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July 1, 2022

Customer Earned Value: Performance Indicator from Flow and Value Generation View

Kim, Taehoon; Kim, Yong-woo; Cho, Hunhee. (2016). Customer Earned Value: Performance Indicator from Flow and Value Generation View. Journal Of Management In Engineering, 32(1).

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The earned value method (EVM) is considered an advanced project control technique that provides a quantitative measure of work performance. However, the EVM is effective only under the assumption that every activity is independent. Literature shows that the EVM lacks the value generation view even working against the reliability of workflow. The goal of this research is to propose a project metric system to supplement the EVM in terms of the workflow and value generation. The researchers suggest a new metric of customer earned value (CEV), which is defined as the budgeted amount of work completed and is used by the successors on a network. Through a hypothetical case study, this research investigates how the work-in-process between trades and schedule performance in each trade behave under different uncertainties. The result suggests that the proposed metrics can provide project managers with more relevant managerial information on project progress as well as on the level of collaboration. The proposed system with the EVM would facilitate collaboration on project planning and control where variability and interdependency are involved. (C) 2015 American Society of Civil Engineers.


Budgeting; Customer Services; Organisational Aspects; Planning; Project Management; Customer Earned Value; Project Planning; Project Managers; Trade-schedule Performance; Work-in-process; Budgeted Amount; Project Metric System; Advanced Project Control Technique; Earned Value Method; Performance Indicator; Value Generation View; Management; Project Control Metric; Collaboration