Study On Cost Management Of Paint-plant Construction Projects Based On The Earned Value Methoed

Paint-plant, one of the four components for a typical car-plant, is normally done by an experienced professional general contractor with a turnkey contract. At present there are not so many competitors in this sub-industry so the market competition is not yet fierce or intense. However, as the auto industry as well as upstream-downstream industries are supposed to slow down after continuously rapid growth, most likely the paint-plant construction projects will gradually enter a meager profit era, so the cost management is facing severe challenges, and the general contractors of paint-plant construction projects need to pay more attention to cost management. Thus it is necessary and important for a paint-plant system engineering enterprise to establish a reasonable cost management and monitoring mechanism under such a new operating environment.We take a Chinese subsidiary of a multinational company as the study object and support resource, discuss the current situation of project cost management in this industry and enterprise, analyze the problems existed and indicate that they can be solved by earned value method. Afterwards we integrate the EVM into cost management, classify the the paint-plant construction project costs into certain types: labor cost, production cost, bid-pack cost and purchase parts cost, with those premises we studied how to measure the earned value parameters and how to forecast the future of a project, including the EAC and midterm cost prediction. Consequently an earned value management system is built for improving the cost management of paint-plant construction projects. Furthermore, we have finished a case study with a sample project to demonstrate the system's validity and feasibility.