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Earned Value Project Management
Abstract
Factors to be considered in the implementation of an earned value project management are described. First, management and owner must commit to using earned value metrics to monitor the cost and schedule performance of their projects. Second, some method must be used to define all project work in order to both understand the requirements and to set the project's outer limits. Third, all work defined within the WBS must be planned and then logically sequenced into a specific time frame for performance. Fourth, resources will need to be estimated and budgeted for all defined scope. Fifth, the summation of all authorized CAPS will need to form a project performance baseline. The last necessary step is for the project to monitor performance against the unauthorized baseline for the duration of the project.
... At its essence, EVM exists to provide an assessment of the actual, physical work a project has completed compared to a baseline plan (Fleming & Koppelman, 2010). EVM integrates the actual cost spent on the project to date with the work that has been performed on the project, allowing managers to compare the progress of the project with their planned budget and schedule (Fleming & Koppelman, 2010). ...
... At its essence, EVM exists to provide an assessment of the actual, physical work a project has completed compared to a baseline plan (Fleming & Koppelman, 2010). EVM integrates the actual cost spent on the project to date with the work that has been performed on the project, allowing managers to compare the progress of the project with their planned budget and schedule (Fleming & Koppelman, 2010). It provides managers the ability to compare cost performance with work completion rather than simply cost performance and planned cost, as is done in traditional cost management (Fleming & Koppelman, 2010). ...
... EVM integrates the actual cost spent on the project to date with the work that has been performed on the project, allowing managers to compare the progress of the project with their planned budget and schedule (Fleming & Koppelman, 2010). It provides managers the ability to compare cost performance with work completion rather than simply cost performance and planned cost, as is done in traditional cost management (Fleming & Koppelman, 2010). When properly employed, EVM provides Acquisition Research Program Graduate School of Defense Management -33 -Naval Postgraduate School a reliable prediction of the total cost and schedule requirements for a project through three distinct dimensions: the planned value, earned value, and actual cost (Fleming & Koppelman, 2010). ...
... evaluate the value acquisition, loss of cost, and time spent using the percentage-complete technique (Dodson et al. 2015;Fleming and Koppelman 2010). EVM can evaluate the value of the work done based on the expenses incurred and time passed (Fleming and Koppelman 2010), and the earning rules give project managers new estimates about the project completion performance. ...
... evaluate the value acquisition, loss of cost, and time spent using the percentage-complete technique (Dodson et al. 2015;Fleming and Koppelman 2010). EVM can evaluate the value of the work done based on the expenses incurred and time passed (Fleming and Koppelman 2010), and the earning rules give project managers new estimates about the project completion performance. Traditional EVM has also been extended to measure the performance of other attributes, as shown in Table 2. Multiobjective management with traditional earning rules has been the focus of several studies. ...
... This study combines the EVM theory with GHG emissions management to propose a EGVM model. Based on Fleming and Koppelman (2010), EVM involves assessing the (1) actual cost of work performed (ACWP), (2) budgeted cost of work scheduled (BCWS), and (3) budgeted cost of work performed (BCWP). ACWP or actual cost (AC) indicates the actual expenses incurred per unit activity to achieve the actual work performed. ...
Prefabrication and modular construction is promoted globally as a sustainable and efficient construction method. The greenhouse
gas (GHG) emissions from prefabricated and modular construction have been widely studied and the focus has mainly remained on the
measurement of GHG emissions. There has been limited emphasis on the activity-level emission data analysis, and current methods lack
a dynamic approach in the analysis of GHG emissions. These limitations contribute to the lack of GHG emissions evaluation and optimization
strategies in prefabrication and modular construction projects. To address this knowledge gap, an earned green value management
(EGVM) model based on the earned value management theory is developed for setting up a benchmark for evaluating the GHG emissions.
Additionally, a two-phase GHG emissions optimization method based on the EGVM model is proposed. This EGVM model and the
GHG emission optimization method were applied in a real prefabricated building project. The results demonstrate that this new approach
can facilitate GHG emissions management and can improve decision-making in prefabrication and modular construction projects.
DOI: 10.1061/(ASCE)CO.1943-7862.0002268. 2022 American Society of Civil Engineers.
... Some project management techniques have been identified by many authors as reliable for improving various aspects of project performance, irrespective of the chosen methodology [11,[25][26][27][28]. For instance, for cost management, Earn Value Management is vital [11,23,29,30]. For time management, techniques such as CPM, PERT, milestone analysis, are essential [21,[30][31][32]. ...
... Earn Value Management is regarded as a vital technique for project cost management [11,23,29,30]. According to Burke [21], this is one of the special techniques within the project integration knowledge area that aids the PM plan and controls the project in comparable units, so that it can be accurately tracked and controlled". ...
... According to Burke [21], this is one of the special techniques within the project integration knowledge area that aids the PM plan and controls the project in comparable units, so that it can be accurately tracked and controlled". It can also be used for project cost management and as well as the assessment of project risk [11,29,30]. ...
Performance is linked with implementation of project management techniques. Literature
suggests that problems such as inefficiency, poor budgetary issues, improper planning,
scheduling and control in projects execution are associated with inadequate implementation of
the essential techniques for meeting project deliverables. These shortcomings are prevalent
among Small and Medium Enterprises (SMEs) in the developing countries including South Africa.
Hence, the primary objective of this paper is to review the critical project management techniques
for the improvement of construction project performance especially among SMEs in South
Africa. The study is based on previous literature on construction SMEs project performance as
well as project management techniques implementation. The literature review centered on both
international and South African context. The study revealed that critical path method, work
breakdown structure, and earned value management analysis were the most occurring project
management techniques from the sampled literature. Findings from this study are envisaged to
be beneficial to construction stakeholders in developing relevant project management techniques
to improve the performance of SMEs.
... EVM offers numerous advantages to PMs using the methodology to track the progress of a project. When properly implemented, it provides an early warning of potential issues within a program and a forecast of the total cost and schedule requirements (Fleming & Koppelman, 2010). Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). ...
... Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). ...
... The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). The low range of the cost overrun is the current cost plus the remaining scheduled cost (Fleming & Koppelman, 2010). ...
... EVM offers numerous advantages to PMs using the methodology to track the progress of a project. When properly implemented, it provides an early warning of potential issues within a program and a forecast of the total cost and schedule requirements (Fleming & Koppelman, 2010). Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). ...
... Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). ...
... The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). The low range of the cost overrun is the current cost plus the remaining scheduled cost (Fleming & Koppelman, 2010). ...
... EVM offers numerous advantages to PMs using the methodology to track the progress of a project. When properly implemented, it provides an early warning of potential issues within a program and a forecast of the total cost and schedule requirements (Fleming & Koppelman, 2010). Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). ...
... Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). ...
... The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). The low range of the cost overrun is the current cost plus the remaining scheduled cost (Fleming & Koppelman, 2010). ...
... EVM offers numerous advantages to PMs using the methodology to track the progress of a project. When properly implemented, it provides an early warning of potential issues within a program and a forecast of the total cost and schedule requirements (Fleming & Koppelman, 2010). Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). ...
... Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). ...
... The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). The low range of the cost overrun is the current cost plus the remaining scheduled cost (Fleming & Koppelman, 2010). ...
... EVM offers numerous advantages to PMs using the methodology to track the progress of a project. When properly implemented, it provides an early warning of potential issues within a program and a forecast of the total cost and schedule requirements (Fleming & Koppelman, 2010). Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). ...
... Research has shown that the CPI (cost performance index) stabilizes within a 10% range after a project reaches the 20% completion point (Christensen, 1998). The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). ...
... The 20% stabilization point holds true across various contract types, programs, and services (Fleming & Koppelman, 2010). This early indication provides PMs a reliable prediction of the project's final costs (Fleming & Koppelman, 2010). The low range of the cost overrun is the current cost plus the remaining scheduled cost (Fleming & Koppelman, 2010). ...
... As ascertained from the reviewed literature, there are a number of project management benchmarking measures (Fleming and Koppelman 2016;Ochieng et al., 2016). These have been clustered under return on investment (ROI), productivity, cost performance of the project, cycle time, satisfaction of the clients, scheduling performance of the project, satisfaction of the employees, and the alignment of the project to the strategic business goals (Deshmukh and Menkudle, 2018). ...
... The findings of this study buttress the proposals of Muriana and Vizzini (2017), who argue that project implementers have to consistently define their project goals if the stakeholders in the project are to realise their project benefits. Project benefits realisation is the ultimate objective of any project implementation procedure (Fleming and Koppelman, 2016). All aspects of project delivery are aimed at realising the defined benefits of the project. ...
... A well-conceived commercial case has emerged as a critical template for project approval today. Fleming and Koppelman (2016) refer to this as a crucial "deliverable" in project delivery. The assertion in this research is that under the project benefits realisation factors in relation to project performance, the question of an approved business case is pivotal in enhancing project delivery. ...
The aim of this study was to ascertain how the delivery of information communication technology (ICT) projects in Kenya can be optimised. As established from the reviewed literature, it is not possible to realise benefits and ascertain a meaningful set of ICT infrastructure indicators without knowing what form and level of performance is required and valued by stakeholders. It was for this reason that the researchers set out to establish how the amalgamation of stakeholders, performance and benefits realisation can be attained. A purposive sampling strategy targeting ICT policy makers, project directors, engineers and project planners in various ICT projects was used. A total of 500 questionnaires were distributed to participants, and 286 usable questionnaires were received from respondents. Data was analysed through descriptive statistical tests supplemented with t-tests to compare means. The findings of the study suggest that ICT performance be measured against the achievement of stake-holder integration and realisation of benefits. Commitment to project objectives, competence of key stake-holders, alignment of stakeholder skills, understanding of core project processes and addressing stakeholder needs and expectations were found to be key to stakeholder integration. Through theory elaboration, we have structured the sequence relations of project management constructs that could be used to assess and optimise the delivery of ICT infrastructure projects.
... Techniques for general project planning, e.g. the Work Breakdown Structure (WBS), the Critical Path Method (CPM, Kelley and Walker (1959)) and Critical Chain Buffer Management (CC/BM, Goldratt (1997)), project monitoring and control, e.g. Buffer Monitoring (Goldratt, 1997) and Earned Value Management (EVM, Fleming and Koppelman (2010)) and project risk management, e.g. Schedule Risk Analysis (SRA, Hulett (1996)), among others, were developed, adapted, improved, promoted in practical workshops and taught at universities and business schools. ...
... 2.2 discusses the existing project categorisation approaches. For an overview of the EVM methodology and its formulas, the reader is referred to Anbari (2003); Fleming and Koppelman (2010); Vanhoucke (2010). A summary of the concepts and acronyms used in this paper is presented in Table 1. ...
Forecasting an ongoing project’s actual duration is an essential aspect of project management which received considerable attention in the research community. In studies using Earned Value Management forecasting, it has been argued that the network topology is a driver to indicate the accuracy of these forecasts. However, a new project indicator has been recently defined, i.e. the project regularity, which reflects the value accrue according to the plan. It has shown to outperform the serial/parallel network topology indicator in specifying the accuracy of project forecasts. This paper introduces a novel way to define the project regularity, which provides project managers with an improved indication of the expected forecasting accuracy for their projects. The study is carried out on an empirical database consisting of 100 projects from different sectors, and the results are compared to the academic literature. The experiments show that the new indicator provides a better categorisation compared to the existing approaches. Further, they have shown that the ability of project categorisers to indicate the expected forecasting accuracy is affected by industry sector and project size.
... II. REVISIÓN DE LA LITERATURA El control de proyectos mediante la técnica del valor ganado (EVM) data desde inicios del siglo XX, y se inició para el control de rendimientos en fábricas, en 1920 fue General Motors quien utilizó una forma de EVM que denominaron presupuestos flexibles, ya en 1960 se había avanzado un poco más en técnicas de evaluación y revisión de programas, por supuesto enfocadas en control d e co s t os y cronograma. El concepto de valor ganado inicio en una fábrica de ingenieros industriales los cuales calculaban estándares planificados, con estándares ganados y costos reales [3]. ...
... Sin embargo, el panorama no es igual todas las regiones de país, y en este caso en la región caribe, en las distintas ciudades que la componen, en algunas si se está trabajando un poco más el área de gestión de proyectos y las empresas u organizaciones están apuntándole a la gestión de proyectos basados en normas internacionales como una solución a los problemas que se presentan en muchos de sus proyectos, Cartagena y Barranquilla son ejemplos de cómo se ha ido evolucionando en estos temas, a lo mejor aún no se tiene un porcentaje adecuado de organizaciones que implementen técnicas de gestión de proyectos ampliamente certificadas, pero esa tendencia no se encuentra nula, en Cartagena por ejemplo dado que es un sector muy industrial que cuenta con multinacionales de distintas áreas se cuentan con distintas oficinas de gerencia de proyectos (PMO), y en el sector de la construcción muy a pesar de que la estadística del uso de las metodologías no es extenso, se tienen porcentajes que muestran una tendencia de usos [13] A. Metodología de valor ganado en la gestión de proyectos En los primeros años de la gestión de proyectos se hizo evidente que los directores de proyectos tenían dificultades para determinar el estado del proyecto, y la forma en la que se ejercía control era más con un enfoque místico [14], sin embargo, en el transcurrir de los tiempos ha sido importante el crecimiento que se ha dado en la gestión de proyectos y el control basado en EVM, especialmente porque las organizaciones que requieren hacer el control adecuado de los proyectos. El concepto de valor ganado llegó desde la fábrica, desde que los ingenieros industriales que estaban comparando sus valores planificados con los valores ganados y costos reales, simplemente se aplicó este mismo concepto a todas las tareas de desarrollo no recurrentes y únicas [3]. ...
... For example, there is the stochastic approach based on stochastic differential equation for the other research area [10]. Then, we evaluate the project stability and quantitatively by using earned value management (EVM) [11]. Finally, we discuss the appropriateness of the model used in predicting maintenance effort, and discuss the appropriate model for this method. ...
