A modified earned value management using activity based costing
| Autor: | Vahid Aminian, Amir Rahimi Nejad, Seyyed Taha Hossein Mortaji, Morteza Bagherpour |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: | |
| Zdroj: | Journal of Project Management, Vol 1, Iss 2, Pp 41-54 (2016) |
| Druh dokumentu: | article |
| ISSN: | 2371-8366 2371-8374 |
| DOI: | 10.5267/j.jpm.2017.3.002 |
| Popis: | Earned Value Management (EVM) has been a well-known methodology used since the 1960s when the US department of defense proposed a standard method to measure project perfor-mance. This system relies on a set of often straightforward metrics to measure and evaluate the general health of a project. These metrics serve as early warning signals to timely detect project problems, or to exploit project opportunities. A key aspect of EVM is to estimate the completion cost of a project by considering both cost and schedule performance indices. However, good performance of cost and schedule performance indices does not necessarily guarantee cost effec-tiveness of the project regardless of the overhead costs. The reason is because, in most project-based organizations, overhead costs constitute a significant proportion of the total costs. Howev-er, EVM indices are usually calculated in the absence of the so-called overhead costs. This paper, first, seeks to remedy this problem by proposing a practical procedure of allocating overhead costs in project-based organizations. Then the traditional EVM indices are revised by consider-ing the allocated overhead costs. Finally, a case study demonstrates the applicability of the pro-posed method for a real-life project. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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