Original Research
A New Approach for Complementing the Earned Value Method for Project Progress Monitoring and Controlling
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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.
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Keywords
Time Value of Money; Earned Value Management; PMI; Project Management; Performance
Author(s) Information
How to cite this article
Fayad, A. M., Hussein, B., Hajj-Hassan, M., & Haj-Ali, A. (2019). A new approach for complementing the earned value method for project progress monitoring and controlling. New Challenges in Accounting and Finance, 2, 11-18. https://doi.org/10.32038/NCAF.2019.02.02
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Funding
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Conflict of Interests
No, there are no conflicting interests.
Open Access
This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. You may view a copy of Creative Commons Attribution 4.0 International License here: http://creativecommons.org/licenses/by/4.0/