A proposal for the improvement of project's cost predictability using EVM and historical data of cost

Abstract

This paper proposes an extension of the Earned Value Management - EVM technique through the integration of historical cost performance data of processes under statistical control as a means to improve the predictability of the cost of projects. The proposed technique was evaluated through a case-study in industry, which evaluated the implementation of the proposed technique in 22 software development projects Hypotheses tests with 95% significance level were performed, and the proposed technique was more accurate and more precise than the traditional technique for calculating the Cost Performance Index - CPI and Estimates at Completion - EAC.