Earned value project management: Improving the predictive power of planned value

Chen, Hong Long; Chen, Wei Tong; Lin, Ying‐Lien

doi:10.1016/j.ijproman.2015.09.008

Cited by 81 publications

(40 citation statements)

References 26 publications

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“…EVM has also been documented as a 'best practice' and a critical component of the overall project management framework in the PMI's A guide to the project management body of knowledge (PMBOK Guide), PMI's Practice standard for earned value management, and various national standards, such as the American National Standards Institute (ANSI)/Electronic. EVM is thus considered an effective performance measurement and feedback tool for managing projects [30,35].…”

Section: Introductionmentioning

confidence: 99%

EARNED VALUE ANALYSIS, IMPLEMENTATION BARRIERS, AND MATURITY LEVEL IN OIL & GAS PRODUCTION

Zhan

Chen

Yap

et al. 2019

SAJIE

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Poor performance measurement practices in the oil and gas industry can cause project cost overruns, schedule delays, and scope increases. Earned value management, as an integrated project planning and control method measuring cost and schedule performance, enables the early detection of performance issues, and allows corrective actions to be implemented in a timely manner. Through a structured interview survey, this study aimed to identify the current maturity level of earned value management practice in Malaysian oil and gas firms to determine the barriers hindering the use of this practice, and to identify critical success factors for enhancing earned value management implementation in the oil and gas industry. The findings revealed the m a j o r barriers to earned value management implementation, and potential strategies to improve the effectiveness of earned value management practice in this industry.

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Section: Introductionmentioning

confidence: 99%

EARNED VALUE ANALYSIS, IMPLEMENTATION BARRIERS, AND MATURITY LEVEL IN OIL & GAS PRODUCTION

Zhan

Chen

Yap

et al. 2019

SAJIE

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“…Based on the equations in Section 2, the schedule and cost buffer are calculated by cut and paste, error root square, and Monte Carlo simulation as Equations (26) and (27). Based on the calculations, the results of the error root square are obtained: Based on the equations in Section 2, the schedule and cost buffer are calculated by cut and paste, error root square, and Monte Carlo simulation as Equations (26) and (27). Based on the calculations, the results of the error root square are obtained: …”

Section: Case Studymentioning

confidence: 99%

“…Chen et al proposed a straightforward modeling method for improving the predictive power of planned value before executing a project. By using this modeling method, the earned value and actual cost forecasting models were developed for four case projects [27].…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

An Integrated Efficiency–Risk Approach in Sustainable Project Control

et al. 2017

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Abstract:The lack of integrated project control techniques covering both qualitative and quantitative indices is one of the most important reasons leading to unfinished projects under predetermined schedules and expected budgets. Two modern techniques proposed in project control-the critical chain method and buffer management (CCM/BM), and the earned value analysis or earned value management and earned schedule (EVM/ES)-both have advantages and disadvantages. Goldratt proposed the CCM/BM method in 1997 based on the theory of constraint (TOC), but this method was not successful despite some improvements in project control because of some executive reasons. The most noteworthy constraint of this method is the management of time and time risks (use of a time buffer) of the project more than the subject. Goldratt believed that time control could be the most critical issue in project control. In other words, the overall problems associated with each project can be solved as long as the buffer time is under control and there is no need to control the other items. EVM/ES is one of the important techniques used to calculate real project development; it has been used for the integrated management of sustainable projects in recent decades. Using this technique, project managers can predict the final status of the project in terms of the necessary time and cost to finish the project. However, this method is limited by the management of the project cost and the lack of interference in the project risks. In sum, the CCM/BM method focuses on time and its risks associated with the project, thus making it advantageous to other techniques. Conversely, EVM/ES focuses on the costs or schedule with non-probabilistic assumptions, giving some interesting results. Therefore, this study aims to represent an integrated framework that considers the advantages of both CCM/BM and EVM/ES, called the efficiency-risk approach, which is implemented to control sustainable projects efficiently. This hybrid form can simultaneously control all the parameters, including both quantitative and qualitative variables, time, cost, and risk in conjunction with the project. Schedule and cost buffers of the project are derived using new formulations that provide appropriate estimations on the duration and cost for completing the sustainable projects and the relevant risks. The proposed ideas are analyzed and described through an industrial case study in the Steel Company, Isfahan, Iran.

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“…But evidently, the lagging indicators have got a wider focus compared with the leading ones. Some models or methods, typically like the earned value project management (EVPM) and its extensions, have been identified as efficient tools for cost and schedule prediction (Anbari, 2003;Lipke et al, 2009;Pajares and López-Paredes, 2011;Chen et al, 2016). However, both the traditional EVPM research and studies on extensions and applications of EVPM concentrate on cost and time rather than other important performance measures like customer satisfactions, team performance and so on, which couldn't be apt to the more complex projects in challenging environments.…”

Section: Research Background Of Ppmmentioning

confidence: 99%

Considering the systems engineering leading indicators to improve project performance measurement

et al. 2017

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With a long history in project management practices, project performance measurement (PPM) offers a wide range of methods and good practices which help project managers to effectively monitor the project and evaluate project progress and results. However, several critical issues remain, such as an unbalanced development of KPIs types or a limited availability of leading Key Performance Indicators (KPIs). On the other hand, systems engineering measurement (SEM) is a more recent discipline, with practices and theories that appeared with the emergence of the systems engineering discipline. Moreover, SEM has been much more developed with some practical research results published in several standards and guides. In particular, SEM does not only use lagging indicators, used to track how things are going but defines methods to promote leading indicators, used as precursors to the direction where the engineering is going; indeed, 18 leading indicators (LIs) were recently proposed, validated, and finally engineered in a practical guidance. Our goal being to improve project performance and success rate, one mean is to improve the project performance measurement, on which decisions rely for project management. To achieve this goal, this paper proposes to extend the project performance measurement of indicators by considering how performance is measured in systems engineering.

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Earned value project management: Improving the predictive power of planned value

Cited by 81 publications

References 26 publications

EARNED VALUE ANALYSIS, IMPLEMENTATION BARRIERS, AND MATURITY LEVEL IN OIL & GAS PRODUCTION

EARNED VALUE ANALYSIS, IMPLEMENTATION BARRIERS, AND MATURITY LEVEL IN OIL & GAS PRODUCTION

An Integrated Efficiency–Risk Approach in Sustainable Project Control

Considering the systems engineering leading indicators to improve project performance measurement

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