| The execution of engineering project is a very complicated system work, there should be internal impersonality regulation, the suitable management organization should be applied during project execution. General speaking, international client don't management project directly by himself but entrust a EPC or PMC company to complete his job in order to get a better objective. Project manage model of EPC and PMC have been applied in many of foreign invest project in domestic market. The international project consult company has his unique standard procedure, code, and tool to manage the project, such as EVM (earned value management) , The EVM project management tool was developed by U.S in 70s last century, and got successful using in Ministry of Defenses, later, EVM tool was widely used in other industrial sector. In 80s last century, nearly all of international project consultant company have used EVM criteria to control project, at the same time, the EVM principle was improved a lot in basic job during project execution. EVM is a very useful tool in progress and cost control. Some of clients evaluate one of contractor is qualify or not and select a contractor is based on whether contractor use EVM to control project or not, EVM has become precondition if want to pass qualification examination. From 90s last century to now, there are no other tools to replace EVM for schedule and cost control. Project schedule and cost control by EVM principle can avoid the defect of schedule and cost control separately, that's say, if we find the cost overrun, it is difficult to judge cost over budget or progress over schedule. Because some time, ahead of schedule may create work quantity increase, so the cost over budget. On the other hand, if we find the cost under budget, it is also difficult to judge whether save money or lag of schedule, because lag of schedule can also create cost under the budget. With China entry WTO, the door will be opened bigger and bigger, many of local company go abroad and attend competition with international company, at the same time, many of oversea company entry Chinese market, including the international famous engineering company, such as Bechtel, Flour Daniel, Amac, JGC, Toyo ,Technip etc. A good opportunity have been provided to study their experience and advance management concept at this status. All Chinese people engage project management activities have a eager to study the advance knowledge / skill and experience to improve their management capability. This thesis include EVM definition, 32 EVM criteria and the condition of EVM principle application. As a example on BOC project, we introduce Work Breakdown Structure WBS , Schedule Making, and Cost Estimation, at last, we describe how to use EVM principle to create three most importation cures, BCWS, BCWP, ACWP cures, and provide analysis method for the curve reference, periodically provide the assessment of the project operation status, adjust project management decision for getting the milestone within the budget Before we use EVM principle to control schedule and cost, we should finish following job to build EVM basement foundation : First, build Work Breakdown Structure WBS and it's code system, after the job was brokendown, it look like a pyramid structure, the summary work activity is on the top of pyramid, and under the top is area, phase, discipline, activity until to the bottom of pyramid. Second, make project schedule. According to work sequence and relationship between every activity, use barchart skill to define critical routing, and create project schedule finally, the schedule should include milestone schedule, mast schedule and detail schedule, all level schedule should match project operation procedure. Third, fix the unit rate of manhour and budget. According to WBS and it's code,...
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