Earned Value Management System Research Articles

Using the Earned Value Management System to Improve Electrical Project Control

In many cases, disorganized cost and schedule tracking practices, as well as inaccurate data collection, cause many projects to experience distress and possible profit loss. This paper introduces an earned value management system that allows electrical contractors to monitor construction progress, perform forecasts on the project, uncover problems occurring on-site, and respond to problems in the project as early as possible. This paper also presents a case study, along with its results, to supplement the application of the earned value management system. In the case study, several progress reports for the earned value system were used, including the field personnel loading curve, Hanna’s control points, S-curves, performance factor profiles, and work-hour forecasts. Results from the analysis showed that early determination of probable project outcome is possible with reasonable forecasting accuracy. Early warning signs are discussed and explained by the author. Using an earned value management system can...

Improving Construction Management of an Educational Center by Applying Earned Value Technique

Earned value project management is a well-known management system that integrates cost, schedule and technical performance. It allows the calculation of cost and schedule variances and performance indices and forecasts the project cost and schedule duration. The Earned Value concept was conceived by industrial engineers working in American factories over a century ago. This concept improved by the time and in July 1998, the Earned Value Management System became the American National Standards Institute (ANSI/EIA) Standard #748. By concise reports derived from using Earned Value Method (EVM) in the project, the manager is able to have exact information about the project details and also can mitigate the risks in his decisions in critical conditions of the project. It would be an early warning tool for a project control. Consequently, the project could be finished after a short period of time. This paper aims to explore the concepts of earned value method, its methods and metrics, performance measurements and forecasting project progress. In order to compare between EVPM method and traditional methods, the effectiveness of applying EVPM in a real project, construction of an educational center in one of the petrochemical refineries as a case study is explained. Reports derived from using earned value method in the project indicated that the manager was able to have exact information about the project details and also mitigated the risks in his decisions in critical conditions of the project. Consequently, the project was finished after a short period of time.

액티비티 기반의 EVM - PMIS 통합모델 구축

국내 건설산업에 있어서 기술과 정보의 기반구조를 확립하기 위하여 몇몇 건설정보관련 법규가 제도화되었다. 그러나 국내 건설정보 분류체계, 공정 공사비 통합관리(EVM), 프로젝트관리 정보시스템(PMIS)은 주요한 문제점을 내포하고 있다. 특히 현행 PMIS의 기능은 시공자 위주의 시스템으로 되어 있고, EVM이 적용되지 않아 발주자를 위한 보고, 분석, 예측기능이 매우 취약하다. 더욱이 EVM과 PMIS가 서로 분리된 체계로 운영되고 있어 발주자가 실시간으로 공정 및 공사비 정보를 확인할 수 없다. 본 연구의 목적은 PMIS가 EVM기능을 제공하고 사업참여자들이 제반정보를 공유할 수 있도록 WBS 구축방안과 EVM - PMIS 통합모델을 제안하여, E-비즈니스 업무환경하에서 PMIS를 효율적으로 운용할 수 있는 틀(framework)을 제공하는 것이다. EVM - PMIS 통합의 핵심은 EVM과 PMIS가 액티비티 기반의 동일한 운영체계를 갖는 것이다. 통합의 원리는 액티비티의 정보항목(field)을 PMIS의 공정 및 공사비관리 기능을 위한 하위모듈을 구성하는 관계형 데이터베이스 테이블(table)의 항목과 연계시키는 것이다. 따라서 액티비티의 계획공사비(PA), 달성공사비(EV), 실투입비(AC), 공정편차(SV), 공정수행지수(SPI), 공사비편차(CV), 공사비지출지수(CPI)는 PMIS의 공정 및 공사비 하위모듈을 위한 데이터베이스 테이블의 항목으로 연계된다. To establish an infrastructure for technology and information in the domestic construction industry, several construction regulations pertaining to construction information have been institutionalized. However, there are major problems with the domestic information classification system, earned value management (EVM) and project management information system (PMIS). In particular, the functions of the current PMIS have consisted of a builder-oriented system, and as EVM is not applied to PMIS, the functions of reporting, analysis and forecast for owners are lacking. Moreover, owners cannot confirm information on construction schedule and cost in real time due to the differences between the EVM and PMIS operation systems. The purpose of this study is to provide a framework that is capable of operating PMIS efficiently under an e-business environment, by providing a proposal on how to establish a work breakdown structure (WBS) and an EVM - PMIS integration model, so that PMIS may provide the function of EVM, and stakeholders may have all information in common. At the core of EVM - PMIS integration is the idea that EVM and PMIS have the same operation system, in order to be an activity-based system. The principle of the integration is data integration, in which the information field of an activity is connected with the field of a relational database table consisting of sub-modules for the schedule and cost management function of PMIS using a relational database management system. Therefore, the planned value (PV), cost value (CV), actual cost (AC), schedule variance (SV), schedule performance index (SPI), cost variance (CV) and cost performance index (CPI) of an activity are connected with the field of the relational database table for the schedule and cost sub-modules of PMIS.