... Therefore, the appropriate model equation for many open source project data would be the same as in this research. (8) and (11). Journal of Software Engineering and Applications (10) and (13). ...
... EAC remains an important indicator for cost control performance [26]- [28]; however, EAC must be accurately calculated to ensure appropriate identification of the problems and the necessary solutions. Project managers normally rely on Earned Value Management (EVM) for EAC calculation [29]- [31] as this approach integrates both the project cost, scope and schedule metrics into a single measurement system for the proper analysis and measurement of the actual project actual against its baseline, as well as to accurate determine the cost and duration of a project at completion [32]. ...
... For example, the index-based EVM methods have the limitation of using only the previous information and performance index to calculate the remaining project budget [34]. Furthermore, the project costs provided by these models at the early stages of project life are unreliable as they are made based on few EVM data [31]. Even though the traditional EVM methods can provide accurate predictions when employed on certain special projects, they are often erroneous in most cases and can lead to an industrial situation of being confused about the right prediction approach that will be appropriate for a project. ...
Construction projects are usually associated with several challenges owing to the varying process during the project lifetime. Hence, the final cost of any civil engineering project is influenced by many factors. There are numerous ways of determining the final cost of a project, however, the most essential approach is the Estimate at Completion (EAC) technique. This technique is mostly favored because it considers the probability of risks and project performance. Furthermore, EAC helps project managers in the definition and determination of the critical problems expected during the project period and the likely solutions toward these problems. In this review research, the basic empirical, regression and advanced soft computing methodologies adopted for the EAC computation, were surveyed and reported in detail. The review established on the base to recognize the modern advancement of the soft computing in computing the EAC with accurate, reliable and robust manner. The review was highlighted the main literature limitation, current status and possible future direction.
... The concept of Work Breakdown Structure (WBS) [61] was developed together with the PERT 9 [45] as a common framework to be used generally in project management. A WBS is a hierarchical decomposition of a project, into several phases or deliverables. ...
... Table A.45: Gap to the best known solution for the second random test for anti-collision mechanism Path isolation on medium field problem instances. ...
In many decision making problems encountered in practice, there is a need to reason at different abstraction levels. This is the case for multi-robot exploration missions, which involve decisions on how exploration tasks are shared between robots, on how these tasks are successively realized by each robot, and on how robots moves are coordinated so as to avoid collisions or to maintain communication links. This is also the case for the management of a constellation of Earth observation satellites, for which decisions must be made concerning how candidate observation tasks are shared between satellites, concerning how each satellite realizes the set of observation tasks allocated to it, and concerning the basic commands that must be sent to instruments for achieving the acquisition plan.This is again the case for the mapping of functions onto an embedded architecture, with first a decision concerning the allocation of functions onto real-time computation units, then a decision concerning the scheduling of functions on each unit, and last a decision on the routing of data exchanged between functions inside an available inter-units network. From a general point of view, such applications require being able to deal with different decision levels covering task allocation and task scheduling over ressources. Additionnally, each task involved must also sometimes be decomposed into subtasks, as in the case of a function computation task which is decomposed into one subtask for reading the set of data used by the function, one subtask for actually performing the computation, and one subtask for writing the result of the computation in a dedicated buffer. Additionnally, the constraints of the decision making problem to solve can be modeled using different abstraction levels. For instance, in multi-robot exploration, there exist constraints on the energy available for each robot all along the mission. At the time of task sharing between robots, it is not possible for combinatorial reasons to consider a complex dynamic model linking the level of energy available to the instantaneous power consumption. Instead, a simpler model might be used, in which a fixed amount of energy is consumed by each task. The complex energy model can be considered again once tasks have been allocated to robots and once robot moves have been synthesized. Similarly, for Earth observing satellites, it is possible to consider a fixed duration between the realization of two successive activities before considering finer a model taking into account the kinematics of satellites and the coordinates of images to be realized. The goal of this thesis is to define new models and algorithms for handling such hierarchical decision making problems.
... EVM was used as a policy, and evolved from earlier concepts such as the Program Evaluation Review Technique (PERT) (Abba 2017;Driessnack 2017;Humphreys 2016;Morin 2016;Abba 2000;Christensen 1994;Fleming and Ervin 1962). Since the 1960s, guidelines and standards, such as the 35 C/SCSC specification standards, became the fundamental references for EVMS application (Fleming and Koppelman 2010). Furthermore, when defining EVMS, Fleming and Koppelman (2010) stated that "any management control system which satisfies the 32 criteria as specified in the ANSI-EIA Standard 748 (ANSI-EIA 748) will represent a full and robust earned value system." ...
... Since the 1960s, guidelines and standards, such as the 35 C/SCSC specification standards, became the fundamental references for EVMS application (Fleming and Koppelman 2010). Furthermore, when defining EVMS, Fleming and Koppelman (2010) stated that "any management control system which satisfies the 32 criteria as specified in the ANSI-EIA Standard 748 (ANSI-EIA 748) will represent a full and robust earned value system." Also, the National Defense Industrial Association (NDIA 2018a) stated that compliance with its guidelines is essential for effective EVMS application. ...
For more than five decades, Earned Value Management Systems (EVMS) have been applied by organizations to manage their projects in different industries. However, many organizations still struggle to apply Earned Value Management (EVM) techniques to assess and reliably control their project outcomes. This work investigated the state of practice of EVMS. This paper identifies challenges facing practitioners, critical EVMS subprocesses, and key EVMS environment factors, based on a large survey of 294 expert respondents. Sample respondents had project management experience of greater than 20 years on average, and represented a diverse set of projects and industries (e.g., capital projects, aerospace, defense, energy, and others). The responses from this survey helped craft an agreed-upon set of definitions for EVM, EVMS, EVMS maturity, and EVMS environment that are all provided in this paper. Moreover, out of 10 total EVMS subprocesses, planning and scheduling was ranked as the subprocess with the greatest impact on EVMS, by far. When ranking the top factors that impact the EVMS environment, the following factors rose to the top: organizational culture; efficient EVMS development process; leadership’s past EVMS experience; effective and accountable leadership; and quality and level of data available. Moreover, leadership attitude toward EVMS was found to be the most critical EVMS challenge, by a wide margin. Comparing different perspectives, the data showed that project/program owners consider EVM implementation costs to be a major challenge, while contractors and consultants consider adequate calendar time needed for preparing EVMS to be a critical EVMS environment factor. Overall, this paper contributes to the engineering management body of knowledge by identifying the most important subprocesses and factors of a high-performing EVMS applied to a diverse array of complex projects and programs (e.g., aerospace, defense, construction, software, etc.) and uncovering corresponding key challenges.
... The earned value management (EVM) [7] is considered a fundamental part of the project management body of knowledge (PMBOK) [2] to establish practical measures. Over the last four decades, project management professionals have used this method to measure performance and assess the status of a project [8]. Still, managing an agile project can be a challenging endeavor. ...
