Introducing multivariate process capability indices and sigma quality level for simultaneous monitoring of earned value management indices

This study presented an approach to implement multivariate statistical process control (SPC) techniques to determine action limits on the earned value management (EVM) indices to assist project managers in monitoring project performance. These indices are correlated and reliance on univariate control charts when more than one variable are involved and they are correlated may lead to unsatisfactory results such as increasing the rate of false alarms. In this regard, process capability indices (PCIs) are statistic indicators widely acceptable in the industry to evaluate and describe the capability of a process. In this paper, some practical multivariate PCIs are introduced to quantify how well a project can meet its requirements. Furthermore, one of the main purposes of applying SPC is to determine whether the process is in or out of control in order to reach the Six Sigma quality level. Therefore, one of the most practical measures introduced in this paper is the estimated Sigma Quality Level (SQL); which is an index of the level of quality for the process developed as part of the Six Sigma protocol. These approaches provide management with more reliable information about the deviations between planned and actual performance both in terms of time and cost simultaneously.

Keywords:

Statistical process control , Project performance indices , Earned value management , Multivariate control chart , Process capability indices , Sigma Quality Level.