PROJECT MANAGEMENT

Project Management



Project Management

Key Performance Indicators and Project Management

Key performance indicators refer to the measures that the company or an industry uses in order to meet their strategic goals. On the basis of the priorities and performance, the key performance indicators in companies vary. When launching a project, there are some of the key performance indicators that are used to monitor as well as to control the project. There are many factors that are involved in project management. However, some factors are more important than the other ones.

Some of the key performance indicators in project management include PEST elements, budget ratio, impact of assumptions and insurance costs. Moreover, productive hours, complaint resolution speed and monthly meetings can also be counted as the KPI's. The reason why these indicators are important to manage a project is because of their importance. When a project begins, there is a certain budget cost that is allocated to it. With reference to the budget, the other planning is done. However, due to some changes such as an increase or decrease in the price of raw materials, the budget cost can also change. Since the budget is developed on the basis of assumptions considering the market rate, it is not possible for it to be correct all the time. Similarly, insurance costs may also change. Besides this, the management must also assess the other factors in order to know about the progress of the project. This is the reason why the key performance indicators are important because they can knowingly provide assistance for the project to succeed in the future (Besner & Hobbs, 2008).

Risks Matrix

The three risks that can prevail in this project are:

1.Not enough workers to do the job quickly

2.Material gets stolen

3.Weather delay in construction

In order to meet the above problems, company can continue with the project by hiring workers from third world countries such Bangladesh and Afghanistan. It is also important to get all the materials insured to avoid the risk of costs if the materials get stolen. However, delay due to weather can only be compensated by making the workers work extra time after the usual weather resumes.

In every project, there is a certain percentage of risk involvement. Risk refers to the harm that can occur. Risks can be calculated on the basis of the severity that the harm will possess. In most of the cases, risk is categorized in negligible levels because estimation of its probability cannot always be accurate. During the risk assessment process, risk matrix is used to define the levels of risk that may harm the project and the level of severity. In order to monitor and control the risks that are involved in a project, there are certain inputs that can be implemented. Firstly it is important to develop a risk a management plan that can help in managing the project risk that is involved. Other than this, risk register can be used to list the risks involved in the project so that realistic and formal ...