Earned Value Management Approach Research Articles

Time and cost performance analysis: earned value management method on HPK Project Using Mobox

Conventional construction methods have proven inadequate for meeting the accelerated development needs of IKN, highlighting the necessity for innovative approaches to expedite construction. Additionally, challenges related to material supply further exacerbate the situation. The Mobox method emerges as a promising alternative, offering potential to streamline project completion. This study compares time performance between conventional concrete methods, which typically require 7 months, and the Mobox method, which achieves the same in 4 months. The aim is to evaluate whether time and cost performance align with the project owner's expectations, using the Earned Value Management (EVM) method for a 4-storey building project utilizing Mobox modular construction. At week 16, the project’s time performance met expectations, as evidenced by a Schedule Variance (SV) of zero and a Schedule Performance Index (SPI) of 1. Cost performance also exceeded expectations, with a positive Cost Variance (CV) of Rp 11,784,790,045.29 and a Cost Performance Index (CPI) of 1.023, indicating cost efficiency. The Mobox method, coupled with the EVM approach, proves to be an effective and efficient alternative for construction projects, demonstrating the capability to complete projects on time and within budget while maintaining quality.

Project performance evaluation with earned value management approach using the integrated method of data envelopment analysis and Malmquist productivity index (Case study: bridge construction projects of Shiraz Municipality)

Project performance evaluation with earned value management approach using the integrated method of data envelopment analysis and Malmquist productivity index (Case study: bridge construction projects of Shiraz Municipality)

Duration Estimate at Completion: Improving Earned Value Management Forecasting Accuracy

Earned Value Management (EVM) has been established as a project management technique for project monitoring and control. The traditional EVM performs well in forecasting Cost Performance index and other cost metrics. However, in terms of schedule performance, the accuracy of the forecasted schedule metrics through the traditional EVM approach are always questionable. The schedule performance is not measured in time unit but rather in monetary units or uses cost information, which may cause misleading in the interpretation of the EVM schedule metrics. The schedule performance is not accurately forecasted, resulting in underestimating the estimate at completion (t). Even the renowned Earned Schedule also uses cost as a proxy to determine the earned schedule. This paper presents a new EVM tool, Duration estimate at completion (DEAC-model) developed to accurately forecast the time estimate at completion. DEAC-model uses the actual time spent on each activity, either in progress or upon completion, where the Performance is measured in time units. The benefits of DEAC-model to project management team and researchers are that it can be used: 1) to forecast schedule metrics accurately so that resources can be effectively allocated to complete the remaining activities, 2) as a gauge to assess if the project can be completed within the plan schedule, and 3) to apply time series and simple linear regression model concepts using excel worksheet syntax to forecast duration estimate at completion that is easily applicable.

An Earned Value Management Approach to Time-Weighted Test Point Program Management

An Earned Value Management Approach to Time-Weighted Test Point Program Management

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

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.

Measuring the Actual Energy Cost Performance of Green Buildings: A Test of the Earned Value Management Approach

Reduced energy consumption is a key aspect of the green building. Nonetheless, research indicates that there is a performance gap between the predicted and the actual energy performance once buildings are occupied, which implies a cost deviation from the anticipated energy cost performance. However, the cost deviation also might result from lower or higher energy rates than expected. As an appropriate research methodology for existing theory testing, case study research strategy was adopted to empirically examine the earned value management (EVM) approach to measure the actual life cycle cost performance of energy in green buildings. With slight methodological and terminological adaptations, it is found that the EVM approach can be applied to conduct a holistic cost performance measurement of the actual energy consumption in green buildings. The strength of the earned value approach is that it allows for detecting whether the energy cost saving or overrun results from lower or higher energy consumption, or from actual energy rate variations. The earned value approach allows for quantifying each cost variance independently, which is a significant aspect of actual energy cost performance measurement in green buildings.

Extended Earned Value Management Based on Fuzzy Multi-Criteria Decision Making

This paper proposes an extended earned value management (EEVM) as an integrated comprehensive project progress measurement technique. The method considers all of project key success factors, simultaneously. That is the method guaranties the realistic weights achievement to implement project control and scheduling. The weights are employed to publish a correct and comprehensive progress reports which can guarantee the future decisions for the project. It is noteworthy that the weighting approach is not just an earned value management (EVM), but it covers its concept. Since, the method is comprehensive and according to its ability to take any key success factors in to account, it can be used as a good alternative for the EVM approach, and can be called as an EEVM. The method combines the fuzzy group analytic hierarchy process (FGAHP) and fuzzy technique of order performance by similarity to ideal solution (FTOPSIS) to define activity weights according to some projects uncertain data. Taking to account the advantages of FGAHP for criteria weighting besides FTOPSIS for activity weighting provides a flexible method works with human habits and projects vagueness and uncertainty. Efficiency of the proposed method has been practically verified on a stadium in Kurdistan. The results illustrate superiority of the method in case of comprehensiveness and flexibility in comparison with the other methods.

Lean Project Planning in Shipbuilding

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.

Lean Project Planning in Shipbuilding

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, the authors investigates how LPP has been successfully used in shipbuilding of a so called Platform Supply Vessel. Due to the highly advanced vessel, the author 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.

Bayesian Integration of Internal and External Views in Forecasting Project Performance

This paper focuses on the project control process and aims at improving the accuracy of the Estimate at Completion at Time Now, both in terms of cost and time. This objective requires the use of all the available information, in particular the information related to the actual performance of the current project, corresponding to the “internal view”, and the information related to the cluster of similar projects completed in the past, corresponding to the “external view”. In order to integrate both types of information, a Bayesian model has been developed, allowing for the updating of a prior estimate based on the external view by means of the data records collected during the progress of the current project, in order to obtain a posterior estimate of the final cost and duration of the project. This approach allows for the mitigation of possible biases which can affect the project control process, particularly at the project early stage. The Bayesian model has been applied to three cases in the Oil and Gas industry. Notwithstanding the great difference between the projects, the integration of the internal and external views in the Bayesian model resulted in a better accuracy compared to the traditional formulas used in the Earned Value Management approach and, moreover, a better stability of the estimates from the early stage along the entire life cycle of the project.