Howes, R (2000) Improving the performance of earned value analysis as a construction project management tool. Engineering, Construction and Architectural Management, 7(4), pp. 399-411. ISSN 0969-9988
Abstract
Earned Value Analysis (EVA) is an accepted theoretical technique advocated for the control of projects. This paper attempts to refine and improve the performance of traditional EVA by the introduction of a hybrid methodology based on work packages and logical time analysis entitled Work Package Methodology (WPM). The proposed WPM provides the means to periodically update project cost and time performance by restricting EVA calculations to individual work packages. These are then subjected to a logical time analysis to determine the predicted project cost and time to completion. A comparative analysis between WPM and EVA is then undertaken using adapted test data derived from knowledge of previous projects to identify the reasons for variation in the results obtained from both methods. The evaluation of the test results indicates that when the Cost Performance Index (CPI) and the Schedule Performance Index (SPI) are well above or below unity then, especially in the early stages of the project, traditionally applied EVA predictions can be un-realiable and require further investigation and evaluation. WPM provides a vehicle for judging the performance of EVA by applying an alternative logical time and cost utilizing work sequence and construction methods. The predictive performance of EVA is refined by these means.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | analysis; cost; earned value; methodology; performance; project; schedule; work package |
| Index terms: | package, cost performance index, investigation, construction project management, schedule performance, comparative analysis, project cost, construction method, earned value analysis, time performance, methodology, variation |
| Subjects: | project management theory and practice, contractual condition, research methods, economics, building construction, project controls, data collection methods, financial and cost management, data analysis and analytics, contractual arrangements |
| Topics: | Site Management, Contract Administration, Time Control, Procurement, Cost Management, Project Management, Research Practice |
| Descriptive scope: | 4 PCTA |
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