Earned Value in a Project Manufacturing Environment - A Case Study Assessing the Effectiveness of EVM

Authors

  • Anisulrahman Nizam University of Central Florida United States
  • Hani M Aburas King Abdulaziz University Saudi Arabia
  • Ahmad K Elshennawy University of Central Florida (UCF) United States

DOI:

https://doi.org/10.19255/JMPM02404

Keywords:

Earned Value Management, Operations Management, Project Management, Project Manufacturing, Variance at Completion, Actual Cost

Abstract

Project manufacturing is an operation designed to provide unique yet similar products, where every product is the result of a project (Yang 2012). The primary purpose of this study is to assess the effectiveness of traditional project management techniques, specifically Earned Value Management (EVM), in a manufacturing environment. This assessment was done by utilizing the case study method on 31 different projects at a large aerospace manufacturing firm. The analysis suggests that EVM may not be a useful tool in a project manufacturing environment. Furthermore, the findings indicate there is a gap between what the project team is baselining in terms of effort and what is actually getting executed to on the manufacturing floor by the manufacturing team. The extremely conservative approach to baselining by project team members results in EVM indicators that may not truly reflect the true health of the project on the manufacturing floor.

Author Biographies

  • Anisulrahman Nizam, University of Central Florida United States

    Anisulrahman Nizam is a current PhD Student at the University of Central Florida in the Department of Industrial Engineering and Management Systems. He obtained both his Master of Science in Industrial Engineering and Bachelor of Science in Finance from the University of Central Florida. He also has a Graduate Certificate in Supply Chain Management from Penn State University. He holds an APICS certification in Production and Inventory Management as well as certification as a Lean Six Sigma Black Belt. He has held increasingly responsible leadership roles in Global Supply Chain, Production Operations, and Project Management at a large Fortune 100 Aerospace firm.

  • Hani M Aburas, King Abdulaziz University Saudi Arabia

    Hani M. Aburas, King Abdulaziz University, Faculty of Engineering, Department of Industrial Engineering, Saudi Arabia. His Excellency Prof. Hani Mohammad Aburas, a KAU Professor in the Department of Industrial Engineering, has the honor to serve as the Mayor of Jeddah for two consecutive terms from 2010 to 2018. During his tenure, Jeddah Historic city was listed among the UNESCO World Heritage sites. He initiated and completed numerous mega-development projects for the future expansion of Jeddah. In recognition of his contributions for the people and city of Jeddah, he was shortlisted among the best twenty-five Mayors of the World in 2014 by the Philanthropic City Mayors Foundation. On account of his meritorious services, The Arab League has awarded him the Golden Order of Merit in the field of Leadership. He holds a Bachelor’s Degree from the Department of Industrial Engineering, King Abdulaziz University. He completed his Master’s and Ph.D. degrees in Simulation Modeling and Analysis from the University of Central Florida, USA. Prof. Hani Aburas is the first Arab graduate to receive the UCF Outstanding Alumni Award in 2016. Furthermore, he holds the Graduate Faculty Scholar position from UCF since 2013.

  • Ahmad K Elshennawy, University of Central Florida (UCF) United States

    Ahmad K. Elshennawy, Ph.D. is Professor and Executive Director of The UCF Quality Institute in the Department of Industrial Engineering and Management Systems at the University of Central Florida (UCF). Prior to joining UCF, he served as a Guest Researcher with the Precision Engineering Division of the National Institute of Standards and Technology (NIST) in Gaithersburg, Maryland for two years. Dr. Elshennawy combines over 30 years of international experience with exemplary academic record in the areas of quality management and strategic improvement, as a researcher, academician and a consultant in the United States and different parts of the world. He is the co-author of the Certified Quality Engineer Handbook (1st and 2nd Editions), the Certified Quality Technician Handbook, and the Certified Quality Inspector Handbook (ASQ publications) and Manufacturing Processes and Materials (SME publication). Elshennawy received a BS and MS degrees in Production Engineering from Alexandria University and M.Eng. & Ph.D. degrees in Industrial Engineering from Penn State University. His teaching and research areas of expertise include Quality and Reliability Engineering, Quality Systems and Management, Six Sigma Quality/Lean Six Sigma, Statistical Process Control, Lean Service, and Business and process Performance Improvement and Management. Elshennawy is a Fellow of the American Society for Quality (ASQ), Senior Member of the Institute of Industrial Engineers (IIE), and the Society of Manufacturing Engineers (SME). He is an ASQ Certified Quality Engineer (CQE) and a Certified Reliability Engineer (CRE) and is a Certified Lean Six Sigma Master Black Belt. Dr. Elshennawy has served on the Editorial Review Board of Quality Press of the American Society for Quality and currently serves on the Editorial Board of Quality Progress and is a Senior Editor for the Journal of management and Engineering Integration. He is also the Director of Development and Quality Control of the Association for Industry, Engineering, and Management Systems (AIEMS)

References

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Published

2022-05-20

Issue

Vol. 8 No. 2 (2020): The Journal of Modern Project Management

Section

Articles-JMPM

License

Copyright (c) 2022 Anisulrahman Nizam, Hani M Aburas, Ahmad K Elshennawy

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Earned Value in a Project Manufacturing Environment - A Case Study Assessing the Effectiveness of EVM. (2022). The Journal of Modern Project Management, 8(2). https://doi.org/10.19255/JMPM02404

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