Production Cost Management under Loop and re-work Conditions Using GERT Network

A b s t r a c t : Cost management using Earned Value Management (EVM) has been extensively applied by many researchers. However, the EVM requires a reliable schedule which in standard EVM loop and re-works can not taken into EVM based calculations. However, in real case projects, reworks is often un-avoidable. Therefore a need for developing a cost management model under re-work is highly desirable which is considered in this paper. Also, in this research a well organized mechanism for managing production costs has developed where loop and re-works are un-limitedly allowed. The approach is implemented through a case and the results show a robust production cost management system which is compared with the deterministic models.