Management Thinking in the Earned Value Method System and the Last Planner System

Abstract

Management theory has been neglected in the construction industry, which has rather focused on best practices. This paper investigates the theories implicit in two prevalent project control systems: the earned value method (EVM) and the last planner system (LPS). The study introduces two fundamental and competing conceptualizations of management: managing by means (MBM) and managing by results (MBR). The EVM is found to be based on MBR. However, project control based on MBR is argued to be inappropriate for managing at the operational level where tasks are highly interdependent. The LPS is found to be based on the MBM view. The empirical evidence from literature and case study suggested that the MBM view is more appropriate to manage works when it is applied to the operation level where each task is highly interdependent.