Project Performance Evaluation Based on Statistical Process Control Techniques

Abstract

The earned value management (EVM) method is considered as a powerful tool that supports the management of project scope, time, and cost. However, conventional EVM may cause some project managers to ignore the information that it can provide about the performance variations of their projects as well as their causes and effects. This paper attempts to refine and improve the performance of traditional EVM by the introduction of statistical control chart techniques. Individual control charts are used as tools to monitor project performance data so that adverse changes can be detected in a timely manner. This allows analysis of in-progress project cost and schedule performance variations and highlights possible needs for corrective action. A comparative analysis between traditional EVM and the new approach is undertaken to identify the effectiveness of the new approach.