SUPPLEMENT ISSUE www.iioab.org | Lou et al. 2016 | IIOABJ | Vol. 7 | Suppl 4| 114-119 114 KEY WORDS Earned Value Management (EVM); Risk Management (RM); Project Management ARTICLE INTEGRATING EARNED VALUE MANAGEMENT WITH RISK MANAGEMENT TO CONTROL THE TIME-COST OF THE PROJECT Ashkan KhodaBandehLou 1* , Alireza Parvishi 2 , Reza Taghifam 3 , Mina Lotfi 4 , Ahad Taleei 5 1 Doctor Of Philosophy of Technical Sciences, Faculty Of Engineering, Civil Engineering Department, Urmia Branch, Islamic Azad University, Urmia, IRAN 2 Doctor Of Philosophy of Technical Sciences, Faculty Of Engineering, Civil Engineering Department, Urmia Branch, Islamic Azad University, Urmia, IRAN 3 PhD Student Of Construction Management engineering Faculty Of Engineering, Civil Engineering Department, Urmia Branch, Islamic Azad University, Urmia, IRAN 4 MS Student Of Finance Management, Management Department, Miandoab Branch, Islamic Azad University, Miandoab, IRAN 3 MS Student Of Civil Engineering Faculty Of Engineering, Civil Engineering Department, Maragheh Branch, Islamic Azad University, Maragheh, IRAN ABSTRACT According to PMBOK standard, eighth process of project management is risk management. Technique of Earned Value Management (EVM) as well as project planning and control system in recent decades has been widely used. Integration of risk management and earned value management to predict and estimate the cost and time of completion of the project is an effective tool in the management and control of the project. Each of these techniques has at least one key weakness; the main weakness of EVM is focus of this way on predicting future development based on past progresses. The event that has happened in the past is not concerned by risk management; now according to this importance, in this paper outlines two methods and explains benefits of integrating earned value management with risk management in order to achieve maximum performance. INTRODUCTION One of the most effective performance measurement and feedback tools for managing a project is earned value management (EVM). It provides a means to forecast future performance of the project based upon its past performance by utilizing a fundamental principle that patterns and trends in the past can be good predictors of the future. EVM allows the calculation of cost and schedule variances and the forecast of a project’s cost and schedule duration [1]. Although EVM was set-up to follow time and cost, the majority of the research have focused on the cost aspect alone. Nevertheless, EVM provides two well-known schedule performance indices: the schedule variance and the schedule performance. These two measures are useful indicators to analyze a project’s performance; however, they have some problems. For example, they are based on monetary unit and not on time. They can behave in ways that are not normally expected of schedule indicators and predictors. Furthermore, it is also possible that an earned value analysis may show that the project is delayed; on the contrary, the project would be on time. In this study, we consider these aforementioned problems and propose two new methods to resolve them. EVM was introduced by agencies of the U.S. federal government as a part of the control system criteria. Nowadays, it is believed that EVM has many advantages and would control the performance of a project, but there are a few studies on EVM. Lipke [2] developed cost and schedule ratios to manage cost and schedule reserves in projects. Lipke [3] also introduced the earned schedule. Henderson [4,5] studied the applicability and reliability of the earned schedule. Anbari [1] enhanced the effectiveness of earned value implementation. Kim et al. [6] studied the implementation of earned value in different types of organizations and projects. Lipke [7] developed project cost and time performance probabilities. In addition, Vandevoorde and Vanhoucke [8] concluded that the best and the most reliable method to estimate time at completion is the earned schedule method. A new notation for the earned value analysis is presented in Cioffi [9] to make EVM mathematics more transparent and flexible. Lipke et al. [10] provided a reliable forecasting method of the final cost and duration to improve the capability of project managers for making informed decisions. Moslemi-Naeni et al. [11] presented a new fuzzy-based earned value model with the advantage of developing and analyzing the earned value indices and the time and the cost estimates at completion under uncertainty. Pajares and López-Paredes [12] introduced two new metrics for integrating EVM and project risk management methodologies: cost control and schedule control indices. These two indices compare EVM measures with the maximum value that a project should exhibit if the project was running under the risk analysis hypothesis. Moslemi-Naeni and Salehipour [13] developed new indices under fuzzy circumstances and evaluated them using alpha cut method. Acebes et al. [14] proposed a graphical framework for EVM to integrate the dimensions of project cost and schedule with risk management. Hunter et al. [15] focused on the implementation of EVM on the Radiation Belt Storm Probes project to improve cost monitoring and control. Czemplik [16] applied EVM to progress control of construction projects. Recently, some more studies have been published regarding other aspects of EVM [17,18 ,19]. EVM and risk management (RM) encourage the use of management techniques based on the results. Since earned value management and risk management both have been considered to solve similar Published: 1 October 2016 *Corresponding Author Email: ashkan72@rambler.ru Tel.:09143072536