Section 4.1 Performance Measurement

Lessons Learned Handbook:

DOE-HDBK-7502-95

Section 4.1

Performance Measurement

Performance measurement describes what has been accomplished and how well it

was done. Through the use of either "top down" or "bottoms up" methods,

performance measurement criteria provide standards against which project progress

can be evaluated. Top down performance measurement is tied to program mission,

goals, and objectives, and focuses on outcomes and outputs. Bottom up performance

measurement is generally tied to the cost, schedule, and technical baselines of specific

projects, and focuses on calculations of earned value for costs, critical path assessment

for schedules, and technical performance indicators for technical scope. Performance

measures for lessons learned programs are based on the top down method and are

developed based on specific performance goals or standards. In addition, they are

developed with input from as many cognizant employees as possible and are

customized to address the needs of specific levels of management and units of

analysis (i.e., projects, programs, processes or operations).

There are many guidance documents available to assist the development of

performance measures. Many Operations Offices and Management and Operating

Contractors have performance measurement guidance available that describes the

purpose and general characteristics of effective performance measures. A good

source of guidance was developed by a work group commissioned by the Department

of Energy Nevada Operations Office (DOE/NV) Quality Forum. The guidance

document, the DOE/NV Quality Forum, Performance Measurement Process Guidance

Document, provides a comprehensive, step-by-step explanation of how to develop

performance measurements at any level within an organization and how to evaluate

their effectiveness. The work group also developed a case study that provides a

practical example of how to put the concepts of the guidance document to use.

Much of the material provided in this section is summary information taken directly

from the DOE/NV Performance Measurement Guidance Document . For additional

details on the specific steps of developing performance measures, obtain a copy of

the Performance Measurement Guidance Document by contacting Raytheon Services

Nevada, (702) 794-5415.

What are Performance Measures?

Performance measures quantitatively tell us something important about our products,

services, and the processes that produce them. They are a tool to help us understand,

manage, and improve what organizations do. Performance measures let us know:

How well we are doing

If we are meeting our goals

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