Agile project management (APM) can be defined as an iterative approach that promotes satisfying customer requirements, adjusts to change, and develops a working product in rapidly changing environments. Managers usually apply agile management as the project management approach in projects requiring extraordinary speed and flexibility in their processes. Earned value management (EVM) is a fundamental part of project management to establish practical measures. Often, managers use a task board to visually represent the work on a project and the path to completion. Still, managing an agile project can be a challenging endeavor. In this paper, we propose an agent-based model describing the management of tasks within a project using earned value assessment and a task board. Our model illustrates how EVM yields an efficient method to measure a project’s performance by comparing actual progress against planned activities, thus facilitating the formulation of more accurate predicted estimations. As proof of concept, we leverage our implementation to calculate EVM performance indexes according to a performance measurement baseline (PMB) in a task board fashion.
... In the financial area in particular, we can hypothesise that disasters or other problems rarely occur all of a sudden, but are usually preceded by warnings, e.g., the liquidity problems of one of the stakeholders and the worsening of general economic indices. For example, the EVM (Earned Value Method) [7] proposes several metrics (especially EAC (Estimate At Completion) or VAC (Variance At Completion)) that are intended to warn about financial problems that are approaching, but have not yet occurred. This is consistent with the sustainability principle of combining short-and long-term orientation. ...
The objective of this study is to propose an approach that would increase the efficiency and efficacy of project financial risk management. The starting point of this research is an original detailed list of project financial risk categories, as it was observed that financial risk is described in the literature far too generally. Following a survey of project managers, it is shown that all the identified project financial risk categories are significant and early warning signals may play an important role in their prevention or mitigation. Additionally, the main causes for project financial risks are identified and their importance assessed. Following a literature review on metrics-based and financial risk management in projects, as well as an analysis of the causes assessed in the survey, it is hypothesised that sustainability principles, combined with metrics-based management, may increase the efficiency and efficacy of project financial risk management. A corresponding method is proposed, which should be embedded into the traditional process of project financial risk management. This method consists of generating metrics with a warning and preventive potential for each combination of three elements (financial risk category, risk cause, sustainability principle). This approach introduces into project financial risk management elements going beyond the financial optics, which may considerably increase its potential.
... In Colombia, more than 50% of projects ended up with cost overruns, and more than 80% ended up with delays of between 30 and 80 days [2]. In developed countries such as the United Kingdom, which have multiple techniques and advanced software for project control, it has been noted that many projects, despite having these tools, still do not meet expectations in terms of time and cost [5]. A study by Memon and Rahman [6] highlighted that among the factors that trigger variances in project costs are: the contractor's inadequate administrative management in terms of work supervision, delays in the schedule, inadequate planning of activities and timetables, lack of knowledge on time and cost estimation, and an incorrect definition of the project scope. ...
Adaptation and understanding the importance of advance methodology with new technology instead of using traditional methods in practice and putting effort for its application at project are the major concern companies are facing today in implementation of EVM. The research presents the result of the questionnaires survey conducted to identify and evaluate the relative importance of the significant factors contributing to increase in cost & effort in implementation of EVM of Construction Projects. Implementation of EVM on Construction projects are getting affected by different stages of activities required for project management. The factors that causes increase in cost & effort needs to be identified. The project and people surveyed in this study were involved in management of 30 different projects such as Highways schemes, High Speed Railway, Hospital, Residential & Commercial Building Solar Power sectors. In this research the project team members i.e. owner, contractor, consultant, Engineers etc. are taken for questionnaire survey to obtain the factors and research to identify the main causes and effects which increases the cost & effort of implementing EVM on construction projects. The responses and comments against each factors identified brings us to the result suggesting the area of need to be emphasised from for adaptation of EVM from inception to completion of a construction project. Key Words: Project management, Cost efficient, Survey, Relative important index (RII), Importance index (IMPI)
... The Critical Path Method correction technology of project management that emerged earlier has many drawbacks [1][2][3]. Earned value management has become a later research hotspot due to its advantages in a wide range of integration [4][5][6]. Through the analysis and research of historical data of the project progress process, many scholars have found that the project cost and duration can be described by some random variables [7][8][9][10], which means that the project duration and cost can be calculated by Monte Carlo simulation. Many scholars conduct simulation research on project data by combining Monte Carlo simulation with Bayesian, risk matrix, machine learning and other technologies, and these studies provide a large number of research directions and ideas for subsequent project management research [11][12][13][14][15][16]. ...
Based on the earned value management theory, the project duration and cost forecast data are obtained through Monte Carlo simulation, combined with the knowledge of mathematical statistics to in-depth analysis of the data, and then the project quality calculation is completed by establishing the quality correlation function. On the basis of existing scholars’ research, at the process level, the management focus is identified by calculating process influence and quality, and at the project level, the operation of the entire project is simulated and predicted by the calculation of the total construction period, cost, and quality.
... For the non-algorithmic approaches, experts typically use historical sample projects in project resource estimation. These approaches include the Analogy Technique [5], Expert Judgment [6], Pricing to Win, Wideband Delphi [7], Work Breakdown Structure (WBS) [8] - [9], and Planning Poker [10]- [11]. The algorithmic approaches are based on mathematical formulas. ...
Introduction: The precise estimation of software effort is a significant difficulty that project managers encounter during software development. Inaccurate forecasting leads to either overestimating or underestimating software effort, which can be detrimental for stakeholders. The International Function Point Users Group’s Function Point Analysis (FPA) method is one of the most critical methods for software effort estimation. However, the practice of using the FPA method in the same fashion across all software areas needs to be reexamined. Aim: We propose a model for evaluating the influence of data clustering on software development effort estimation and then finding the best clustering method. We call this model the effort estimation using machine learning applied to the clusters (EEAC) model. Method: We cluster the dataset according to the clustering method and then apply the FPA and EEAC methods to these clusters for effort estimation. The clustering methods we use in this study include five categorical variable criteria (Development Platform, Industrial Sector, Language Type, Organization Type, and Relative Size) and the k-means clustering algorithm. Results: The experimental results show that the estimation accuracy obtaining with clustering consistently outperforms the accuracy without clustering for both the FPA and EEAC methods. Significantly, using the FPA method, the average improvement rate from using clustering as opposed to non-clustered was highest at 58.06%, according to the RMSE. With the EEAC method, this number reached 65.53%. The Industry Sector categorical variable achieves the best accuracy estimation compared to the other clustering criteria and k-means clustering. The improvement in accuracy in terms of the RMSE when applying this criterion is 63.68% for the FPA method and 72.02% for the EEAC method. Conclusion: Better results are obtained through dataset clustering compared to no clustering for both the FPA and EEAC methods. The Industry Sector is the most suitable clustering method among the tested clustering methods.
... On the other hand, some methods have been developed to predict the duration and evaluate the schedule of the construction project based on the progress report, such as earned value management (EVM; Fleming & Koppelman, 2010). The earned schedule (ES) technique (Urgilés et al., 2019) has been created in consideration of the disadvantage of the EVM technique that provides less reliable schedule evaluation toward the end of a project due to its cost-based prediction rule. ...
