![\"\"](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2024\/10\/Project-management-metrics-cover-1.png\")
<\/figure>\n<\/div>\n\n\n- \n
- Project management metrics measure the project\u2019s performance and progress.<\/li>\n\n\n\n
- By regularly tracking metrics, project managers can take corrective action on time to prevent project failure.<\/li>\n\n\n\n
- There are 4 vital groups of metrics every manager should track.<\/li>\n\n\n\n
- Every industry has specific metrics that don\u2019t necessarily apply to every project.<\/li>\n<\/ul>\n\n\n\n
What are project metrics?<\/h2>\n\n\n\n
Project metrics are numerical indicators that show the project\u2019s performance and progress.<\/strong><\/p>\n\n\n\n
Project managers use formulas and calculations to read data sets and check the status of various team activities. <\/p>\n\n\n\n
Why are project metrics important?<\/h2>\n\n\n\n
As a project manager, you can rely on project management metrics to help you:<\/p>\n\n\n\n
- \n
- Keep current projects on track, <\/li>\n\n\n\n
- Learn from your past mistakes, and <\/li>\n\n\n\n
- Set expectations for upcoming projects.<\/li>\n<\/ul>\n\n\n\n
Ongoing projects rely heavily on accurate real-time data, which can be hard to obtain. Data collected in real time gives an insight into the project\u2019s performance. What\u2019s more, it\u2019s vital for risk management<\/a> \u2014 if the numbers are available on time, project managers can spot early signs of project failure and take corrective action.<\/p>\n\n\n\n
That said, once you complete a project, you shouldn\u2019t overlook or forget its results. Instead, try to analyze historical data regularly and use it as a measure of success \u2014 or a cautionary tale.<\/p>\n\n\n\n
This data should show you where and why your estimates were wrong, which resources you failed to use properly, and which costs blew out of proportion. As a result, you will be able to make better plans for the future and showcase your success in the form of data too.<\/p>\n\n\n\n
Essentially, when information is properly collected and analyzed, project managers can get increasingly better at planning with each passing project.<\/p>\n\n\n\n
Types of project metrics<\/h2>\n\n\n\n
There are dozens of project metrics you can use to measure your project\u2019s performance. The data and the metrics managers rely on will depend on the industry they\u2019re in and the results their stakeholders find important.<\/p>\n\n\n\n
There isn\u2019t an official classification of metrics used in project management<\/a>, but these are the 4 vital groups of project performance metrics every manager should monitor:<\/p>\n\n\n\n
- \n
- Scope metrics,<\/li>\n\n\n\n
- Cost metrics,<\/li>\n\n\n\n
- Schedule metrics, and<\/li>\n\n\n\n
- Quality metrics.<\/li>\n<\/ul>\n\n\n\n
Scope metrics<\/h3>\n\n\n\n
In project management, scope is one of the most important elements of a project since it defines the project goal, deadlines, and deliverables. <\/p>\n\n\n\n
The longer and more complex the project is, the more likely its scope will change, leading to scope creep<\/a>.<\/p>\n\n\n\n
The best way to avoid scope creep is to define the project scope as precisely as possible before the project\u2019s start date. So, together with the project stakeholders and your team, you should come up with a clear outline of the project\u2019s:<\/p>\n\n\n\n
- \n
- Milestones<\/a>,<\/li>\n\n\n\n
- Deadlines<\/a>,<\/li>\n\n\n\n
- Deliverables<\/a>, and<\/li>\n\n\n\n
- Resource allocation<\/a>.<\/li>\n<\/ul>\n\n\n\n
But defining the scope isn\u2019t enough to preserve it. Project managers have to keep checking whether the 4 parameters listed above are properly tracked throughout the project.<\/p>\n\n\n\n
Track project scope metrics in Plaky<\/a><\/p>\n\n\n\n
Cost metrics<\/h3>\n\n\n\n
Costs are directly related to a project\u2019s budget, so project managers<\/a> must control them at all times. <\/p>\n\n\n\n
The importance of cost control is also reflected in the number of indicators that help track planned and actual costs. <\/p>\n\n\n\n
The main cost metrics are:<\/p>\n\n\n\n
- \n
- Earned value,<\/li>\n\n\n\n
- Cost variance<\/a>, and<\/li>\n\n\n\n
- Cost performance index<\/a>.<\/li>\n<\/ul>\n\n\n\n
