A Study On Cost Control For Engineering Project Based On Earned Value Management

The main purpose of this paper is to study earned value system and to optimize theirtheory, and use it in the process of the project cost control, thus improving the efficiencyof project cost control. The Project profit and loss is closely related to the level of costcontrol.Through a series of management work, the ultimate goal is to to get a good socialand economic benefits for any project, so do a good job of cost control is an important partof project management.Firstly, this paper describes the background, significance, research status and contentsand methods, explain the cost control theory and related concepts, describes the elementsof the construction of the project cost and the process of the project cost control, content,methods, in order to laid the foundation for this research.Secondly, this paper introduce the earned value method system, and compare it withthe traditional cost-control method, highlighting the advantages of the earned valuemethod of cost management.Then,it indicates some shortcomings of the traditional earnedvalue method, and by introducing two earned value system, establishing a new earnedvalue system which is at the core of the cost-schedule-quality, correcting the Earnedvalue in order to optimize the earned value theory.Thirdly, this paper apply the earned value method to project cost control, andanalysis the project costs by static and dynamic analysis of earned value. The use ofstatic earned value management is to architecture the cost control system for the entireproject structure, and to use the earned value formula calculating the cost of the projectimplementation phase. The use of dynamic earned value management is to establishmentthe monitoring system of cost-schedule-quality monitoring the implementation of thedeviation, then to deviation analysis, real-time correction in order to ensure that theexpenditure of the project cost control is always in range.Finally, the empirical analysise indicate that it is important to improve projectmanagement capacity by setting up cost control system and strengthening theimplementation.IN the case, the contractor-based project management team design astrictly residential project cost control procedures, with the month as baseline, to real-timemonitoring, timely correction, eventually finished the project Successfully.