Case Study on the Calculation of the Earned Value Using the Planned Physical Advancement of Projects

Abstract: The cost knowledge area is one of the pillars of project management, and its control process is fundamental to the success of an enterprise, with the Earned Value Management methodology as one of the most important techniques for project cost management. The Earned Value is the main indicator and variable of the Earned Value Management methodology technique, which aims to enable the integrated understanding of the correlation between cost and physical advancement of projects. The problem identified is that the result of the calculation of the through the ratio between The Planned Cost and Physical Advancement Realized is not always adherent to the reality of the project, being directly influenced by the correlation between the Planned Physical Advance and the Planned Value. The non-use of Planned Physical Advancement with variable for is understood with the gap of systematics, being the basis for meeting the objective of this article, which is to propose a model for calculating the using an Alternative Equation of Earned Value. The methodology used for the work will be case study referring to a basic project of deliveries of technical engineering documentation to an oil rig in Brazil controlled in 2018 and 2019. This research is justified by bringing an important point in the project management literature, being relevant for presenting a scientifically proven alternative equation model for the calculation of Earned Value using Planned Physical Advancement. The method employed contributes to the cost management of projects, since the correct calculation of the Earned Value provides assertive results for decision-making of project managers.

Key words: cost, project, earned value, physical advancement

JEL codes: C, C3