**2.3 KPIs**

228 Advanced Topics in Measurements

(2008) has described it as "a performance-based management system for measuring actual progress against the criteria configuration for the cost, schedule, and performance goals in projects". Fleming and Koppleman (1996) defined the EVMS as "a continuous measurement for practical works under precisely managed work schedules and a management method that

The performance measurement applied by using the EVMS integrates cost and schedule. It helps identify how any difference between the planned budget and the actual cost influences the project, by comparing and managing the performance vs plan and estimating the reduction or delay in the schedule from the earned value to the completion of the project and the excess of the budget. As shown in Table 1, the elements of the EVMS can be classified as plan, performance measurement, measurement for management analysis, and

Terminology Description

EAC (Estimate At Completion) ACWP+(BAC-BCWP)/CPI

The Balanced Score Card (BSC) is another representative performance measurement system. The BSC method, proposed by Kaplan and Norton (1993), is a strategic management method that uses traditional financial or accounting measurements to overcome the limits and problems of performance measurement in the short term, and provides a way to establish performance measurement for a general project in the long term. It is widely used to

WBS (Work Breakdown Structure) A deliverable-oriented grouping of

project elements

open work

BCWP – BCWS, BCWP / BCWS

BCWP - ACWS BCWP / ACWS

ACWP – BCWS ACWP / BCWS

compared to earned value.

A management control point at which actual cost t may be accumulated and

The time phased budget against which contract performance is measured

The sum of the budgets for all planned work scheduled to be accomplished.

The sum of the budgets for completed work and the completed portions of

The costs actually incurred in accomplishing the work performed

estimates the final cost and schedule in a project through this measurement".

CA, (Control Account)

Baseline)

Scheduled)

Performed)

Index)

Table 1. EVMS Terminologies.

Work Performed)

PMB (Performance Measurement

BCWS (Budgeted Cost of Work

BCWP or EV (Budgeted Cost of

ACWP (Actual Cost of Work

SPI (Schedule Performance Index)

CPI (Cost Performance Index)

AV (Accounting Variance) API (Accounting Performance

SV (Schedule Variance)

CV (Cost Variance)

analysis elements.

Plan Elements

Measurement Elements

> Analysis Elements

**2.2 BCS** 

Key performance indicators (KPIs) are a representative performance measurement system established in Britain based on the construction renovation movement called "Rethinking Construction". The system, which was first promoted in 1998, was intended to improve productivity in construction businesses. It can be used to measure not only construction performance, such as construction cost and duration reduction, but also the performance of a business in terms of profits and productivity (The KPI Working Group, 2000).

The construction renovation movement can be classified into seven major performance indexes: duration, cost, quality, customer satisfaction, design change, project performance, health and safety for the construction culture, recognition, production method, and production system. Performance can be measured based on these classifications and the results are applied to plan the efficiency and productivity of the construction business. It also establishes a partnership between the government, owner, and construction businesses and promotes best practices. It has been shown to improve project performance and cost effectiveness by removing inefficiencies and unproductive factors.