The prefabricated building construction (PBC) project is sensitive to uncertainties due to the highly required coordination and interdependency among the installation activities, which may cause progress delay. Hence, it is necessary to monitor the installation progress and evaluate the schedule in terms of the project duration to take proactive control actions to avoid actual project delay. This study focuses on intelligent monitoring and evaluation for the PBC schedule by combining the computer vision‐based (CVB) technology, a weighted kernel density estimation (WKDE) method, and the earned duration management (EDM) method. Intelligent and real‐time far‐field detection of the prefabricated components (PCs) and workers is achieved through the CVB technology, which is, respectively, used to measure the progress status of the PC installation works and other manual works by means of the WKDE method. The PBC project duration is then predicted based on the monitored progress status to evaluate the schedule through the EDM method. The proposed intelligent schedule monitoring and evaluation method have been illustrated and justified through a field application. This study contributes to achieving intelligent schedule monitoring and evaluation for the PBC project.
... Change management requires undertaking the activities that align portfolio (programs and projects) with the organization's strategy and activities that transition portfolio results into operations to realize strategic business benefits. Project fundamentally requires a well-defined start date and boundaries (statement of work that describes results that the project will deliver and the relationship of the deliverables to the business need [3], [4] and [5] . The scope may extend beyond the typical boundaries as outlined by Wysocki [5] to include: ...
The Federal Government of Nigeria, signed the Petroleum Industry Act (PIA) 2021 into law. The enactment ends a 20-year effort to reform the oil and gas sector to create a conducive environment for growth and address legitimate grievances of communities most impacted by extractive industries. The petroleum industry adopted a change management approach using a portfolio management framework to harness the Act's potential, effectively. Using literature review, the study aims to assess the preparedness of the Nigeria National Petroleum Company and industry stakeholders' preparedness to implement the stringent timeline outlined in the Act. Using the theoretical lens of the chaos theory and complex systems theory to assess change management preparedness with industry players from different countries, including the multinationals with different cultural backgrounds, miscommunications, and coordination issues. These complexities make the oil and gas industry environment somewhat disorganized and chaotic. When chaos occurs, we need tools and concepts to redirect attention and energy efficiently. The study posits that when determining NNPC's and industry preparedness for change, the culture and historical experience, policies, processes, accountability hierarchy, change agenda, human resources, and leadership's capability are vital considerations. Results from the study indicate that stakeholders and other predictors hinder favorable change execution. Consequently, change readiness and preparedness are elements to consider in assessing change management. Access to technology by stakeholders enables the integration of the change process at speed.
... Noticing the difference in definitions, the authors consider EVM and EVMS as two different terms in this study and address both appropriately. Furthermore, EVMS provides several benefits such as the capability to measure the progress of a project, visibility of the performance status, benchmarking against previous projects and programs, forecasting future performance, and early warnings of potential problems (Devanshu et al. 2018;Humphreys 2018;Fleming and Koppelman 2010;Dinsmore and Cabanis-Brewin 2014;Gupta 2014;GAO 2009). ...
Earned value management (EVM) is a project management approach that can enhance the probability of project success. It is applied widely across different industry sectors (e.g., energy, aerospace, construction, defense, and manufacturing), generally through the use of an earned value management system (EVMS). A holistic and up-to-date literature review on EVM and EVMS does not exist. A literature review can provide a comprehensive perspective on the topic, identifying and summarizing the existing body of knowledge, as a foundation to advance the state of practice of EVM/EVMS. Therefore, the objective of this paper is to investigate the EVM/EVMS state of the art by critically reviewing academic and industry publications, with a specific focus on the maturity of EVMS and the environment surrounding its implementation. By performing a systematic literature review, the authors identified 600 publications since the inception of the EVM concept in 1962, and then narrowed down this list to 160 relevant publications from the last decade for closer review. The findings include the discovery of eight emergent themes. Of these themes, "forecasting/prediction" constitutes the largest portion of the recent literature, followed by "application of EVMS." One interesting finding is that EVMS maturity, although being a critical topic, is only discussed in one publication. Publications focused on EVM/EVMS have increased in the last decade and significant differences were found between academia and industry literature in terms of the limitations and extensions of EVM/EVMS, EVMS environment, and compliance. A key finding is that designing a reliable EVMS should combine both technical and social aspects of implementation. This forward-looking paper provides a state-of-the-art review while highlighting gaps in the existing EVM/EVMS body of knowledge and introducing new perspectives to support EVMS research and application.
... It is also used to identify the causes of deviation and the course of actions required to realign the actual cost with its cost baseline (Mubarak, 2010;Hinze, 2011;PMI, 2011). Currently, in controlling the cost of construction projects, the most widely accepted and used cost control technique is the Earned Value Management (EVM) (Popescu and Charoenngam, 1995;Fleming and Koppelman, 2000;Mubarak, 2010;Kwak et al., 2012;PMI, 2013). Popescu and Charoenngam (1995) define the earned value management as "the performance measurement to report the status of a project in terms of both cost and time at a given data date". ...
... In particular, the CPI-only based one could provide a lower bound to the EAC calculations. [4,5] both described the EVM limitations linked to use costs as a proxy due to the financial aspects failing to grasp most physical dynamics, such as mobilization of resource phase and lack of consideration of indirect costs. ...
Several studies have been conducted in the Project Management field further to improve the Earned Value Management (EVM) methodology to forecast the project cost estimate at completion (EAC). This work aims at developing a linear model to increase the accuracy of the standard EAC and minimize the variance of the error. The research is conducted on an EVM data set comprising 29 real-life projects for a total of 805 observations. Multiple linear regression analysis is performed to evaluate the number of regressors, the priority of the candidate EVM variables into the regression model, and to assess the diagnostics of the model fit. The new EAC formulation is benchmarked, the results show the model to provide higher accuracy and lower variance compared to the standard formulation.
... sar & AbouRizk, 2014); for instance, the S-curve method (Cristóbal, 2017), the Program Evaluation and Review Technique (PERT) (Hajdu & Bokor, 2016), the Earned-Value Management System (EVMS) (Fleming & Koppelman, 2010), and the Stochastic S-curves (SS) (Barraaza et al., 2000). From the perspective of organizational operation methods, the Balanced Scorecard (BSc) and Excellence Foundation Quality Model (EFQM) can be used to measure project performance (Haponava & Al-jibouri, 2012). ...
The Ministry of Education (MOE) of Taiwan invests about NTD 30 billion a year in Public School Building Projects (PSBPs). However, 95% of the PSBPs have been extended and have incurred increased costs. A PSBP performance evaluation and prediction system was established by using the Fuzzy Delphi Method (FDM), association rules and an Artificial Neural Network (ANN). Sixty-two Taiwanese PSBPs were used as the samples, while eleven high correlation factors that influence the project performance of PSBPs were defined, and the reasons leading to the poor project performance were discussed in this study. Moreover, the results of the test cases operated by ANN showed that the accuracy rate for schedule and cost variability predictions can reach 84%. The high accuracy rate indicated the reliability of priority control for high-risk projects in the future. The proposed approach can be provided to clients, design and construction firms, and project managers to understand the project performance in real time and to establish a dynamic tracking review and response measures for improving the overall project satisfaction.
