A New Approach for Complementing the Earned Value Method for Project Progress Monitoring and Controlling

2019 ◽  
Vol 2 ◽  
pp. 11-18
Author(s):  
Ali M. Fayad ◽  
Bassam Hussein ◽  
Mohamad Hajj-Hassan ◽  
Amin Haj-Ali
Keyword(s):  
Progress Monitoring ◽  
Net Present Value ◽  
Value Management ◽  
Present Value ◽  
Earned Value ◽  
Earned Value Management ◽  
New Approach ◽  
Time Value Of Money ◽  
And Performance ◽  
Value Of Money

The earned value management method is commonly used for monitoring and assessing project budget and schedule performance. Although widely used, this method does not consider the time value of money. This paper suggests the inclusion of inflation as a factor affecting project performance and gives a methodology to do so using the net present value. This is done by adjusting the present value and actual cost of the work packages. The result is more realistic progress measurements and performance indicators.

Nilai Waktu Dari Uang Dalam Perspektif Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
pp. 71-84
Author(s):  
Misbahul Khoir
Keyword(s):  
Net Present Value ◽  
Average Rate ◽  
Rate Of Return ◽  
Value Of Time ◽  
Present Value ◽  
Time Value Of Money ◽  
Time Value ◽  
The Future ◽  
Current Value ◽  
Value Of Money

The time value of money is associated with the current value and future value because the money received now is more worth than the money received in the future. However, is the concept of time value of money is appropriate and justified by the Shari'ah? The time value of money is a concept that says that the money of the one rupiah that can be received today is more worth than one rupiah which will be received in the future time. The concept of time value of money is needed by financial managers in making decision when will invest in an asset and determine the source of loan funds that will be chosen. Methods for the time value of money pervade; a) the method of average rate of return. This method measures the level of profit gained by an investment. The disadvantage of this method is ignoring the time value of money; b) the payback period method. The method measures how fast the investment return is, the sooner the better; c) method of net present value (NPV). This method calculates quarrel between the current value of investment and the present value of net cash receipts in the future and calculates quarrel between the present value of cash outflow (investment) and cash inflow (income) per year; d) profitability index method (PI). This method calculates ratio between the present value of net cash receipts in the future and the present value of the investment; and e) the methods of internal rate of return (IRR).  If IRR > saving or profit required → decent. Islam views money as a flow concept. Money must rotate in an economy and may not be idle for too long time. Moreover, it lets for years. Islam does not recognize the method of time value of money because this method adds value to money solely with increasing time and not effort. Islam actually knows the money value of time; that is the time has economic value as well as the money value of money. Imam Nawawi provides definition related to value addition for money based solely on the value of time is the category of riba.

Der Weg zur modernen Investitionsrechnung

2010 ◽  
Vol 51 (1) ◽  
pp. 22-28 ◽  
Author(s):  
Stefan Behringer
Keyword(s):  
Net Present Value ◽  
Investment Decision ◽  
17Th Century ◽  
Separation Theorem ◽  
Present Value ◽  
Time Value Of Money ◽  
Time Value ◽  
Investment Appraisal ◽  
Value Of Money ◽  
The Way

Seitdem der Mensch wirtschaftet, triff t er Entscheidungen über Investitionen. Heute hat er dazu ein ausgereiftes Instrumentarium: Investitionen werden mit dem Kapitalwertkriterium in verschiedenen Szenarien, die mit ihren Wahrscheinlichkeiten gewichtet werden, auf Vorteilhaftigkeit geprüft. Der Weg dahin war lang: Die Zeit muss durch den Zins berücksichtigt werden. Allerdings war das kanonische Zinsverbot ein Hindernis auf dem Weg zum Kapitalwertkriterium. Erst Leibniz konnte den Weg frei machen, indem er eine logische Ableitung für die Barwertrechnung vorlegte. Um die Risiken der Investition angemessen zu berücksichtigen, braucht man Wahrscheinlichkeiten. Die französischen Philosophen Fermat und Pascal haben in einem Briefwechsel jeweils eine Lösung entwickelt, die heute in der Szenariotechnik Verwendung fi ndet. Damit die Investitionsentscheidung isoliert getroff en werden kann, bedarf es als letztem Element eines Separationstheorems, welches Irving Fisher Anfang des 20. Jahrhundert entwickelte. Today the Net Present Value rule is widely used in different scenarios, that are weighted with likelihoods to evaluate whether an investment is advantageous or not. The way to that rule has a long history, since investments are done since mankind works together in economies. Interest is needed to account for the time value of money. The canonical ban on interest was an obstacle for the development of the net present value rule, which was resolved only in an essay from Leibniz in the 17th century. The likelihoods were developed by the French philosophers Pascal and Fermat also in the 17th century. As last element of modern investment appraisal Irving Fisher developed the separation theorem, which allows making an investment decision isolated from the surroundings. Keywords: der weg zur modernen investitionsrechnung

Cost/Schedule Monitoring and Forecasting for Project Based on Earned Value Management (EVM)

