Anguo Digital Chinese Medicine Project Cost Management Research

In recent years,with the popularity of PPP projects,the implementation of replacing business tax with value-added tax in construction industry and the introduction of the 13 th five-year plan of construction industry,it is necessary to break the barriers of regional market access,change the way of bidding and tendering and standardize the market competition environment.As a result,the competition among construction enterprises will become more intense.Therefore,the only way to maintain the healthy and sustainable development of the construction industry is to strengthen the cost management of construction projects in order to reduce cost and increase efficiency.Hebei Construction Engineering Group,where I work,is an enterprise of construction.The rise and fall of the enterprise has a decisive influence on myself.For my company to survive in the fierce market competition and achieve better development,the key factor is enhanced project cost management ability.However,there is still a large room for the company to improve in this aspect.From the perspective of total factor target cost management,this paper studies relevant theories and makes a case analysis by combining the cost management of the Anguo Digital Chinese Medicine Project constructed by Hebei Construction Engineering Group.The paper adopts the following methods: literature research,individual interview,field research,case analysis and earned value analysis.The project data in the paper are provided by the construction project department and related departments.Through the application of total factor objective cost management method in the project,the project's cost management level has been significantly promoted and the cost management effect is remarkable.When this method was applied in the Anguo Digital Chinese Medicine Project,it was found that it needs a relatively standard cost management system in enterprises,sufficient high-quality construction management personnel and better cost consciousness.The application of information technology enables this method to play a greater role.The thesis consists of six parts.The first part is the introduction,which expounds the background and significance of the research in the thesis,as well as the current research status,research contents and research methods in the filed of cost management at home and abroad.The second part is about the construction project cost management theory,which is a detailed description of construction project related management theories.The third part analyzes the current situation of cost management of Anguo Digital Chinese Medicine Project,including project overview,organizational structure,cost management process,current situation of cost management,major problems and their causes in cost management.The fourth part is the study on the cost management of Anguo Digital Chinese Medicine Project based on whole factors,including the formulation and implementation of the whole factor target cost in the project,analysis on the difference between budget cost and target cost based on “Earned Value” and optimized measures from perspectives of duration,safety and quality etc.The fifth part is the countermeasures and suggestions of the cost management of Anguo Digital Chinese Medicine Project,with the aim to solve problems in cost management in an effective way and summarize best practices and lessons learnt.The sixth part is the conclusion and prospect,to sum up this paper and conclude its merits and shortcomings.