Value Management System Research Articles

Performance control considering risks for construction projects

La toma de decisiones durante la ejecución de los proyectos es de vital importancia para el éxito de los mismos. Para facilitar ese proceso se ha desarrollado el método de Gestión del valor ganado (EVM), que integra el alcance, tiempo y costo, para medir el desempeño del proyecto e identificar variaciones con el plan original del mismo. Identificando variaciones en el desempeño el Gerente de proyectos debe realizar los correctivos necesarios para reorientar el proyecto. Sin embargo, siendo un método determinístico la menor variación es considerada un problema de desempeño, lo que es objeto de críticas actualmente. El propósito de este artículo es proponer un método basado en EVM para identificar rangos de control de tiempo y costo que permitan al Gerente de Proyecto determinar cuándo se deben tomar correctivos. La propuesta fue validada en un proyecto del sector construcción, mostrando su utilidad.

Review of earned value management (EVM) methodology, its limitations, and applicable extensions

Department of Defense (DoD) Instruction 5000.02 requires an Earned Value Management System (EVMS) compliant with ANSI/EIA-748 for all DoD cost or incentive contracts valued at or greater than $20M. Earned Value Management (EVM) integrates cost, schedule, and time to draw conclusions about current project status as well as make projections for future project status. Though EVM has been widely adopted on many projects, there are clear limitations indicated in the literature which ultimately inhibit the ability of EVM to become universally accepted as a best practice across all industries. In response, researchers have developed extensions such as Earned Schedule Management (ESM), Earned Duration Management (EDM), and Customer Earned Value (CEV). This paper addresses the evolution, limitations, and new extensions of EVM.

Analysis on Cost Controlling and Tracking of Residential Building by EVM Method Using MS Project Software

Most of the construction projects suffer from cost and time overruns due to a multiplicity of factors. Earned value management (EVM) is a project performance evaluation technique that has origins in industrial engineering, but which has been adapted for application in project management. Earned Value Analysis software is developed in Visual studio 2008, Next Comparison of selected parameters between M.S Project 2007, Primavera P6 and developed software is done. Therefore, it can be concluded that the software could be used in a wide range of projects for Earned Value Analysis calculation. During the construction project it has been observed that certain causes may lead to delay in construction activities. This will result in time and cost overrun in the project. So it has become a major problem to complete the project on schedule and within the estimated cost. As a solution to this, the concept of construction project management by Earned Value Management System (EVMS) is evaluated. Earned Value Management is a powerful methodology used in monitoring and controlling of the project. EVMS is the project management technique developed to measure the performance and progress of the project based on the combination of schedule, cost and work performed. By using this technique, the project status can be investigated in ongoing project at any stage which detects whether the project is under or over budget and behind or ahead of the planned schedule. Also the estimate cost and time required to complete the project from current situation can be investigate.

Research of practical aspects of the modeling of the risk tolerance management system of business models of restaurant business enterprise

The object of research is the risk tolerance management process of the business model of a restaurant enterprise. One of the most problematic places in the implementation of the business model of the enterprise is the timely recognition of risk and minimization of its impact on activities. The restaurant business is the most profitable and profitable in the world. Competition in this area increases over time. Risk arises where there is profit and competition, as well as various options related to the likelihood of risk occurring in conditions of uncertainty. Identification and consideration of risk factors is the basis for making management decisions on the timely transformation of the current business model of the enterprise in accordance with changes in the external environment. It is shown that the risk tolerance management process of a restaurant business enterprise is associated with the difficulty of identifying key aspects of the risk tolerance of its business model and the need to take into account risks arising in the process of creating value. This is due to the peculiarities of the set of risks and the nature of their manifestation in the restaurant business. The restaurant industry is characterized by specific risk groups. These risks are associated with the formation and promotion of value propositions, revenue streams and customer/consumer relationships. The stages of modeling the risk tolerance management system of the business model of a restaurant enterprise have been determined. These stages include identifying the main risk groups and key value management systems, assessing their parameters and allow to define a set of management decisions to improve the risk tolerance level of the business model of the restaurant business enterprise. To implement the stages of modeling the risk tolerance management system of the business model of a restaurant business enterprise, an algorithm is proposed based on the theory of fuzzy sets with the ability to assess the compliance of the actual system parameters with their target value. This ensures the possibility of assessing the actual state of the risk tolerance management system of the enterprise's business model by key business processes. A set of management decisions has been developed that makes it possible for a restaurant enterprise to respond in a timely manner to various kinds of risks in the context of resource and time constraints.

