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International Journal of Project Management 31 (2013) 579 – 588


www.elsevier.com/locate/ijproman

Impact of sensitivity information on the prediction of project's duration using


earned schedule method
Raafat Elshaer ⁎
Industrial Engineering Department, Faculty of Engineering, Zagazig University, Sharkia, Egypt

Received 13 February 2012; received in revised form 15 October 2012; accepted 16 October 2012

Abstract

Recently, the prediction of project duration has been investigated in earned value management (EVM) using three earned value methods, planed
value (PVM), earned duration (EDM) and earned schedule (ESM). The investigation has shown that ESM method outperforms on average the
other two methods and fails in case of wrong warning coming from non-critical activities which suffer from delays and/or ahead of schedule. The
objective of this paper is twofold: first, we study the impact of the activities' sensitivity information on the forecasting accuracy of the ESM
method. Second, we test the claim that in normal conditions the project performance indicator provided by ESM at higher work breakdown
structure is reliable. More precisely, activity based sensitivity measures are used as weighing parameters of the activities to improve the schedule
performance of a project by removing or decreasing the negative effect of wrong warning of the non-critical activities. The computational results of
a simulation study on a big benchmark projects reveal that the sensitivity information are capable of improving the forecasting accuracy of the
ESM method.
© 2012 Elsevier Ltd. APM and IPMA. All rights reserved.

Keywords: Earned value management; Project duration forecasting; Earned schedule; Critical activities; Time sensitivity measures

1. Introduction and Vanhoucke (2006) give a summary of time measurement


and the aforementioned forecasting methods. They also compare
Earned value management (EVM) is a management tech- the three methods and test them to a simple one activity project
nique for project performance monitoring. A detailed explana- and a real-life data set. Based on these data, they conclude that
tion of EVM basis can be found in Anbari (2003), Fleming and the three methods give similar results in the early and middle
Koppelman (2010) and PMI (2008). Based on the earned value stages. However, the ESM provides better results for monitoring
parameters, to the best of our knowledge, only three project project progress at the final stage of the project. Vanhoucke and
duration forecasting methods are in the literature: the planned Vandevoorde (2007a) also investigate the reliability of the three
value method (PVM) developed by Anbari (2003), the earned EVM methods to forecast a project's final duration on a wide
duration method (EDM) developed by Jacob (2003) and and diverse set of fictitious project networks. They conclude that
extended by Jacob and Kane (2004), and the earned schedule the ESM indeed performs on average better than the PVM and
method (ESM) developed by Lipke (2003). Recently, the main EDM methods in case of no false warning effects coming from
concepts of EVM and the three methods have been reviewed non-critical activities. Therefore, in the sake of helping the
with an illustrated example in Vanhoucke (2010a). Vandevoorde professional community in getting a reliable prediction and
avoiding managerial effort spending in false warning, studying
the impact of the activities' sensitivity information on the
⁎ Tel.: +20 012 2023 3347; fax: +20 055 230 4987. forecasting accuracy of the ESM method is the first objective of
E-mail address: r_h_elshaer@zu.edu.eg. this paper.
0263-7863/$36.00 © 2012 Elsevier Ltd. APM and IPMA. All rights reserved.
http://dx.doi.org/10.1016/j.ijproman.2012.10.006
580 R. Elshaer / International Journal of Project Management 31 (2013) 579–588

