A Predictive Cost-Management and Benefits Realization Model for International Projects Using Earned Value Management (EVM) to Reduce Cost Overruns and Improve Project Outcomes
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Abstract
Scope variations, schedule slippage and environmental uncertainties always tend to subject international projects to cost overruns and under-benefits realizations. This paper demonstrates a predictive cost-management and benefits realisation framework, which combines the conventional Earned Value Management (EVM) and modern predictive analytics with value-driven appraisal model. The model uses the scope adjusted baselines, active forecasting and a Benefits Alignment Index to enhance the precision of cost and schedule prediction as well as connecting the performance measures to performance strategic results of the project. To test the model, there was the case study which took a project in a real world system in international infrastructure where traditional EVM forecasting was compared with the predictive approach. Findings suggest that it has brought about impressive gains in the form of a reduction in the number of errors in a forecast, augmented steadiness of cost and schedule performance indices and augmented correspondence in desired advantages. The research proves that the combination of predictive analytics and EVM improves the process of proactive decision-making, resource distribution, and the success of the project. The framework is practical in advising managers who want to minimize cost overruns and succeed in ensuring that the whole international project environment delivers value-specific results.
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