate 3 is within 10% of the 'baseline' duration established at gate 3. For example, if a project baseline is established at Gate 3 specifying 60 elapsed work days for the rest of the project (about 3 calendar months), the project is considered "on time" if it is actually closed in 60 + 10% = 66 calendar days or less.
This "on time" metric seems very stringent (not much contingency) and our on time success rate by this metric is only around 50%, even though (in most cases) the impact of any lateness is small and clients are generally satisfied with delivery performance.
The question: can anyone offer a suggested metric or best practice for determining "on time" performance?
Any inputs are appreciated. Thanks. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
I will write something obvious but metrics, mainly budged metrics, must be created from organization strategy and (in our case it is) from the type of project or initiative. For example, if you devide your type of initiatives into 3 leves, where level 1 is the risky type of projects (risky taking into account time/budged/quality) then your metrics will not the same than less risky projects (level 3 for example). Saving Changes...
