scholarly journals Research on Optimization of Earned Value Management Method in Engineering Budget Management

2015 ◽  
Vol 9 (1) ◽  
pp. 369-375
Author(s):  
Ji Gedi ◽  
Wu Yunna ◽  
Chang Qing
Keyword(s):  
Critical Path ◽  
Integrated Control ◽  
Practical Method ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Diagram Method ◽  
Value Analysis ◽  
Earned Value Analysis ◽  
Management Method

Earned Value Management Method (EVM), widely used in the world, is a project management method of costschedule integrated control. But the traditional EVM sometimes cannot provide an accurate result. In this paper, a practical method is given to analyze the project performance, in which the Network Diagram Method and the Critical Path Method have been introduced into EVM system that can better reflect the practical situation of a project. This improved method can be referred to assub-level earned value analysis method. This method can correct variance in the duration and cost forecast of the traditional EVM, and can also provide more information about the cause analysis.

scholarly journals An Improved Earned Value Analysis Tool for Mitigating Progress Risks in Long Duration Projects

2019 ◽  
Vol 281 ◽  
pp. 05001
Author(s):  
Ali Fayad ◽  
Bassam Hussein ◽  
Elie Maalouf ◽  
Amin Haj-Ali
Keyword(s):  
Net Present Value ◽  
Value Management ◽  
Accurate Information ◽  
Analysis Tool ◽  
Earned Value ◽  
Earned Value Management ◽  
Value Analysis ◽  
Earned Value Analysis ◽  
Risk Management Process ◽  
Management Method

As a risk control tool, earned value analysis is crucial for identifying risky trends in the budget or schedule of a project. This tool relies on earned value management, a method for calculating cost and schedule variances. However, this method does not take into account the time value of money. This in itself is a threat that could lead to misleading data and eventually wrong decisions. This paper explores the risk management process, the earned value management method, and proposes a methodology that compliments the earned value management method with net present value calculations. This will allow project managers to take sound decisions based on more accurate information.

scholarly journals Análise da aplicação da técnica de gerenciamento do valor agregado (EVM) em projetos de construção enxuta

2016 ◽  
Vol 16 (3) ◽  
pp. 947
Author(s):  
Luis Felipe Cândido ◽  
Juliana Quinderé Carneiro ◽  
Luiz Fernando Mählmann Heineck
Keyword(s):  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Value Analysis ◽  
Earned Value Analysis

O Gerenciamento do Valor Agregado (Earned Value Management, EVM) ou a Análise do Valor Agregado (Earned Value Analysis, EVA) é uma técnica de medição e controle de projetos baseada na medição física, financeira e de tempo que proporciona indicadores de avanço real, variações de desempenho e previsões para conclusão do projeto. Entretanto, vários trabalhos científicos vêm descrevendo alguns problemas e limitações dessa técnica como a desconsideração dos fluxos de trabalho e a incompatibilidade de previsões em estágios iniciais de construção. Assim, por meio de um estudo de caso único, exploratório e descritivo, o presente trabalho tem por objetivo analisar o uso da técnica do EVM em um projeto de construção sob a ótica da Construção Enxuta. O estudo pode confirmar alguns problemas levantados em outros trabalhos, bem como expandi-los, proporcionando uma visão mais holística sobre a aplicabilidade dessa técnica na construção civil, especialmente em obras cuja construção enxuta é aplicada. Por fim, os autores concluem que a técnica do EVM é uma repetição da técnica de medição físico-financeira plotada no tempo e que suas limitações podem tornar o seu uso incompatível com projetos de construção.

Earned Value Analysis Application in Project Management

2014 ◽  
Vol 971-973 ◽  
pp. 2494-2497
Author(s):  
Wen Xiu Wang ◽  
En Jian He ◽  
Yan Fei Zhao
Keyword(s):  
Project Management ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Value Analysis ◽  
Earned Value Analysis ◽  
Monitoring Tools ◽  
Analysis Application ◽  
Project Monitoring ◽  
Status Information

The focus of earned value management is the deviation ( schedule variance and cost deviation ) to determine the project, by determining the deviation monitor project status . Discussion earned value analysis methods use a combination of project management . Earned Value Analysis method as an effective project monitoring tools, you can maximize avoid state ( time and cost ) project-specific business and technical implementation of the project 's content and confused together, intuitively given project status information.

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 THE AGILE EARNED VALUE MANAGEMENT METHOD AS A COST MANAGEMENT TOOL IN SCRUM PROJECTS

2021 ◽  
Vol 3 (163) ◽  
pp. 159-164
Author(s):  
D. Lysenko ◽  
Y. Fediai
Keyword(s):  
Process Model ◽  
Cost Management ◽  
Project Manager ◽  
Management Tool ◽  
Value Management ◽  
Final Conclusion ◽  
It Projects ◽  
Earned Value ◽  
Earned Value Management ◽  
Management Method

