Research And Application On Project Cost Control Based On Improved Earned Value Method

Under the intense competition from the market economy and the complex environment of uncertainty, the project management is facing enormous challenges, except for the technology, schedule and the safety pressure, how to effectively control the completion of operations related to the project construction cost-effective projects has become the most urgent needs to the project managers. And as the prerequisite and the foundation of the cost control, the project cost control process is very important, it has become an urgent subject to solve for the academic and project builders.Based on the deep study of the present main method of the project cost control—the statistical nature of the earned value, the essay explored the present basic parameters of the earned value and cost index system deeply, constructed optimization parameters and better index system of the improved earned value method, and then put forward the dynamic flow of the cost control based on the improved earned value method. Finally, It appliance and validate in one project, and demonstrate the feasibility and effectiveness of the improved earned value method in project cost control.First, the essay analyze the research of the pr cost control and earned value method of domestic and foreign, and study the theory of the project cost control and earned value method, to provide the theoretical support of improving the earned value method.Second, constract the project cost control index system based on the improvement of the earned value method. Above all, aim at the contractors'need to plan for the project to monitor the specific requirements of the profit, constract the evaluated index of contractors'planning profit. Then, by studying the reasons of the shortcomings of the traditional earned value and cost of evaluation index system, we constract the unit cost deviation indicator, unit cost performance indicator, the total cost of deviation indicator and the total cost of performance indicator. Finally, constract the cost control index system of the improved earned value method, state analysis of indicators of project costs and make the corresponding combination of control strategy development.Third, according to the proposed improved earned value, propose the project cost control process, and by dynamic contrast analysis of the cost index based on the improved earned value, to achieve the qualitative evaluation of the effectiveness of the former cost control measures.Fourth, take a construction project for example, to illustrate the cost control in project implementation and application basing on the improved earned value method, and make a comparative analysis of the Application, and make a preliminary verification of the feasibility and effectiveness.