Sensitivity Analysis for Estimating Cost of Project Execution with EVM Technique by considering factots of Quality and Risk

Document Type : Research Paper

Authors

1 departement of Industrial engineering, payame noor university

2 Assistant Professor, Department of Industrial Engineering, Islamic Azad University, Science & Research Branch, Tehran, Iran

Abstract

Estimating the cost of a project is one of the most important issues in project execution and implementation. EVM is a technique to answer this key topic. In the provided relationships for evaluating and estimating the cost of a project, project performance is assessed on the basis of previous data and information. The purpose of this study is to provide a more accurate estimate of the cost of the project at each stage. In addition to cost performance and past scheduling in this study, quality and risk factors have been investigated. Also, uncertainty in the time of the activities is considered as a variable in calculations and predictions. The results of study through an explained example shows that the addition of two factors such as risk and quality predict 40 percent of the cost of project execution and predicting the future performance of the project and provide more accurate information to the managers and stakeholders for the effective implementation of the project. Also, uncertainty in predicting the duration of activities is Affected by an estimated 35% on the cost estimate

Keywords

Main Subjects

References

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Iranian Journal of Trade Studies
Volume 22, Issue 87 - Serial Number 87
November 2018
Pages 187-214

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History

  • Receive Date: 26 January 2018
  • Revise Date: 07 May 2018
  • Accept Date: 09 June 2018

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