Application of Earned Value Management System for Road Construction Project: A Case Study

Application of Earned Value Management System for Road Construction Project: A Case Study

UPAYA PERBAIKAN KUALITAS UNIT PELAYANAN TEKNIK DENGAN PENDEKATAN LEAN SERVICE (Studi Kasus : PT. PLN APJ Surabaya Selatan)

Technique Service Unit as party who handling directly distribution disturbance, where this unit have big influence on network service quality. Found that compliance on disturbance at present indicating there is waste in network service process then at this research will be quality repair effort from technique service unit from efficiency aspect. In this research method are Data Envelopment Analysis to determining where unit would be primary focus in this research based on efficiency level, Lean Service to improving poor technique service quality, as well as Value Management and dynamic system modeling with software Vensim used for improvement doing. Result of the research indicating whenever Data Envelopment Analysis, Network Service Unit (UPJ) Dukuh Kupang stated inefficiency with Technical Efficiency around 0,73. And repair effort in waste reducing found that waste defect as main cause with seven typesdisturbance causes as Critical to Quality. From CTQ found waste cause as well as repair priority, and repair alternative based on highest RPN value from FMEA then simulated to get best alternative. From available alternative, could be proved that repair recommendation had changed Network Service Unit (UPJ) be efficient with scale efficiency value change from 0,972 to 1. The advantage of this research are problem discussed completely and detail, where repair objectives done on unit really experienced problem. Then causes of the exist problem seek the cause root then priority of repair could precisely. And effort in choosing best alternatives previous simulated with the aim could be known system behavior over the impact of repair that be conducted. Then finally enable a comparison between before systemcondition and after repair

Impact of Digitalization in an Organization and its importance in Knowledge and Value Management System

Information technology plays a critical role in the success of significant business transformations as a key enabler and source of competitive advantage. IT transformation is about making major changes to improve performance and capabilities for the organization aligned to business and supporting IT strategies. One of the most important research questions is about the impact of knowledge management initiatives on firm performance. A review of research on business value of Knowledge Management reveals that most of the work on evaluating the effectiveness of efforts is concentrated on studying the association between knowledge management and firm performance. For several reasons, measurement of firm performance and relating it to KM efforts has proven to be a difficult endeavor. Our approach changes the focus of analysis to the process level, where the work is actually accomplished. This paper draws knowledge from various IT tools and techniques and helps understand the digital trends on Passenger Car Segment henceforth, boosting the sales and brand awareness in the market. This study aims at analyzing the conversion rate of people visiting the website and thus into successful leads. There are different statistical tools used to showcase the results with better understanding like Bar Graphs, Pie Charts and Line Graphs. The targeted population is the Walk-ins at Honda dealership with sample size of 81 respondents from three different Honda Dealers. The result gives a clear picture to the Management in forming Marketing strategies which helps in better decision making. Information technology helps many organization to form the basis of knowledge and value management.

Management by the value of enterprise

The management of the enterprise's value is largely aimed at increasing the investment attractiveness of the enterprise. The search for new methods and techniques for managing the property complex faces a number of problems that are a promise of developing scientific approaches to the development of new progressive methods of making managerial decisions. The article considers alternative options for improving the quality of enterprise management and suggests the direction of improving the organization’s cost management system. A number of limiting factors, which allowed the author to determine the target indicators of the presented model, determines the presented objective function of enterprise value. It is permissible to change and expand the composition of the indicators and the approaches used to assess the value of the enterprise. The recommended model allows determining the reserves of increasing the efficiency of the enterprise, affecting the value of the property complex. Dependence of the singled out evaluation criteria and the targets of strategies for increasing the value of enterprises is indicated. The main stages of the enterprise value management process are considered as a single concept of increasing the current value of the organization. The characteristic of the concept of management aimed at creating value – Value Based Management (VBM) is presented. The main principles of VBM aimed at qualitative improvement of strategic and operational decisions at all levels of management of the organization are singled out. Article considers the technology of introducing a cost management system based on the example of a construction organization. The main stages of enterprise cost management aimed at long-term sustainable growth in the value of the organization are identified. Particular attention is paid to the stages of analysis of the contribution of production and management units to the total value of the enterprise and the formation of a group of performance indicators and the effectiveness of the enterprise value management system. Place and role of operational control over the value of assets and the use of management personnel are indicated. Importance of the enterprise value management system as an instrument of maximizing its market value is proved.

