Abstract
Project performance measurement offers a wide range of methods to help project managers monitor projects. However, several critical issues remain in project performance measurement, such as an unbalanced use of indicators due to a lack of prediction-based (leading) indicators with regard to outcome-based (lagging) indicators. For its part, systems engineering measurement, although a more recent discipline, offers a wide variety of indicators, including a set of leading indicators. As our objective is to increase project performance and success rates, this involves improving project performance measurement on which project management decisions are based. This purpose, the proposal put forward in this paper is to extend the number and type of indicators used in project performance measurement by adapting the leading indicators defined in systems engineering measurement. The methodology involves first mapping the systems engineering indicators with the project management activities, resulting in identification of a set of potentially useful indicators for measuring the different activities, then tailoring a selection of these indicators with project-specific data to define a set of the most relevant indicators for a given project. This methodology is illustrated by means of a case study in a manufacturing company.
Similar content being viewed by others
References
Aziz RF, Hafez SM (2013). Applying lean thinking in construction and performance improvement. Alexandria Engineering Journal 52(4): 679–695.
Atkinson R (1999). Project management: cost, time and quality, two best guesses and a phenomenon, it’s time to accept other success criteria. International Journal of Project Management 17(6):337–342.
Anbari FT (2003). Earned value project management method and extensions. Project Management Journal 34(4):12–23.
Anderson K, McAdam R (2004). A critique of benchmarking and performance measurement: Lead or lag? Benchmarking: an International Journal 11(5):465–483.
Alter S (2013). Work system theory: Overview of core concepts, extensions, and challenges for the future. Journal of the Association for Information Systems 14(2):72.
Barber E (2004). Benchmarking the management of projects: A review of current thinking. International Journal of Project Management 22(4): 301–307.
Choong KK (2013a). Are PMS meeting the measurement needs of BPM? A literature review. Business Process Management Journal 19(3):535–574.
Choong KK (2013b). Understanding the features of performance measurement system: A literature review. Measuring Business Excellence 17(4):102–121.
Choong KK (2014). Has this large number of performance measurement publications contributed to its better understanding? A systematic review for research and applications. International Journal of Production Research 52(14):4174–4197.
Choong KK (2018). Use of mathematical measurement in improving the accuracy (reliability) & meaningfulness of performance measurement in businesses & organizations. Measurement 129:184–205.
Cha HS, Kim CK (2011). Quantitative approach for project performance measurement on building construction in South Korea. KSCE Journal of Civil Engineering 15(8):1319–1328.
Choi JW (2007). Forecasting Potential Project Risks through Leading Indicators to Project Outcome. Doctoral dissertation, Texas A&M University, College Station, USA.
Cheung SO, Suen HC, Cheung KK (2004). PPMS: A web-based construction project performance monitoring system. Automation in Construction 13(3):361–376.
Cao Q, Hoffman JJ (2011). A case study approach for developing a project performance evaluation system. International Journal of Project Management 29(2):155–164.
Chen HL, Chen WT, Lin YL (2016). Earned value project management: Improving the predictive power of planned value. International Journal of Project Management 34(1):22–29.
Conforto E, Rossi M, Rebentisch E, Oehmen J, Pacenza M (2013). Improving the Integration of Program Management and System Engineering. White paper presented at the 23th INCOSE Annual International Symsposium Philadelphia, USA, 293–298.
Eilat H, Golany B, Shtub A (2008). R&D project evaluation: An integrated DEA and balanced scorecard approach. Omega 36(5):895–912.
Franceschini F, Galetto M, Maisano D, Viticchie L (2006). The condition of uniqueness in manufacturing process representation by performance/quality indicators. Quality and Reliability Engineering International 22(5):567–580.
Franceschini F, Galetto M, Maisano D (2006). Classification of performance and quality indicators in manufacturing. International Journal of Services and Operations Management 2(3):294–311.
Grabowski M, Premnath A, Jason M, John RH, Karlene R (2007). Leading indicators of safety in virtual organizations. Safety Science 45(10): 1013–1043.
Guo BH, Yiu TW (2015). Developing leading indicators to monitor the safety conditions of construction projects. Journal of Management in Engineering 32(1):04015016.
Hall NG (2012). Project management: Recent developments and research opportunities. Journal of Systems Science and Systems Engineering 21(2): 129–143.
Henttonen K, Ojanen V, Puumalainen K (2016). Searching for appropriate performance measures for innovation and development projects. R&D Management 46(5):914–927.
Hopkins A (2009). Failure to Learn: The BP Texas City Refinery Disaster. CCH Australian Limited, Darwin, Australia.
ISO/IEC (2007). IEEE Standard Adoption of ISO/IEC 15939:2007 — Systems and Software Engineering — Measurement Process, 2007.
