Multivariate control charts using earned value and earned duration management observations to monitor project performance

• Published in: Computers & industrial engineering Vol. 148; p. 106691
• Main Authors: Votto, Rodrigo, Lee Ho, Linda, Berssaneti, Fernando
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-10-2020
• Subjects: Earned duration management; Monte Carlo simulation; Statistical project control; T2 control chart; T2 control chart; Statistical project control; Monte Carlo simulation; Earned duration management
• ISSN: 0360-8352; 1879-0550
• DOI: 10.1016/j.cie.2020.106691

•Multivariate T2 charts are used to monitor projects duration and cost performance.•EVM and EDM indicators are used to build a new monitored statistic.•Control limits are determined by a simulated sample based on allowable variations.•T2 chart built with DPI and CPI presented high efficiency and low false alarm rate.
This paper presents a statistical project control approach using multivariate T2 control charts to simultaneously monitor the duration and cost performance of projects. The approach uses the cost performance index, from earned value management, and the duration performance index (DPI) from earned duration management, to build the monitored statistic.
The major contributions of this study are threefold. First, the use of a single chart to monitor both dimensions simplifies the project control system and decreases the false alarms rate. Second, a simulated sample was used to determine the control limits for each review period based on the allowable variation of each activity. Finally, the use of the multivariate approach to monitor the new DPI, which utilizes only time-based metrics, in contrast with more traditional methodologies that use cost-based data as proxies to assess the performance of a project’s duration.
The results of computational experiments demonstrate the good efficiency of the proposed T2 control chart and suggest the new approach is a potentially promising alternative for simultaneously monitoring a project’s cost and duration performance.