Analyzing Performance of Engineering Projects by Earned Value Method

Abstract

It has been accepted in project management industry that time, costs and quality are the main factors that affect the success of an engineering project. If these parameters are completed within predicted specifications, then the project is considered as successful. A lot of engineering projects don‟t fulfill these parameters and continue to fail. The purpose of this thesis is to analyze the performance of engineering projects through the process of monitoring and controlling. This is done by implementing an advanced model that calculates their performance, the Earned Value Method. This method gives an overall project performance in the terms of schedule, budget and quality by calculating its performance indexes. Calculation of performance indexes, is done not only by calculating them in the terms of schedule and costs in the present, but also by calculating them for the future, by calculating forecasting indexes and future performance indexes. This helps to undertake corrective actions in the implementation of engineering projects in the future.