국방무기체계 연구개발사업의 EVMS 적용실태 분석

EVMS(Earned Value Management System) is a project management method for analysis of current state of project and estimation of future state by the periodic tracking of schedule and value that activated by the project manager of government and contractor. Some countries, such as U.S.A and Austria, require the use of an EVMS for all major defense R&D project and many cases have proved that EVMS ensures that cost, schedule, and technical aspects of the contract are truly integrated and estimated, and actual progress of the project can be identified. However, the recent implementation of EVMS on Korean defense R&D project has shown number of challenges. In this paper, we defind the cancept of EVMS and analyzed EVMS implementation m order to conduct their problem.

작업관리 개념을 응용한 EVMS 운영 시스템 프로토타입 개발

건설공사의 기성관리체계의 효율적인 운영을 위해, 정부는 공정과 내역의 통합관리를 위한 EVMS를 운영하고 있다. 그러나 현재 공사진도의 평가기준인 공정과 내역이 이원화로 운영되고 있어 건설공사 실무자들에게 부가적인 업무를 가중시켜 왔다. 본 연구는 공정과 내역이 통합 운영될 수 있는 일원화 방안으로 작업과업의 개념을 도입하여 공정과 내역을 공유하기 위한 정보채널로 사용하였다. 또한, 이 작업과업을 활용한 공정 내역 통합관리시스템의 모형제시 및 활용성 검증을 통하여 EVMS 운영 시스템 프로토타입을 개발하여 그 효율성을 제시하였다. Our government operates earned value management system (EVMS)of construction schedule and cost for improving earned management system of the construction projects. but There is two unification Method construction schedule and cost to estimate construction progress currently. This weight a staff work. therefore this study present unification method which operate integrate schedule and cost by using work task. In order to inflect verification and model of schedule and cost, this study develop prototype of EVMS.

Cost Overrun and Cause in Korean Social Overhead Capital Projects: Roads, Rails, Airports, and Ports

Changes during the life cycle of a project promote cost overrun due to cost increases, time schedule delays, and benefit shortfalls. Specifically, cost overruns are usually due to inefficient budget usage by the national government for social overhead capital (SOC) investments. This paper aims to establish the cost overrun relating to transport policy in an institutional context, discuss the general causes and identify possibilities for their reduction in Korean SOC project preparation and decision making. The establishment of cost overrun probability distributions for a number of reference classes requires access to credible data for a sufficient number of projects within the same reference classes for statistically meaningful conclusions to be drawn. Cost data were available for a total of 161 completed projects. The results indicated that 95 and 100% of road and rail projects, respectively, had a maximum cost overrun of 50%. The causes of cost overruns can be grouped into several major categories: Changes in the scope, delays during construction, unreasonable estimation and adjustment of project costs, and no practical use of the earned value management system.

A STUDY ON THE EFFECTIVE CONSTRUCTION MANAGEMENT USING EARNED VALUE MANAGEMENT SYSTEM

The construction process has a long lifecycle, involving; a planning phase, investigation phase, designing phase, tendering & contracting phase, construction phase, maintenance and renovating phase. Within this lifecycle, the construction phase particularly requires the use of significant quantities of construction materials, machines, manpower and capital within relatively short period. Therefore, to ensure outputs are optimized, and all expectations of project proponents are achieved, effective and efficient management strategies and methodologies must be adopted.An Earned Value Management System (EVM) is an integrated concept which can be applied to manage construction cost and time as conceived by the Department of Defense (USA), and subsequently widely adopted throughout the world by many governmental organizations andprivate enterprises. The use of EVM has also been made more available through the providers of mainstream project management software, such as “Primavera Project Planner” and “MS Project”, by the inclusion of EVM functions within their systems.Our paper considers on the relationship between construction resources and programme through analysis of a resourced network model and application of Graph Theory “between-ness index” to determine important key activities. The output from our analysis has then been applied as a prototype on an oversea project, to weight the planned value of the EVM in line with the identified key activities. The practical effectiveness of our proposed EVM was thereafter monitored verified and validated through a series of extensive and robust physical site trials, with positive results and conclusions.

