Schedule Variance Research Articles

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.

An extension of the EVM analysis for project monitoring: The Cost Control Index and the Schedule Control Index

In this paper we propose two new metrics that combine Earned Value Management (EVM) and Project Risk Management for project controlling and monitoring. We compare EVM cost and schedule variances with the deviation the project should have under the risk analysis expected conditions. These two indexes allow project managers to analyse whether the project over-runs are within expected variability or there are structural and systemic changes over the project life cycle. The new monitoring indexes we present are the Cost Control Index and the Schedule Control Index.

Modelo de aprendizaje para la selección de un proyecto diseño-construcción (llave en mano) en el sector público

The primary method of public sector project delivery in the United States (U.S.) has traditionally been design-bid-build delivery. The public sector has historically separated design and construction contracts. In the 1990s, the U.S. public sector began to experiment with design-build project delivery, which combines design and construction in one contract. In 1997, a decision support system was developed to provide a formal selection model for public sector design-build projects. The model supports public owners in determining which projects are appropriate for design-build delivery. This initial model was static in nature and was based on a regression analysis of 104 projects. The analysis resulted in a predictive model with five performance criteria: overall satisfaction; administrative burden; conformance to expectations; schedule variance; and budget variance. Since 1997, the number of design-build projects has increased dramatically and public sector design-build methods have evolved. The original model can be improved with new data and a new framework to provide for an adaptive model as the industry continues to evolve. This paper presents a formalized application and use of learning capabilities to supplement the original static model. This model adjusts parameters and functions using artificial intelligence as the main knowledge engine. This approach can be adapted to many applications of decision support in the design and construction industry.

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.

Konsep Earned Value dalam Aplikasi Pengelolaan Proyek Konstruksi

Earned value concept is one of monitoring technique on construction process which is based on the integrated concept of cost and time. Using integrity of time and performance of field works, earned value method can accommodate the need of performance monitoring of construction project. The aim of this research is to observe the suitability of construction cost and time in the report compared to the plan report. In this research, observed data were taken from the bridge replacement project. The results show that the project construction at the end of 4 th , 8 th and 12 th week with positive value of schedule variances, SV = 2.20 week, 0.4606 week and 0.9963 week, respectively, present the construction process is faster than schedule. While, positive value of cost variances, CV = IDR 3,543,762.17, IDR 115,583,274.67 and IDR 206,090,828.00 at the end of 4 th , 8 th and 12 th week shows that the cost of construction project is lower than budget plan. However, evaluation at the end of 16 th week shows that the SV value is -0.1946 which means that the construction works are delayed from the schedule. Based on its CV value of IDR 196,892,110.00, the cost project is lower than the budget. These results are supported with the performance index of SPI which is lower than 1 and CPI is higher than 1.

Delivering Projects On Time

OVERVIEW:Meaningful risk analysis can dramatically improve the likelihood of project managers delivering major system development projects on time. At issue are the questions, “Which risk events are most likely to occur?” and “Which risk events will have the most severe impact on the project schedule?” A study of 22 major aerospace system development programs produced a prompt list to support project managers engaged in risk identification. The study also yielded a risk map based upon an empirical study of the reasons for adverse schedule variances on the 22 programs over a ten-year period. The lack of required parts and materials when needed, a lack of requisite information, design changes, and difficulty starting, are among the risk events that most warrant managerial attention and appropriate risk mitigation and control.

10.1.2 Using Earned Value to Track Requirement Progres

AbstractIt is necessary to track the status of each requirement as it moves through engineering life cycle activities. Measures that reflect the status of the requirements are essential to monitor program status and serve as a scorecard to indicate that requirements are being implemented on schedule.This paper provides guidance to use the tools of requirements traceability to plan and measure the progress of the requirements management activities. The requirements traceability matrix (RTM) can be used as a scheduling source and as a set of base measures of Earned Value (EV). Finally, the importance and value of comparing the schedule variances of the requirements management and tracing activities with the variances of other project activities is discussed.

Internet‐based database management system for project control

PurposeThe objective of this paper is to develop an efficient project management system to track and control construction activities for contractors and/or project managers.Design/methodology/approachThe work package model is utilized to break down project data into activities and work tasks. The data structure of a project is represented using the entities‐relationship methodology. A relational database stores all of the project data. The earned value method calculates the cost and schedule variances. The internet‐based platform with three‐tier client‐server architecture is chosen for system implementation.FindingsThe developed project database stores all of the project data necessary to perform project control functions. The implementation of the project database management system is efficient. The developed system provides real‐time data sharing and a collaborating environment in support of project control.Originality/valueTime and cost control are essential management functions for achieving successful delivery of engineering, procurement and construction (EPC) projects. The developed system can assist contractors and/or project managers in tracking and control of their construction projects in a real‐time manner.