Jacob and Kane (2004) argue that the well-known perfor- performance indicator of ESM method. In doing so, the influence
mance measures of EVM are true indicators for project of activity based sensitivity measures on the forecasting accuracy
performance as long as they are used on the activity level, of ESM is examined in three levels: 1 — overall forecasting
and not on the control account level or higher work breakdown accuracy, 2 — during project progress, and 3 — at a certain project
structure (WBS) levels. Whereas, in Vandevoorde and Vanhoucke network structure.
(2006) and Vanhoucke and Vandevoorde (2007a), the EVM The paper is organized as follows: in Section 2 a proposed
performance measures are calculated on the project level, and not methodology to combine activity sensitivity information in the
on the level of each activity. They claim that effects (delays) of earned schedule calculations is explained. A simulation study,
non-performing activities can be neutralized by well-performing the used project dataset and the simulation scenarios, is
activities (ahead of schedule) at higher WBS levels. Testing the described in Section 3. Section 4 shows the forecasting
validation of this claim is the second objective of this paper. accuracy formulas and the computational results. The compu-
Because of doing the project performance measurement at the tational results are as follows: the impact of the sensitivity
cost account level which might result in covering potential measures on the accuracy of the project duration is investigated
problems, project performance indicators provided by ESM act as in Section 4.1. Section 4.2 and Section 4.3 show the impact of
early warning signals to detect problems and/or opportunities. the sensitivity measures during the project progress and at
Based on these indicators, Vanhoucke (2010b) investigates different project network structures on the accuracy of the
whether the activity sensitivity measures are able to distinguish prediction respectively. Section 5 is left to conclusions.
between highly sensitive and insensitive project activities in order
to steer the focus of the project tracking and control phase to those
activities that are likely to have the most beneficial effect on the 2. Proposed methodology
project outcome. More precisely, he uses the following four
activity sensitivity measures from Martin (1965), Williams (1992) The forecasting of a project duration using the ESM can be
and PMI (2008) to guide the managerial corrective actions when estimated by the following equation: EDAC ¼ AT þ PD−ES SPI ðt Þ ,
anticipating delays in the project: 1 — criticality index (CI), 2 — where the future performance of the remaining time, PD − ES,
significance index (SI), 3 — schedule sensitivity Index (SSI), and can be corrected towards the current SPI (t) trend. where:
4 — cruciality index (CRI) based on: 4.a — Pearson's
product-moment (CRIr), 4.b — Spearman's rank correlation EDAC estimated duration at completion.
(CRIρ), and 4.c — Kendall's tau rank correlation (CRIτ). For AT actual time, is the duration at which the EV accrued is
more information the formulas of the four measures and how to recorded.
compute them are described with an illustrated example in PD project planned duration.
Vanhoucke (2010b). He extends his work in Vanhoucke (2011a) ES earned schedule, ¼ t þ PVEV−PV t
tþ1 −PV t
, where t satisfies that
in which he presents two alternative project tracking methods. EV ≥ PVt and EV b PVt + 1. ES identifies the time at
First, the top-down project tracking method relies on earned value which the amount of earned value (EV) accrued
management project performance data (based on ESM) that should have been earned (Lipke, 2003).
triggers to the need for corrective actions that require a drill down PVt planned value at time instance t, ¼ ∑i PV i;t , where PVi,t
to the lowest WBS levels. Second, the bottom-up tracking method is the planned value of activity i at time instance t.
is based on schedule risk analysis that reveals sensitivity EV earned value at actual time, ¼ ∑i EV i;AT where EVt,AT
information of each activity and assumes that the focus should is the earned value of activity i at actual time AT.
lie on only the highly sensitive parts of the project. His SPI (t) schedule performance index,=ES/AT.
computational experiment shows that a top-down project tracking
approach is highly efficient for project networks with a serial In this study, we try to improve the forecasting accuracy of
activity structure while a bottom-up approach performs better in a ESM by removing/decreasing the false warning effects caused
parallel structured project network. Moreover, based on a by the non-critical activities. The proposed methodology to
Monte-Carlo simulation study on fictitious and empirical project fulfill this aim is to merge the sensitivity information into the
data (Vanhoucke, 2011b), the topological structure of a project earned value calculations as follow. Let αi be the weighting
network considers a main driver for the variability and efficiency factor of activity i, EV α ¼ ∑i αi :EV i;AT be the weighted earned
of the project control phase. Also, the efficiency of project control value at actual time, and PV α;t ¼ ∑i αi :PV i;t be the weighted
can be significantly improved by combining a top-down and a planned value at time instance t. The earned schedule, ESα, and
bottom-up project control approach which consider a strong schedule performance index, SPI (t), based on the weighting
reason of this study. In the same direction Lipke et al. (2009) use factor α can be easily calculated. Also, the project duration can
the statistical prediction and testing methods to improve the be estimated using ESMα at weighting factor α, (i.e. EDACα).
reliability of ESM in forecasting the final cost and duration. In this study, the four sensitivity measures mentioned in the
Motivated by the above studies and the common knowledge above section will be used as weighting factors. Formally, α ∈
that the critical path analysis gives a good project duration estimate {1, CI, SI, SSI, CRIr, CRIρ, CRIτ}, where α = 1 means that the
(see, Schonberger, 1981; Gutierrez and Kouvelis, 1991), in this project duration estimation is based on no distinction among
paper, we investigate the impact of emerging activities' sensitivity activities and all the activities have an equal weight in the total
information into the earned value calculations on the project time earned value calculations. That is, ESM1 ≡ ESM.
R. Elshaer / International Journal of Project Management 31 (2013) 579–588 581

