Abstract for: Project Efficiency Estimation by Dynamic Simulation of Earned Value Management Model
Earned Value Management (EVM) is known as the efficient and well known tool for project management. Although the EVM introduces some good indicators to measure project progress, it is still controversial to calculate the total cost of the project. On the other hand, the analytical model like EVM does not specify the trends of changing project costs and efficiency of the project. Therefore, the main problem of the research is to estimate the project efficiency by presenting a system dynamic simulation model. System dynamics is a systematic approach that emphasizes dynamic relationships rather and is highly dependent on the concept of feedback. The dynamic hypothesis is that there are dynamics between the main inidicators of EVM. Identifying these dynamics and how they affect each other can lead to an estimation of the process of changing project costs and project efficiency until the end of the project. The causal-loop diagram and stock-flow diagram of the proposed model has been offered. In accordance with the results of the experiment provided, there is a remarkable difference between the results of simulation model and EVM. The suggestion of the research is to develop the simulation model to consider the specific functions of project management.