Study On The Project Cost Management System Based On PDCA

Along with the social economy development, the enterprise faced with more and more drastic competition that benefits increasing by reduceing cost is becoming more of a concern. The effect of cost management is always not very well because of the limitation of the traditional methods in reducing the cost.So it have already become inevitable trend to establish perfect cost management system of construction project based on morden science technique and management method to carry on an overall and effective cost managementThrough analyzing the theory of project cost management, this article establishes and perfect the project cost management system by applying PDCA circulating theory into project cost management. This system integrates every key link of project cost management to form an organic system that carries out from establishing of construction item cost target to cost target. The managers can carry on meticulous analysis and effective direct control to each link according to the system, and they can find and solve problems every time as well as tally up experience in order to guide the cost management of aftertime work.While discussing the cost management, this article gives attention to other managements' influences toward cost which including quality, progress, and risk management. It puts forward a practical effective management method after analyzing the mechanism of the influence of them.According to the engineering example, this article establishes project cost management system suitible for the enterprise and it calculates and controls the cost by using mathematics method of science to manage each link while the system is in operation. At the same time, it discusses how to carry on an effective management to the influence of the cost quality cost, progress cost and the risk cost upon the total cost. In this part the author enriches the mathematics method of cost management by creating 3-D Earned Value Method and Value Net Method by refer to the traditional Earned Value Method and Value Chain Method that is more convenient, accurate and effective when application.