scholarly journals Project Performance Analysis Using the Earned Value Management (EVM) Method (Case Study: PT XYZ)

2019 ◽  
Vol 0 (5) ◽  
pp. 57
Author(s):  
Akhmad Ittang Anwarsyah ◽  
Ervina Ahyudanari
Keyword(s):  
Performance Analysis ◽  
Project Performance ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management

Directed earned value management based on ordered fuzzy numbers

2021 ◽  
pp. 1-14
Author(s):  
Seyed Taha Hossein Mortaji ◽  
Siamak Noori ◽  
Morteza Bagherpour
Keyword(s):  
Fuzzy Numbers ◽  
Lower Cost ◽  
Project Managers ◽  
Value Management ◽  
Monitoring And Control ◽  
Earned Value ◽  
Earned Value Management ◽  
Project Monitoring ◽  
And Control

Earned value management is well-known as the most efficient method of project monitoring and control providing relatively reliable information about the project performance. However, this method requires accurate estimates of the progress of project activities, which are always associated with uncertainties that, if ignored or not addressed well, lead to incorrect results. To address this issue, the application of multi-valued logic, in particular fuzzy logic, in earned value management has recently attracted a lot of attention both in practice and research. This paper introduces directed earned value management (DEVM) in which ordered fuzzy numbers are used to express the so-called uncertainties as well as to capture more information about the trend of the project progress. To evaluate the performance of the proposed method, several numerical examples and a case study are presented. The results reveal that compared to the existing methods, DEVM has a lower computational complexity. Also, it doesn’t suffer from the overestimation effect and as a result, it has a higher ability to express project-specific dynamics. In sum, the proposed method allows project managers to make informed decisions that lead to taking preventive and corrective actions promptly and at a lower cost.

Earned Schedule and the Use of Schedule Execution Reporting Metrics

2018 ◽  
Author(s):  
Philip J. Beck ◽  
Dennis Kovacs
Keyword(s):  
Performance Index ◽  
Critical Path ◽  
Project Performance ◽  
Value Management ◽  
Earned Value ◽  
Past Performance ◽  
Earned Value Management ◽  
Time Element ◽  
Schedule Performance ◽  
Schedule Execution

The traditional approach of managing project performance is with the use of Earned Value Management. There is a recent trend towards the expansion of traditional Earned Value Management practices to include the concept of Earned Schedule. Whereas Earned Value provides insight as to how the project is trending in relation to the plan by assessing cost and schedule variances, Earned Schedule focuses on the time element of schedule performance throughout the project execution phase. Earned Value, although very effective at providing visibility to cost performance, is not as transparent when it comes to schedule performance over time. Case in point, at completion, irrespective as to how work progressed on the schedule (ahead or behind plan) at completion, the schedule performance index will always be 1.0. Earned Schedule overcomes this drawback, providing useful tools to report on schedule performance, and providing visibility to the project state from which to base informed decisions. To perform the analysis, Earned Schedule analysis incorporates detail from the baseline and forecast schedules as well as the integrated project management cost report (earned versus planned). In addition to looking at Earned Schedule metrics, other key metrics are factored into this approach to assess overall schedule performance. Key metrics derived from the schedule and highlighted in this approach include: • Critical Path Length Index (CPLI) • Baseline Execution Index (BEI) • Total Float Consumption Index (TFCI) • To Complete Schedule Performance Index (TSPI) • Predicted Forecast Finish Date (PFFD) • Schedule Performance Index (time) (SPIt) • Independent Estimate At Complete (time) (IEACt) The intent of these metrics is to identify trends and assist in predicting project outcomes based on past performance. Since this approach is highly dependent on the schedule data, the more compliant a schedule is to industry best practices the better the quality of the results. The metrics are negatively impacted by recent re-baselining as this causes us to lose historical performance detail. Frequent analysis of the schedule execution reporting metrics defined above provides transparency of project performance and brings visibility to early risk triggers in support of a proactive approach to project execution monitoring and control. This paper will present a case study demonstrating how additional transparency through this approach highlighted a potential schedule risk. This increased visibility allowed the project team to reprioritize and implement proactive corrective actions to mitigate any potential impact to the project In Service Date (ISD).

scholarly journals Challenges of Earned Value Management- Application in Indian Construction Industry

2019 ◽  
Vol 8 (2) ◽  
pp. 733-735
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Project Performance ◽  
Good News ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Cost Variance ◽  
Management Application ◽  
Structured Questionnaire

The predominant goal of a construction industry is to cessation the projects on schedule and within the budget, with proper usance of all the resources. But most of the project runs over budget, lagging behind the schedule. Earned value management (EVM) is one of the techniques to overcome the issues related to the schedule and budget. EVM helps to track the project performance by delivering the schedule variance, cost variance and their performance index. The objective of this study is to survey the challenges in applying earned value management to the ongoing projects in the Indian construction industry. After, conducting structured questionnaire survey and interviews some of the challenges in application of EVM were recognized. Depending on the personal comments given by different construction managers nine of challenges are observed and each of them is briefly discussed. Financing and late payment of the completed work, pressures to report only good news and inaccurate assessment of project time are the top rated challenges gleaned from the study. The personal interviews reveal that lacking in using earned value management software is the major cause with 55% responses

scholarly journals Risk factors affecting the ability for earned value management to accurately assess the performance of infrastructure projects in Australia