Controlling Project Schedule Progress, Using Control Charts

ABSTRACTFor monitoring the status of project activities, project costs, and for controlling the project, the Earned Value Management system (EVM) is extensively used by both researchers and practitioners. However, using only EVM methodology to control a project schedule, the project manager will not know accurately when to take the appropriate corrective measures or when to exploit opportunities for the project. We suggest in this work using both EVM methodology and statistical process control (SPC) in order to better control a project schedule progress. Using the software R, a control chart for monitoring the Schedule Performance Index (SPI) individual observations is designed for the application of the study. We present results and conclusions about unusually slow or unusually fast work progress for a construction project, about the link between the schedule progress and the project team stages of development, and about the entry data necessary to design a project control chart for controlling the schedule of a project.

Factors critical for the success of public‒private partnerships in UAE infrastructure projects: experts' perception

During the last decade, the United Arab Emirates (UAE) has been the biggest market for public–private partnerships (PPPs) in Gulf Cooperation Council (GCC) countries. Currently, PPPs are increasingly being used in the rapid development of UAE infrastructure projects. Despite this fact, little is known about the success factors for adopting such an approach for the infrastructure projects in the UAE. Twenty-one in-depth interviews were held with PPP experts and key personnel who have experience in the development life cycle of PPP infrastructure projects in the UAE in order to investigate their perception of the key success factors of PPP in UAE infrastructure projects and examine the relative importance of these factors. The results show that the five most important critical success factors (CSFs) for all respondents were: availability and effectiveness of proper regulatory and legal framework for PPPs; proper risk allocation and sharing among project stakeholders; clear project brief and client outcomes; comprehensive and business viability of project feasibility study; and finally, proper project value management systems during different project phases. These findings should be taken into consideration by public and private partners when developing new PPP projects in the UAE in order to increase the success rates of these projects.

A Novel Hybrid MCDM Procedure for Achieving Aspired Earned Value Project Performance

A better-performing project gains more subsequent businesses. Many organizations worldwide apply an earned value management (EVM) system to monitor and control their projects’ performance. However, a successful EVM application requires handling multiple interinfluenced criteria with feedback effects for decision-making and continuous improvements throughout the application life cycle. The conventional decision approaches assume that preferences between criteria are independent and put their focuses on decision-making. This study employs a hybrid multiple criteria decision-making (HMCDM) method to devise a novel procedure to fulfil the deficiencies. The proposed procedure enables us to evaluate interinfluence effects and gap indices among criteria/dimensions/alternatives and then systemize the evaluation results in a context of influential network relation map (INRM). The INRM provides managers with visual information to find a route in making application decisions, while identifying critical gaps for continuous improvements. A numerical example is presented to illustrate the applicability of the proposed procedure. The results show that, by employing the HMCDM method, the proposed procedure can provide organizations with a foundation to ensure that the aspired EVM application outcomes are achieved at different levels within an organization.

Experimental Study on Virtual Value Management Workshop in Hong Kong

AbstractStakeholders engaged in value management (VM) practices often encounter the problem that the participants are too dispersed geographically from the workshop venue. Therefore, the introduction of a virtual collaboration method to VM studies is an effective and economical way to solve the problem, especially in the construction industry, where stakeholders may not be in the same country. However, there is currently a lack of knowledge on the implementation of virtual VM studies. This paper proposes a framework of virtual VM workshop to enable participants’ remote participation and virtual collaboration. Key issues in addressing virtual settings and virtual teams are considered and involved in the development of the proposed framework. To implement virtual VM workshops, a virtual value management system (VVMS) was developed first on available Internet technologies and in line with the proposed framework. An experimental workshop was then conducted to test the effect of the virtual VM workshop by inve...

A comparison of the performance of various project control methods using earned value management systems

Recent literature on project management has emphasised the effort which is spent by the management team during the project control process. Based on this effort, a functional distinction can be made between a top down and a bottom up project control approach. A top down control approach refers to the use of a project control system that generates project based performance metrics to give a general overview of the project performance. Actions are triggered based on these general performance metrics, which need further investigation to detect problems at the activity level. A bottom up project control system refers to a system in which detailed activity information needs to be available constantly during the project control process, which requires more effort. In this research, we propose two new project control approaches, which combines elements of both top down and bottom up control. To this end, we integrate the earned value management/earned schedule (EVM/ES) method with multiple control points inspired by critical chain/buffer management (CC/BM). We show how the EVM/ES control approach is complementary with the concept of buffers and how they can improve the project control process when cleverly combined. These combined top down approaches overcome some of the drawbacks of traditional EVM/ES mentioned in the literature, while minimally increasing the effort spent by the project manager. A large computational experiment is set up to test the approach against other control procedures within a broad range of simulated dynamic project progress situations.

