Evaluation Performance for Iraqi Oil Projects Using Earned Value Analysis

Abstract

Poor performance measuring procedures in the oil and gas sector can result in project cost overruns, schedule delays, and scope expansions. Earned value management, an integrated project planning and control system that monitors cost and schedule performance, makes it possible to identify performance issues early and adopt corrective measures quickly. This study aims to thoroughly comprehend the differences between actual and planned expenses, as well as the potential use of Earned Value Management (EVM) to compare and analyze the available data and to assess the effectiveness of EVM when applied to a real project in helping a project manager achieve success in terms of budget utilization and schedule compliance. For this purpose, data were collected from the Karbala Refinery Project, which is one of the vast and modern projects of the State Company for Oil Projects (SCOP), the Iraqi Ministry of Oil, based on (84) monthly reports starting on (June 26, 2015) up to (August 25, 2022). The data was arranged in a spreadsheet format suitable for statistical analysis using Microsoft Office Excel, and the earned value was analyzed and its indexes. The results showed that the earned value indexes Cost Performance Index (CPI), the Schedule Performance Index (SPI), and the To-Complete Cost Performance Indicator (TCPI) achieved for the task construction of the Karbala refinery project were as follows: 1.029, 0.991, and 0.237, respectively, which means that the construction task for the Karbala refinery project is late and still within the budget.