Three-Variance Approach for Updating Earned Value Management
Publication: Journal of Construction Engineering and Management
Volume 144, Issue 6
Abstract
The project management triad consists of scope, time, and cost. In this study, the schedule variance and schedule performance index, in traditional two-variance earned value management (EVM), are proven not proper time performance indicators, and it is suggested to restore the original physical meanings of work performance as work variance (WV) and work performance index. It is found that work performance can equal time performance before the project’s planned duration in certain cases. However, the same is not true generally, especially once the project is overdue. An average work rate-based earned time method (ETM) is introduced in this study, which can serve as an alternative approach to estimate project time at completion. Finally, it is suggested that an independent performance measure, WV, be added to EVM, and that a three-variance approach be used to analyze the performance statuses in work, time, and cost integrally of a given project.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 144 • Issue 6 • June 2018
Copyright
©2018 American Society of Civil Engineers.
History
Received: Jun 23, 2017
Accepted: Nov 28, 2017
Published online: Apr 10, 2018
Published in print: Jun 1, 2018
Discussion open until: Sep 10, 2018
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