What is KPI?

KPI means – “Key Performance Indicator“.

KPI – The name it self says “Key” + “Performance” + “Indicator“, i.e. KPI’s are “Performance Indicator” of project or business unit or an organization which are key to the project, a business unit or an organization’s success.

Also, it’s obvious that the indicator must be “Measurable or Quantifiable” which can be compared to the predefined or planned strategic and operational goals and objectives of the project or a business unit or an organization.

Furthermore, when we are taking about success of business unit and organization, it involves Program and Portfolio. i.e., there will be a separate KPI’s for Program and Portfolio level other than project level.

KPI will give the clear picture of “Actual Progress Vs. Planned Progress” in a very simple manageable numbers, even though the project or business is very complex in nature. i.e., it’s very useful tool to measure performance and take decision based on actual performance. After taking the corrective action a person can measure the KPI’s again and can verify that the applied corrective action was correct or not. i.e. KPI’s are “Decision Making Tool” for any Project, Program or Portfolio.

Choosing the Right KPIs

There are so many different KPI’s that an Organization can use. It’s very important to choose the right KPI for your organization which are most suitable to Strategic Goals and Objectives. i.e. KPI’s must be aligned with Strategic Goal and Objectives. i.e. KPI’s must be “SMART” same as Objectives & Goal of the Project.

“SMART” – Specific + Measurable + Achievable + Relevant + Time Bound

To Know more about SMART Goals, Watch below:

KPI for Construction Project Management

KPI for Project Control

• SV (Schedule Variance), i.e. Earned Value – Planned Value
• CV (Cost Variance), i.e. Earned Value – Actual Cost
• SPI (Schedule Performance Index), i.e. Earned Value / Planned Value
• CPI (Cost Performance Index), i.e. Earned Value / Actual Cost
• Nos. of Progress Report Submitted Vs. Nos. of Progress Report Submitted on Time for Measured Duration
• Nos. of Progress Report Submitted Vs. Nos. of Progress Report Approved on Time for Measured Duration

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KPI for Quality Management

• Planned Quality Audit Vs. Actual Quality Audit Conducted for Measured Duration
• Planned Submittal Vs. Actual Submittals for Measured Duration
• Nos. of Document Submitted Vs. Nos. of Document Approved for Measured Duration
• Nos. of NCR Received Vs. Nos. of NCR Closed for Measured Duration

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KPI for Health & Safety Management

• Planned Safety Audit Vs. Actual Safety Audit Conducted for Measured Duration
• Planned Safety Training Courses Vs. Actual Safety Training Course Conducted for Measured Duration
• Planned Safety Inductions Vs. Actual Safety Induction Conducted for Measured Duration
• Planned Safety Inspections Vs. Actual Safety Inspections Conducted for Measured Duration
• Nos. of Incident & Accident for Measured Duration
• Rate of Incident for Measured Duration
• Nos. of Safety Violations issued for Measured Duration
• Nos. of Near Misses Reported for Measured Duration

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KPI for Environment/Sustainability Management

• Planned Environment Audit Vs. Actual Environment Audit Conducted for Measured Duration
• Planned Environment Protection Training Courses Vs. Actual Environment Protection Training Course Conducted for Measured Duration
• Planned Environment Inspections Vs. Actual Environment Inspections Conducted for Measured Duration
• Nos. of Environment Violations issued for Measured Duration
• Effective use of Construction Waste for Measured Duration
• Reduction of Construction Waste for Measured Duration

KPI for Contracts & Commercial Management

• Nos. of Claim (Time & Cost) Submitted Vs. Nos. of Claim (Time & Cost) Approved for Measured Duration
• Nos. of Claim (Time & Cost) Submitted Vs. Nos. of Claim (Time & Cost) Summited Timely for Measured Duration
• Nos. of Payment Application Vs. No. of Payment Application Approved for Measured Duration
• Nos. of Payment Application Vs. No. of Payment Application Summited Timely for Measured Duration
• Return on Investment (ROI)

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KPI for Procurement Management

• Planned Procurement Audit Vs. Actual Procurement Audit Conducted for Measured Duration
• Planned Material Delivery Vs. Actual Material Delivered for Measured Duration
• Nos. of Delivery of Material Vs. Nos. of Timely Delivered Material for Measured Duration
• Planned Equipment Delivery Vs. Actual Equipment Delivered for Measured Duration
• Nos. of Delivery of Equipment Vs. Nos. of Timely Delivered Equipment for Measured Duration
• Planned Cost of Material Vs. Actual Cost of Material for Measured Duration
• Planned Cost of Equipment Hire Rate Vs. Actual Cost of Equipment Hire rate for Measured Duration

KPI for Technical/Design Management

• Planned Design NOC Vs. Actual Design NOC Acquired for Measured Duration
• Planned Design Package/Drawings Submission Vs. Actual Design Package/Drawings Submitted for Measured Duration
• Nos. of Submitted Design Package/Drawings Vs. Nos. of Approved Design Package/Drawings for Measured Duration

KPI for Construction Management

• Planned Construction NOC Vs. Actual Acquired Construction NOC for Measured Duration
• Nos. of Inspection Request (ITR) Submitted Vs. No. of Inspection Request Approved for Measured Duration
• Planned Concrete Pouring Quantity Vs. Actual Concrete Pouring Quantity for Measured Duration
• Cost of Rework for for Measured Duration
• Planned Productivity of Labor Vs. Actual Productivity of Labor for Measured Duration
• Planned Productivity of Equipment Vs. Actual Productivity of Equipment for Measured Duration

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KPI for Risk Management

• Nos. of Risk Identified Ahead of Time
• Nos. of Unidentified Risk Occurred in Project
• Effectiveness of Risk Mitigation Plan/Strategy
• Cost of Risk Occurred

Above mentioned KPI for Construction Projects can be used by or can be used For:

• KPI for Construction Project Manager
• KPI for General Contractor
• KPI for Risk Manager
• KPI for Quality Manager
• KPI for Procurement Manager
• KPI for Safety Manager
• KPI for Project Control Manager

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