Authors: Afshin Kamyabniya; Morteza Bagherpour
Addresses: Department of Industrial Engineering, Iran University of Science & Technology, Narmak, Tehran, Iran ' Department of Industrial Engineering, Iran University of Science & Technology, Narmak, Tehran, Iran
Abstract: In project management context, the earned value management (EVM) is a well-known technique in the area of project cost management. This paper primarily incorporated risk analysis through project cost management. This is a crucial subject in project management, as projects are facing a growing complexity with higher uncertainties. The proposed model attempts to develop a new formalism to measure risk costs. Here, a new metric namely risk performance index (RPI) is introduced. The main objective of this model is to find out the best-known scenario for project at completion cost considering risky conditions and managing project risks and risk interactions. The proposed approach applied in a software engineering project. Finally, an illustrative case study presented demonstrating the proposed model can be efficiently applied through real case software projects.
Keywords: earned value management; EVM; risk assessment; cost estimation at complete; variance at complete; risk costs; risk performance index; software engineering; software management; project cost management; project management.
International Journal of Industrial and Systems Engineering, 2014 Vol.17 No.2, pp.170 - 185
Available online: 29 May 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article