Dynamic control thresholds for consistent earned value analysis and reliable early warning

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Earned value management (EVM) facilitates practicing management-by-exception by triggering control actions only when they are needed. The efficiency and effectiveness of project control actions are influenced by the control thresholds used to identify meaningful performance deviations or trends from the plan. This paper presents a quantitative method for establishing dynamic control thresholds (DCTs) that change at different percent completion points according to the degree of achievability of the project objectives in time and money. The DCTs in this paper overcome two limitations of conventional fixed control thresholds. First, the DCTs provide consistent measures of risk and early warning signals for different EVM performance measurements and forecasts. Second, the DCTs provide additional information to detect false warnings from deterministic performance analysis and forecasting monitored by fixed control thresholds, especially early in a project. This paper mainly focuses on schedule performance and addresses cost performance application as an extension.

Original languageEnglish (US)
Article number04014077
JournalJournal of Management in Engineering
Volume31
Issue number5
DOIs
StatePublished - Sep 1 2015

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Value engineering
Early warning
Value analysis
Earned value

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Engineering(all)
  • Strategy and Management
  • Management Science and Operations Research

Cite this

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Dynamic control thresholds for consistent earned value analysis and reliable early warning. / Kim, Byung-cheol.

In: Journal of Management in Engineering, Vol. 31, No. 5, 04014077, 01.09.2015.

Research output: Contribution to journalArticle

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