Earned Value

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

Earned value management is a performance management technique which uses work in progress to evaluate and forecast the future performance. In simple words, earned value is an advance version of traditional accounting for measuring the performance. The traditional accounting methods were used to focus on actual costs and expenditures which are known as planned accomplishments in accounting terms. In this study, the main focus is on the impact of earned value management concept on the workflow of the projects. In this study the construction projects will be considered as the concept of earned value management is mostly applied in the construction industry. The reason behind considering the construction industry is that it is the only industry which faces most of the project management issues and especially the time and cost of projects. The scope of the study is very bright as the concept of earned value management is applied in almost all the industries. The major role of this concept is played in the construction industry and in industries. In this research study, secondary data has been acquired using the quantitative research method

CHAPTER 1: INTRODUCTION1

Statement of Problem3

Research Questions3

Significance of the study3

CHAPTER 2: LITERATURE REVIEW5

Historical Background7

Step 1: Define the Scope of the Project8

Step 2: Determining the responsibilities for the Defined Work9

Step 3: Plan and Schedule Work Defined9

Step 4: Estimation of the Project Resources and Budget10

Step 5: Determination of Management System for Converting Planned Value to Earned Value10

Step 6: Determination of the Control Plan and Performance Measurement11

Step 7: Save all direct costs per project11

Step 8: Check the performance consistently earned value12

Step 9: Provide final costs required, based on performance13

Step 10: Approval and Rejection of the Changes in a Project13

Earned Value Analysis Implementation14

Earned Value Chart19

Benefits of Earned Value Analysis21

CHAPTER 3: METHODOLOGY23

Research Method23

Research Design24

Attributes of Quantitative Research Method24

Advantages of Quantitative Research Method25

Quantitative Data Analysis26

Literature Search26

Inclusive and Exclusive Criteria27

Limitation of Secondary Data27

CHAPTER 4: ANALYSIS AND DISCUSSION29

Cost Indices29

Cost variance measurement29

Analysis of Graph30

Impact of Depended Activities30

Generation of Value32

Enemy of Work Flow33

CHAPTER 5: CONCLUSION35

REFERENCES37

Chapter 1: Introduction

Earned value management is a performance management technique which uses work in progress to evaluate and forecast the future performance. In simple words, earned value is an advance version of traditional accounting for measuring the performance. The traditional accounting methods were used to focus on actual costs and expenditures which are known as planned accomplishments in accounting terms. Earned value is enhanced version of traditional method and it examines the actual accomplishments. With the help of earned value management concept managers are able to have greater insight about the potential risk ...