Affiliations: Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran | Deparment of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran
Note: [] Corresponding author. Mostafa Salari, Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran. Tel.: +98 915 1592269; E-mail: mostafa.salari.ind@gmail.com
Abstract: In project management context, the Earned Value Management (EVM) is a well-known technique. Despite its popularity, the standard EVM suffers from the absence of some features that require being focused further on to make this method more efficient. This paper is addressing such features specifically the financial aspects of cost control system. These aspects that have been absent in the standard EVM include the time value of money, delay in client payment and contractor cash flow in uncertain environment. The proposed model here utilizes fuzzy sets to deal with the uncertain conditions of real projects. It attempts to extend the theoretical framework of EVM to evaluate and control the financial performance of project and provide a new estimation of project total cost in presence of uncertainty. Finally, 6 case studies are presented to demonstrate how the proposed model can be implemented in real case projects.
Keywords: Earned value management, fuzzy sets, contractor cash flow, delay in client payment, project management
