A New Approach for Complementing the Earned Value Method for Project Progress Monitoring and Controlling

Ali M. Fayad (), Bassam Hussein (), Mohamad Hajj-Hassan () and Amin Haj-Ali ()
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Ali M. Fayad: Lebanese International University, Bekaa, Lebanon
Bassam Hussein: International University of Beirut, Beirut, Lebanon
Mohamad Hajj-Hassan: International University of Beirut, Beirut, Lebanon
Amin Haj-Ali: Lebanese International University, Bekaa, Lebanon

New Challenges in Accounting and Finance, 2019, vol. 2, 11-18

Abstract: The earned value management method is commonly used for monitoring and assessing project budget and schedule performance. Although widely used, this method does not consider the time value of money. This paper suggests the inclusion of inflation as a factor affecting project performance and gives a methodology to do so using the net present value. This is done by adjusting the present value and actual cost of the work packages. The result is more realistic progress measurements and performance indicators.

Keywords: Time Value of Money; Earned Value Management; PMI; Project Management; Performance (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bco:ncafaa::v:2:y:2019:p:11-18

DOI: 10.32038/NCAF.2019.02.02

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