Earned value (EV)<\/h4>\n\n\n\n
Earned value is the value of the work performed up until a certain point in the project. The formula to calculate earned value is:<\/p>\n\n\n\n
EV = % of work completed x total project budget<\/p>\n\n\n\n
This indicator shows whether the achieved value matches the planned value or not. The formula can be used at any point during project development to assess if it\u2019s going according to plan.<\/p>\n\n\n\n
Let\u2019s see an example.<\/p>\n\n\n\n
Suppose a family hired contractors to redo the floors of 2 rooms. The budget is $1,000, and the estimated time to complete the project is 3 days. <\/p>\n\n\n\n
At the end of day 2, the floors have been stripped and varnished twice, meaning that 1 more coat is left to apply. Applying each coat of varnish makes up 20% of the entire project, so in total, 80% of the work has been completed.<\/p>\n\n\n\n
We can now apply the formula to check the project\u2019s current earned value.<\/p>\n\n\n\n
EV = 80% x $1,000 = $800<\/p>\n\n\n
\n![\"How](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2024\/10\/Tracking-earned-value-in-Plaky.png\")
Tracking earned value in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n \n\ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n
Earned value is the key to earned value management, a methodology that enhances project performance. Learn more about EVM in our guide:<\/p>\n\n\n\n
- \n
- Earned Value Management: An Overview With Formulas<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
Cost variance (CV)<\/h4>\n\n\n\n
Cost variance is a parameter that shows the difference between the planned and the actual cost (AC) at any point in the project. <\/p>\n\n\n\n
To calculate it, you\u2019ll first need to calculate the earned value.<\/p>\n\n\n\n
CV = EV \u2013 AC<\/p>\n\n\n\n
CV = % of work completed x total project budget \u2013 AC<\/p>\n\n\n\n
If the result is over zero, there\u2019s a positive cost variance, meaning your costs are under the planned budget. <\/p>\n\n\n\n
On the other hand, a negative cost variance shows you\u2019re overspending and should bring your expenses under control.<\/p>\n\n\n
\n![\"How](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2024\/10\/Tracking-cost-variance-in-Plaky.png\")
Tracking cost variance in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n In our flooring example, the project is going according to plan. Here\u2019s how we can calculate the cost variance:<\/p>\n\n\n\n
CV = $800 – $600 = $200<\/p>\n\n\n\n
The positive value shows us the project is under budget by $200.<\/p>\n\n\n\n
Cost Performance Index (CPI)<\/h4>\n\n\n\n
The cost performance index shows how cost-efficient the project is. It requires the same values as cost variance, but it\u2019s calculated slightly differently:<\/p>\n\n\n\n
CPI = EV \/ AC<\/p>\n\n\n\n
CPI = % of work completed x total project budget \/ AC<\/p>\n\n\n\n
If the result is:<\/p>\n\n\n\n
- \n
- Over 1 \u2014 the project is under budget. <\/li>\n\n\n\n
- Equal to 1 \u2014 everything is going according to plan.<\/li>\n<\/ul>\n\n\n\n
Project managers should be concerned and react if CPI is under 1. This result indicates the project is over budget.<\/p>\n\n\n\n
Though we\u2019ve already established in our example that the project is under budget, we can still apply the formula:<\/p>\n\n\n\n
CPI = $800 \/ $600 = 1.33<\/p>\n\n\n\n
As you can see, CPI is above 1, confirming our conclusion that the project is under budget.<\/p>\n\n\n\n
Keep an eye on project costs in Plaky<\/a><\/p>\n\n\n\n
Schedule metrics<\/h3>\n\n\n\n
Finishing a project on time is one of the main requirements in project management. <\/p>\n\n\n\n
Projects are usually split into phases, and each phase has one or more milestones, all with their own deadlines. <\/p>\n\n\n\n
Tackling the project phases one milestone at a time makes it easier to track the project schedule continually. Some of the most used schedule metrics to keep a project in check are:<\/p>\n\n\n\n
- \n
- Schedule variance<\/a> and<\/li>\n\n\n\n
- Schedule performance index<\/a>.<\/li>\n<\/ul>\n\n\n\n
Schedule variance (SV)<\/h4>\n\n\n\n
Schedule variance measures the actual amount of performed work against planned work. It lets project managers check whether the team is completing the scheduled tasks on time at any given moment.<\/p>\n\n\n\n