2014 ◽  
Vol 919-921 ◽  
pp. 1437-1440 ◽  
Author(s):  
Jian Wen Huang ◽  
Hui Min Pan ◽  
Yan Li ◽  
Yi Ting Zhu ◽  
Zai Yi Liao
Keyword(s):  
Project Managers ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Traditional Concept ◽  
The Status ◽  
Monitoring And Forecasting ◽  
Ultimate Outcome ◽  
And Performance ◽  
The Cost

Earned value management (EVM) is one of the most widely used control tools in project management. It is a well-known management system that integrates cost, schedule and performance. Based on the traditional concept of EVM, the cost/schedule monitoring and forecasting model is proposed in this paper. It gives us the analysis steps and provides the methods for monitoring the actual situation and forecasting the final cost and duration. By using this model, the managers are able to know timely the status of a project in terms of budget and schedule and forecast the developing trend and ultimate outcome of the project. So it is a reliable method to improve the capability of project managers for making reasonable decisions.

Lean Project Planning in Shipbuilding

2014 ◽  
Vol 30 (02) ◽  
pp. 79-88 ◽  
Author(s):  
Jan Emblemsvåg
Keyword(s):  
Stress Test ◽  
Project Planning ◽  
Value Management ◽  
Management Approach ◽  
Earned Value ◽  
Earned Value Management ◽  
New Approach ◽  
Last Planner System ◽  
Last Planner

Lean Project Planning (LPP) is a new approach for project planning that has been developed from the Last Planner System to overcome shortcomings in the Earned Value Management approach. In this paper, we investigate how LPP has been successfully used in shipbuilding of a so called Platform Supply Vessel. Due to the highly advanced vessel, we managed to stress-test the approach and found a number of improvements to be made. However, the overall judgment is that LPP is a success. By now, these improvements are more or less implemented except those relevant for the engineering part. When it comes to the engineering processes further improvements are still needed.

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 Analisis Kelayakan Investasi Pada Budidaya Karamba Jala Apung (KJA) Ikan Kerapu Di Kepulauan Karimunjawa Kabupaten Jepara

2017 ◽  
Vol 6 (2) ◽  
pp. 94 ◽  
Author(s):  
Suryono Suryono ◽  
Ria Azizah ◽  
Edi Wibowo Kushartono ◽  
Raden Ario ◽  
Gentur Handoyo
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Present Value ◽  
Time Value Of Money ◽  
Discount Factors ◽  
Time Value ◽  
Investment Plan ◽  
Investment Opportunities ◽  
Value Of Money ◽  
High Chance

Kajian Investasi budidaya ikan kerapu di Karimunjawa adalah salah satu usaha guna menumbuhkan promosi investasi di wilayah studi. Kajian ini akan membuat peluang investasi menjadi lebih fokus dan tajam baik dari segi sektor maupun lokasinya, sehingga akan memudahkan investor guna merealisasikan rencana bisnisnya. Studi ini akan memberikan detail informasi kepada investor tentang peluang bisnis pada budidaya ikan kerapu yang sangat layak dilakukan sehingga dapat meningkatkan pertumbuhan ekonomi masyarakat pesisir dan wilayah kabupaten Jepara pada umumnya. Metode yang digunakan adalah metode survei. Peluang Investasi dianalisa secara deskriptif. Hasil kajian menunjukan bahwa berdasakan potensi alam, fasilitas infrastruktur produksi, nilai ekonomi serta aspek financial maka kelayakan investasi adalah sangat prospektif dan berpeluang untuk sukses. Analisis financial menunjukan bahwa investasi pada budidaya ikan kerapu di Karimunjawa adalah sangat layak untukdirealisasikan bagi investor. Budidaya ikan kerapu Tikus (Cromileptis altivelis)adalah paling prospektif, dimana nilai Net Present Value (NPV)> 0,yaitu  1,772,764,729,  dan  Profitability Index  (PI) lebih besar dari  1, yaitu 5,543291036.  Payback Periodadalah  2.82 tahun, jika tidak mempertimbangkan nilai uang (Discount Factors) dan 3.65 tahun  jika mempertimbangkan nilai uang. Sedangkan untuk budidaya ikan kerapu bebek(Ephinephelus fuscoguttatus), Net Present Value (NPV)> 0 yaitu  69,938,924, - dan Profitability Index (PI) lebih besar dari 1, yaitu 1,20558783.  (Pay Back Period) adalah  4,13tahun apabila tidak mempertimbangkan nilai uang (Discount Factor), sedangkan apabila mempertimbangkan nilai uang maka menjadi  and 4.64 tahun. Dari analisis yang dilakukan, maka dapat disimpulkan bahwa meskipun kedua spesies ikan kerapu layak investasi, tetapi ikan kerapu tikuspaling layak investasi, sedangkan ikan kerapu macansebagai produk sampingan investasi, yaitu dengan memanfaatkan sisa pakan yang tidak digunakan dalam budidaya ikan kerapu tikus, sehingga hasilnya akan dapat maksimal. Keseluruhan aspek yang dikaji menunjukan bahwa budiddaya ikan kerapu di Kepulauan Karimunjawa adalah layak investasi. The study of feasibility floating cage culture of grouper fish investment in Karimunjawa is one of the efforts for investment promotion in the studied region. This study will make the investment opportunities become more focus and sharp, both sectoral and location, so it will be easier for investors to execute their investment interest. The purpose of this study, is to provide initial information for investors about business opportunities of grouper fish farming as a very feasible investment opportunities so that can boost the economy of the region and the society of Jepara Regency. The method used in this study was survey  method, descriptive analysiswas conducted to see a of investment opportunities. Based on potential natural resources, location, infrastructure facilities, production, economy value, and financial aspect, the  results of study concluded  that the overall investment is highly prospective and has a fairly high chance to success. The financial analysis showed that investment in grouper fish cultivation in jepara regency is very feasible as a business investment for the investors. Humpback or Polka dot grouper (Cromileptis altivelis) culture is highly prospective and has a fairly high chance. This can be seen from the Net Present Value (NPV) > 0 is equal to 1,772,764,729,  and Profitability Index  (PI) value greater than 1, which is 5,543291036.  While the longer the period the funds invested will return (Payback Period) is 2.82 years if the without considering the time value of money (Discount Factors) and 3.65 years when considering the time value of money. Whereas,  for Brown marbled grouper (Ephinephelus fuscoguttatus), the Net Present Value (NPV) > 0 is equal to  69,938,924, - and Profitability Index (PI) greater than 1, which is 1,20558783. While the longer  period the funds invested will return (Pay Back Period) are 4,13 year if without considering the time value of money (Discount Factors) and 4.64 years when considering the time value of money. From the analysis it can be concluded that all these choices on the investment plan is feasible to run and prospective advantageous. While the best option is an investment plan on investments Humback or Polka Dot grouper (Cromileptis altivelis) cultivation, Brown marbled grouper (Ephinephelus fuscoguttatus) culture whereas it is only a sideline activity and only utilize food wastes are left, so the whole will be able to deliver optimal results in grouper culture.All examined aspects of Grouper cultivation in karimunjawa  gave results that investment activity  is able to be executed. The financial analysis shows that investment in grouper fish cultivation in jepara regency is very feasible to be a business investment for the investors.

