Earned Value Research Articles

Project Cost Analysis Using the Earned Value Method on the Bagor Bridge Replacement Project in Situbondo Regency

Delays in project implementation are caused by a lack of good control so that it affects the cost and completion time. The purpose of the study is to determine or predict how much a project will cost at the time of implementation and to determine the effectiveness of project control using the Earned Value Method. Aspects of project implementation time in weeks 2,4,5,9,11,13,16,17, 18,20,21,24 are slower than the planned schedule, this is indicated from the Schedule Variant (SV) indicator. While the performance of the project implementation time in week 3,6,7,8,10,12,14,15,19,22 is faster than the plan schedule, this is indicated by the Schedule Variant (SV) is positive. While the cost performance aspects of project implementation from week 6,9,11,13,17,19,22,23 incurred costs greater than the plan cost, this is indicated from the Cost Variant (CV) indicator is negative. Whereas in weeks 7,8,10,12,14,15,16,18,20,21, 24 incurred costs less than the plan cost, this is indicated by a positive Cost Variance (CV) indicator. The calculation results obtained from the effectiveness value of 1.603 for controlling the cost and time of the project using the Earned Value Method. In other words, the results of the effectiveness value greater than 1 (one) can be said to control the construction project of the Situbondo Regency bagor bridge very effectively using the Earned Value method.

EVALUATION OF PROJECT COST AND TIME USING EARNED VALUE APPROACH: A CASE OF MILITARY INFRASTRUCTURE PROJECT

This research aims to optimize the performance of construction projects at Yohanis Kapiyau Airbase so that the work can be completed on time, meet quality standards, and in accordance with the predetermined budget. This research addresses key questions regarding the evaluation of project cost and time control, specifically examining project cost performance through Cost Variance and Cost Performance Index (CPI) indicators, as well as project time performance using Schedule Variance (SV) and Schedule Performance Indices (SPI) indicators. The implementation of the Earned Value Management (EVM) method has proven its effectiveness as an analytical instrument that integrates cost and cost dimensions comprehensively. Through the comprehensive analysis that has been conducted, the method successfully identified with precision that the fundamental challenge of the project lies in the aspect of time management, while cost management shows excellent efficiency. It can be concluded that the achievement of excellent cost efficiency has a positive impact on the overall project performance. Based on the results of the comprehensive evaluation, several strategic recommendations can be formulated for the optimization of project implementation in the future.

Application of reinforcement learning for integrating project risk analysis and risk response planning: A case study on construction projects

Project Risk Management contains processes ranging from planning to control. It is applied to identify risks, analyze them, and design responses to change the occurrence rate and/or the effect of project risks. It is important for project managers to analyze the effects of the risks in projects and also consider project risks in their decisions. If project risks are not addressed during the risk management process, issues such as schedule delays, cost overruns, and even project failure may occur. This paper aims to introduce a Markov method to integrate project risk analysis and risk response planning. This method is applied to forecast the following status of the project when limited information about the project is available. Moreover, earned value management (EVM) methods were used to include various types of project risks through the project lifecycle. The model also offers the capability to choose the most effective risk response for managing project risks through the application of the Markov decision process (MDP). Eventually, we introduce a case study to demonstrate functionality and effectiveness of the presented approach. Solving the model allows for identifying the best set of risk response strategies tailored to each specific project state. The computational results illustrate that the current state of the project has a significant impact in the process of risk response planning. Since uncertainty is the inherent characteristic of projects, the use of the project’s current state is more reliable than the previous status of projects, and the Markov method is applied in this research because it uses the current state for its modelling. Using this method, managers can predict the future state of projects and find the best response in each status of projects.

