In project-centric organizations the ability to manage projects in time and in budget is key to maintain customer loyalty (finishing projects as promised) and to ensure profitability (stay within a given budget of $, hours or person days). To achieve both goals, it is critical to plan accurately and to detect time and budget variations as early as possible.
The two Key Performance Indicators (KPI) ‘Projects w/ Schedule Overrun’ and ‘Projects w/ Work Overrun’ can help project managers, members of the project office, practice managers and C-level executives to gain visibility into their project portfolio and to easily identify projects where the forecasted work and / or the forecasted finish dates exceed the target which was set in the baseline.
Detecting deviations in projects can be helpful for two reasons – to prevent costly time or budget overruns in active projects by taking early counter measures. Or to identify patterns or root-causes for time and budget overruns in already closed or finished projects and to use this insight to avoid the same mistakes for future projects.
Projects w/ Schedule Overrun
The KPI ‘Projects w/ Schedule Overrun’ compares for each project the baseline finish date with the currently forecasted finish date. The KPI displays the number of projects where the forecasted finish date exceeds the baseline finish date by a certain percentage.
With a click on the tile, you get more details showing the target and a full list of projects displaying their forecast finish date, the baseline finish date as well as the schedule deviations in days (Delays are displayed as negative values).
Coming from the KPI you can drill-down into the report (Button Analyze Data) to identify for each project who the responsible project manager is and where in the project the deviation happened, e.g. in which project phase, or whether the delay was caused by certain internal or external service performer. A drill-down into the example above reveals that the main cause for the delay is project task CPSO-2 ‘Junior Consultancy’.
To adapt the report views and selections to your needs go to the “Business Analytics” work center and here the “Design Reports” view.
Projects w/ Work Overrun
The second KPI ‘Projects w/ Work Overrun’ displays projects where the forecast work (actual + remaining work) exceeds the baseline work, i.e. projects that are at risk to run over the planned (work) budget.
Again, with a click on the tile, you get a full list of all your projects displaying their forecast work, baseline work as well as the total work deviation in hours.
For a root-cause analysis of the work deviation you can drill-down into the report (Button Analyze Data).
Setup of the KPIs
The current value for both KPIs is based on the standard report “Project Performance Overview” (PROPRJU04_Q0001) and the newly created calculated key figures “Critical Schedule Overrun” and “Critical Work Overrun”
In case of the KPI “Projects w/ Schedule Overrun” we named the new key figure “Critical Schedule Overrun” and it is based on the data source “Projects, Baselines: Tasks and Staffing” (PROPRJU04). The key figure is calculated as follows:
Therefore, all projects are identified as critical when the standard key figure “Percentage Schedule Deviation” is greater than the variable parameter “Critical Deviation Percentage”, which is set to a default of 10% here.
The context reports for both KPIs list the critical projects with their IDs and names so that the user immediately sees which projects are affected.
For the KPI “Projects w/ Schedule Overrun” it provides additional context information such as the baseline finish date, forecast finish date and the schedule deviation in days, whereas the context report for the KPI “Projects w/ Work Overrun” provides the baseline work, forecast work and the work deviation.
On top of the two filterable KPIs we created KPI Variants, e.g. a KPI variant that filters on the project responsible.
Here the KPI Variant “My Projects w/ Schedule Overrun”
This blog post is part of a series of blog posts introducing KPIs for process monitoring and optimization purposes Process Monitoring and Optimization KPI’s.