Level: Advanced
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Labor productivity is a major, world-wide problem in the construction industry.Not coincidentally, this productivity problem is accompanied by enormous cost and time overruns on construction projects. Moreover, a recent study found that the world has an “annual shortfall in infrastructure spending of $ 1 trillion”.If these performance problems could be corrected, citizens and customers across the world stand to benefit.
Poor project management and execution basics has been identified as a “root cause” of low productivity as well as time and cost overruns.Earned value project management (“EVPM”) is one of the management tools that is cited as failing to deliver performance improvements.It is clear, not only from studies, but also based on the author’s experience in conceiving and implementing EVPM systems for major construction programs, that existing EVPM has not fulfilled its promise because of: significant and fundamental limitations and flaws in its analytics and practice; deviation from its own stated objectives, and; associated flaws in its management emphasis.
The practice of EVM requires a major overhaul and rethinking if labor productivity, as well as the project time and cost outcomes which suffer as a result, are to improve.This article introduces new EV formulas that have been practically and successfully tested on construction projects.They connect the causal productivity and resource input factors to the durations that is seen as CPM schedule output, and together, support a truly integrated and enriched analytical system which improves time and cost outcomes.
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Labor productivity is a major, world-wide problem in the construction industry.Not coincidentally, this productivity problem is accompanied by enormous cost and time overruns on construction projects. Moreover, a recent study found that the world has an “annual shortfall in infrastructure spending of $ 1 trillion”.If these performance problems could be corrected, citizens and customers across the world stand to benefit.
Poor project management and execution basics has been identified as a “root cause” of low productivity as well as time and cost overruns.Earned value project management (“EVPM”) is one of the management tools that is cited as failing to deliver performance improvements.It is clear, not only from studies, but also based on the author’s experience in conceiving and implementing EVPM systems for major construction programs, that existing EVPM has not fulfilled its promise because of: significant and fundamental limitations and flaws in its analytics and practice; deviation from its own stated objectives, and; associated flaws in its management emphasis.
The practice of EVM requires a major overhaul and rethinking if labor productivity, as well as the project time and cost outcomes which suffer as a result, are to improve.This article introduces new EV formulas that have been practically and successfully tested on construction projects.They connect the causal productivity and resource input factors to the durations that is seen as CPM schedule output, and together, support a truly integrated and enriched analytical system which improves time and cost outcomes.