Exploring a recurrent neural network (RNN) earned value based model for predicting lost labour value in construction projects

This study explores the application of deep learning techniques in forecasting labour losses in construction projects. By leveraging the predictive capabilities of ManHour Earned and Estimated ManHour values, this research aims to develop an accurate and reliable model for labour loss forecasting. Utilizing a dataset comprising 105 work items from industry practitioners who employed the Leonard and Moselhi methodology, this study investigates the efficacy of a Recurrent Neural Network (RNN) architecture with Long Short-Term Memory (LSTM) cells. The model's performance is optimized through backpropagation and hyperparameter tuning, focusing on key parameters such as learning rate, batch size, dropout rate, and number of epochs. To ensure the model's generalizability and mitigate overfitting, regularization strategies and performance monitoring are employed. The predictive potential of the model is evaluated through integration into a real-time sequence production job and deployment into an enabled environment. Results demonstrate the model's capacity for accurate labour loss forecasting, enabling proactive measures to enhance productivity and minimize unnecessary claims. Although this study focuses on building projects, its findings have broader implications for process and manufacturing engineering, where productivity losses and associated labour losses are significant concerns. The practical application of this research lies in its potential to assess and counter labour loss claims, disputes, warrants, and demands in construction projects, ultimately contributing to improved project management and reduced financial losses.

Financial management skills as enabling factor in project performance of small business in the construction industry in Gauteng Province: theoretical and practical implications

The study significantly enhances the current literature by highlighting the importance of financial management skills in the success of MSMEs, especially in the context of small construction firms functioning under unstable and uncertain economic conditions. It offers insights on how effective financial management can alleviate the negative impacts of economic uncertainty, including variable interest rates and regulatory modifications, which were intensified by the COVID-19 pandemic. This study concentrates on BCO Construction in Johannesburg, examining the distinct financial issues encountered by small construction firms and the potential solutions through improved financial management strategies. The research delineates numerous vital financial management competencies needed for project accomplishment. This encompasses the capacity to manage liquidity efficiently, sustain profitability, and utilize financial instruments such as Net Present Value (NPV) and Earned Value (EV) management. It emphasizes the significance of abilities in managing financial leverage, which can facilitate the attainment of project objectives within budgetary and temporal limitations. The findings indicate that the absence of trained financial personnel, ineffective payment systems, and liquidity issues are substantial obstacles for BCO Construction. Consequently, it is advisable to tackle these difficulties through specialized financial literacy and management training to enhance overall project performance. The study employs a quantitative methodology, including standardized questionnaires administered to eighty (80) participants to gather data regarding the problems and competencies required for financial management in building projects. The analysis conducted with SPSS version 29 indicates that enhancing communication channels, integrating strategic financial planning, and implementing thorough training programs are essential for aligning financial objectives with overarching corporate goals. This alignment is essential for optimizing resource allocation, guaranteeing financial stability, and improving competitiveness in the construction sector.

Evaluation Of Cost And Time Performance Control Using The Concept Method Of Earned Value In The Purwodadi Market Development Project, Argamakmur District, North Bengkulu Regency

Construction projects often face challenges in maintaining a balance between execution and planning, especially in terms of time and cost. Delays and cost overruns often hinder project efficiency, which has an impact on the satisfaction of the project owner. This study aims to evaluate the cost and time performance of the Purwodadi Market development project in North Bengkulu Regency using the Earned Value Management (EVM) approach. The EVM method was chosen because of its ability to provide a comprehensive picture of the achievement of project performance in terms of time and cost. Data is obtained from the project's weekly report and analyzed using indicators such as Actual Cost of Work Performed (ACWP), Budgeted Cost of Work Scheduled (BCWS), and Budgeted Cost of Work Performed (BCWP). The results show that in the 9th month, the project achieved faster progress than scheduled with a Schedule Performance Index (SPI) of 1.068 and a Cost Performance Index (CPI) of 1.012. This shows that the project is running more efficiently in terms of time and more cost-effective compared to the planned budget. However, there are several months before (the 5th to 8th month) that show delays and wasted costs. The conclusion of this study is that the EVM method is effective in evaluating project performance and allows for the identification of areas that need improvement. Thus, the application of EVM is recommended to improve the management efficiency of similar construction projects.

Using Earned Value Management and Value Engineering tools to enhance system’s productivity, A proposed Framework.

Using Earned Value Management and Value Engineering tools to enhance system’s productivity, A proposed Framework.