INCOSE Measurement Working Group (1998). Systems Engineering Measurement Primer: A basic introduction to measurement concepts and use for systems engineering, V1.0, INCOSE, 1998.
INCOSE Measurement Working Group (2010). Systems Engineering Measurement Primer: A basic introduction to measurement concepts and use for systems engineering, V2.0, INCOSE, 2010.
Juglaret F, Rallo JM, Textoris R, Guarnieri F, Garbolino E (2011). Occupational health and safety scorecards: New leading indicators improve risk management and regulatory compliance. The 40th ESReDA Seminar-Risk Analysis and Management Across Industries, Bordeaux, France, May 2011.
Kim SY, and Huynh TA (2008). Improving project management performance of large contractors using benchmarking approach. International Journal of Project Management 26(7):758–769.
Kakar A, Thompson S (2010). A Case for using the balanced scorecard framework at project stage-gates. Proceedings of the Southern Association for Information Systems Conference, Atlanta, USA, March 26–27, 2010.
Kueng P, Andres M, Wettstein T (2001). Performance measurement systems must be engineered. Communications of the Association for Information Systems 7(3):1–27.
Kerzner HR (2011). Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance. John Wiley & Sons, Inc., Hoboken, New Jersey, USA.
Keegan DP, Eiler RG, Jones CR (1989). Are your performance measures obsolete? Management Accounting 70(12):45–50.
Kasser JE, Schermerhorn R (1994). Determining metrics for systems engineering. INCOSE International Symposium 4(1): 740–745.
Knorr LC (2012). Leading Indicator Analysis for High Speed Sled Test Programs (No. AFIT/GSE/ENV/12-M03DL). Thesis for AFIT Distance Learning MS in Systems Engineering.
Li HX, Zhao YM (2016). International project management strategy applied by a small and medium-sized consultancy in oversea cooperation. Master’s Thesis, Chalmers University of Technology, Gothenburg, Sweden.
Lauras M, Marques G, Gourc D (2010). Towards a multidimensional project performance measurement system. Decision Support Systems 48(2):342–353.
Lipke W, Zwikael O, Henderson K, Anbari F (2009). Prediction of project outcome: The application of statistical methods to earned value management and earned schedule performance indexes. International Journal of Project Management 27(4):400–407.
Luu VT, Kim SY, Huynh TA (2008). Improving project management performance of large contractors using benchmarking approach. International Journal of Project Management 26(7):758–769.
Meredith JR, Mantel Jr SJ (2011). Project Management: A Managerial Approach. John Wiley & Sons, Inc., Hoboken, New Jersey, USA.
Morris P, Pinto JK (2010). The Wiley Guide to Project Control. John Wiley & Sons, Inc., Hoboken, New Jersey, USA.
Mearns K (2009). From reactive to proactive — Can LPIs deliver? Safety Science 47(4), 491–492.
Neely A, Gregory M, Platts K (2005). Performance measurement system design: A literature review and research agenda. International Journal of Operations & Production Management 25(12):1228–1263.
Navon R (2007). Research in automated measurement of project performance indicators. Automation in Construction 16(2):176–188.
Orlowski C, Blessner P, Blackburn T, Olson B (2015). A framework for implementing systems engineering leading indicators for technical reviews and audits. Procedia Computer Science 61:293–300.
Pajares J, Lopez-Paredes A (2011). An extension of the EVM analysis for project monitoring: The cost control index and the schedule control index. International Journal of Project Management 29(5):615–621.
Parmenter D. (2015). Key Performance Indicators: Developing, Implementing, and Using Winning KPIs. John Wiley & Sons, Inc., Hoboken, New Jersey, USA.
PSM, INCOSE (2005). Technical Measurement Guide, V1.0, San Diego, CA, USA: International Council on Systems Engineering (INCOSE). INCOSE-TP-2003-020-01.
PMI (2013). Project Management Body of Knowledge (PMBOK® GUIDE).
Rebentisch E (2017). Integrating Program Management and Systems Engineering: Methods, Tools, and Organizational Systems for Improving Performance. John Wiley & Sons, Inc., Hoboken, New Jersey, USA.
Rhodes DH, Valerdi R, Roedler GJ (2009). Systems engineering leading indicators for assessing program and technical effectiveness. Systems Engineering 12(1):21–35.
Roedler G, Rhodes DH (2007). Systems Engineering Leading Indicators Guide, V1. INCOSE Technical Product Number: INCOSE-TP-2005-001-03.
Roedler G, Rhodes DH, Schimmoller H, Jones C (2010). Systems Engineering Leading Indicators Guide, V2. INCOSE Technical Product Number: INCOSE-TP-2005-001-03.
Shi L, Newnes L, Culley S, Gopsill J, Jones S, Snider C (2015). Identifying and visualising KPIs for collaborative engineering projects: A knowledge based approach. ICED15, The 20th International Conference on Engineering Design, Milan, Italy, July 27–30, 2015.