To calculate the schedule variance (SV), you\u2019ll need to calculate the earned value, just like for cost variance. You\u2019ll also need to figure out the planned value (PV):<\/p>\n\n\n\n
SV = EV – PV<\/p>\n\n\n\n
PV = % of expected completed work x total project budget<\/p>\n\n\n\n
SV = (% of work completed – % of expected completed work) x total project budget<\/p>\n\n\n\n
If the result is 0, it means all tasks have been completed on time, and there\u2019s no need to worry. However, if it\u2019s below zero, your team is behind schedule.<\/p>\n\n\n\n
Let\u2019s look at our example again. The plan was to finish one coat of varnish on day 2, which would have amounted to 50% of the work. Instead, 80% of the project was completed:<\/p>\n\n\n\n
SV = (80% – 50%) x $,1000 = $300<\/p>\n\n\n\n
The positive result shows us the project is well ahead of schedule.<\/p>\n\n\n\n
Schedule Performance Index (SPI)<\/h4>\n\n\n\n
The schedule performance index measures the project\u2019s compliance with the planned work. <\/p>\n\n\n\n
The SPI is similar to schedule variance as it serves the same purpose and uses the same values, but it\u2019s calculated slightly differently:<\/p>\n\n\n\n
SPI = EV \/ PV<\/p>\n\n\n\n
SPI = % of work completed \/ % of expected completed work<\/p>\n\n\n\n
If the value of SPI is equal to 1, the project is right on schedule. Conversely, if the result is greater than 1, the tasks have been finished ahead of schedule, and vice versa.<\/p>\n\n\n\n
In our example, the schedule variance showed that the project was ahead of schedule. Let\u2019s see what the index says:<\/p>\n\n\n\n
SPI = 80% \/ 50% = 1.6<\/p>\n\n\n\n
The SPI is above 1, confirming that the work is ahead of schedule.<\/p>\n\n\n\n
Improve your project scheduling with Plaky<\/a><\/p>\n\n\n\n
Quality metrics<\/h2>\n\n\n\n
Quality metrics measure the product or process compliance with standard qualitative attributes. After all, cost efficiency and staying ahead of schedule don\u2019t matter if the final result is below average.<\/p>\n\n\n\n
Each industry has at least a dozen specific metrics they use to measure their performance, and every company within those industries has even more parameters to track.<\/p>\n\n\n\n
For example, in the e-commerce industry, sales teams will track the inventory and advertising costs of sales. These metrics mean nothing to software development teams that keep an eye on burn-up charts and task estimates vs. actual task completion time. <\/p>\n\n\n\n
Restaurants are another example that uses completely different metrics, such as sanitary standards and customer satisfaction. Finally, every marketing team will regularly measure customer loyalty with the net promoter score (NPS).<\/p>\n\n\n\n
Either way, companies have to keep up with the industry trends and adjust their metrics to the current standards. Moreover, managers must track quality metrics regularly and intervene if the results are not satisfying. Remember \u2014 competitive markets are rarely forgiving when the products don\u2019t meet stakeholder expectations.<\/p>\n\n\n\n
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\n\nFree project management software<\/h2>\n
Take control of your team's workload and achieve better project results with Plaky.<\/p>\n\n
\n Sign up<\/a>\n\n Learn more<\/a>\n <\/div>\n <\/div>\n\n\n\n \n ![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/default.png\")
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\nMetrics vs KPIs<\/h2>\n\n\n\n
Metrics are calculated indicators that show if the project is meeting the planned values throughout its duration.<\/p>\n\n\n\n
Key performance indicators are high-level business goals that teams try to achieve over a certain period of time.<\/p>\n\n\n\n
Here\u2019s a breakdown of the main differences between metrics and KPIs:<\/p>\n\n\n\n
- Schedule performance index<\/a>.<\/li>\n<\/ul>\n\n\n\n
- Schedule variance<\/a> and<\/li>\n\n\n\n
- Cost performance index<\/a>.<\/li>\n<\/ul>\n\n\n\n
- Deadlines<\/a>,<\/li>\n\n\n\n
- Milestones<\/a>,<\/li>\n\n\n\n
![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/default@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\n