Cost and Time Analysis Using the Earned Value Concept

Case Study: Muara Badak Hospital Project (Type D), Kutai Kartanegara Regency

Abstract

The construction of public infrastructure, particularly healthcare facilities, is a strategic priority in improving community welfare. One significant project in this sector is the development of the Type D Muara Badak Hospital in Kutai Kartanegara Regency, East Kalimantan. This project aims to enhance access to healthcare services in line with the growing needs of the population. However, a major challenge in its implementation lies in the effective management of cost and time. This study aims to evaluate the project’s performance in terms of cost and time using the Earned Value Management (EVM) approach. This method enables performance measurement through indicators such as Planned Value (PV), Earned Value (EV), Actual Cost (AC), Cost Performance Index (CPI), and Schedule Performance Index (SPI). Data were collected from project documents, including the time schedule, weekly reports, and the Bill of Quantities (BOQ), and were analyzed systematically. The analysis results indicate that the project's cost performance is inefficient, as evidenced by CPI values mostly falling below 1, indicating budget overruns. On the other hand, the project’s schedule performance showed fluctuations, with the SPI declining in the fourth month but significantly improving in the fifth month. The Estimate at Completion (EAC) revealed a notable delay in project completion, although improvements were observed in the final months of the reporting period. These findings highlight the importance of more consistent cost and time control throughout the project lifecycle. The application of EVM has proven effective in providing a comprehensive overview of project performance and in supporting decision-making for improvements and risk mitigation in the execution of healthcare facility projects.