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1 – 10 of over 17000Tahereh Khesal, Abbas Saghaei, Mohammad Khalilzadeh, Masoud Rahiminezhad Galankashi and Roya Soltani
The purpose of this paper is to propose an integrated earned value management (EVM) approach to control quality, cost, schedule and risk of projects.
Abstract
Purpose
The purpose of this paper is to propose an integrated earned value management (EVM) approach to control quality, cost, schedule and risk of projects.
Design/methodology/approach
This study represents a new EVM framework by considering a quality control index. Particularly, some control indices and cumulative buffers are defined by two proposed, methods, namely the linear- and Taguchi-based methods. These methods are implemented in three different projects in different industries.
Findings
According to the results, integration of the quality index creates a better control situation by providing more accurate information. Hence, project managers could comprehensively monitor the status of important factors to make more precise decisions while maintaining the simplicity of their analysis.
Originality/value
From the methodological and theoretical features, this paper offers new visions because, to the best of authors’ knowledge, no comparable study has been conducted before.
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Hafiz Zahoor, Rashid Mehmood Khan, Ahsan Nawaz, Muhammad Ayaz and Ahsen Maqsoom
Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction…
Abstract
Purpose
Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction industry; where conventional progress reporting methodology (CPRM) is being followed having certain confines. It reports only the financial progress of a project, expresses feeble association between the duration and cost of activities, and forecasts flawed schedule and completion cost. This research implements EVM on under-construction building projects in Pakistan, and compares its upshots with the projects' actual records and with the outcomes of CPRM.
Design/methodology/approach
To assess the implementation of EVM on building projects, a set of specific criteria was established. Work Breakdown Structure, Organization Breakdown Structure and Control Points were established. The study has compared the EVM metrics with CPRM outcomes on three under-study building projects, and has deliberated on their mutual differences as well as their relationship with actual cost and schedule performance. Monthly figures of actual spending and completed activities were periodically recorded and compared with planned values for status indication. The graphs were generated to observe the correlation between the results of EVM and CPRM. The data was then extrapolated to forecast the schedule and cost values at completion.
Findings
The study discovered that trends of EVM in quantifying the project's cost and schedule performance were strongly correlated and were closer to the actual progress. It has also verified the EVM's soundness in forecasting the cost and schedule, required for project's completion. Contrarily, CPRM metrics could not precisely visualize the current and future, cost and schedule performance.
Originality/value
The case study concludes that EVM's incorporation in progress reporting regime can revolutionize the assessment procedures in Pakistan by rightly indicating the project's current status as well as visualizing the future performance. The study's methodology can also be extrapolated in other countries having similar work environment and economic conditions.
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Gholamreza Heravi and Mohammad Ilbeigi
The purpose of this paper is to develop a quantitative comprehensive model for construction project success evaluation, from the viewpoint of a contractor company.
Abstract
Purpose
The purpose of this paper is to develop a quantitative comprehensive model for construction project success evaluation, from the viewpoint of a contractor company.
Design/methodology/approach
In this paper, the authors used a comprehensive definition of project success consisting of two components: Product success, which deals with the effect of the project's final product; and Project Management success, which focuses upon the project process. The research methodology includes five steps: identification of the critical performance indices for the two above mentioned components; quantification of the performance indices; normalization of the indices; integration of the various performance indices to develop an overall project performance function; and applying the model on a real project in Iran and analyzing the results.
Findings
This paper introduces a novel model to evaluate and measure the construction project success from the viewpoint of a contractor company. The results show that this model can be used as a reliable tool to measure the project performance of contractors and their points of strength and weakness can be determined precisely.
Practical implications
Analyzing the results of the case study shows that the evaluation model is absolutely applicable. All necessary elements to quantify the critical performance indices and overall project success can be recorded precisely and easily. Thus, this model can be used in every contractor company concerned about its projects’ performance.
Originality/value
The evaluation model proposed in this paper is a unique and comprehensive quantified model which considers difference between project success and project management success and all critical indices which can affect them.
