Application of Earned Value Management to Compute the Project Performance Using Analytical Network Process

Abstract

Every project confronts risk both in financial and technical dimensions. This induces a greater response on the performance of the project. A successful construction project depends on how the project participants compute the actual project performance. A commendable assessment of project performance practice determines the project productivity both quantitatively and qualitatively. Methods of project performance measurement vary among industries. As a contribution to the above, this study equips the project manager with a proficient mode of project performance measurement and the essential promising decisions that head to profit maximization. This intricate study thus facilitates the project manager to compute the project performance on the basis of the effects of Earned Value Management (EVM) indices which are broadly classified as: variance indices, performance indices and miscellaneous or forecast indices. Adopting the Analytical Network Process (ANP) structure model in Super Decision software is a reliable decision making tool. This study indicates that the cost variance (CV) index is prominent among the EVM indices that highly affect the project characteristics, the measurement of which facilitates the required control measures on respective project activities. It also indicates that cost is the major project characteristic, the variation of which immensely affects the project performance. It procures an objective reference for engineering projects by following the selection process of best EVM indices that holds an accurate measure of project performance.