Abstract

Earned Value Management (EVM) and Project Risk Management are normally considered separately in Project Management. Referring PMBoK®, EVM is part of Project Time Management and Project Cost Management knowledge areas, while Project Risk Management is a different knowledge area with no apparent relation with the previous ones, although the fundamentals of EVM are fully influenced by risk management. This paper seeks to clarify the mechanisms of this relation, and in which points they meet or affect each other. The interconnection between the two methods was explored in this study and a framework of integration between them was proposed. The framework was implemented in Excel resulting in a set of tools that can be useful in monitoring and controlling a project.

Highlights

  • The use of project management is relatively recent and has been motivated by the need for rapid and effective responses to the changing business environment (Kerzner, 2009)

  • In case the parameters are outside the appropriate range, corrective measures can still be taken, which aim to promote the improvement of the state of the project and its conclusion with success, that is, within the objectives. Another way to promote project success is by risk management, but in this case minimizing the risk of not achieving the project objectives is achieved by creating early responses to the risks that may arise

  • The objective of this work was the proposal of a framework to support the monitoring and control of projects, based on the integration of Earned Value Management (EVM) with risk management

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Summary

INTRODUCTION

The use of project management is relatively recent and has been motivated by the need for rapid and effective responses to the changing business environment (Kerzner, 2009). In case the parameters are outside the appropriate range, corrective measures can still be taken, which aim to promote the improvement of the state of the project and its conclusion with success, that is, within the objectives Another way to promote project success is by risk management, but in this case minimizing the risk of not achieving the project objectives is achieved by creating early responses to the risks that may arise. One of the methods used to monitor and control project status is EVM (Earned Value Management) (Fleming and Koppelman, 2002) In this method, the values estimated in the planning phase are compared with the project execution values, to determine project’s state, and in this way create any adjustments that lead to project success. This approach aims to include all forms of risk and risk responses and not just uncertainty (Tereso et al, 2017)

LITERATURE REVIEW
CONCLUSIONS AND FUTURE RESEARCH

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