3. A simulation study non-critical (critical) activities may change to critical


(non-critical) activities. Consequently, the percentage of the
This section presents the test design for the simulation study to baseline critical activities existence decreases when compared
measure the ability of the four sensitivity measures in improving with Scenario 2.
the forecast accuracy of the ESM method. Section 3.1 presents 2 Scenario 2: random activity time deviations: both critical
the project networks used in this study and Section 3.2 describes and non-critical activity durations follow: di ~ Tri (0.8 di, di,
three proposed simulation scenarios. 1.2di), which might result in activity durations which are
ahead, on or behind schedule.
3.1. Project data set 3 Scenario 3: di ~ Tri (0.5 di, di, di). This left-tailed distribution
gives false warning signals that the project will be finished
The project test data set consists of 4100 generated ahead of schedule. This scenario emphasizes the high
activity-on-node networks with 30 activities and random activity existence of the baseline critical activities when compared
durations and costs, and with a well-considered topological with Scenario 2.
network structure. These projects have been generated by the
RanGen project network generator (Demeulemeester et al., In Scenarios 1 and 3 we measure the capability of the new
2003; Vanhoucke et al., 2008) and have been used in many methodology to improve the forecast accuracy of the ESM
project scheduling and control studies (e.g. Vandevoorde and method by removing the false effects of non-critical activities.
Vanhoucke, 2006; Vanhoucke and Vandevoorde, 2007a,b; In scenario 2 we try to verify the claim that in the cost account
Vanhoucke, 2010a,b, 2011a,b) mentioned in the introduction level the ESM method could get a good forecasting for the
of this paper. A crucial parameter used during the project project duration because the well-performing activities neutral-
network generation is the serial/parallel (SP ∈ [0,1]) indicator, ized the non-performing activities.
measuring the closeness of a project network to a complete serial
(SP = 1) or parallel (SP = 0) network. AD, LA and TF are other 4. Computational tests and results
indicators used during the project network generation. Where
AD ∈ [0,1], activity distribution indicator measures the In this section, we display extensive results for the three above
distribution of project activities along the levels of the project, mentioned simulations. This section is divided into three
LA ∈ [0,1], length of arcs indicator measures the length of each subsections for evaluating the impact of sensitivity measures on
precedence relation (i, j) in the network as the difference between the performance of ESM method. The performance, as proposed
the level of the end activity j and the level of the start activity i by Covach et al. (1981) and used in Vanhoucke and
and TF ∈ [0,1], topological float indicator measures the Vandevoorde (2007a) and Vanhoucke (2010a), includes forecast
topological float of a precedence relation as the number of accuracy, timeliness and stability respectively as follow: in
levels each activity can shift without violating the maximal level Section 4.1, we investigate the impact of the activity sensitivity
of the network as defined by SP. measures on the overall forecasting accuracy of the ESM for the
three proposed scenarios. In Section 4.2, we investigate the
3.2. Simulation scenarios impact of the activity sensitivity measures on the behavior of the
ESM forecasting along the completion stages of the project
The realized duration di of activity i is drawn from a triangular execution. Based on the four indicators that used to generate each
distribution with the following characteristics, di ~ Tri (a, b, c), network in the dataset, in Section 4.3 we discuss the influence of
where a, b and c represent the minimum, the mode, and the the activity sensitivity measures at a different topological project
maximum value of the distribution respectively. To investigate network on the forecast accuracy of ESM.
the impact of sensitivity information in removing/decreasing the Following Vanhoucke and Vandevoorde (2007a) to deter-
false warning effect of non-critical activities and improving the mine the forecast accuracy, we calculate:
accuracy of forecasting a project's duration, three scenarios are
proposed for the random variation of activity durations. In these 100 T RD−EDAC rp
The mean percentage error ðMPEÞ as : ∑rp¼1
scenarios we distinct between critical and non-critical activities T RD
aiming in generating false warning signals due to increasing or
decreasing on the realized duration of the baseline non-critical The mean absolute percentage error ðMAPEÞ as :
activities. To do so, the planned critical activity will follow the
100 T RD−EDAC
rp
following symmetric triangular distribution di ~ Tri (0.8di, di, ∑rp¼1
T RD
1.2di), where di represents the planned duration of activity i in the
project. In the same time the planned non-critical activity will where T is used to refer to the total number of reporting periods
follow one of the following three scenarios: over the complete project horizon, RD denotes the realized
project duration and EDAC rp is used to denote the estimated
1 Scenario 1: di ~ Tri (di, di, 1.5di). This right-tailed distribution duration at completion in reporting period rp (rp = 1,2…,T). The
leads to delays in the planned non-critical activities which give MPE-values lower (larger) than zero give an indication of an
false warning signals that the project may finish behind over-estimation (under-estimation) of the forecasting metrics
schedule. In this scenario also on average some baseline for the actual project duration, RD.
582 R. Elshaer / International Journal of Project Management 31 (2013) 579–588