The Information Content of Earnings: The Effects of a Change in Accounting Approach

ABSTRACTThis study leverages the adoption of ASC 606, “Revenue from Contracts with Customers,” to examine the effects of transitioning from a rules‐based to a principles‐based approach on the information content of earnings along with two of its most important attributes: predictive value and asymmetry. By introducing a common principles‐based framework, ASC 606 resolves inconsistencies found in earlier rules‐based standards and fosters uniformity in financial reporting. However, this change might also diminish the uniqueness of financial information, a critical factor in the decision‐making process. The findings reveal a significant increase in the overall market's information content of earnings post‐ASC 606 implementation. Industries with complex revenue recognition processes and long‐term contracts, such as information technology, real estate, and communications, experienced the most significant improvements. These industries benefited from the increased flexibility and professional judgment allowed under ASC 606, resulting in more accurate future earnings forecasts. However, the study also finds that ASC 606 has increased information asymmetry, particularly in industries with complex transactions. This suggests that while the principles‐based approach enhances the informativeness and predictive value of earnings, it also introduces challenges in interpreting and applying the new standards, leading to increased information asymmetry. These findings have important implications for standard setters, regulators, and practitioners in financial reporting.

Developing a construction waste management performance calculator for highway construction

The generation of a substantial amount of construction waste (CW) poses significant challenges to the green transition of highway construction projects. However, the construction industry lacks integration of construction waste management (CWM) practices into the construction process. This paper aims to develop a calculation for assessing the performance of CWM to monitor its effectiveness in highway construction. Initially, this study utilizes the Site waste management plan (SWMP) as a foundation and develops a Construction Waste Management Performed Assessment Method (CWMPAM). The extension of CWM is incorporated into earned value management (EVM) to manage costs, schedules, and the performance of CWM within a unified framework. The functionality and sensitivity of CWMPAM and CWM-embedded EVM are validated through pilot testing and scenario analysis. The research results are computerized into a calculator to facilitate the practical application of CWM, and its validity is tested using random cases. CWMPAM and CWM-embedded EVM prove satisfactory in assessing and monitoring the execution and performance of CWM. The developed calculator simplifies the practical application of the outcomes. Essentially, the developed calculator represents a groundbreaking integration of CWM and construction management, enabling project managers to monitor and compare the CWM performance across different segments of highway construction. Not only does this contribute to the green transformation of highway projects, it also promotes high quality and sustainable development in the construction industry.

Application of Earned Value Analysis Method and Earned Schedule Method to Time and Cost Control In Bank X Building Project

In the execution of construction projects, time and cost control is an important aspect to achieve profitability and efficiency. Delays and cost increases are common, which can be detrimental to the project. Therefore, an appropriate analysis method is needed to predict and control project performance. This study aims to analyze project performance and estimate the final time and cost of the project using the Earned Value Analysis (EVA) and Earned Schedule (ES) methods. This research uses a quantitative descriptive approach by analyzing existing data. Data were collected through surveys and observations at the research site, as well as interviews with relevant parties. The EVA method was used to evaluate project progress, while ES was used to improve the accuracy of time prediction. The results of the analysis showed that in week 28, the Cost Variance (CV) value was Rp. 1,126,276,650.65 with a Cost Performance Index (CPI) of more than 1, indicating that the work was completed at a lower cost than budget. The time performance index (SPI) of 1.003 indicates that the work was completed faster than planned. Overall, the estimated cost and time of project completion showed savings of 12.63%, which amounted to Rp. 4,380,694,868. This study concludes that the application of EVA and ES methods can effectively improve time and cost control in construction projects.

Optimizing Road Pavement Projects Through Earned Value Concepts

Every construction project faces constraints of cost, schedule, and quality that must be managed to achieve the desired objectives. This research aims to control the aspects of time and cost in construction projects by applying the Earned Value Concept and Crash Program methods. The subject of the study is the Preservation of Roads and Bridges project in Bireuen City - BTS, Lhokseumawe/Aceh Utara, Krueng Mane Buket Rata, SP. Krueng Geukeueh - PEL. Krueng Geukeueh (PEL. Lhokseumawe). The data analyzed includes the Budget Plan (RAB), project schedule, and reports on planned and actual work. This data is processed into three main indicators: BCWS, BCWP, and ACWP, which are then analyzed through Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI). The analysis results show that during weeks 22 to 23, the project had a positive Schedule Variance (SV) (0), which then turned negative during weeks 24 to 28, with an average Schedule Performance Index (SPI) of 1.0096, indicating that project execution was ahead of schedule. Meanwhile, the Cost Variance (CV) was positive throughout the project, and the average Cost Performance Index (CPI) was 1.2118, indicating that actual costs did not exceed the budget. The application of the Crash Program method resulted in changes in heavy equipment rental costs and worker wages, from IDR 1,440,469,946.99 over 50 days to IDR 1,853,072,988.06 over 25 days, with a cost increase of IDR 412,603,041.07 and an acceleration ratio of 1.29. This research demonstrates that the Earned Value Concept and Crash Program methods are effective in controlling time and cost in construction projects, thereby helping to achieve better efficiency in project management.

