Earned Value Research Articles

Cost Estimation and Project Completion Time with Earned Value Analysis Approach on Waru-Buduran Frontage Road Project In Sidoarjo

The construction project of the Frontage Road Waru-Buduran in Sidoarjo has faced significant delays, highlighting the critical challenges in maintaining project efficiency. This study aims to analyze the cost and schedule estimates for the remaining work, as well as the total project completion using the Earned Value Analysis (EVA) method. The analysis results reveal a progress deviation of -9.911% by week 14 out of the total planned 21 weeks, indicating substantial schedule delays. Final completion estimates indicate a delay of 16.5 days and cost efficiency of IDR 1,246,797,954.06 (3.8%), demonstrating effective cost management despite schedule setbacks. EVA has proven effective in integrating cost and schedule performance indicators, such as Schedule Performance Index (SPI) and Cost Performance Index (CPI), to provide a comprehensive evaluation of project health. The findings emphasize the importance of early identification of deviations through EVA to implement corrective strategies, such as resource reallocation, schedule adjustments, and improved stakeholder coordination. The application of EVA enables project managers to predict potential risks, mitigate delays, and optimize resource utilization to achieve project objectives. This study provides valuable insights for project management practices, offering practical guidelines for addressing the complexities of construction projects. By utilizing EVA, project managers can ensure better decision-making, improve time and cost efficiency, and minimize conflicts arising from deviations in project execution. The findings serve as a reference for adopting EVA as a standard method in construction management to enhance overall project performance and ensure timely completion within budgetary constraints.

ANALISIS EARNED VALUE TERHADAP BIAYA DAN WAKTU GEDUNG DIREKTORAT POLITEKNIK PU SEMARANG DENGAN PRIMAVERA P6

Semarang PU Politeknik Building Construction Project is the construction of an educational building area developed in collaboration between PT Wika Gedung and PT Yodya Karya with a construction management consultant contract value of 3.9 billion and an executing contractor contract value of 281 billion. In this research, a research method with a quantitative descriptive approach was taken. This means that in this project, the condition of the project is described based on the analysis of the data obtained from the project. The data is then processed using descriptive and analytical methods. The Earned Value or EV concept method studies comparing the value of the work completed against the budget provided to carry out the work. The result of this research is to analyze using the Primavera P6 program whether the project is running at an appropriate cost and a schedule that does not deviate from the contract. The results of the analysis obtained for the implementation of the weekly analysis of the Earned Value indicator value obtained is positive which means that in the entire week of analysis, the project runs faster and more economically. The EAC and ETC values obtained are smaller than the contract cost, indicating that the project is planned to be completed at a smaller cost. The deviation value obtained is at an average of 0.08% with the smallest deviation being 0.0794% so the project will experience a profit of 8% on the completion date.

Performance Evaluation of Time and Cost In The Bungur-Kedoyo Tulungagung Road Construction Project Using The Earned Value Method

Road infrastructure is essential for supporting transportation, fostering economic growth, and enhancing community mobility. However, the Bungur-Kedoyo road construction project in Tulungagung has faced challenges in time and cost management, impacting overall project performance. This study aims to evaluate the project's time and cost performance using the Earned Value Method (EVM), a robust tool that compares planned work, completed work, and actual costs to provide a comprehensive performance analysis. Data from the 25th-week project report revealed delays, with a Schedule Variance (SV) of -Rp. 315,481,514.90 and a Schedule Performance Index (SPI) of 0.970, indicating slower progress than initially planned (SPI < 1). These results highlight the need for improved project scheduling and enhanced control mechanisms to mitigate delays and manage costs effectively. By identifying inefficiencies and areas requiring intervention, the study provides actionable recommendations for improving project management practices. It concludes that integrating EVM into time and cost control processes can significantly enhance project efficiency and reliability. This research contributes to advancing infrastructure development by offering insights that can be applied to similar projects, ensuring timely and cost-effective delivery while promoting sustainable growth in the road construction sector.

Measurement of Project Cost and Time Efficiency with Earned Value Approach In The Implementation of Baggage Handling System at Sultan Hasanuddin International Airport Makassar

The installation of the Baggage Handling System (BHS) at Sultan Hasanuddin International Airport, Makassar, faces challenges related to cost and time inefficiencies, particularly delays in project completion. This study aims to evaluate these inefficiencies by applying the Earned Value Method (EVM) to assess project performance and identify areas for improvement. Utilizing EVM metrics, the research identifies that the Schedule Performance Index (SPI) is below 1, indicating a delay in the project timeline, with the actual duration extending to 556 calendar days compared to the planned 546 days. This delay underscores the need for a more robust project management approach. The study employs the Critical Path Method (CPM) in conjunction with Microsoft Project to improve scheduling accuracy, alongside recommendations for project acceleration using the Crashing Program method. The findings highlight that early implementation of EVM can help mitigate discrepancies in cost and time, enabling better control and monitoring throughout the project lifecycle. The study concludes that integrating advanced scheduling techniques and real-time performance metrics is essential to achieving efficiency and minimizing delays in similar infrastructure projects.