The mean percentage presence of planned critical activities the realized duration. The simulation results of the three
∑ CIi scenarios are shown in Fig. 2.
(MPPPCA) is calculated as: i∈C jC j , where C denotes the set of
From the results, we can obviously notice the following:
critical activities in the baseline schedule, and CIi is the crit- 1 — all graphs show that the forecast accuracy improves as
icality index of activity i. MPPPCA shows the effect of the approaching to the end of the project. This observation is in line
variation in the baseline non-critical activity durations in the with Vanhoucke and Vandevoorde (2007a) and Vanhoucke
existence of the baseline critical activities through the proposed (2010a). 2 — through all review periods, in scenarios 1 and 3,
scenarios. This metric will be used only when investigating the CI, SSI, CRIr, SI and CRIρ improve the performance of the
impact of the sensitivity measures on the forecasting accuracy ESM, where ESMCI is considered the best and ESMCRIτ is the
of the ESM at a different network structure (see Section 4.3). worst. Whereas, in scenario 2, we find that ESM using all the
sensitivity measures, except SSI in the first reviewing period, is
4.1. Impact of sensitivity measures on the forecast accuracy of almost doing as well as ESM1. This emphasized the claim of
ESM Vanhoucke and Vandevoorde. 3 — For the three scenarios, at
the beginning of the project ESMSSIa shows bizarre results
In the current section we discuss impact of activity which show the source of error in the performance of ESMSSI
sensitivity information as a weighting factor on the forecast we mentioned in the above section. When drilled down in the
accuracy of ESM. The left-hand side of Fig. 1 shows that on results we found at the first reviewing period of some projects
average the CI, CRIr, CRIρ, or SI improves the forecasting the prediction of the final duration is zero. As a sequence,
accuracy of the ESM in scenarios 1 and 3 and, gets almost the MAPE and MPE rise to 100% and weaken the average forecast
same performance in scenario 2. Moreover, although ESMSSI is accuracy of ESMSSI as shown in Section 4.1 for the ten
the second best in scenarios 1 and 3, it gets the worst result in reviewing periods and this subsection for first reviewing period.
scenario 2. Along the three scenarios, whereas ESMCRIτ gets the
worst results, ESMCI is considered to be the best. We can also
observe that the difference between the performance of ESMSSI 4.3. Influence of the sensitivity measures on the ESM at
and ESMCI is almost fixed which reveals a systematic error in different network structure
the performance of ESMSSI. The right-hand side of Fig. 1 shows
that the CI and SSI are more reliable than the other sensitivity Vanhoucke and Vandevoorde (2007a) and Vanhoucke
measures in removing the wrong effect of the non-critical (2010a) found from the results of the investigation of the
activities. In scenario 2 also, ESM 1 performs as well as ESMCI three predictive project duration methods (PVM, EDM, ESM)
by which the claim that at cost account level the non-performing that the network structure influences the forecasting accuracy.
activities are neutralized by well-performing activities is proved. Also, in Vanhoucke (2010b, 2011b), the author observed that
the reliability of the schedule risk analysis (SRA) increases
4.2. Impact of sensitivity measures on the ESM during project when the presence of parallel activities in the project increases.
progress In this section, we investigate the influence of the sensitivity
measures on the forecast accuracy of ESM at a different
In order to investigate the effect of the sensitivity measures topological structure of a project network. Due to the bizarre
on the accuracy of time forecasts of ESM during the project results of SSI in the above section at the first review period, the
progress, the project horizon is divided into 10 reviewing calculations in the current section will depend only on the last
periods. Each reviewing period represents 10% completion of nine review periods of the project. The degree of improvement