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This study aims to review earned value management (EVM)-relative methods, including the original EVM, earned schedule method (ESM) and earned duration management (EDM(t)). This…
Abstract
Purpose
This study aims to review earned value management (EVM)-relative methods, including the original EVM, earned schedule method (ESM) and earned duration management (EDM(t)). This study then proposes a general implementation procedure and some basic principles for the selection of EVM-relative methods.
Design/methodology/approach
After completing an intensive literature review, this study conducts a case study to examine the forecasting performance of project duration using the EVM, ESM and EDM(t) methods.
Findings
When the project is expected to finish on time, ESM with a performance factor equal to 1 is the recommended method. EDM(t) would be the most reliable method during a project's entire lifetime if EDM(t) is expected to be delayed based on past experience.
Research limitations/implications
As this research conducts a case study with only one building construction project, the results might not hold true for all types of construction projects.
Practical implications
EVM, ESM and EDM(t) are simple and data-accessible methods. With the help of a general implementation procedure, applying all three methods would be better. The power of the three methods is definitely larger than that of choosing only one for complex construction projects.
Originality/value
Previous studies have discussed the advantages and disadvantages of EVM, ESM and EDM(t). This study amends the available outcomes. Thus, for schedulers or researchers interested in implementing EVM, ESM and EDM(t), this study can provide more constructive instructions.
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Alberto De Marco and Timur Narbaev
The purpose of this paper is to contribute to the diffusion of earned value management (EVM) as a practicable methodology to monitor facility construction and renovation projects…
Abstract
Purpose
The purpose of this paper is to contribute to the diffusion of earned value management (EVM) as a practicable methodology to monitor facility construction and renovation projects in the context of the European industry.
Design/methodology/approach
First, a review of the literature reveals how EVM evolved as a tool for facility construction project monitoring together with specific concerns for its application. Then, a review of EVM practice and trends in Europe is provided and finally, applicability and viability of the method is proved through a case demonstration.
Findings
EVM practice in the European construction industry is found to be lagging behind other experienced countries and industries, despite EVM having been found to be applicable, adaptable, and predictive of integrated final cost and schedule of facility construction projects. In particular, cost estimate at completion is forecasted by a simple cost performance index (CPI), while for the time estimate at completion, the earned schedule concept is revealed as an accurate predictor.
Research limitations/implications
The paper urges the need for research of a European standard as a primary factor for successful diffusion of EVM usage in architecture, engineering and construction projects.
Practical implications
This paper helps practitioners to understand the adaptability of EVM practice in the European construction industry and to apply EV tools for effective monitoring of the performance of their projects.
Originality/value
Current trends of EVM practice in the European construction context are presented and suggestions for sustaining the diffusion of EVM are given.
Details
Keywords
K.J. Euske, Joseph San Miguel and Chong Wang
This research examines how the cost performance of defense contracts varies among the Air Force, Army, Navy, and the Department of Defense (DoD) and among five major defense…
Abstract
This research examines how the cost performance of defense contracts varies among the Air Force, Army, Navy, and the Department of Defense (DoD) and among five major defense contractors: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, and General Dynamics. Data for these analyses was extracted from the recently established Defense Acquisition Management Information Retrieval (DAMIR) web-based interface for management information on Major Defense Acquisition Programs (MDAP). Note that, in addition to the three military services, MDAP data is also reported for DoD itself.
Data analysis indicates that the Navy ranks last among the military services and DoD in cost performance for MDAP contracts, while the Air Force ranks best. Of the defense contractors, Raytheon ranks last in cost performance and General Dynamics is next to last. Furthermore, the Navy contracts more frequently with Raytheon and General Dynamics than do the other services or DoD. Explanatory factors for poor cost performance may be due to factors such as the Navy's lack of oversight, the quality of the acquisition workforce, the defense contractors’ cost inefficiency, ethical lapses, or weak corporate governance, or combinations of these factors.
In addition, the schedule performance data was also identified. Tests of statistical significance on the schedule performance difference generally yield no results except for one relationship which indicates that the Navy is more likely to have Acquisition Program Baseline (APB) schedule breaches than its counterparts. Finally, cost performance data is examined for statistically significant differences between the two major categories of defense contracts: fixed-price contracts and cost-plus contracts. However, no significant findings were discovered.