A Deliverable-Oriented EVM System Suited to a Large-Scale Project

The Large Hadron Collider (LHC) is under construction at CERN, the European Laboratory for Particle Physics, near Geneva, Switzerland. In 2003, a new earned value management (EVM) system was introduced to improve transparency in LHC project reporting, to allow a clearer distinction between cost differences to the baseline due to overruns versus resulting delays, and to provide the project management team with a more reactive project management information system for better decision-making. EVM has become a de facto standard for the follow-up of cost and schedule and several commercial packages are offered for implementing an EVM system. But because none of these packages fulfilled CERN's requirements, its executive management decided to proceed with an in-house development. In this paper, an overview of what CERN considers to be good requirements for an EVM system suited to large-scale projects is provided: the deliverable-oriented, collaborative and lean management dimensions are enforced. In conclusion, we discuss some of our positive and negative experiences so those who would like to develop or implement similar enterprise-wide project control systems can be more aware of common pitfalls.

Using data envelope analysis to compare project efficiency in a multi-project environment

Data envelope analysis (DEA) is currently applied to ongoing organizations such as hospitals, police stations, schools, etc. This paper investigates the possibility of using the DEA approach for evaluating the performances of projects in a multi-project environment, where each project is usually a one-time non-repeated event. Projects are evaluated by the earned value management system (EVMS) and the multidimensional control system (MPCS) methods. In this environment, it is usually necessary to reduce the number of outputs and inputs not to exceed the number of projects. This paper deals with a method for their reduction. The paper illustrates a detailed example on how to apply and interpret the DEA method in a multi-project environment.

Development of a Cut and Fill Earthworks Manaement System Based on 4D CAD and EVMS

In order to improve the productivity, to enhance the management, and to incorporate the progress payment method, a cut and fill earthworks management system was developed based on 4D CAD and Earned Value Management System (EVMS). In this research, we integrated a 3D CAD, schedule management, cost estimation, and EVMS systems by using LandXML as the product model representing terrain data and IFC2x as the process model representing the construction process. We demonstrated the feasibility and practicality of the system by applying it to a past real earthworks project.

Value-based software engineering

The Value-Based Software Engineering (VBSE) agenda described in the preceding article has the objectives of integrating value considerations into current and emerging software engineering principles and practices, and of developing an overall framework in which they compatibly reinforce each other. In this paper, we provide a case study illustrating some of the key VBSE practices, and focusing on a particular anomaly in the monitoring and control area: the "Earned Value Management System." This is a most useful technique for monitoring and controlling the cost, schedule, and progress of a complex project. But it has absolutely nothing to say about the stakeholder value of the system being developed. The paper introduces an example order-processing software project, and shows how the use of Benefits Realization Analysis, stake-holder value proposition elicitation and reconciliation, and business case analysis provides a framework for stakeholder-earned-value monitoring and control.

건설공사 수행에 따른 최종공사비 예측방법에 관한 연구

The EVMS(Earned Value Management System) comes from C/SCSC which was first released by the United States Department of Defense in December 1967, and preyed very powerful and efficient project management tool from a lot of practices. Although it is an excellent tool, we can not be succeed appling foreign system due to the differences of construction culture and law between the Korean and US construction industries. EAC(Estimate at Completion) is one of the most important functions in the EVMS. The purpose of this study is to propose the improved EAC method according to the performance indices better than old that and to prove from examples. In advance, the improved EAC method is to estimate more exactly costs and to promote efficiency in construction projects.

산출내역서.공정 통합관리 모형 구축에 관한 연구

Recently our government operates earned value management system (EVMS) for improving work management system of the construction projects over specific scale. The EVMS is based on the integrated management between construction cost and schedule. the existing systems, however, are focused on the cost management by using work quantity. This study suggests a work management model to integrate construction cost with activity information. The model introduces a work task concept as a tool that can connect construction rest to activity information. The suggested model in this study is verified by using actual data for the applicability to practical construction projects.