3
MAPE/MPE (%)

0
Scenario 1 Scenario 2 Scenario 3 Scenario 1 Scenario 2 Scenario 3
-1
MAPE MPE
-2

-3
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 1. Impact of the sensitivity measures on the forecast accuracy (MAPE and MPE) of ESM for the three scenarios.
R. Elshaer / International Journal of Project Management 31 (2013) 579–588 583

11

Scenario 1 (MAPE (%))


9

1
0%-10% 10%-20% 20%-30% 30%-40% 40%-50% 50%-60% 60%-70% 70%-80% 80%-90% 90%-100%
-1
10
Scenario 2 (MAPE (%))

9
8
7
6
5
4
3
2
1
0
0%-10% 10%-20% 20%-30% 30%-40% 40%-50% 50%-60% 60%-70% 70%-80% 80%-90% 90%-100%
11
Scenario 3 (MAPE (%))

1
0%-10% 10%-20% 20%-30% 30%-40% 40%-50% 50%-60% 60%-70% 70%-80% 80%-90% 90%-100%
-1
% of Project progress
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 2. Influence of the sensitivity measures on the forecasting accuracy (MAPE) of ESM for the three scenarios during project progress.

in the accuracy of prediction is measured by both MAPE and ESMCI and ESMSSI are considered the best in removing/
MPE. Also, for the three scenarios, the distribution of the minimizing the wrong effect of non-critical activities. In
baseline critical activities at every network structure will be scenario 2, ESM using the sensitivity measures, except CRIτ,
measured by MPPPCA as maximum, mean and minimum of almost performs as well as ESM1, and 3 — the impact of the SP
percentage presence of planned critical activities. indicator on the percentage presence of the baseline critical
activities for the three scenarios is shown in Fig. 3. The
4.3.1. Sensitivity measures and SP indicator MPPPCA curve reveals that the possibility of losing an activity
In this section we investigate the influence of the sensitivity its baseline criticality decreases when the presence of serial
measures on the forecasting accuracy of ESM at different activities in the project increases. Also, even under high
values of SP. Fig. 3 displays the MAPE, MPE and MPPPCA of stability of critical activities of a baseline schedule the early
the three scenarios for the networks with varying values for the finishing of non-critical activities lead to wrong project
SP indicator, ranging from 0.1 to 0.9, in steps of 0.1. prediction as shown in scenario 3.
The results of Fig. 3 can be summarized as follows: 1— Due to disappearing the false warning effects of non-critical
ESM method over-estimates (under-estimates) the actual activities (as discussed above and shown in Fig. 3) on the time
project duration in scenario 1 (scenario 3). The forecasting forecasts of ESM when SP ≥ 0.5, we will investigate the impact
accuracy is improved by increasing SP (increasing serial of the activity sensitivity information for the other topological
activities) which is in line with Vanhoucke and Vandevoorde network factors only at SP = 0.2 in the following sections.
(2007a) and Vanhoucke (2010a), 2 — for scenarios 1 and 3, All
sensitivity measures, except CRIτ, improve the forecasting 4.3.2. Sensitivity measures and AD indicator
accuracy of the ESM up to SP b 0.5. When SP ≥ 0.5, the When AD = 0, the number of activities is uniformly
improvement in the performance of ESM can be ignored. Also, distributed over all levels. When AD = 1, there is one level
584 R. Elshaer / International Journal of Project Management 31 (2013) 579–588

