APPLICATION OF EVM TECHNIQUE FOR PERFORMANCE MEASUREMENT OF CONSTRUCTION PROJECT (A CASE OF BUILDING PROJECTS IN ARBAMINCH)

Abstract

The project management practice in terms of adapting general project management procedures and techniques are not up to the mark and although time and cost managements are the most challenging issues for the professionals in managing their day-to-day activities. The project performance was being assessed using different traditional approaches like daily, weekly and monthly reports. The main objective of the research is to study the application of Earned value Management technique in building construction project as project cost and schedule performance improvement tool. Two primary approaches were taken in order to achieve objective of the research. In the first part, literature review was conducted, and 20 factors that have a direct impact on the implementation of Earned Value Management in Arbaminch city building construction sector were identified and categorized into two groups: External and Internal causes of problems to implement EVM. A questionnaire survey was conducted from public building construction projects in the city. Simple random sampling technique was used to collect the data and the collected data was computed with descriptive statistics using RII method to identify the most important factors that retain implementation of EVM on the selected case area. Based on RII values the most prior factors are Lack of top management support, EVM lacks efficiency in consider the time value of money, Improper application of EVM by project managers (data manipulation), and Lack of EVM expertise. In the second section, a real-time G+2 Residential building construction project's planning, scheduling, and project performance tracking were conducted. The tracking was done for six months to monitor the project's cost and schedule performance, and Earned value management was used to assess the project's variation, performance, and efficiency. This research concludes that the technique helps in identifying tasks and activities that resulted in performance deviations from the baseline and examining the causes of the deviations. This was construed as an early warning to implement corrective actions to keep the project from exceeding a performance threshold. During extreme deviation and scope change, it was used change to the project's baseline in order to stabilize efficiency. EVM assist project managers and construction teams in monitoring costs, time delays, and forecasting the project's future.