Sinelnikov S, Kerper S, Inouye J (2013). Transforming EHS performance measurement through leading indicators. Itasca, IL: The Campbell Institute (24 pages).
Sharon A, De Weck OL, Dori D (2011). Project management vs. systems engineering management: A practitioners’ view on integrating the project and product domains. Systems Engineering 14(4):427–440.
Thomas G, Fernandez W (2008). Success in IT projects: A matter of definition. International Journal of Project Management 26(7):733–742.
Trochim W (2001). The Research Methods Knowledge Base, Atomic Dog Publishing, Cincinnati, Ohio, USA.
Wilbur A (1995). Metrics Guidebook for Integrated Systems and Product Development, International Council on Systems Engineering, INCOSE-TP-1995-002-01.
Xue R, Baron C, Esteban P (2015). Aligning systems engineering and project management standards to improve the management of processes. Proceedings of the 23rd International Conference on Systems Engineering, Las Vegas, Nevada, USA, August 19–21, 2014.
Yang SL, Wang JM, Shi LY, Tan YJ, Qiao F (2018). Engineering management for high-end equipment intelligent manufacturing. Frontiers of Engineering Management 5(4): 420–450.
Yun S, Choi J, De Oliveira DP, Mulva SP (2016). Development of performance metrics for phase-based capital project benchmarking. International Journal of Project Management 34(3):389–402.
Zhang Q, Lu XN, Peng ZL, Ren ML(2019). Perspective: A review of lifecycle management research on complex products in smart-connected environments. International Journal of Production Research, 1–F22.
Zhao SY, Zhang Q, Peng ZL, Fan Y(2019). Integrating customer requirements into customized product configuration design based on Kano’s model. Journal of Intelligent Manufacturing: 1–17.
Zidane YJ, Johansen A, Ekambaram A (2015). Project evaluation holistic framework — application on megaproject case. Procedia Computer Science 64:409–416.
Zheng L, Baron C, Esteban P, Xue R, Zhang Q (2017). Mapping systems engineering leading indicators with leading indicators in construction industry projects. 12ème Congrès International de Génie Industriel (CIGI 2017), Compiègne, France, May 2017.
Acknowledgments
The authors would like to thank the anonymous reviews for their help to improve the quality of the paper. The work is supported by the National Natural Science Foundation of China, under grants 71690230, 71690235 and 71501055.
Author information
Authors and Affiliations
Corresponding author
Additional information
Li Zheng is currently an academic assistant in Toulouse Business School. She received her PhD degree in industrial engineering in 2018 from National Institute of Applied Science (INSA) of Toulouse. She received her master degree in management science and engineering in the year 2014 from Hefei University of Technology. Her research interests are systems engineering measurement, project management, performance measurement systems, and performance indicator development.
Claude Baron is full professor in computer sciences at the National Institute of Applied Sciences (INSA) of the University of Toulouse (France). She teaches systems engineering, system design and modelling, in master programs. Her current research is focusing on systems engineering, collaborative engineering and project management in engineering projects. She develops her research activities in the LAAS-CNRS laboratory in Toulouse. She is the author of many international articles, (co)authored several books and received IEEE and INCOSE awards for her results.
Philippe Esteban is associate professor at the University of Toulouse. He conducts his research on system engineering at the LAAS Laboratory of the CNRS (French National Center for Sciences and Research). He is an expert in the domain of the design and verification of complex and hybrids systems. His predilection domain of application is embedded systems.
Rui Xue is assistant professor at School of Economics and Management of Beijing University of Technology. She was a Post-doc at LAAS-CNRS laboratory (French National Center for Sciences and Research) for a period of one year. She received her PhD degree in industrial engineering in 2016 from National Institute of Applied Sciences (INSA) of the University of Toulouse (France). She received her M.E degree in computer software and theory in the year 2012 from Jilin University. Her research interests are system engineering, project management, system modeling and decision making.
Qiang Zhang is currently an associate professor at the Hefei University of Technology, Hefei, China. He received his Ph.D. degree in industrial engineering from University of Strasbourg and INSA Strasbourg, French, in 2014. His research interests focus on design management, information system, and data analysis.
Shanlin Yang received the master degree in computer science from Hefei University of Technology, China, in 1985. He is currently a professor at Hefei University of Technology, China. He is a member of the Chinese Academy of Engineering. His research interests include decision making, information management, and information system.
Rights and permissions
About this article
Cite this article
Zheng, L., Baron, C., Esteban, P. et al. Using Leading Indicators to Improve Project Performance Measurement. J. Syst. Sci. Syst. Eng. 28, 529–554 (2019). https://doi.org/10.1007/s11518-019-5414-z
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11518-019-5414-z