Early-warning performance monitoring system (EPMS) using the business information of a project

• Published in: International journal of project management 2018-07, Vol.36 (5), p.730-743
• Main Authors: Kim, Chang-Won, Yoo, Wi Sung, Lim, Hyunsu, Yu, Ilhan, Cho, Hunhee, Kang, Kyung-In
• Format: Article
• Language: English
• Subjects: Construction project types; Early-warning system; Performance index; Performance measurement baseline; Performance monitoring and forecasting
• ISSN: 0263-7863; 1873-4634
• DOI: 10.1016/j.ijproman.2018.03.010

An early-warning performance monitoring system (EPMS) is proposed to objectively measure and monitor the performance of a project for early detection of inherent poor performance problems. The EPMS is built based on project progress data and consists of a database of business information, an optimized theoretical model used as a performance measurement baseline, and an index for monitoring and forecasting the performance. By monitoring the performance through an application of the EPMS to the Korean construction project, the quarterly variation of index was found to differ by project type. These results could explain the environmental changes in the project execution. Therefore, the EPMS is expected to be an alternative for objective performance monitoring and forecasting while applying the existing methods is difficult because of the limited available data on performance indicators. The development procedures may also be useful to researchers interested in approaches to quantitatively analyze trends in various industries. •An approach is proposed to objectively measure and monitor the performance of projects.•Existing methods is difficult to apply in situations where it is hard to collect credible data on the performance indicators.•Existing methods is difficult to apply in situations where it is hard to collect credible data on the performance indicators.•The approach was applied to 19 firms over a 20-year period for validation.