Research On Cost Control Of JM Company Based On Earned Value Management

Under the climax of the real estate,the building industry has developed rapidly and the competition in the building market has entered the perfervid condition.Wherein,the whole building enterprise has constantly optimized its institutional framework and products in order to seek for survival,besides,the fierce competition has caused the increasingly complex survival environment of the enterprise,especially the construction enterprise faces the problem of bankruptcy under the fierce competition.Therefore,the construction enterprise should improve its own comprehensive strength and competitiveness under this background and occupy the favorable market position thus to keep a foothold and develop in the fierce competition.The premise for the construction enterprise to improve its own competitiveness is to obtain profitability,wherein,reducing the cost of the construction project is the key channel to improve the competitiveness as well as the guarantee for the enterprise to optimize the management system.However,most construction enterprises in domestic adopt the simple cost control methods currently,and they even can not reduce the costs,which causes the little profitability or the forced termination of the construction.Therefore,the scientific and reasonable cost control method can effectively reduce the cost of the construction enterprise thus to guarantee the corporate profitability and enhance the core competitiveness of the enterprise.The paper continues to discuss how to establish effective cost control method to enhance the core competitiveness of the enterprise.Therefore,the paper,starting from the related theories on the cost control of the construction projects,expounds systematically,especially expounds the influencing factors and concept of cost control,historical development and core contents,and then introduces the cost control methods of the construction project.Next,introduce an important earned value cost control theory,including the feasibility,application cases,application advantages and disadvantages of the earned value,and also including the mathematical model analysis,application principle and theoretical basis of the method.In the mathematical model analysis of the Earned Value Management,mainly introduce the criterion of analysis and root of budget deviation,and then make prospect on the future application of the Earned Value Management controlling the construction project cost.In order to further expound the application of the Earned ValueManagement cost control,the paper also takes JM Company as an example,based on the case analysis,represent the applications of the Earned Value Management and provide feasible practical methods.The application of the Earned Value Management is not limited to one stage of the construction project but lies in all cost control.Therefore,the supervision management and specific application process of the Earned Value Management in different stages are different,which should be researched aiming at different stages.The paper systematically analyzes the deficiencies and defects existed in the construction project cost control by applying the Earned Value Management of the real estate company.In addition,based on analyzing the specific process and methods of the Earned Value Management controlling the construction project cost,put forward the feasible countermeasures on improving the efficiency of the method.