Impact of Measuring Operational-Level Planning Reliability on Management-Level Project Performance

AbstractThe earned value management system (EVMS) and the last planner system (LPS) have been widely used as effective performance measurement tools for construction managers and production units at construction projects. While the EVMS measures project-level costs and scheduling performances, the LPS measures the percent plan complete (PPC), which indicates the level of planning reliability. This paper investigates the relationship between planning reliability at the operational level and project performance at the management level (i.e., the success or failure of a project). Analyzing the empirical data of 23 residential projects of a large construction company, the authors find that, while the production plan in the weekly schedule is correlated rigidly with the daily plan in successful projects, such a rigid correlation is not observed in unsuccessful projects. To understand this finding, the authors further conducted interviews with project stakeholders. Taken together, this study suggests that an em...

Akademinis integralumas: nuo abstraktaus kalbėjimo apie akademinį sąžiningumą ‒ prie jo vadybos

The paper deals with the analysis of academic integrity concept and its wider application possibilities in Lithuanian universities. It provides the analysis of ethics institutionalization problems in the field and relates the ways of their resolution through academic integrity management. The aim of the paper is to reveal that integrity in organization activity has definite meanings and to prove that integrity is valid when transferring from abstract talking to real building of academic integrity is taking place. The author also explains that the realization of academic integrity is stipulated by proper organizational processes, ethics infrastructure and presupposed by effective value management systems, which enforce operationalization of outstanding aims of higher education.The author traces existing in Lithuanian higher school structures social cultural attitudes that determine mental and institutional barriers for integrity concept establishing. She argues that instrumental application of academic integrity diminishes the gap between declared values and facts, as well as between established ethics norms and their realization in institutional practice. Thus, integrity management helps to eliminate academic misconduct and still existent multiple facts of academic dishonesty.If such situation remains, the value of higher education decreases. That is why the formation of academic integrity assures the way to improve the situation. The paper generally raises the seminal problem of academic ethics institutionalization in Lithuanian higher schools and offers building the system, in which the society could trust in and rely on higher school diploma, university credentials and competencies of university graduates as prospective professionals.The paper offers to build academic integrity in Lithuanian higher school institutions by transferring the focus from individual integrity to the organizational one, while purposively forming corporative integrity through implementation of definite organisational processes and procedures. Only complex formation of integrity culture can surmount academic dishonesty, so it requires systems approach to the struggle against academic fouls, reconstruction of appropriate organization processes, creation of required integrity promotion procedures as well as its consistent implementation by using all managerial tools.The attempts to implement ethics codes “from above”, in many cases without substantiation of new ethics regulation necessity by discourse, and to avoid a reflection of academic integrity problems were unlucky. The failures are also stipulated by maintaining ethics norms purely through prescriptive imperatives, along with widespread ignorance of value management on the institutional level and without due awareness of definite ethics tools. Namely, these tools enable changes of attitudes and behaviours, promote academic integrity and empower changes on institutional level, help to cultivate integrity culture in academic life practices.In recent decade, ethical regulation of academic community in Lithuania has been improving purely through creation of normative content of documents, however, its evaluation and comparing against real possibilities and specific environment was lacking, while making norms more exact and correcting mistakes and inaccuracies.The author stresses peculiarities of modern organisational ethics paradigm and offers to apply them in a wider context, while constructing organisational integrity in universities, i.e. while forming practically ethics values and purposively creating academic integrity with the help of interdisciplinary scientific knowledge. It is possible if one uses his analytical and prognostic abilities not only copying the examples of good practices or blindly moving along the way of “trial-and-error methods”.

EDM: Earned Duration Management, a new approach to schedule performance management and measurement

The concept of schedule monitoring and control as one of the most important functions of project and program management has not been fully exploited. One possible explanation could be the dominance of the Earned Value Management System (EVMS, also known as EVM). EVM was originally developed as a cost management and control tool which was extended to track the schedule as well. EVM and its derivatives (e.g. Earned Schedule) use cost as a proxy to measure schedule performance to control the duration of the project. While there is a correlation between schedule, cost, quality, and scope of a project, using cost to control duration has proven to be misleading. In contrast to Earned Value and Earned Schedule, the authors have developed the Earned Duration Management (EDM) in which they have decoupled schedule and cost performance measures and developed a number of indices to measure progress and performance of schedule and cost, as well as the efficacy and efficiency of the plan at any level of the project. These new indices are easy to understand, have wider applications, and can be used by contractors, clients and the scheduling offices to assess and measure schedule performance. The newly developed duration performance measures are all schedule-based and can be used for forecasting the finish date of the project.