According to the statistics, the majority of IT projects run 50–150 percent over budget, which indicates the importance of managing its cost. In agile methodologies which are widely used in software development, little attention is given to cost management. Lack of specialized cost management tools in agile practices raises the question of the feasibility of adapting traditional project management methods and techniques. The purpose of the research is to improve the quality of IT projects cost control processes by developing a project cost management model using the Agile Earned Value Management method. The paper discusses the EVM techniques which have been adopted to provide the benefits of traditional EVM in Agile projects. There are some misconceptions that EVM techniques are too difficult to perform effectively on projects implemented using agile approaches (i.e. Scrum framework). The challenges are primarily associated with the fact that the EVM method requires creating a complete description of project tasks and a detailed schedule of their execution at the initial stage allowing accurate estimates of the actual data and monitoring the project progress from start to completion. On the other hand, Scrum emphasizes the need for incremental, multi-level planning and discourages planning software projects down to the lowest level of decomposition in the early stages. The reason for this is the high degree of ambiguity inherent in complex software systems, and the high probability of changes that make fully defining the requirements up front nearly impossible. However, upon closer examination of Sprint attributes, such as fixed duration, fixed backlog, cost measurement of sprint tasks, the ultimate goal of delivering a minimum viable product – leads us to the conclusion that Sprint can be considered as a subproject to which the mechanism of the EVM method can be applied using the same metrics. The paper further summarizes the main provisions and guidelines of the AgileEVM method, based on which its process model is developed. The inputs of the model are initial release baseline parameters and data captured at the completion of each Sprint: Planned Sprints (PS); Planned Release Points (PRP); Budget at Complete (BAC); Points Completed (PC), Points Added (PA), and Sprint Cost (SC). The controls are the AgileEVM method guidelines. The mechanisms are project manager and necessary software (MS Excel, MS Project). At the output of the model we obtain forecast indicators: Estimate to Complete (ETC), Estimate at Complete (EAC), Number of Total Sprints (N), and Release Date (RD). The final conclusion of the conducted research is that the application of the Earned Value Management method to projects implemented with Scrum enables the project manager and the project team with a valuable tool to monitor the progress of their work and to take appropriate measures.

scholarly journals Aplikasi Manajemen Proyek Konstruksi dengan Metode Critical Path dan Earned Value Management

2018 ◽  
Vol 1 (2) ◽  
pp. 53
Author(s):  
Eka Budhy Prasetya
Keyword(s):  
Human Error ◽  
Critical Path ◽  
Value Management ◽  
Actual Cost ◽  
Work Schedule ◽  
Earned Value ◽  
Earned Value Management

Mengerjakan proyek tepat waktu dan biaya merupakan target setiap perusahaan kontraktor. Namun pada kenyataannya hal tersebut masih sangat sulit dilakukan. Berbagai hal seperti sistem yang berjalan, human error serta teknologi yang dipakai mempengaruhi tingkat keberhasilan pengerjaan proyek. Dengan menggunakan metode critical path bisa diketahui durasi pengerjaan proyek serta  aktifitas yang berada dijalur kritis. Metode ini berfungsi untuk pengendalian waktu yang dapat dimonitor secara berkala. Metode earned value management berfungsi  dalam pengendalian biaya. Metode ini terdiri dari budget cost for work schedule (BCWS) yaitu anggaran rencana , budget cost for work performed (BCWP) yaitu laporan perkembangan proyek , dan actual cost for work performed (ACWP) yaitu laporan pengeluaran proyek. Dengan ketiga parameter tersebut dapat diketahui presentase rencana anggaran, presentase perkembangan proyek serta presentase pengeluaran proyek. Sehingga dapat segera ketahui jika terjadi over budget maupun jika terjadi keterlambatan pengerjaan proyek. Dalam Perancangan sistem aplikasi manajemen proyek ini menggunakan aplikasi php dan Mysql.

Calculating cumulative inefficiency using earned value management in construction projects

2015 ◽  
Vol 42 (4) ◽  
pp. 222-232 ◽  
Author(s):  
Jae-Seob Lee
Keyword(s):  
Construction Projects ◽  
Value Management ◽  
Ripple Effect ◽  
Production Rates ◽  
Earned Value ◽  
Earned Value Management ◽  
Cumulative Impact ◽  
Value Analysis ◽  
Ripple Effects ◽  
Over Time

Delay is one of the major factors in the cost overruns that affect construction projects. Furthermore, delay may cause a cumulative impact or ripple effect on productivity. Even though there are various methods proposed in previous researches that are considered applicable for analyzing the damages resulting from delay, there are some limitations to previous approaches. Notably, they do not consider the realistic production rates of activities over time. Moreover, they do not reflect the ripple effects on the performance of the work remaining, after the completion of delay events. This paper, therefore, proposes a method, which is referred to as the COME method (combination of measured mile analysis and earned value management (EVM) incorporating probable production rates) that can reasonably calculate the cumulative damages due to delay, considering the feasible rates of production over time, and the ripple effects on productivity. The COME method includes the ‘learning curve’, and the ‘earned value analysis’ as research methodologies. Earned value management was utilized, to demonstrate and calculate the effects of the cumulative loss of productivity on the remaining work, as well as on the impacted work due to delay. An example analysis showed that the COME method is a feasible choice for damages calculation, considering probable production rates over activity progress, and indirect impacts on performance changes, after the completion of delay events. It is noted, however, that the COME method relies on the use of a subjective or availability of an estimated production rate for the estimate to complete calculations.

Method “Earned Value Management” for Timescale Controlling in Construction Projects

2015 ◽  
Vol 725-726 ◽  
pp. 1025-1030 ◽  
Author(s):  
Sergei Bovteev ◽  
Marina Petrochenko
Keyword(s):  
Time Management ◽  
Completion Time ◽  
Construction Projects ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Independent Estimate ◽  
Management Method

Article presents an assessment of using “Earned Value Management” method for monitoring the construction projects completion on time. It describes the technique of Earned Value Management for Project Time Management. A specific example analyzes the possibility of using indicators Earned Schedule and Independent Estimate of Completion (time) and represents conditions when this indicators do not give correct results.

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