CP Medical Clinic | CP Legal Advisor | CP Ladies | CP Kids | CP Sports
| CP Students
Be United - Join the Community
By Suhail Iqbal, PE, MCT
April, 2003 - Performance measurement is essential for effective management control. It provides the feedback needed to evaluate system outcomes and take prompt corrective action when necessary. A management information system that delivers timely, accurate operating and financial results is a requirement for meaningful performance measurement.
Organizational planning should produce a time phased comparative standard or baseline for variance analysis and frequent performance evaluation. Performance measurement must integrate operating, financial, and investment outcomes to provide a complete picture of current performance and a basis for estimating future results. Performance measurement is the difference between managing for results and supervising a level of effort.
Developing the Performance Measurement Baseline
The Performance Measurement Baseline is the time-phased plan based upon the total program/project schedule against which performance is measured. It should include all the work to be performed, regardless of the funding source (i.e., EM, other DOE, or external to DOE). The Budgeted Cost of Work Scheduled is a segment of the Performance Measurement Baseline for all control accounts for work scheduled to be accomplished within a specific period. A control account is the field's management control point at which actual costs are accumulated and performance determined. It represents one functional organization's assigned work as defined in one work breakdown structure element. The control account must contain the specific scope of work, definite schedule, assigned budget, unique identification, and a method of measuring performance.
Although there is a relationship between the planning and funding of programs/projects, the development of the Performance Measurement Baseline occurs well in advance of the funding authorization. Because funding is a yearly process, the field should consider using the "rolling wave" (tiered schedules) method in developing the baseline. This means that detailed planning is done incrementally, such as monthly, quarterly, or semi-annually. Using the rolling wave method will enable the development of detailed control accounts for a specific period (3, 6, 12 months or more) while maintaining the remainder of the budget in planning packages. A planning package is a unit of future work that is maintained at a higher WBS element, i.e., not yet divided into fully defined work packages. It consists of a work definition, an approximate schedule for performing the work, and a projected cost. This information is collected and stored in the field's program/project management system. (Use of the "rolling wave" method will not preclude the development and reporting of an annual BCWS, as required by PTS.)
The Performance Measure Baseline (PMB) is not a yearly planning document but represents a life cycle estimate to complete an effort; therefore, the PMB should not be revised to move work that was estimated and planned to be completed in a prior year to the current year. Cost and/or schedule variance should be reported until the effort is completed.
The field develops the Budgeted Cost of Work Scheduled at the appropriate level of the work breakdown structure. This information is collected and stored in their management control system.
In developing Budgeted Cost of Work Scheduled, it is assumed that the right work and the correct amount of work is being planned. Figure 1 illustrates the relationship between the Budgeted Cost of Work Scheduled and funding. The following guidelines should be observed:
Symptoms of of inadequate performance measurement
We are a community driven site
- Send your articles, stories and event reporting to
ContactPakistan.com. We publish such contents within 24 hours!
NO POLITICAL REPORTS - WE HAD ENOUGH!
ContactPakistan offers FREE hosting to all community contests.
If you like to sponsor a competition such as sporting events quiz,
Children Essay, Drawings etc. then drop an Email to Webmaster for more
details. We will design complete contest and advertisement campaign Free!!
Let us build virtual community and your business together