scholarly journals Nilai Waktu Dari Uang Dalam Perspektif Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Misbahul Khoir
Keyword(s):  
Net Present Value ◽  
Average Rate ◽  
Rate Of Return ◽  
Value Of Time ◽  
Present Value ◽  
Time Value Of Money ◽  
Time Value ◽  
The Future ◽  
Current Value ◽  
Value Of Money

The time value of money is associated with the current value and future value because the money received now is more worth than the money received in the future. However, is the concept of time value of money is appropriate and justified by the Shari'ah? The time value of money is a concept that says that the money of the one rupiah that can be received today is more worth than one rupiah which will be received in the future time. The concept of time value of money is needed by financial managers in making decision when will invest in an asset and determine the source of loan funds that will be chosen. Methods for the time value of money pervade; a) the method of average rate of return. This method measures the level of profit gained by an investment. The disadvantage of this method is ignoring the time value of money; b) the payback period method. The method measures how fast the investment return is, the sooner the better; c) method of net present value (NPV). This method calculates quarrel between the current value of investment and the present value of net cash receipts in the future and calculates quarrel between the present value of cash outflow (investment) and cash inflow (income) per year; d) profitability index method (PI). This method calculates ratio between the present value of net cash receipts in the future and the present value of the investment; and e) the methods of internal rate of return (IRR).  If IRR > saving or profit required → decent. Islam views money as a flow concept. Money must rotate in an economy and may not be idle for too long time. Moreover, it lets for years. Islam does not recognize the method of time value of money because this method adds value to money solely with increasing time and not effort. Islam actually knows the money value of time; that is the time has economic value as well as the money value of money. Imam Nawawi provides definition related to value addition for money based solely on the value of time is the category of riba. Keywords: Time value of money, Islamic economics

scholarly journals DEVELOPING GROUP LEADERSHIP AND COMMUNICATION SKILLS FOR MONITORING EVM IN PROJECT MANAGEMENT

2015 ◽  
Vol 45 (1) ◽  
pp. 53-60 ◽  
Author(s):  
G.M.G Farok ◽  
Jose A. Garcia
Keyword(s):  
Project Management ◽  
Communication Skills ◽  
Early Warning ◽  
Value Management ◽  
Earned Value ◽  
Earned Value Management ◽  
Project Completion ◽  
Future Performance ◽  
Tool Monitoring ◽  
And Performance

Earned Value Management (EVM) is used to track the progress and status of a project with forecasting future performance. Leaders use the Evaluation, Verification and Monitoring with Earned Value Management (EVM) technique to evaluate their project progress and performance as an ‘early warning tool’. Monitoring EVM involves determining whether the project is on, ahead of, or behind schedule and on, under or over budget. Usually an organization has many people with many multi-dimensional strategic ideas. All of these people are focused on ultimate end points, they work on the same target, they play on the same field, and they gain their knowledge about the same markets and share their ideas with personal confident. They rely on EVM which integrates cost, schedule and scope to capture project progress assessment and project completion update.

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