Kinerja Waktu Pelaksanaan Proyek Pekerjaan Jalan Di Kabupaten Kolaka Utara (Studi Kasus Jalan Poros Lasusua Desa Totallang)

The aim of the research is to find out or predict how much a project will cost during implementation and to find out the effectiveness of project control using the Earned Value Method. To overcome existing problems, an Earned Value method is used. There are two parameters or indicators used for analysis, namely BCWS, BCWP. Delay deviations can be identified by looking at the Schedule Variance (SV). This method can also be used to determine the efficiency of resource use in the form of the schedule performance index (SPI). The project implementation time aspect has a negative value up to the 12 th week of (SV) -Rp. 44,776,771.84 or schedule performance index (SPI) = 0.82 < 1. The calculation results are obtained from an effectiveness value of 0.85 for controlling project time using the Method Earned Value. In other words, the results of an effectiveness value that is smaller than 1 (one) can be said to be that the Time Performance for the Implementation of the Concrete Pavement Road Work Project in North Kolaka Regency is less effective. From the results of the time performance study using the Earned Value Method, it can be concluded that the Time Performance for the Implementation of the Concrete Pavement Road Work Project in North Kolaka Regency experienced a delay from the initial plan. It is clear that in weeks 1 to 12 the project performance was delayed from the planned schedule

The Project Performance Evaluation of PLBN Project Using Earned Value Management Method

Process of monitoring and controlling projects requires data evaluation activities in the order to findout whether the project is in accordance with the plan to avoid an incompatibility between theplanning and the actual time. The failure of construction project almost reached the figure of 20% -40% which occurred in the project monitoring and controlling process. The purpose of this researchis analysis project performance with earned value management method at PLBN Project. Thisresearch was carried out by several stages: data collection, data processing and analysis. From theresults of the performance index analysis show that the project’s performance on the constructionproject is still not good. At week 16 the CPI and SPI values are 0.94 and 0.85. Both values can beinterpreted that the costs incurred are greater than planning and the implementation time is longerthan planning. The result of EAC is Rp. 2.423.695.294 with an estimated completion time is 21weeks which indicates that there is an additional 3 weeks of completion.

Analysis of Construction Project Cost and Time Using the Earned Value Method

This study aims to analyze the cost and time performance of the renovation project of Arwana Restaurant The Laguna Resort and Spa Nusa Dua by applying the Earned Value method. The data used in this study include the Cost Budget Plan (RAB), project implementation schedule, weekly project progress reports, and project expenditure reports. The calculation is done by calculating the value of ACWP (Actual Cost of Work Performed), BCWS (Budgeted Cost of Work Schedule), BCWP ( Budgeted Cost of Work Performed ), CV ( Cost Variance ), SV ( Schedule Variance ), CPI (Cost Performance Index), SPI (Schedule Performance Index), ETC (Estimate to Complete), ETS (Estimate Time to Complete), EAC (Estimate at Completion), and EAS (Estimate at Schedule). The results of the analysis show that at the beginning of the project the performance was good, but other things began to decline from the 11th week to the 23rd week. At the end of the project, performance improved again as indicated by a CPI value of 1.07 and an SPI of 1 indicating lower costs and time according to plan. The estimated total final project cost (EAC) of Rp2,947,878,984.57 was lower than the Cost Budget Plan (RAB) of Rp3,143,852,000, resulting in a profit of Rp195,973,015.43. The estimated total final project time (EAS) was in accordance with the planned schedule, which was 27 weeks. In conclusion, overall the project performance was quite good even though it had declined in the middle of the project implementation.

