Loading...
Extensions of earned value management: Using the earned incentive metric to improve signal quality
Kerkhove, Louis-Philippe Vanhoucke, Mario
Kerkhove, Louis-Philippe
Vanhoucke, Mario
Citations
Altmetric:
Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2017
Journal
International Journal of Project Management
Book
Publication Volume
35
Publication Issue
2
Publication Begin page
148
Publication End page
168
Publication Number of pages
Collections
Abstract
This research introduces novel control metrics for projects that use cost and/or time incentives. The proposed technique extends the traditional earned value management (EV M) methodology for project control. This is done by measuring the deviation in the accrual of incentives, rather than the time and cost performance relative to the planned schedule. The proposed dedicated approach avoids two key issues when controlling incentivized projects using traditional earned value management. Firstly, the impact of variations in the cost and time dimensions are adequately weighted in the control signals. Secondly, the technique is capable of monitoring the potential non-linear accrual of incentive amounts throughout the project. The performance of the proposed technique is tested by means of a computational experiment on 4200 projects of varying size, structure and type of incentive contract. The results show that the proposed technique improves signal quality when compared to traditional EV M metrics.
Research Projects
Organizational Units
Journal Issue
Keywords
Project Control, Earned Value Management