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Lessons Learned Handbook:
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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