2019 ◽  
Vol 19 (4) ◽  
pp. 550-569 ◽  
Author(s):  
Maan Nihad Ibrahim ◽  
David Thorpe ◽  
Muhammad Nateque Mahmood
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Project Performance ◽  
Value Management ◽  
Earned Value ◽  
Related Factors ◽  
Earned Value Management ◽  
Content Type ◽  
Factors Affecting ◽  
Factors Influencing

Purpose The purpose of this paper is to investigate a set of risk-related factors influencing the earned value management (EVM) concept as an assessment technique in evaluating the progress of modern sustainable infrastructure construction projects. Design/methodology/approach A qualitative research approach has been adopted for identifying risk-related factors influencing EVM concept from a literature review and through interviewing industry personnel, followed by an inductive process to form sets of key factors and their measuring items. Findings EVM is a common method for assessing project performance. A weakness of this approach is that EVM assessment in its current form does not measure the impact of a number of project performance factors that result from the complexity of modern infrastructure construction projects, and thus does not accurately assess their impact in this performance. This paper discusses and explains a range of potential risk factors to evaluating project performance such as sustainability, stakeholder requirements, communication, procurement strategy, weather, experience of staff, site condition, design issues, financial risk, subcontractor, government requirements and material. In addition, their measuring items were identified. Practical implications This research assists projects managers to improve the evaluation process of infrastructure construction performance by incorporating a range of factors likely to impact on that performance and which are not included in current EVM calculations. Originality/value This research addresses the need to include in the EVM calculation a range of risk factors affecting the performance of infrastructure projects in Australia and therefore makes this calculation a more reliable tool for assessing project performance.

scholarly journals The Enhanced-Earned Value Management (E-EVM) Model: A Proposal for the Aerospace Industry

Symmetry ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 232
Author(s):  
Joaquín López Pascual ◽  
Juan Carlos Meléndez Rodríguez ◽  
Salvador Cruz Rambaud
Keyword(s):  
Aerospace Industry ◽  
Project Manager ◽  
Value Management ◽  
Short Term ◽  
Earned Value ◽  
Earned Value Management ◽  
Simultaneous Evaluation ◽  
Aerospace Sector ◽  
Representation Techniques

The framework of this paper is the aerospace industry, which is one of the world’s leading sectors, thus playing a noteworthy role in current society. This makes it especially important to try to optimize the management of the aerospace sector. Therefore, the main objective of this paper is to propose the so-called Enhanced-Earned Value Management (hereinafter, E-EVM) model, able to explore the simultaneous evaluation of many projects, from which the management of the project can take advantage. Additionally, this model considers the possibility of forecasting pending tasks, measurable in time units or cost units, until the end of the project. The main contribution of E-EVM methodology is its capacity to detect both delayed and advanced projects by converting times (hours) into monetary units (EUR). Empirically, this enhanced model has been applied to a real case study in the aerospace industry composed of thousands of subprojects and the results provide the project manager with valuable information to make decisions in a short term. Through computer graphic representation techniques, the visualization of project deployment can be improved. Finally, the E-EVM model can be used even in big projects where a very large volume of information must be simultaneously treated and also, it will be suitable to apply pattern recognition concerning the project performance.

scholarly journals A Matrix Model for Effective of Project Management

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Samuel Y. Ruan ◽  
Yuan-Ho Chen
Keyword(s):  
Performance Assessment ◽  
Performance Index ◽  
Conversion Rate ◽  
Project Performance ◽  
Project Managers ◽  
Assessment Model ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
And Control

For earned value management (EVM), when an organization attaches nonequal importance to the schedule performance index (SPI) and cost performance index (CPI) of a project, a nonequal-weighted conversion rate between the SPI and CPI is formed. This study employed EVM to integrate SPIs and CPIs to establish a matrix project performance assessment model with a nonequal-weighted conversion rate between the SPI and CPI. This model improves the disadvantages of conventional performance assessment models and enables project managers to simultaneously monitor and control the costs and schedules of their projects. The results provide a practical project performance assessment model for various industries and a basis for developing a project performance assessment information system, thus confirming the practicality and applicability of this study. 

scholarly journals Earned Value Management System in Indonesian Construction Projects

2021 ◽  
Vol 13 (3) ◽  
Author(s):  
Mandiyo Priyo ◽  
Keyword(s):  
Project Management ◽  
Construction Projects ◽  
Project Performance ◽  
Performance Estimation ◽  
Building Construction ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Project Completion ◽  
Critical Elements

Earned Value Management (EVM) is a methodology combining scope, schedule, and resource measurements to assess project performance and progress. It involves integrating the three critical elements of the project covering schedule, work scope, and cost. Various benefits are associated with the use of EVM in project management. This research aims to analyze four units of building construction projects using the EVM method consisting of an analysis of project performance, estimation of cost, and time for project completion, and planning estimation analysis against project completion. The results revealed that from the aspect of time, three buildings were completed ahead of schedule, and another one was behind schedule. In terms of cost, three buildings cost lower than the estimated budget, while one other building was higher.

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