Study On Engineering Project Cost Performance Management Mechanism

Based on business cost management theory and with applications to Bohan Company's project management real business demand, this paper establishes a cost performance management mechanism using project units, designs corresponding management scenarios, cost data analysis and processing algorithm, and discusses development of a cost performance management system as its software supporting tool.The project cost performance management mechanism designed in this paper relies on massive cost basic data collecting and processing, the cost data required is more detailed and specified than traditional accounting cost data. This analysis method used in project cost performance focuses on estimating each project's task resources using efficiency and cost efficiency, which is completed by cost difference analysis algorithm. The estimating results can provide clear and definite quantitative index for project managers to know about the project's cost change trend and conduct cost control. Through solving systems of linear equations, this method can complete many areas of cost distribution from non-productive cost to each project's cost, making it more scientific and accurate than traditional methods in general accounting system.This paper gives amply discussion and analysis of the above methods. First, it analyzes domestic project type company's cost management demand and target, briefly describes the planned project cost performance management scenario's frame. Then, it discusses in detail the following tasks which needed to be realized:cost basic data management task, cost difference analysis algorithm, flexible budget generation algorithm, and how to scientifically and reasonable distribute the company's headquarter level service cost fee to each engineering project. This scenario has been passed primary implementation and showed positive effect. It can give more actual cost information than traditional accounting system, and especially from cross -cost distribution calculation and cost difference analysis, it can help project managers acquire more comprehensive cost trends and influent effects, so that they can make more scientific and reasonable management decisions.