A comparison of different project duration forecasting methods using earned value metrics

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 of project cost and schedule duration. The earned value method provides early indications of project performance to highlight the need for eventual corrective action. Earned value management was originally developed for cost management and has not widely been used for forecasting project duration. However, recent research trends show an increase of interest to use performance indicators for predicting total project duration. In this paper, we give an overview of the state-of-the-art knowledge for this new research trend to bring clarity in the often confusing terminology. The purpose of this paper is 3-fold. First, we compare the classic earned value performance indicators SV and SPI with the newly developed earned schedule performance indicators SV( t) and SPI( t). Next, we present a generic schedule forecasting formula applicable in different project situations and compare the three methods from literature to forecast total project duration. Finally, we illustrate the use of each method on a simple one activity example project and on real-life project data.

Assessing the performance of construction projects: Implementing earned value management at the General Services Administration

There are many potential measures of performance for evaluating the success of a construction project. All address performance in three key areas: scope, schedule and budget. In a performance measurement framework where senior management wishes to minimise the numberof performance measures it employs, while ensuring maximal coverage or visibility into the programme, having a tool that captures each of the three areas would be ideal. Project managers have used Earned Value Management (EVM) for over 40 years to track actual schedule progress and actual costs against project plans. Earned Value Management has traditionally been applied to individual projects on which the manager is accountable for both schedule and cost variances. This paper proposes methods to apply EVM principles to allow: (1) analysis of portfolios of construction projects; (2) incorporation of the analysis into an innovative pay‐for‐performance human resources practice; and (3) use of regression analysis to develop baseline earned value curves. These extensions fit the needs of many government managers, who oversee a range of projects by multiple contractors, and whose cost risk is primarily due to schedule slips and change orders. Earned Value Management is described in the context of project oversight, and a dashboard system of performance measures is proposed for quickly assessing individual projects and portfolios. A method of generating standardised planned value curves is then specified, based on data from previous and ongoing projects. The paper concludes by showing how the US General Services Administration’s Public Buildings Service is using these methods to analyse and oversee its portfolio of new construction and major repair and alteration projects.

Virtual team culture and the amplification of team boundary permeability on performance

The implementation of virtual teams is briskly increasing, particularly among transnational organizations that find global virtual teams a natural way to address their needs for global reach. While proximal and virtual teams share many attributes, including similar performance measures, they differ in characteristics in the nature of the work. This quasi-experimental field study examined virtual team subcultures relative to structure, relationships, and primacy, and the moderation from team boundary permeability on project schedule variance and the number of errors created by the team in a transnational organization. Consequently, recommendations are made for formalization and thinning team boundaries.

Goals, relationships, information and processes in global virtual team performance

The implementation of virtual teams is briskly increasing, particularly among transnational organisations that find global virtual teams a natural way to address their needs for global reach. Much of the research into virtual teams has been concentrated at the micro-organisational level of the individual virtual worker. This study extends the body of research to the team level by using Hofstede's (1998) GRIP model to examine culture and structuring on global virtual team performance. Specifically, Hofstede's (1998) six components, along with virtual team duration and diversity, were found to influence virtual team budget variance, schedule variance, and the number of errors created by the team.

Earned Value Project Management Method and Extensions

The earned value project management method integrates three critical elements of project management: scope management, cost management, and time management. It requires the periodic monitoring of actual expenditures and physical scope accomplishments, and allows calculation of cost and schedule variances, along with performance indices. It allows forecasting of project cost and schedule at completion and highlights the possible need for corrective action. This paper shows the major aspects of the earned value method and presents graphical tools for assessing project performance trends. It provides logical extensions and useful simplifications to enhance the effective application of this important method in project management.

Model for Public Sector Design-Build Project Selection

Public sector owners are rapidly identifying new construction procurement methods. Changing procurement laws and documented project success are encouraging owners to attempt the design-build method of project procurement. Design-build is a radical departure from the traditional design-bid-build method. This paper reports on the analysis of 122 case studies and the resulting automated tool for public sector design-build project selection. Prediction models are developed for five performance criteria that correlate specific project characteristics to success. Performance criteria and associated models include budget variance, schedule variance, conformance to expectations, administrative burden, and overall user satisfaction. Project characteristics are categorized as project, owner, market, and relationship variables. Statistically significant correlations with success include scope definition, schedule definition, budget definition, project complexity, agency experience, agency staffing, owner design input, design-build market, design-builder prequalification, and method of selection.