First published online 20 December 2021
... In measuring the performance of US Government projects, earned-value variables have a parallel history dating back to the 1960s. Fleming [14], Christensen [15,16], and the PMBOK Guide [17] point to this earned value literature. However, there exist only a few models that combine these earlier models with earned value (e.g., [18]). ...
A project model is presented that weaves together ideas from earned value project management and systems dynamics. It is able to adjust to increasingly unhealthy actual project behaviors in ways that preserve the signature pattern of the staffing histograms observed in the real world and provide a tool for managers to correct projects that are not meeting the plan. Starting from the planned staffing histogram and the project performance baseline, the model captures the delay and cost of experience dilution, includes the unplanned-for effort that is revealed in the typical pattern of the Cost Performance Index, assesses progress using the actual cost to date and the earned value to date, and adjusts staffing, scope, or both, to complete the project on schedule. A new method of approximating work remaining, called project-to-date, is shown to track the planned staffing histogram better than the commonly used fraction-complete method.
... Wang et al. (2018) utilized the discrete event simulation (DES) technique to evaluate multiple disruptions in the precast supply chain. The critical path method (CPM) can be used to evaluate how disruptions such as work delays impact project duration in terms of total float (TF) and free float (FF) (Effendi and Riyanarto 2017;Zareei 2018), whereas the earned value method can be used to evaluate whether the current states such as progress data of the work lead to disruptions to the project duration (Lee 2016;Fleming and Koppelman 2010). CPM can evaluate disruptions such as work delays that have been identified, but cannot evaluate the potential disruptions through the works' states. ...
Prefabricated building construction (PBC) projects are prone to schedule delays and budget overruns due to disruptions. Hence it is necessary to timely detect and evaluate disruptions and respond in order to put a disrupted construction project back on track. This study focused on computer vision–based (CVB) disruption management for PBC schedules. First, real-time and nonintrusive detection of four types of disruptions on PBC jobsite was achieved using CVB technology. Second, the detected disruptions of the PBC schedule were evaluated by quantifying their impacts on the project. Third, repair of the disrupted schedule was achieved based on the principle of disruption management by developing an optimization model with the objectives of minimizing the repair cost and deviation from the original schedule. The proposed disruption management system was illustrated and justified through a field application. This study is expected to provide a digital meth- odology to achieve digital disruption management for the PBC schedule.
... Camargo (2007), the early stages of the project are those with a high level of abstraction and require considerable understanding of efforts, because of their complex dynamics.Black (1996) conducted a research with 70 engineers, who pointed out the lack of definition at the beginning of the project as the main cause of delays and costs over budget.Fleming & Koppelman (2005) suggest that there is no factor that contributes more to the success of a project than starting it with a full and robust definition of scope. Therefore, it is possible to verify how much the scope item interferes in development projects, whether in the specific sector of food or not. ...
... A number of methods have been developed to evaluate overall performance for better project controls (Nassar and AbouRizk, 2014). Better-known methods include the S-curve method, the program evaluation and review technique (PERT) (Fleming and Koppelman, 2000), the earned-value management system (EVMS) (Colin and Vanhoucke, 2015) and stochastic S-curves (SS) (Barraza et al., 2000). Numerous research studies have been carried out, with a variety of frameworks and models for performance management system (PMS) proposed (Haponava and Al-Jibouri, 2012;Bassioni et al., 2004;Khosravi and Afshari, 2011;Lin et al., 2011;Jin et al., 2013;Beatham et al., 2005;Horta et al., 2010). ...
Purpose
This study develops a phase-oriented evaluation mechanism based on the public–private partnership (PPP) project process and provides a preliminary framework for the promotion of the phase-oriented evaluation of PPPs in China.
Design/methodology/approach
Through a literature review and survey interviews the success criteria for the implementation process of PPPs are documented. Process success criteria findings are used to populate the content of the phase-oriented evaluation. The result is then tested, revised and improved through follow-up expert interviews.
Findings
This paper identifies PPP project process success criteria. Using these criteria, a phase-oriented evaluation framework is developed. Moreover, in consultation with industry experts in the PPP field, eight evaluation aspects were determined: confirmation of project compliance and performance, confirmation of value for money, confirmation of financial affordability, trend analysis of annual performance appraisal, risk review and early warning, rebankability analysis, project externality analysis, benchmarking analysis of similar projects. These eight application aspects are analyzed in the light of the outcomes of the resulting phase-oriented evaluation framework.
Research limitations/implications
The results of the research can only provide researchers and practitioners with generic insights regarding inputs into a phase-oriented evaluation of PPP projects. For any specific PPP project, the focus and priority of the evaluative content will vary.
Practical implications
A phase-oriented evaluation of PPP projects is put forward. This will allow project stakeholders to better track the progress of projects throughout what can be a lengthy implementation stage.
Originality/value
This study can provide governments and stakeholders with a new, theoretical understanding as to factors required of an effective phased evaluation of China's PPP projects. In that regard it will be significant value in PPP project policy and decision-making.
... Unlike the traditional cost-driven EV, EVCP emphasizes that the earned project value should be assessed from the field perspective given the current level of work productivity. The current productivity will be measured using Equation 1 provided by ASTM E2691 since there is a direct relationship between EV and percent completion of actual work (Fleming and Koppelman 2016). The observed % complete is independent of the budget and labor hours. ...
Budget overruns are a key performance indicator for construction projects. Current overrun forecasting methods, such as Earned Value Management (EVM), are based on accounting data or empirical judgments and provide quantitative warning signals of project overruns. However, the predictive power of EVM is limited to binary outcomes. For instance, the cost performance index (CPI), one of the EVM indices, indicates over or under-budget if index values are greater or less than one. Estimate at Completion (EAC) associated with the CPI is usually used to evaluate if a project can be completed ahead of schedule rather than an indicator for cost overruns. To fill this knowledge gap, the authors developed an estimated hour at completion (EHAC) index by integrating labor productivity measurement into the existing EAC method. The variation of labor productivity is considered a leading indicator of field disruption-induced impact on final project costs, which is less frequently addressed in the literature. Specifically, labor productivity is measured as a ratio of actual labor hours and percent completion of work put in place to estimate EHAC given various disruptions encountered during project execution. Lastly, the authors conducted a case study to demonstrate the application of the proposed EHAC approach in forecasting total labor hours for an electrical project. The findings from this study add to the body of knowledge by providing project control practitioners with a new forecasting tool to manage project overrun issues from the productivity perspective.
