The Application Research Of Earned Value Principle In Program Purchasing Management Of Automobile Enterprise

Accompanying with the globalization of automobile industry, Chinese automobile enterprises face to the great opportunities and the challenges. To be able to develop the product efficiently, the program purchasing management (PPM) is needed to control the purchased cost as well as the vendor's development timing to fulfill program requirement. The article is to apply the Earned Value Concept into program purchasing management, optimizing program purchasing cost and schedule control.Firstly the background, content and method etc of Earned Value Concept in the article is studied, and the key to application of Earned Concept is summarized. Secondly Shanghai General Motors'new product development process is analyzed on the weakness of current program purchasing business module of chained cost and schedule management, and the cutting in point of Earned Value Concept in the program purchasing management is found. Thirdly via the detail introduction on the setup procedure of earned value model of program purchasing management, the application of program purchasing management is researched in details, and the earned value module is achieved to combine the multiple program management technology like cost-to-schedule, CPI & SV and TPM with the practical business model, the program purchasing earned value management system is setup in company, which is the combined cost and schedule control on vendor tooling development, improving the efficiency of vendor tool cash flow and capability of risk management.The program purchasing management is applied in the Park Avenue Vehicle Program for the first time, providing the sample analysis of earned value module. With the information calculated by earned value module, the execution efficiency of purchasing program management is improved, the program cost and schedule risk is decreased, and the data bank of program purchasing management is fulfilled with the formed earned value statistics data, the measurable data is provided to assess the program purchasing management performance.