Improving Project Management Profitability with Earned Value Management
Author Information
Author(s): Setyopurnomo Rudy, Wiryono Sudarso Kaderi, Lestari Yuliani Dwi, Sukarno Subiakto
Primary Institution: School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
Hypothesis
How can a company integrate EVM into Income Statement to improve Project Management Profitability?
Conclusion
Integrating Earned Value Management into income statements can enhance project management profitability and reduce information asymmetry.
Supporting Evidence
- Integrating EBITDA into EVM allows project managers to plan and control financial targets effectively.
- Using EBITDA as a measure of project management profitability allows project managers to actively manage and maximize profitability.
- Sharing daily EBITDA information improves support for project management decisions.
- Integrating EVM into income statements enhances transparency and stakeholder support.
Takeaway
This study shows that using a special method called Earned Value Management can help companies understand how much money they are making from their projects.
Methodology
The study used multiple case studies and both qualitative and quantitative methods to analyze data from shipbuilding and aircraft manufacturing companies.
Potential Biases
Potential bias due to the author's consultancy relationships with the companies involved.
Limitations
The study does not explore the measurement of interest, taxes, depreciation, and amortization in project management.
Participant Demographics
Participants included board members, senior executives, managers, and project management team members from two companies.
Statistical Information
P-Value
0.000
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
Want to read the original?
Access the complete publication on the publisher's website