zet Bu çalışmada, proje organizasyonların yönetimi, proje yönetim kavramları inşaat projelerinde planlamanın ve maliyet yönetiminin önemi ve uygulanışı ele alınmıştır. Farklı durumlarda farklı planlama tekniklerinden bahsedilmiştir ve bunlarla ilgili görsel örnekler paylaşılmıştır. Proje yönetimi birçok inşaat firmasında yeterince uygulanmaması ve bu konudaki bilincin artırılması önemle vurgulanmıştır. Konu ile ilgili literatür taramaları yapılmıştır ve farklı kaynaklardan elde edilen tanımlar sunulmuştur. Proje yönetimin tarihçesi, profesyonel kullanıldığı alanlarda yapılan başarılı sonuçlar ve teorik açıklamalar sonucunda inşaat projelerinde uygulanmadığı durumlardan bahsedilmiştir. Çalışma kapsamı sonucunda inşaat projelerinde proje yönetiminin bir bütün olarak ele alınması gerektiği maliyet yönetiminin ve programlamanın doğru ve isabetli kullanılabilmesi için öneriler mevcuttur. Abstract In this study, the management of project organizations, the concepts of project management, the importance and application of planning and cost management in construction projects are discussed. Different planning techniques are mentioned in different situations and visual examples related to them are shared. It has been emphasized that project management is not adequately implemented in many construction companies and that awareness on this issue is increased. Literature reviews on the subject were made and definitions obtained from different sources were presented. The history of project management, the successful results in the areas where it is used professionally and the cases where it is not applied in construction projects are mentioned as a result of theoretical explanations. As a result of the study, there are suggestions for the correct and accurate use of cost management and programming, where project management should be considered as a whole in construction projects.
Este trabalho tem por objetivo analisar as contribuições de um Sistema de Medição de Desempenho (SMD), com aplicação da TI, chamado de LeanMetric (LM). Desenvolvido para a aplicação de projetos de construção, o LM utiliza conceitos de planejamento hierarquizado para monitorar prazo e custo da obra, baseado nas informações coletadas no canteiro via tablet. O LM foi desenvolvido e testado nos últimos três anos por uma empresa de consultoria em planejamento e controle de obras da Cidade de Fortaleza. A sua criação foi crucial para aumentar a competitividade para a empresa de consultoria, reduzir custos operacionais e aumentar a confiança nos dados coletados. Além disso, os indicadores passaram a ser calculados de forma automática e em tempo real, com base nos dados coletados em campo via tablet, resultando em transparência nos resultados do projeto. Pode-se concluir que não só a ferramenta se mostrou viável, mas o processo de controle, desenvolvido com base na Construção Enxuta e no Sistema LastPlanner, oferece insights para a melhoria dos Sistemas de Medição de Desempenho de outras empresas.
Earned value metrics are well known measures for assessing the schedule performance of projects. In response to deficiencies from using activity costs in traditional earned value metrics for evaluating a project’s schedule performance, earned duration management was proposed as an alternative measurement approach. In particular, earned duration management gives a new measure of a project’s schedule performance, called the Duration Performance Index, which purports to show how well the project is doing in achieving its target completion date. Herein, this paper demonstrates that, because of the confounding impact of parallel activities in a project, the Duration Performance Index can yield false positives and false negatives about a project’s schedule status. And it shows that claims made about the Index are at best guaranteed to be true for an arbitrarily small window of time. The paper concludes with the observation that earned value metrics for assessing a project’s schedule performance all suffer from the same confounding impact of parallel activities, as well as other issues; and that research on other approaches is needed.
The cost knowledge area is one of the pillars of project management, and its control process is fundamental to the success of an enterprise, with the Earned Value Management methodology as one of the most important techniques for project cost management. The Earned Value is the main indicator and variable of the Earned Value Management methodology technique, which aims to enable the integrated understanding of the correlation between cost and physical advancement of projects. The problem identified is that the result of the calculation of the through the ratio between The Planned Cost and Physical Advancement Realized is not always adherent to the reality of the project, being directly influenced by the correlation between the Planned Physical Advance and the Planned Value. The non-use of Planned Physical Advancement with variable for is understood with the gap of systematics, being the basis for meeting the objective of this article, which is to propose a model for calculating the using an Alternative Equation of Earned Value. The methodology used for the work will be case study referring to a basic project of deliveries of technical engineering documentation to an oil rig in Brazil controlled in 2018 and 2019. This research is justified by bringing an important point in the project management literature, being relevant for presenting a scientifically proven alternative equation model for the calculation of Earned Value using Planned Physical Advancement. The method employed contributes to the cost management of projects, since the correct calculation of the Earned Value provides assertive results for decision-making of project managers.
Earned value management is well-known as the most efficient method of project monitoring and control providing relatively reliable information about the project performance. However, this method requires accurate estimates of the progress of project activities, which are always associated with uncertainties that, if ignored or not addressed well, lead to incorrect results. To address this issue, the application of multi-valued logic, in particular fuzzy logic, in earned value management has recently attracted a lot of attention both in practice and research. This paper introduces directed earned value management (DEVM) in which ordered fuzzy numbers are used to express the so-called uncertainties as well as to capture more information about the trend of the project progress. To evaluate the performance of the proposed method, several numerical examples and a case study are presented. The results reveal that compared to the existing methods, DEVM has a lower computational complexity. Also, it doesn’t suffer from the overestimation effect and as a result, it has a higher ability to express project-specific dynamics. In sum, the proposed method allows project managers to make informed decisions that lead to taking preventive and corrective actions promptly and at a lower cost.
Many governments have effectively organized public project implementation systems in their jurisdictions. At the same time, many other countries remain at a less advanced level of public project management. Globally, there is a need for project management knowledge to be transferred between governments. However, no systematic review of these practices has been developed to date. Projects, Government, and Public Policy was written to fulfill this need and presents a review of project management practices in countries with developed project-based capabilities. This book uses its own rigorous model to present this review systematically. This book’s practical purpose is to give a structured overview of government-level project management practices. This knowledge can be used in the work of governments to improve the management of public projects and the implementation of public policies.
Many professionals working in public institutions understand project management concepts differently than project management professionals. Therefore, this book begins with a chapter that describes the differences between the conceptual basis of public administration and project management. The body of this book has five parts. Part I is mainly intended for those involved in government and public administration who want to acquire or increase knowledge about project management. Part II provides an overview of the basic concepts from the theory of public administration, public policies, and development management. Part III describes what makes public projects unique and the success factors specific to projects of this sector. Knowledge about effective government project management practices is covered in Part IV. The concluding Part V begins with a general overview of the maturity model concept. Its main part covers the description of a maturity model showing ways to systematically improve the implementation of public projects.
