Abstract:
A project is any endeavor involving planned action, for example, developing a new product or constructing a dam. [CE1] Major factors for a project to be successful are applying performance measurement and feedback tool. One such well-known performance measurement tool to control the project execution is earned value management (EVM). EVM uses the fundamental principle that trends in the past can be good predictors of the future. It was originally developed to follow time and cost of a project, but it has some weak points in analyzing the time performance of a project. In this article, we first explain these weak points in detail. Then, to improve them, we develop two methods: the first one is a simple and approximation method to minimize errors in EVM analysis with a high probability and the second method is an exact approach that uses earned value and floating time concepts. At the end, the performance of the proposed methods is evaluated and analyzed on a set of instances containing a variety of project sizes. The results of this experimentation show that the efficiency of the methods is relatively good.
Machine summary:
One such well-known performance measurement tool to control the project execution is earned value management (EVM).
Then, to improve them, we develop two methods: the first one is a simple and approximation method to minimize errors in EVM analysis with a high probability and the second method is an exact approach that uses earned value and floating time concepts.
Pajares and López-Paredes (2011) introduced two new metrics for integrating EVM and project risk management methodologies: cost control and schedule control indices.
Summary of the literature review Moslemi-Naeni As shown in Table 1, heuristic method was the most common approach in all the aforementioned studies; therefore, it was difficult to ensure whether the project was ahead or behind the schedule and its cost.
Earned Value Management: Basic Concepts EVM integrates a project’s scope, schedule, and cost into a unified set of prescribed metrics to monitor and forecast the project’s performance.
Building blocks of all EVM metrics are the following three elements (Kerzner, 2013): Earned value (EV) or budgeted cost of work performed (BCWP): it is the budgeted amount for the work actually completed on the schedule activity or work breakdown structure (WBS) component during a given time period.
It is possible that an earned value analysis could show no schedule variance and yet the project is still behind schedule; for example, when tasks that are planned to be completed in the future are performed ahead of tasks on the critical path.