Research On Project Cost Control Based On Improved Earned Value Analysis

With the development of the economy,the modern project is becoming more and more complex.As a result,the project's management and control become cornerstone in the development of the enterprise.As the economic benefit of the project is determined by the cost control,the managers of enterprises are constantly looking for more scientific and reasonable cost control methods.The earned value analysis,which put aside the single cost calculation and carried out the comprehensive project cost control through the combination of cost and progress with the earned value,three parameters and four main indicators,has been widely used since introduced to China.However,the traditional earned value analysis does not take account of the bias effect caused by the different weight of the process chain from the perspective of the whole project,as well as the influence of constraints theory and human behavior factor;it cannot reflect and monitor the actual progress of the project.Also,the deviation state cannot be taken to take specific corrective measures.This paper introduces the idea of critical chain and combines AHP method to improve the earned value analysis.The improved earned value analysis is used to research the cost control of project effectively,so as to provide some reference for improving the earned value analysis and application of project managers.In the study based on the basic principle of the earned value analysis,WBS is firstly used to decompose the tasks and get the responsibilities center of project.And then introduce the key chain method to improve the defects of traditional earned value analysis,according to the logical relationship between resource allocations to identify the key chain.The data is recorded in detail by choosing the appropriate observation point,two links' earned value analysis combined with the consumption of buffer,to judge the impact of non-critical chain and the actual deviation state.Next,AHP is combined to improve the shortcomings of the traditional earned value analysis,according to Delphi method to determine the relationship between cost factors and responsibility center,the weight ratio and construction of hierarchical structure model is used to analyze the main reason and the relevant leader and the deviations caused.Finally,basing on the results of analysis,in view of the large priority number,the key cost factors are managed and the appropriate measures are taken to carry out to control cost effectively,and strengthen the prevention measures for other factors.The paper is to improve the traditional earned value analysis by the combination of qualitative and quantitative methods.Through the analysis of earned value and buffer consumption of the two links,the accurate deviation status of the project is determined and further decomposed to obtain the specific cost impact factors and responsibility center,according to the principle of unity of power and responsibility to take reasonable remedial measures.And the improved method is applied in the cost analysis of the complex real estate projects,it not only provides guidance for project managers from the operational level,but also compared that the improved earned value method is effective and practical in the project cost control through the comparison with the traditional method.