This book is written for governments and government administrators, including the most influential decision-makers, who craft policies to guide a country’s development as well as how to implement projects. This book is also intended for supporters and enthusiasts of project management in government and public administration by providing them with a description of the solutions used by project management in public administration. This book is intended, too, for all project management practitioners working for public projects: project managers, team members, sponsors, and middle-level executives of project-delivering private companies. By knowing public administration concepts, they can manage their projects better and use a common language with their clients.
https://www.routledge.com/Projects-Government-and-Public-Policy/Gasik/p/book/9781032232683
The dynamic nature of construction projects has made teams the best approach for responding to changing project needs. As a result, the performance of the project engineering team, which has the responsibility to manage and supervise the construction process at the site, has an undeniable effect on achieving project goals. Recent studies showed that the level of fit individuals perceive between themselves and their team highly affects their performance. However, it has remained underresearched, especially in developing team selection models, due to the complexity of quantifying influential qualitative factors. A system-dynamics approach is employed in this paper to gain a better insight into the effects of person–team fit (PTF) on project performance (PP) due to the complexity of the parameters engaged in this process. The results indicate that team members’ low levels of fit significantly increase schedule delays and errors, leading to severe cost overruns and failure in project cost performance. The model also demonstrates how policies like overtime work or rewards are helpful to compensate for delays and improve project performance. This study adds to the body of knowledge by offering new insights and contributes toward a greater understanding of failure in team selection and its impact on PP. Also, using the system-dynamics approach to simulate this process, which is previously missing in the literature, supports the project manager’s decisions by considering multiple qualitative and quantitative factors affecting the project performance. The model suggests that adjusting PTF would be an alternative fundamental policy to prevent severe deviations from the baselines. It helps a project manager (PM) understand how each aspect of PTF would affect PP. Also, it highlights the importance of supplementary fit (SF) and discourages managers from traditional competency-based team selection.
Information technology project management is a profession that is responsible for monitoring the process of planning, implementing and giving authority around the information technology goals of a company or organization. An IT project manager must be aware of the business guidelines associated with specific initiatives and allocate available resources based on those goals. Since many different people and teams are present in a project, the role of the information technology project manager is to carry out projects on time and allocate funds to different parts of a project and deliver a project quickly and on time.
This research presents the application of the Management by Earned Value Technique
in a real project of Civil Engineering conducted by the Brazilian Army (EB). The
objective was to evaluate the benefits of applying this technique compared with the
current control techniques and tools used in construction by this organism.
The sources of information for the theoretical foundation included the Army
relationship with public projects, the control systems and tools used at the present by
the EB, and the theory of Management by Earned Value. For this study were used
data from Paving the SC430 project.
Key-words: Management by Earned Value, Brazilian Army, Public Works.
The acquisition of artificial intelligence (AI) systems is a relatively new challenge for the international community, but one organization that has placed a major interest in acquiring AI is the United States Department (U.S.) of Defense (DoD). This book chapter will focus on the DoD and its challenges in the development and fielding of major AI systems to glean lessons from addressing these challenges that might benefit the international community of project managers who must manage AI acquisition programs. The chapter will focus on the standard DoD acquisition program management methodology, i.e., Earned Value Management (EVM), and how it might be improved through incorporation of two methodologies, i.e., Integrated Risk Management (IRM) and Knowledge Value Added (KVA), in the managing of complex DoD information technology (i.e., AI) programs. This research compared and contrasted these three methodologies with the goal of demonstrating when and how each method can be applied to improve the acquisitions lifecycle for AI systems. Finally, the results of this study can also be applied to for-profit and other non-profit organizations throughout the international community.
A novel labour-hour budgeting methodology is proposed by integrating productivity concepts in project scheduling and budgeting to enhance the accuracy of labour cost budgeting for planning labour-intensive projects. The proposed methodology applies discrete event simulation approach to represent crew formation, labour resource utilization and labour resource flowing between consecutive activities, which allows for quantitatively characterizing the impact of labour semi-productive time on labour cost budgeting as a time-dependent variable. Simulation-based assessment of variations in crew sizes and labour allocations is conducive to reducing semi-productive time and thus enhancing the cost performance of the whole project. The proposed methodology is then applied in a real-world case study for planning steel girder fabrication projects in construction of highway bridges. Not limited to budgeting for labour resources in construction-oriented fabrication facility, the research contributions are also significant to other construction planning settings where limited resources are shared and utilized among different activities.
Start-up SMEs face various challenges and difficulties during their existence and due to their nature they often lack knowledge and resources to fully address these challenges. Unlike large companies which have access to various resources, those resources are a significant gap for SMEs and the business owners have to rely on their own limited knowledge. The “Make or buy” decision is a critical decision in an organisation. This decision can affect current and future costs, capability and competences in the company and by taking best practice approaches and measures towards the decision making, extensive costs can be potentially saved. In this study, literature best practices have been reviewed. In addition a small company has been studied and the current practices of the company have been compared to academic best practices. The result of the study will be used to improve the “Make or buy” decision process in the company.
According to the statistics, the majority of IT projects run 50–150 percent over budget, which indicates the importance of managing its cost. In agile methodologies which are widely used in software development, little attention is given to cost management. Lack of specialized cost management tools in agile practices raises the question of the feasibility of adapting traditional project management methods and techniques. The purpose of the research is to improve the quality of IT projects cost control processes by developing a project cost management model using the Agile Earned Value Management method. The paper discusses the EVM techniques which have been adopted to provide the benefits of traditional EVM in Agile projects. There are some misconceptions that EVM techniques are too difficult to perform effectively on projects implemented using agile approaches (i.e. Scrum framework). The challenges are primarily associated with the fact that the EVM method requires creating a complete description of project tasks and a detailed schedule of their execution at the initial stage allowing accurate estimates of the actual data and monitoring the project progress from start to completion. On the other hand, Scrum emphasizes the need for incremental, multi-level planning and discourages planning software projects down to the lowest level of decomposition in the early stages. The reason for this is the high degree of ambiguity inherent in complex software systems, and the high probability of changes that make fully defining the requirements up front nearly impossible. However, upon closer examination of Sprint attributes, such as fixed duration, fixed backlog, cost measurement of sprint tasks, the ultimate goal of delivering a minimum viable product – leads us to the conclusion that Sprint can be considered as a subproject to which the mechanism of the EVM method can be applied using the same metrics. The paper further summarizes the main provisions and guidelines of the AgileEVM method, based on which its process model is developed. The inputs of the model are initial release baseline parameters and data captured at the completion of each Sprint: Planned Sprints (PS); Planned Release Points (PRP); Budget at Complete (BAC); Points Completed (PC), Points Added (PA), and Sprint Cost (SC). The controls are the AgileEVM method guidelines. The mechanisms are project manager and necessary software (MS Excel, MS Project). At the output of the model we obtain forecast indicators: Estimate to Complete (ETC), Estimate at Complete (EAC), Number of Total Sprints (N), and Release Date (RD). The final conclusion of the conducted research is that the application of the Earned Value Management method to projects implemented with Scrum enables the project manager and the project team with a valuable tool to monitor the progress of their work and to take appropriate measures.
Earned Value Management (EVM) is a powerful tool for estimating costs and evaluating a software project. Many methods have been used to improve the effectiveness of EVM in evaluating a software project, in which the method of applying the Gompertz growth model (GGM) is one of the effective directions. The paper studies the method of combining the Gompertz growth model and the earned value management method (GGM-EVM) to predict the cost to complete the software project. The team experimented with modeling a number of software project data sets in practice, running and testing and analyzing the results. Several improvements have been proposed to increase the effectiveness of the GGM-EVM method, resulting in relatively positive research results.
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