Measuring and Controlling to the Plan

The chapter presents key CCPM measurements and considers two types of measures: operational measures and performance measures. The task and project managers have most need for operational measures, while senior management and resource managers have more need for performance measures. Operational measures are tactical, while performance measures are strategic.

In the following list of what effective measures must do, Dr. Joseph Juran [1] identified the first six items. He seems to have missed the seventh. Section 4.3 describes the background for exploiting the plan using buffer management and notes that Dr. Eliyahu Goldratt defined information as "the answer to the question asked"; this is covered by the eighth item in the list. Number 9 is both a TOC and a Lean precept [2]. Effective measures must do the following:

1. Provide an agreed basis for decision making;

2. Be understandable;

3. Apply broadly;

4. Be susceptible to uniform interpretation;

5. Be economic to apply;

6. Be compatible with existing design of sensors;

7. Provide early warning of the need to act;

8. Deliver information to the person who must act;

The Lean precepts of focusing on flow and using visual controls were also important considerations when designing an effective measurement-and-control system for CCPM. The system must eliminate the Muda (waste) of complexity.

The goal of all projects in all organizations must relate to the company goal. For a profit-making company, this goal is to make money now and in the future. As noted in Chapter 1, for projects that do not have a specific date deadline, performing a project to meet the customer's needs for the budgeted cost on or before the committed delivery date will support that goal. For projects with a firm date (Olympic-stadium-type projects), meeting the date is the goal. Project measures must provide information so that people can make local decisions that favorably impact the global project goal.

Please consider as we go on how the CCPM measurement-and-control system satisfies those requirements.

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Project Management Made Easy

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