Comparing the Predictive Capabilities of Level Three EVM Cost Data with Level Five EVM Cost Data
Abstract
Contract cost growth has been a concern for the Department of Defense (DoD) for decades. Earned value management is a tool used by the DoD to assist in identifying cost overruns before they occur. Current DoD regulations require contracts to report their earned value management (EVM) data down to level three of the work breakdown structure (WBS). Previous research has shown level three EVM data can predict contract cost growth earlier than using level one EVM data. Our research examines if level five EVM data would better predict cost growth than level three. Our results indicate that level five is not a better predictor of cost growth then level three. Our results do not support the DoD requiring contractors to provide level five EVM data.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 27, 2014
- Accession Number
- ADA601405
Entities
People
- Joshua D. Johnson
Organizations
- Air Force Institute of Technology