Research On Project Cost Control Based On Earned Value Method Of Crtical Path

As a great contribution to the economic and social development in China, construction project speed up the urbanization process. Due to the Complex scale, long duration and generally irreversible, project management has a direct bearing on future earnings as well as the core competitiveness of the enterprise. Cost and schedule of the project are important targets to the management system. As a widely accepted means of project management, using earned value method in cost control can improve the efficiency of management of engineering projects. So this paper focuses on using EVM based on critical path to monitor the project operation process which can achieve integrated management in cost and schedule.The content of this paper is mainly divided into the following several parts:The first part is the introduction, including the basis topics, the research background, the research objective and research meaning o This paper summarized the related research status at home and abroad, expounded the main content ideas and methods, presents the technology roadmap. This paper introduces the research of scholars both at home and abroad which include earned value theory, project integrated cost control theory and whole life cycle cost control theory. These theories laid a foundation for the project cost/schedule control.Second, this paper introduces the problem of traditional engineering project cost control in our country. This paper compare the earned value theory and the traditional cost control and draw the conclusion:earned value management having the following advantages:simple operation timely, integrated control schedule and cost, easy to predict the late project status. This section analysis the uniqueness of the project cost control based on CPM and put forward the principles in using this method. Nest this paper constructs the EVM process based on the critical path and detail the principle and process design of EVM. This paper also introduces the steps in project management based on the critical path which includes drawing up WBS, confirming EV measurement standard, determine the critical path of work, calculating indicators,analysis and correction of deviation. This method is used by setting the specific case at last.Finally, this paper control the cost and schedule of a decorating project by the EVM based on critical path which is constructed by the previous chapters. This method strengthens the implementation process of cost control in order to monitor the operation of the project dynamically. Once project appear problems, management must analyze and put forward corrective measures immediately in order to improve the efficiency of the earned value management. So Project managers can complete the case project in an ideal state.The above studies show that:this paper improves the earned value method for monitoring cost-schedule of engineering project. Nest this paper proposes the earned value analysis method based on the critical path in order to control the project cost scientifically and improve the level of project management. There are some shortages in using this method, so researchers should focus on the problem in the future.