An Improved Earned Value Analysis Tool for Mitigating Progress Risks in Long Duration Projects

As a risk control tool, earned value analysis is crucial for identifying risky trends in the budget or schedule of a project. This tool relies on earned value management, a method for calculating cost and schedule variances. However, this method does not take into account the time value of money. Th...

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Bibliographic Details
Published inMATEC Web of Conferences Vol. 281; p. 5001
Main Authors Fayad, Ali, Hussein, Bassam, Maalouf, Elie, Haj-Ali, Amin
Format Journal Article Conference Proceeding
LanguageEnglish
Published Les Ulis EDP Sciences 2019
Subjects
Cost estimates
Decisions
Mathematical analysis
Risk management
Schedules
Value analysis
Value management
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Summary:As a risk control tool, earned value analysis is crucial for identifying risky trends in the budget or schedule of a project. This tool relies on earned value management, a method for calculating cost and schedule variances. However, this method does not take into account the time value of money. This in itself is a threat that could lead to misleading data and eventually wrong decisions. This paper explores the risk management process, the earned value management method, and proposes a methodology that compliments the earned value management method with net present value calculations. This will allow project managers to take sound decisions based on more accurate information.
ISSN:2261-236X
2274-7214
2261-236X
DOI:10.1051/matecconf/201928105001