Level: Advanced
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Earned value management (EVM) has been hailed as a definitive solution to project controls. However, in the oil and gas industry, specifically on large and mega projects, EVM has not been used extensively. EVM, as a methodology, has some pitfalls that need to be considered when attempting its application on very large projects. This is not an indictment of either the current practices in the oil and gas industry or on EVM, as both are indeed attending to similar challenges on projects. The ultimate approach should aim to achieve an optimum cost-benefit ratio. It is necessary to unpack the true meaning of the key performance factors on a project to be able to draw valid conclusions in establishing which work processes contribute the most to predictability and profitability of the outcome of a project. This paper aims to share observations and experiences in this regard.
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Earned value management (EVM) has been hailed as a definitive solution to project controls. However, in the oil and gas industry, specifically on large and mega projects, EVM has not been used extensively. EVM, as a methodology, has some pitfalls that need to be considered when attempting its application on very large projects. This is not an indictment of either the current practices in the oil and gas industry or on EVM, as both are indeed attending to similar challenges on projects. The ultimate approach should aim to achieve an optimum cost-benefit ratio. It is necessary to unpack the true meaning of the key performance factors on a project to be able to draw valid conclusions in establishing which work processes contribute the most to predictability and profitability of the outcome of a project. This paper aims to share observations and experiences in this regard.