Proposal and appraisal of novel indicators and performance metrics for project monitoring

Project monitoring is a critical process for guaranteeing its excellence, ensuring the delivery of activities both on planned time and budget. Despite its importance, numerous discussions have arisen regarding which indicator is the most appropriate, and how and when to measure it. The primary objective of this article is to evaluate novel duration indicators based on the Earned Value Management (EVM), Earned Schedule Management (ESM) and Earned Duration Management (EDM) methodologies, and to assess new performance metrics. This involves the determination of the limits of the control charts through extensive Monte Carlo Simulations and their performance under several out-of-control scenarios. The robustness of the control charts is tested using performance metrics within a statistical control approach. The secondary objective consists of evaluating the impact of new probability distributions that describe the project activities, such as the Gamma and Conway–Maxwell–Poisson (CMP) distributions. The contributions of this study are threefold: firstly, the Duration Performance Index (DPI) from the EDM is a reliable indicator for monitoring the overall project duration. Secondly, the probability of overreaction (PO) and the accuracy (Ac) are the performance metrics that most produced robust indicators. Lastly, it is observed that different probability distributions, specifically Gamma and Conway–Maxwell–Poison (CMP) distributions, seem to interfere with the correct generation of control charts signals, although they do not significantly affect the overall duration of the entire project.

A Fuzzy Approach on Earned Value Method to Evaluate Project Performance in Solojebres Commuter Depot

A Fuzzy Approach on Earned Value Method to Evaluate Project Performance in Solojebres Commuter Depot

APPLICATIONS OF NON-TRADITIONAL EARNED VALUE MANAGEMENT MODELS IN PROJECT ANALYTICS

Effective management of financial resources in projects is crucial for project success. Often, difficulties with financial resources, such as budget overruns, lead to unfavorable consequences that directly impact the successful completion of the project, the quality of the outcome, and stakeholder satisfaction. Therefore, identifying and developing tools for the effective management of financial resources, is of paramount importance. The purpose of this study is to apply non-traditional earned value management (EVM) models based on machine learning to predict project costs. To achieve the research objectives, previous literature on the topic was analyzed, a dataset of past projects was prepared, and a machine learning model was applied. The study found that non-traditional models, such as the regression algorithm AdaBoost, produced results close to the actual costs. The research indicates that the developed model could become an indispensable tool for project management and business decision-making, as it demonstrates the ability to adapt to various conditions and make accurate forecasts.

Improving Project Forecasting Accuracy by Developing the Normalised Project Management Baseline

Periodic project reporting using Earned Value Management (EVM) and Earned Duration Management (EDM) uses performance metrics to communicate current and forecast future project performance. The likely accuracy ranges of schedule and cost forecasts are commonly expressed as a simple plus or minus percentage or value. This paper introduces the Normalised Project Management Baseline (NPMB), a single (x, y) plot of the normalised EDM and EVM Project Management Baselines to identify whether periodic project forecasts are optimistic (low) or pessimistic (high), as well as informing the magnitude of variation in the forecast. The NPMB is tested using six real-life completed projects and it is shown to be highly suited to identifying schedule forecast optimism, pessimism, and variations, whilst results for cost are highly promising and warrant further investigation. For project practice the NPMB increases awareness of performance variations, improving forecasting accuracy and confidence in final forecast ranges. For academia, the NPMB introduces new research directions by improving forecasting accuracy and early warning processes by improving the accuracy of periodic project performance observations. This paper contributes to project management literature as the NPMB is the first attempt to improve forecasting accuracy by identifying variations in the periodic project performance observations themselves.

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.

Analysis of Cost and Time Using Earned Value on the Boarding School Construction Project at SMA Muhammadiyah 3 Tulangan Sidoarjo

Effective project management is crucial for the successful completion of construction projects, including the construction of a dormitory at SMA Muhammadiyah 3 Tulangan. Challenges such as design changes, adverse weather conditions, and limited labor resources impact the project's progress. The Earned Value Method is used to monitor project performance by analyzing indicators like BCWS, BCWP, ACWP, SV, CV, SPI, and CPI. This analysis shows that the project initially experienced delays and exceeded budget costs, but the situation improved significantly over time. Despite weekly variations in costs, the project remained on a financially manageable track. The conclusion from this analysis is that while the project faced time delays, cost performance remained under control. Recommendations for improvement include more thorough planning, better resource management, and quicker responses to changes.