6 Web Production Performance Indicators

    Offering website development at low cost and providing high quality, you can be sure that you will not run into a lack of orders. But keep in mind that from a business perspective, such a model is very unstable. If you chase after the quantity, you can quickly lose your customers, and if you hesitate, you can completely go into the red, not having received a chance for development.

    I was always interested in creating a balanced scorecard, focusing on which, it would be possible to effectively manage web production, striving for a middle ground. In this short article I will talk about WebCanape's performance evaluation system .

    If you want to try this system on your own, keep in mind that the figures given are most likely suitable for industries that produce a homogeneous product and have a clear pricing policy. In our case, we are developing several products: an information site, a site with a catalog of goods and an online store. Prices vary depending on the functionality, but the pricing procedure is generally the same.

    WebCanape Performance Indicators


    The primary task is simply to get an estimate of the result of the work of production, looking at which, we can say, good or bad, we completed the month. For this we use 6 indicators.

    General plan for income (CPD). This indicator indicates the ability of production to generate the necessary cash flow.

    Everything is simple here. We set two targets: minimum and desired. The minimum is necessary to cover expenses, the desired is to make a profit. Both plans increase monthly with the annual growth plan of the company.

    If the indicator is not met, urgently take measures to improve work efficiency or reduce costs. If the indicator is good, think about additional services for your customers without expanding the staff of production.

    Use of the fund of working time (FRV). This indicator indicates the level of discipline in production and the effectiveness of labor organization, which is the foundation for a successful business.

    FRV consists of the total number of hours allocated to developers involved in the production. To calculate the indicator, we divide the actual time spent by the developers by the total FRV. The indicator is best displayed as a percentage. The higher this indicator, the better. The number of working hours per person per month can be found in any production calendar .

    For us, the norm is 80%. This means that we spend 80% of the available working time fund on project work. The remaining 20% ​​we leave for training, tea, discussion of solutions for certain tasks, meetings.

    Use of FRV for commercial projects (FRV $). Using this indicator, we evaluate the targeted use of the company's production resources.

    By defining it, we find out what percentage of the FRV went into commercial projects. To separate the hours (commercial / non-commercial), we use trackers in Redmine, which makes it easy to cut statistics later on.

    To calculate the indicator, we divide the total time for commercial projects by the time worked for all projects, and multiply by 100%. In our case, the FRV $ should be at least 80%. The rest of the time we can spend on internal projects and development.

    Compliance with standards. Through this indicator, it is possible to assess the ability of production to fulfill the standards laid down in the cost of the product.

    Each contract with a client is a certain number of hours to develop a project. At the end of the month, for each completed project, we calculate the amount of time spent and compare it with the planned (contractual) time, evaluating how much we met the standards or exceeded them.

    To calculate the indicator, we divide the average planned time by the average actual time and multiply by 100%. It is normal if this indicator is less than 100%. The main thing is to ensure that it does not become less than 70%, and strive for a value of 100% or more.

    Return on production assets (RPA) . In fact, this is the total cost of the hour for which we worked a month.

    This indicator should be no less than the planned cost of a standard hour in the studio. If it is less, it is necessary to take measures to improve work efficiency or to more accurately (for the better) evaluate the cost of projects at the initial stage.

    The indicator is calculated easily. The average project time (in hours) is divided by the average project cost. We take the data on the hours spent from Redmine (or any other task manager), and the cost of developing the project from the contract.

    Deadlines . The final and very important indicator for us to evaluate is the fulfillment of obligations by the deadlines.
    To calculate it, we take into account the actual working days spent on the project and compare them with the planned contractual terms. We divide the average projected planning period by the average actual period and get an indicator of the deadlines. The rule is the same: the indicator should be at least 70% and should grow every month.

    If interested, I suggest that you familiarize yourself with the table that can be used for calculation.

    I note that it makes sense to consider the above indicators not only in the context of the entire production, but also with respect to projects for each manager. The analysis of indicators separately for each project manager provides good ground for thought. This is the most valuable in these calculations.

    We analyze the results for a month for timely diagnosis of problems - we analyze it at meetings, analyze bottlenecks, and use it to select the best developers and managers.

    Our figures in numbers


    April 2013:
    Implementation of the income plan: 116%
    Use of the working time fund: 73%
    Use of the FRV for commercial projects: 83%
    Profitability of production assets: 101%
    Fulfillment of the standards: 112%
    Fulfillment of the deadlines: 60% The

    standards up to the current indicators stretched for about 8 months. We have reached the required numbers thanks to automation, the expansion of the functionality of our software platform and the development of developers' qualifications.

    With an increase in the compliance rate and a slight increase in prices for the basic versions of sites, the profitability indicator, as a rule, manages to be kept at the right level.

    We paid serious attention to meeting the deadlines a few months ago. After that, they decided to control the time the projects stayed in the status “In Work”, plus the idea of ​​a TV was born . We have managed to extend the deadline completion rate to 60%. Judging by current data, the May results will be better.

    Congratulations to all on the start of summer. Have a good week and high rates!

    Vasily Churanov and the Web-canape team

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