100%
MPPPCA
80%

60%

40%

20%
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

9.00
8.00
7.00
MAPE (%)

6.00
5.00
4.00
3.00
2.00
1.00
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

10.00
8.00
6.00
4.00
MPE (%)

2.00
0.00
-2.00
-4.00
-6.00
-8.00
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Scenario #1 Scenario #2 Scenario #3
SP
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 3. Influence of the sensitivity measures on the forecasting accuracy (MAPE and MPE) of the ESM for the three scenarios at different SP values.

with a maximal number of activities, and all other levels 4.3.3. Sensitivity measures and LA indicator
contain a single activity. Fig. 4 displays the MAPE, MPE and When LA equals 0, the network has many precedence
MPPPCA of the three simulation scenarios for the networks relations between two activities on a level far from each other,
with varying values for the AD indicator, ranging from 0.2 to and hence the activity can be shifted further in the network.
0.8, in steps of 0.2 at SP = 0.2. When LA equals 1, many precedence relations have a length of
The results of Fig. 4 can be summarized as follows: 1 — one, resulting in activities with immediate successors on the
ESM shows that over-estimation and under-estimation are in next level of the network, and hence little freedom to shift.
scenarios 1 and 3 respectively. Also, the mean percentage Fig. 5 displays the MAPE, MPE and MPPPCA of the three
presence of the planned critical activities increases when the simulation scenarios for the networks with varying values for
AD increases. Moreover, the distribution of the MPPPCA the LA indicator, ranging from 0.2 to 0.8, in steps of 0.2 at SP =
becomes narrow with increasing AD, for the three scenarios. 0.2. From Fig. 5 we observe the following: 1 — the wrong
2 — In scenarios 1 and 3 all sensitivity measures except CRIτ effect of the non-critical activities on the forecasting accuracy
significantly improve the forecast accuracy of ESM over all AD of ESM1 decreases with increasing LA. Whereas, in scenario 1,
values. In addition, while ESMCI is considered the best in MPPPCA almost remains constant and its distribution narrows
decreasing the wrong effect of non-critical activities for in increasing LA, in scenarios 2 and 3 MPPPCA deceases with
scenarios 1 and 3, ESM with all sensitivity measures except increasing LA. These results are in line with the definition of
SSI and CRIτ performs as well as ESM1 in scenario 2. LA. 2 — For all scenarios, also we obtain the same results
R. Elshaer / International Journal of Project Management 31 (2013) 579–588 585

100%

M PPPCA (%)
80%

60%

40%
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8

7.00
6.00
MAPE (%)

5.00
4.00
3.00
2.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
5.00

3.00

1.00
MPE (%)

-1.00

-3.00

-5.00

-7.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
Scenario #1 Scenario #2 Scenario #3
AD
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 4. Influence of the sensitivity measures on the forecasting accuracy (MAPE and MPE) of ESM at different AD values and SP = 0.2 for the three scenarios.

where all sensitivity measures except CRIτ improve the scenarios. 2 — In scenarios 1 and 3 all sensitivity measures
forecasting accuracy of ESM from the wrong effect of except CRIτ significantly improve the forecast accuracy of
non-critical activities. Whereas ESMCI is considered the best ESM over all TF values. In addition, while ESMCI is
through all scenarios and LA values, ESMCRIτ is considered the considered the best in decreasing the false warning effects of
worst one. non-critical activities for scenarios 1 and 3, ESM with all
sensitivity measures except SSI and CRIτ performs as well as
4.3.4. Sensitivity measures and TF indicator ESM1 in scenario 2. 4 — From Figs. 4 and 6 we can obviously
When TF equals 0, the network structure is 100% dense and observe that the behavior of sensitivity measures on the
no activities can be shifted within a given SP value. When TF forecasting accuracy of ESM is similar for AD and TF.
equals 1, the network consists of one chain of activities without
topological float while the remaining activities have a maximal 4.4. Summary
float value.
Fig. 6 displays the MAPE, MPE and MPPPCA of the three The above discussions in Sections 4.1–4.3 state that the
simulation scenarios for the networks with varying values for following four sensitivity measures CI, CRIr, SI and CRIρ are
the TF indicator, ranging from 0.2 to 0.8, in steps of 0.2 at SP = capable of improving the performance of earned schedule
0.2. The results of Fig. 6 can be summarized as follows: 1 — method in predicting the final project's duration whatever the
ESM shows that over-estimation and under-estimation are in topological structure of the project network is. Also, as shown
scenarios 1 and 3 respectively. MPPPCA, the mean percentage in Figs. (1–6) the ESMCI has the best performance and is
presence of the planned critical activities, increases and its capable of removing/decreasing the error caused by the false
distribution becomes narrow with increasing TF, for the three warning signals of the non-critical activities. Also, in scenario
586 R. Elshaer / International Journal of Project Management 31 (2013) 579–588