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Yugowati Praharsi, Mohammad Abu Jami'in, Gaguk Suhardjito, Samuel Reong and Hui Ming Wee
Study in supply chain performance research on the shipbuilding industry is lacking. The purpose of this research is to study and provide guidelines to improve the performance of…
Abstract
Purpose
Study in supply chain performance research on the shipbuilding industry is lacking. The purpose of this research is to study and provide guidelines to improve the performance of traditional shipbuilding supply chains in Indonesia.
Design/methodology/approach
The paper develops an empirical study gathered from a traditional shipbuilding industry, its suppliers, and customers. This study consists of three sections: the traditional shipbuilding industry, the suppliers, and the individual supplier scores. The internal and external performances in this study are measured using Supply Chain Operations Reference (SCOR) metrics. The SCOR model identifies five performance measurement attributes, including reliability, flexibility, responsiveness, cost and assets. Instead of using “responsiveness,” this study applies the schedule performance index, and supplements “cost” with the cost performance index in order to accurately reflect the traditional shipbuilding supply chains processes.
Findings
By analyzing SCOR metrics in the traditional shipbuilding industry, it has been found that the ideal shipbuilding supply chain metrics are order fulfillment, flexibility, asset turnover and total supply chain costs. The lowest performance metric value in the traditional shipbuilding industry is the cost of goods. Some improvements are proposed to lower the high cost of ship building. An integrated economic ordering system in collaboration with all the suppliers is one of the most effective ways to reduce the cost of the traditional shipbuilding supply chains. The implementation of SCOR metrics enables management to identify the critical issues to improve.
Research limitations/implications
The study applies SCOR metrics to improve the traditional shipbuilding supply chains performance. The study is limited because the data collected are based on one shipbuilding industry only.
Originality/value
To the author's knowledge, this is the first empirical analysis on the implementation of SCOR metrics to the traditional shipbuilding industry. The analysis to improve the traditional shipbuilding supply chains performance can provide managerial insights to other industries.
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Jacob L. Petter, Jonathan D. Ritschel and Edward D. White
Delineating where stability occurs in a contract provides the window of opportunity for procurement officials to positively affect cost and schedule outcomes. While the concept of…
Abstract
Delineating where stability occurs in a contract provides the window of opportunity for procurement officials to positively affect cost and schedule outcomes. While the concept of a Cost Performance Index (CPI) "stability rule" has been routinely cited by Earned Value Management (EVM) authors since the early 1990's, more recent research questions the veracity of this stability rule. This paper resolves the controversy by demonstrating that the definition of stability matters. We find a morphing of the stability definition over time, with three separate definitions permeating the literature. Next, an analysis of Department of Defense contracts for both cost and schedule stability properties finds that the veracity of the stability rule is intricately tied to the definition used.
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…
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.
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Innovation during project delivery is contested space. The aim in this research is to empirically explore the theory of this contested space and how project implementation can be…
Abstract
Purpose
Innovation during project delivery is contested space. The aim in this research is to empirically explore the theory of this contested space and how project implementation can be optimized by the contractor to deliver better outcomes. It is hypothesized that project innovation has a proportional and measurable relationship to contractor success.
Design/methodology/approach
Based on a novel conceptual framework, this research applies a case study methodology to analyse 31 construction projects undertaken by a single Australian middle-tier contractor. Benefits from innovation are not often equitably shared. There are risks and rewards. The project innovation zone is defined as a combination of three key performance indicators – efficacy, efficiency and margin – merged into a single index that most likely shows evidence of “working smarter”.
Findings
Client–contractor project innovation (c2pi) is demonstrated to be strongly correlated with head contractor success (HCS), yielding an r2 value of 71%. Innovative projects mostly show positive change in efficacy, efficiency and margin when comparing “planned” and “actual” outcomes. Across the cases studied, 35% demonstrated likely evidence of innovative delivery and 52% demonstrated evidence of success from the construction contractor's perspective.
Originality/value
These findings verify that, within the studied sample, the pursuit of innovation leads to projects that are likely to also have greater success for the head contractor, evidenced by the mix of five critical success factors: finishing on schedule, making profit, and having less defects, less accidents and higher quality workmanship. These outcomes arguably also apply to sub-contractors, where the head contractor assumes the role of “client”.
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