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Devaux's Index Of Project Performance
Devaux's Index of Project Performance (usually known as the DIPP) is a project management performance metric formulated by Stephen Devaux as part of the total project control (TPC) approach to project and program value analysis. It is an index that integrates the three variables of a project (scope, time and cost) into a single value-based index where: * Scope is monetized as the value the project is expected to generate if it is completed on a certain date; * Time is a plus or minus monetary value if the completion is earlier or later than the target date; and * Cost is the cost estimate-to-complete (Cost ETC) of the project, the monetary units that will be needed for resources to complete the project (i.e., factoring out sunk cost). As an index for project go/no go decisions The DIPP was originally proposed as a value-based metric that quantified the key variables in the decision of whether to continue funding or terminate an ongoing project. It was introduced in the Sep/Oct 19 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Project Management
Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. The primary constraints are scope, time, and budget. The secondary challenge is to optimize the allocation of necessary inputs and apply them to meet pre-defined objectives. The objective of project management is to produce a complete project which complies with the client's objectives. In many cases, the objective of project management is also to shape or reform the client's brief to feasibly address the client's objectives. Once the client's objectives are clearly established, they should influence all decisions made by other people involved in the project – for example, project managers, designers, contractors, and subcontractors. Ill-defined or too tightly prescribed project management objectives are detrimental to decision-maki ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Metric
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction), and sometimes success is defined in terms of making progress toward strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organization. What is deemed important often depends on the department measuring the performance – e.g. the KPIs useful to finance will differ from the KPIs assigned to sales. Since there is a need to understand well what is important, various techniques ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Total Project Control
Total project control (TPC) is a project management method that emphasizes continuous tracking and optimization of return on investment (ROI). It was developed by Stephen Devaux. It builds upon earlier techniques such as earned value management, critical path method, and program evaluation and review technique, but uses these to track and index projected project profitability as well as the more traditional cost and schedule. In this way it aims to manage projects as profit and investment centers, rather than cost centers. Introduced with TPC are a variety of project management metrics and techniques, among them critical path drag, the value breakdown structure (VBS), Devaux's Index of Project Performance (the DIPP), Doubled Resource Estimated Duration (DRED), and Cost of Leveling with Unresolved Bottlenecks (CLUB). The Project Management Institute's monthly magazine PM Network reviewed the TPC methodology as making "solid points about what can be done to maximize ROI during ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sunk Cost
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with '' prospective costs'', which are future costs that may be avoided if action is taken. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future. Even though economists argue that sunk costs are no longer relevant to future rational decision-making, people in everyday life often take previous expenditures in situations, such as repairing a car or house, into their future decisions regarding those properties. Bygones principle According to classical economics and standard microeconomic theory, only prospective (future) costs are relevant to a rational decision. At any moment in time, the best thing to do depends only on ''current'' alternatives. The only things that matter are the ''future'' consequences. Past mistakes are irrelevant. Any cos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expected Monetary Value
In probability theory, the expected value (also called expectation, expectancy, mathematical expectation, mean, average, or first moment) is a generalization of the weighted average. Informally, the expected value is the arithmetic mean of a large number of independently selected outcomes of a random variable. The expected value of a random variable with a finite number of outcomes is a weighted average of all possible outcomes. In the case of a continuum of possible outcomes, the expectation is defined by integration. In the axiomatic foundation for probability provided by measure theory, the expectation is given by Lebesgue integration. The expected value of a random variable is often denoted by , , or , with also often stylized as or \mathbb. History The idea of the expected value originated in the middle of the 17th century from the study of the so-called problem of points, which seeks to divide the stakes ''in a fair way'' between two players, who have to end th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Value Breakdown Structure
A value breakdown structure (VBS) is a project management technique introduced by Stephen Devaux as part of the total project control (TPC) approach to project and program value analysis. The concept has similarities with the deliverable-oriented work breakdown structure (WBS) decomposition which is used in project management and systems engineering to break down a project into smaller components in a tree structure that represents how the work of the project will create the components of the final product. Resources and cost are typically inserted into the activities in a WBS, and summed to create a budget both for summary levels (often called "work packages") and for the whole project or program. Similarly, a value breakdown structure will provide the expected value-added of each activity and/or component of the project (or projects within a program). Mandatory and optional activities In most projects (and programs), there are some components and activities (and projects) that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Earned Value Management
Earned value management (EVM), earned value project management, or earned value performance management (EVPM) is a project management technique for measuring project performance and progress in an objective manner. Overview Earned value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of the project management triangle: scope, time, and costs. In a single integrated system, earned value management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management. Early EVM research showed that the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance. More recent research studies have shown that the principles of EVM are positive predictors of project success. Popularity of EVM has grown in re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Critical Path Drag
Critical path drag is a project management metric developed by Stephen Devaux as part of the Total Project Control (TPC) approach to schedule analysis and compression in the critical path method of scheduling. Critical path drag is the amount of time that an activity or constraint on the critical path is adding to the project duration. Alternatively, it is the maximum amount of time that one can shorten the activity before it is no longer on the critical path or before its duration becomes zero. In networks where all dependencies are finish-to-start (FS) relationships (i.e., where a predecessor must finish before a successor starts), the drag of a critical path activity is equal to whichever is less: its remaining duration or (if there is one or more parallel activity) the total float of the parallel activity that has the least total float.Stephen A. Devau"The Drag Efficient: The Missing Quantification of Time on the Critical Path" Defense AT&L magazine of the Defense Acquisition ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Drag Cost
Drag cost is a project management metric developed by Stephen Devaux as part of the Total Project Control (TPC) approach to project schedule and cost analysis. It is the amount by which a project’s expected return on investment (ROI) is reduced due to the critical path drag of a specific critical path activity Task (project management) or other specific schedule factor such as a schedule lag or other delaying constraint.Stephen A. Devau"The Drag Efficient: The Missing Quantification of Time on the Critical Path" Defense AT&L magazine of the Defense Acquisition University. Drag cost is computed at the activity level, but is caused by the impact at the project level due to: 1. A reduction in a project's expected value because of later completion, or 2. An increase in a project's cost due to its indirect costs being increased because of a longer project duration. Drag cost computation is often used on projects in order to justify additional project resources Resource refers to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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