100%
90%
M PPPCA (%) 80%
70%
60%
50%
40%
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8

7.00
6.50
6.00
5.50
MAPE (%)

5.00
4.50
4.00
3.50
3.00
2.50
2.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
5.00
4.00
3.00
2.00
MPE (%)

1.00
0.00
-1.00
-2.00
-3.00
-4.00
-5.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
Scenario #1 Scenario #2 Scenario #3
LA
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 5. Influence of the sensitivity metrics on the forecasting accuracy (MAPE and MPE) of ESM at different LA values and SP = 0.2 for the three scenarios.

2, ESMCI performs as well as ESM1 and this indicates the following lines: through all topological project network
validity of the claim that, in normal conditions, the project structures ESMCI, the earned schedule method based on the
performance indictor provided by ESM1 at higher work criticality index (CI), is considered the most reliable metric in
breakdown structure is reliable. ESMSSI suffers from troubles forecasting a project's final duration, where ESMCI out-
in scenario 2 and its performance is lower than ESMCI returning performs ESM in case of false warning coming from
to the following: SSIi = SDi ⋅ CIi/PSD where SSIi, SDi, and CIi non-critical activities and performs as well as ESM in case of
are schedule sensitivity index, standard deviation and criticality normal conditions. Therefore, we recommend the practitioners
index of activity i respectively, and PSD is the project standard to use the ESMCI and the traditional ESM in the same time in
deviation. The main problem of SSI as a weighting factor is that predicting a project's final duration. By doing so, any false
SSI drops to zero when the activity duration is stable (i.e. SDi = warning due to delays and/or ahead in the non-critical activities
0) even if it has high criticality index (i.e. CIi = 1). will be eliminated and detected at the cost account level
without drilling down to lower work breakdown structure
5. Conclusions levels. Consequently, the professional community can get a
reliable project time prediction and the project manager effort
In this paper we investigate the impact of four activity to find a corrective action will be minimized. The above
sensitivity measures in the forecasting accuracy of ESM conclusion also emphasizes the validity of the claim that, in
method. Based on extensive simulations on a large set of normal conditions, the project performance indictor provided
generated networks, our findings can be concluded in the by ESM at higher work breakdown structure is reliable.
R. Elshaer / International Journal of Project Management 31 (2013) 579–588 587

100%
90%

M PPPCA (%)
80%
70%
60%
50%
40%
30%
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
8.00

7.00

6.00
MAPE (%)

5.00

4.00

3.00

2.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
6.00

4.00

2.00
MPE (%)

0.00

-2.00

-4.00

-6.00

-8.00
0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8 0.2 0.4 0.6 0.8
Scenario #1 Scenario #2 Scenario #3
TF
ESM1 ESMSSI ESMCI ESMSI ESMCRIr ESMCRIρ ESMCRIτ

Fig. 6. Influence of the sensitivity measures on the forecasting accuracy (MAPE and MPE) of ESM at different TF values and SP = 0.2 for the three scenarios.

Acknowledgment Lipke, W., 2003. Schedule is different. The Measurable News, pp. 31–34 (Summer).
Lipke, W., Zwikael, O., Henderson, K., Anbari, F.T., 2009. Prediction of
project outcome: the application of statistical methods to earned value
The author would like to thank Prof. Mario Vanhoucke for management and earned schedule performance indexes. International
supporting and providing datasets. Journal of Project Management 27, 400–407.
Martin, J., 1965. Distribution of the time through a directed acyclic network.
Operations Research 13, 46–66.
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