Analysis of Time Delays in The Implementation of The Construction of A Light Brick Factory in Lamongan Using The Earned Value Method

Factory is an Industrial Building that processing raw material. This Light Weight Brick Factory Constructions will help the region to develop their economies further. In this case, the Lightweight Brick Factory Constructions have several problem that cause construction delays. This research was carried out because of delays in the lightweight brick factory construction project in Lamongan which was scheduled for completion in the 15th week with a contract value of IDR 1,835,474,186. in week 10 there was a delay of - 42.73%, week 11 there was a delay of - 42.66%, week 12 there was a delay of - 44.84%, week 13 there was a delay of - 48.08%, week 14 have a delay of -46.18%, and week 15 have a delay of -44.68% from the planned schedule. The results of the research analysis of the project Schedule Performance Index (SPI) at the 15th week of review were 0.55, indicating that the project was have a delays. These results show that the project was 11 weeks late out of the planned 16 weeks. The factor that made the project late in completion was the contractor or vendor because there were other problems that created a lack of cash flow

Project Performance Analysis Based on Earned Value Method on Infrastructure & Infrastructure Improvement of Yohanis Kapiyau Timika Airstrip

This study analyzes the performance of construction projects using the Earned Value Method (EVM) on the Infrastructure and Facilities Improvement Project at Yohanis Kapiyau Airbase in Timika. Utilizing key performance indicators such as Cost Variance (CV), Cost Performance Index (CPI), Schedule Variance (SV), and Schedule Performance Index (SPI), the research evaluates cost and time deviations to provide a comprehensive understanding of project performance. EVM offers precise insights into the project's current status, including estimates for total costs and completion timelines, which are critical for effective decision-making and ensuring adherence to project plans. The findings demonstrate that EVM is a reliable tool for accurately monitoring and managing construction projects, enabling stakeholders to identify inefficiencies and implement corrective measures in a timely manner. By providing an in-depth evaluation of cost efficiency and schedule performance, the study contributes to the broader application of EVM in enhancing construction project management. This research is expected to benefit academics by advancing theoretical knowledge, assist contractors in optimizing project execution, and inform public stakeholders on best practices for infrastructure development, ultimately contributing to more effective and efficient management of construction projects in Indonesia.

Analysis of Time and Budget Efficiency In The Bungur-Kedoyo Road Project Using Earned Value Method

The Bungur-Kedoyo road construction project in Tulungagung Regency represents a critical infrastructure initiative aimed at enhancing connectivity and transportation efficiency. However, challenges in managing time and cost effectively remain significant in ensuring project success. This study aims to evaluate the performance of the project using the Earned Value Method (EVM), a comprehensive framework that integrates cost and schedule analysis. EVM metrics, including Schedule Estimate To Completion (SETC), Schedule Estimate At Completion (SEAC), Budget Estimate To Completion (BETC), and Budget Estimate At Completion (BEAC), were employed to monitor and forecast project progress. The findings indicate that the project is largely on schedule, with an estimated additional week required to complete the remaining 96.908% of work, extending the contracted timeline of 180 days slightly. The remaining cost is projected at Rp. 273,570,437.28, and the total expenditure remains below the contract value at Rp. 8,847,685,552.51 out of Rp. 10,640,186,000. These results highlight the effectiveness of EVM in providing precise tracking and forecasting, ensuring the project stays within budget while achieving its objectives. The study concludes that EVM is a valuable tool for managing complex construction projects, offering actionable insights to improve time and cost efficiency for similar future endeavors.

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.

Controlling Project Cost and Time with the Result Value Concept Method (Case Study: Klaten Trasan 2 Bridge Replacement Project)

Construction projects play an important role in supporting infrastructure development. However, there are often deviations between the initial plan and actual implementation, either in terms of money or time, which can result in delays and cost overruns. This study aims to examine the implementation of the Earned Value Concept Method in controlling costs and time on the Trasan II Bridge Replacement Project in Klaten Regency. The study results prove that until week 15, the project has exceeded the plan target with a realization of 81.38%, higher than the plan of 35.21%. The SPI of 2.207813348 indicates a time performance that is ahead of schedule, but the CPI of 0.995142328 indicates the costs incurred exceeded the plan budget. The projected remaining cost (ETC) is Rp701,350,409.24, and the remaining completion time (ETS) is estimated at 4,759 weeks. In addition, analysis using the Precedence Diagram Method (PDM) identified a critical path involving seven activities with a total duration of 21 days. Rescheduling was carried out to optimize project implementation. This study provides recommendations to improve project management efficiency through periodic performance evaluation and integrated control using the Earned Value Concept Method.

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