Expert judgment in forecasting construction project completion

Construction projects are susceptible to cost and time overruns. Variations from planned schedule and cost estimates can result in huge losses for owners and contractors. In extreme cases, the viability of the project itself is jeopardised as a result of variations from baseline plans. Hence new methods and techniques which assist project managers in forecasting the expected variance in schedule and cost should be developed. This paper proposes a judgment‐based forecasting approach which will identify schedule variances from a baseline plan for typical construction projects. The proposed forecasting approach adopts multiple regression techniques and further utilises neural networks to capture the decision‐making procedure of project experts involved in schedule monitoring and prediction. The models developed were applied to a multistorey building project under construction and were found feasible for use in similar construction projects. The advantages and limitations of these two modelling process for prediction of schedule variance are discussed. The developed models were integrated with existing project management computer systems for the convenient and realistic generation of revised schedules at appropriate junctures during the progress of the project.

Construction project control using artificial neural networks

AbstractArtificial neural networks are finding wide application to a variety of problems in civil engineering. This paper describes how artificial neural networks can be applied in the area of construction project control. A project control system capable of predicting and monitoring project performance (e.g., cost variance and schedule variance) based on observations made from the project environment is described. This project control system has five neural network modules that allow a project manager to automatically generate revised project plans at regular intervals during the progress of the project. These five modules are similar in design and implementation. Therefore, this paper will present the main issues involved in the development of one of these five neural network modules, that is, the module for identifying schedule variance. A description of a graphical user interface integrating the neural network modules developed with project management software, and a discussion on the power and limitations of the overall system conclude the paper.

Cost, Schedule, and Time Variances and Integration

This paper demonstrates detailed schedule‐ and cost‐control relationships at the activity/cost‐account level using generic microcomputer software to budget, track, and control projects. Time variances are introduced to describe differences between scheduled times and actual times for activity and project performance. Variances are the sum of more detailed variances, and variances can be calculated and reported at different levels of detail, whether for activities and cost accounts or for a project as a whole. Activity/cost‐account budgets sum to project budgets, and variances sum to project variances. A unified nomenclature and parallel budget and variance structures allow integration of cost and schedule control for projects that share common work breakdown structures. Budget, actual, and variance values of cost, progress, and time are combined in a single figure to demonstrate integration at the activity/cost‐account level. Equation development is augmented with computer implementation details for generic spreadsheets or custom applications. Examples are presented for a single element from start to completion and for a project of four elements.

Photogrammetry—Automating the Collection of Shipcheck Data

The installation of new or modified systems on board U.S. naval combatants during overhauls requires advance planning shipchecks. One primary purpose of a shipcheck is to document existing shipboard conditions in order to develop engineering drawings for the installation of these new systems. Gathering and documenting existing shipboard conditions has always been a very labor-intensive effort. Also, accuracy of measurements is restricted by congested spaces, dimensions of extensive length, and intricate configurations of systems. Furthermore, the accuracy of the shipcheck information relates directly to the quality of the production installation. Accurate well-planned shipcheck information will reduce production interferences, production costs, and schedule variance. One objective of a planning department is to reduce man-day expenditures required to accomplish a shipcheck while increasing the accuracy of the data gathered. Automating this shipcheck using photogrammetry, specifically ster-eophotogrammetry, can provide a means to achieve these objectives. This paper explores the use of stereophotogrammetry to gather shipcheck data for shipboard distributive systems such as piping, ventilation, cableways, compartment arrangements, and structural components.

Construction planning in uncertain environments

The effect of project uncertainty on planning efforts and outcomes is assessed by means of a survey of planning and scheduling department managers in the largest US construction companies. A slight majority estimated that the planning efforts required for coping with complex/ uncertain situations would be approximately twice those required for average situations. Most of the managers estimated that, for complex/uncertain situations, outcomes, as measured by schedule and manhour variance, would be four times greater than those for the average situation. Ways of coping with uncertainty encountered during construction planning are discussed.

A conceptual model for claim management in construction: An ai approach

Delays are the major cause of construction disputes. Among the several dispute resolution methods, mediation has been an effective solution. The one problem which can be attributed to all dispute resolution methods is the lack of a preventive approach and the lack of a systematic and comprehensive technical evaluation of the entire problem. Given the magnitude of the problem there seem to be distinct advantages in developing a Knowledge-Based Expert System (KBES) for time-based claim management. The domain of knowledge of the KBES presented in this paper will be directed towards analyzing disputes that arise due to different types of delays (excusable/compensable, excusable/noncompensable, nonexcusable; independent, concurrent, serial) and determining the responsibility of each party. It will utilize a procedure called ‘Time Impact Analysis’ and involves the use of network-based scheduling tools to identify, quantify, and explain the cause of a schedule variance. The various modules that make up the KBES for an integrated claim management process have been clearly identified. Specific methods have been developed to perform time impact analysis and to apportion damages in different delay/acceleration situations.