Research On Earned Value Method In Cost Control Under EPCM Management Mode

With slowing economic development,the competition in the enterprises is more and more fierce.For profit growth,cost control is essential for company development.It is also same essential for project control and cost management within the project.This thesis intends to use earned value method of cost management to control and forecast project total cost.Based on the various indexes analysis,it shows that Earned Value Method is more effective to monitor and control project cost during project execution phase in actual EPCM project.Deviations of plan value and actual value could show the real project execution status.Monte Carlo simulation method incorporates into the actual performance date from earned value management and forecasts project EAC.A merit of this method is that it not only can make more exactly prediction of project total cost,and it is not affected by uncertain factors.Throughout the study of cost control method and earned value method,this thesis concludes that Earned Value method can show cost and schedule deviation.The Monte Carlo simulation method can predict total cost of project with reasonable accuracy.Thus,project management team could assess the status of project in terms of time and cost,and propose correct approaches to improve project cost management.