Improved cost monitoring and control through the Earned Value Management System

As economic pressure and competition for budget among federal agencies has increased, there has been an increasing need for more granular data and robust management information systems. This is especially true for the execution of major civilian space programs. This need has resulted in new program management requirements being implemented in an attempt to limit cost and schedule growth. In particular, NASA Procedural Requirements (NPR) 7120.5D requires the implementation of an Earned Value Management System (EVMS) compliant with the requirements of American National Standards Institute (ANSI)/Electronic Industries Alliance Standard 748-B. The Radiation Belt Storm Probes (RBSP) program management team at The Johns Hopkins University Applied Physics Laboratory (JHU/APL) made a decision to implement an EVMS on RBSP during Phase B—a year earlier than specified in the contractual Phase C reporting requirement as defined in the NPR. This decision was made so that the project would have the benefit of 12 months of training and hands-on implementation during Phase B. Although there were a number of technical and process hurdles encountered during Phase B and into Phase C, the system was working well when the Integrated Baseline Review (IBR) was held in August 2009. The IBR was a success because it met the review requirements. It was also clear to all IBR participants that the EVMS was providing value to the project management team. Although the IBR pointed out some areas of concern regarding process and ANSI compliance, the system had markedly improved the project's ability to monitor cost and schedule. This, in turn, allowed the project team to foresee problems in advance, formulate corrective actions, and implement course corrections without causing significant adverse impact to the project. Opponents of EVMS systems often communicate the unfavorable opinion that EVMS systems create unnecessary cost and administration. Although it is undeniable that EVMS implementation does not occur without cost, the cost is minimal in comparison to the benefits of successful implementation. This paper will focus on the implementation of EVMS on the RBSP project, explain EV processes and the implementation's cost, and analyze the benefits of EVMS to provide insight into cost/benefit considerations for other projects considering EVMS implementation. This paper will do this by focusing on the following points: (1) RBSP is the first full-up implementation of earned value management (EVM) at JHU/APL; (2) RBSP EVM started in Phase B; (3) RBSP EVM implementation has been working well in Phase C/D; (4) RBSP EVM implementation has been recognized by Goddard Space Flight Center and NASA Headquarters as successful; and (5) an assessment of the benefits of EVMS to the project management team and sponsor shows that the system's benefits outweigh the cost of implementation.

Meta‐synthetic support frameworks for reuse of government information resources on city travel and traffic

PurposeThe purpose of this paper is to propose meta‐synthetic ideas and knowledge asset management approaches to build a comprehensive strategic framework for Beijing City in China.Design/methodology/approachMethods include a review of relevant literature in both English and Chinese, case studies of different types of support frameworks in the UK, the USA, Singapore and Hong Kong, formulation of a meta‐synthetic support framework for Beijing City, and justification of its application to policy development by various studies. Three stages of meta‐synthetic support frameworks are proposed.FindingsThe suggested meta‐synthetic support frameworks are highly appropriate for the optimisation of, and innovation in, management and services systems of government information resources. The proposed knowledge asset management approaches offer significant practical value in improving the competence and capabilities of service‐oriented government, providing a set of solutions to identified, urgent problems, including a joint administration system for creating value, a release and distribution management system for sharing and protecting value, and a licensing and authorisation management system for adding value.Research limitations/implicationsThis paper focuses on the formulation of a theoretical support framework for the reuse of government information resources and the justification of its effectiveness to guide policy development at strategic level. Case studies of its application at operational level are ongoing and will be discussed in future papers.Practical implicationsThe suggested meta‐synthetic support frameworks support the efficiency, effectiveness and economy of intelligent traffic administration, good governance of value‐added services based on government information resources, and intellectual activity around city travel and traffic. The study has wide implications for the improvement of service‐oriented government performance, public satisfaction and the image of government.Originality/valueThe paper presents the adaptation of meta‐synthetic ideas and knowledge asset management approaches to collaboration, optimisation, innovation and compliance management issues in the reuse of government information resources. The advantages of different types of support systems and frameworks are integrated as a coherent whole for a strategic framework of legal, regulatory and standards support to China and Beijing.

Avaliação do processo de desenvolvimento de um novo produto utilizando earned value management system

Retrata-se uma situação de integração do processo de desenvolvimento de produtos - PDP ao longo da cadeia de suprimentos por meio do fluxo de valor. Avalia-se um caso de aplicação de um modelo de PDP numa empresa de autopeças líder em seu segmento. A partir da aplicação do pensamento enxuto na cadeia de suprimentos, e da metodologia EMVS na análise de desempenho do PDP, é criado um Check List para evitar desperdícios no gerenciamento de projetos. Os resultados demonstram que a metodologia tem aspectos positivos, mas sua aplicação leva tempo e tem reflexos em toda cadeia de suprimentos.

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...