September 2014
Beginner
224 pages
2h 55m
English
Content preview from 25 Need-To-Know Key Performance Indicators
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Chapter 15
Project cost variance (PCV)
- Why: To better understand whether your projects are on budget
- What: To measure the proportion of projects that are delivered on budget
- When: When project performance matters
- The question this indicator helps you to answer: to what extent are our projects delivered on budget?
Why does this KPI matter?
According to the Standish Group, 70% of projects are over budget and 52% of all projects finish at almost 200% of their initial budget. There are many famous examples, such as the Concorde supersonic aeroplane, which cost 12 times more than scheduled, the Channel Tunnel between the UK and France, which had a construction cost overrun of 80%; and one of the most famous budget overruns at Boston’s ‘Big Dig’ ...
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