The Research Of The Evaluation Of Highway Network Based On Value Based Management

The planning, construction and operation of the highway network effects China's overall social and economic development directly. However, how to set the development target and how to distribute the resources effectively are become one of the issues requiring urgent solutions in order to maintain rapid development of China's highway network. Centering on the practical application of the theories and methods of Value Based Management (VBM), this paper designs a set of VBM tools and methods of highway network, including the measurement of its value, recognition of its value precursor factors, VBM index system, and method system of enhancing its value. These are important to solve the problems of blind pursuit of mileage and poor effectiveness of the distribution of resources.Based on the review of the related literatures and field survey, with the integration of VBM, Financial Management, Strategy Management, Project Management theories, combining demonstrative research with normative research, quantitative research with qualitative research, using exploratory factor analysis, correlation analysis, regression analysis and so force, this paper carries on the research work below.At the very beginning, this paper reviews the related research literature of theories and methods of VBM, and project management models. As far as the theories and methods of VBM are concerned, firstly the formation condition and meaning of VBM is elaborated. Secondly its tools and methods, such as Discounted Cash Flow, Real Option, Free cash flow, Economic Value Added, and Balanced Score Card are analyzed. Thirdly its main application areas are summarized. As far as project management models are concerned, the advantages and disadvantages of every model are analyzed.Based on these, in the following of this paper, the VBM index system of China's highway network is researched. The VBM theory and method as the theoretical basis of China's highway network and the value maximum target are presented firstly because on one hand, the construction resources are very limited, and on the other hand, the distribution effectiveness is relatively low. Secondly, the portability of VBM in the field of highway network project is proved because almost all the research work is limited to enterprises. The proof is carried out on 3 points. They are the comparison of enterprise and highway network, the characteristics of its value vector, and a case analysis. Thirdly, based on the defining of the concept of the value of highway network, value measurement and precursor factors recognition framework is constructed. Fourthly, based on the screening evaluation indexes, VBM index system and model of China's highway network are constructed. Finally, the index system and model are proved using data of Henan Province.After the measurement of its value and the recognition of its value precursor factors, the value upgrade method system of China's highway network is constructed, including planning & construction period method system and operation period method system. As far as the former one is concerned, based on the analysis of the implementation way of government investment projects, so called agent system, of developed countries and areas and several China's provinces and municipalities, their differences in the links are found out. Then combined with the reality of China's highway network, the questionnaire is designed. And then based on the results of the questionnaire, the planning & construction period value upgrade method system of China's highway network is constructed. As far as the later one is concerned, the way of enhancing its value is to focus the key management on the value precursor factors recognizing through the VBM index system. Therefore, the target of value maximum will be realized.