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ABSTRACT
This article presents the integration of cost and time performance measurement with project risk analysis into one diagram, called the Cost-Time-Risk diagram (CTR). The author believes the presented CTR diagram is a revolution in earned value analysis. It plots the total brainstorming of project cost-time planning versus actual production. It also integrates evaluation of internal risks, external risks, and project specific risks. The steps to prepare and to operate the CTR diagram are explained. The article also illustrates, with graphical movement, decision-making information that many project managers struggle in developing.
KEY WORDS: Costs, earned value, planning, and project risk analysis
The idea of good project management is to ensure that projects will be completed on time, on budget, and to meet client's satisfaction. Standard project management processes and techniques, such as project task list and Delphi technique, are the tools for project managers.
The Cost-Time-Risk diagram (CTR) is presented in this article as a revolutionary project planning and management technique. The authors believe that CTR will help project managers consider project risk issues while monitoring and controlling their project schedule and cost performance in one diagram.
Managing projects involves planning, scheduling, risk analysis and identification, performance monitoring, quality control, and solution making [14].
Planning and managing projects is challenging. Projects are unique and temporary [16]. Unique means that the product or service and the client's expectations are different from project to project [16], Temporary means that a start date and a finish date are always required for every project [16].
Projects bring together many groups of people within and outside of an organization. Each of these groups have different responsibilities and expectations. Managing a project is like managing expectations and responsibilities of various groups. Examples can include project managers, project team members, executives, subcontractors, suppliers, and clients [5]. Although each party has different goals and responsibilities, the ultimate project goals are on time, on budget, right product or service, and good quality.
This article presents the integration of cost and time performance measurement with project risk analysis in one diagram, called the Cost-Time-Risk diagram (CTR). The authors consider the CTR diagram to be a revolution in earned value analysis. They believe, "it plots the total brainstorming of project cost-time planning versus actual production....