Level: Intermediate
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Cost loading of project schedules can be difficult and resource loading can be even harder to achieve with the complexities for the contractor to accurately understand detailed resource and cost requirements early during schedule baseline development.However, monitoring and forecasting performance is enhanced when schedules are resource/cost loaded by the use of earned value management (EVM) metrics.
Effective monitoring of project performance is achieved through several means; critical and near-critical path analysis, to monitor the activities most likely to be delayed, and trending of all activity progress, which is necessary to maintain planned performance.Monitoring trending performance against plan can be achieved using EVM which provides the knowledge of how the project is performing against its time and cost baselines, among other methods.
Without cost or resource loaded schedules, EVM is not employed, and the project has one less opportunity to monitor performance.In these cases, Mr. Carson uses duration-days as a resource to enable implementation of EVM.Using duration-days has some benefits and some risks, however, Mr. Carson has had great success over the past twenty years or so using duration-days EVM when cost or resource loaded schedules by the contractor are not available.
Mr. Dick is also an expert in the use of traditional earned value, and he and Mr. Carson have debated the value of duration-day EVM.That is the source for this paper, and it will demonstrate how duration-day earned value can be implemented appropriately, the benefits and shortcomings of the use, and the authors believe the comparison will help practitioners and might introduce a new tool that is not commonly used.
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Cost loading of project schedules can be difficult and resource loading can be even harder to achieve with the complexities for the contractor to accurately understand detailed resource and cost requirements early during schedule baseline development.However, monitoring and forecasting performance is enhanced when schedules are resource/cost loaded by the use of earned value management (EVM) metrics.
Effective monitoring of project performance is achieved through several means; critical and near-critical path analysis, to monitor the activities most likely to be delayed, and trending of all activity progress, which is necessary to maintain planned performance.Monitoring trending performance against plan can be achieved using EVM which provides the knowledge of how the project is performing against its time and cost baselines, among other methods.
Without cost or resource loaded schedules, EVM is not employed, and the project has one less opportunity to monitor performance.In these cases, Mr. Carson uses duration-days as a resource to enable implementation of EVM.Using duration-days has some benefits and some risks, however, Mr. Carson has had great success over the past twenty years or so using duration-days EVM when cost or resource loaded schedules by the contractor are not available.
Mr. Dick is also an expert in the use of traditional earned value, and he and Mr. Carson have debated the value of duration-day EVM.That is the source for this paper, and it will demonstrate how duration-day earned value can be implemented appropriately, the benefits and shortcomings of the use, and the authors believe the comparison will help practitioners and might introduce a new tool that is not commonly used.