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Cost Control Study Based on the "Earned Value Method" in the Construction of XueShiqiao Transformer Substation

Author: RanHuaBing
Tutor: MaChaoQun
School: Hunan University
Course: MBA
Keywords: Project Management Earned value Method Cost Control Process Control
CLC: F224
Type: Master's thesis
Year: 2008
Downloads: 235
Quote: 0
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Executive Summary

Nowadays the reform of national electric power system is further in advance which makes the competition that electric power construction enterprises are confronted with is more and more vigorous. In addition to policy, market and other external factors, it is the root reason which the cost is out of control and the economic efficiency of enterprises is dropping that self-management of the electric power construction business enterprises is weak, and the controlling means fall behind, and materials are wasted seriously. Therefore, we shall strengthen the power in cost control of project management at present that it is to actively adapt to the rules of the WTO requirements and to benefit from scientific management of specific initiatives.First and foremost, we shall take the theory and application of cost control in the project management at home and abroad for the research background under the grim situation that we are always never solving the problem that the cost is out of control in the electric power construction, and take XueShiqiao Transformer Substation for example, in which we introduce“earned value method”, a effective method of cost control, which are usually used for measuring and monitoring the cost and schedule of the construction comprehensively. Secondly, we shall associate cost control with schedule control and analyze the objectives of the cost and the schedule control with the factors which Influence the control, then introduce "earned value method" to link up with the cost control and process. In the end, we’ll make a deep study of the issues of cost control and put forward the solutions and guarantee proposal, and integrate closely the proposal of cost control and the project management of the enterprise together and upgrade the overall power of the core business competitiveness of the electric power construction enterprise in order to achieve an objective of maximize the overall efficiency.Cost control is an important component of cost management of the project, of which the most important implementation is to integrated control costs and the progress of the construction. In the article, we shall monitor and analyze the indicators and parameters timely, such as Budget Cost of Work Scheduled (BCWS) and Actual Cost of Work Performed (ACWP) and Budget Cost of Work Performed (BCWP) and so on, to get command of the situation and directions of the cost and schedule development of the construction, moreover, we shall take a lot of effective measures to rectify the deviation so as to make the cost and process in the benchmark rangeTherefore, we should find out the optimal solution of the cost management in thecondition of guarantee the quality of the project.

Full-text Catalog

Abstract     5-6
Abstract     6-13
Chapter 1 Introduction     13-25
1.1 topics of the background and significance     13-14
1.1.1 Background     13-14
1.1.2 Significance     14
1.2 Literature Review     14-24
1.2.1 project management knowledge system development status     14-16
1.2.2 abroad, project management, cost control, status and advanced experience     16-17
1.2.3 domestic project management cost control of the status quo and advanced experience     17-19
1.2.4 development and the basic principles of earned value method     19-24
1.3 research ideas and research     24-25
1.3.1 research ideas     24
1.3.2 research     24-25
Chapter 2
Xue-shi Bridge substation civil works projects Cost Management and Analysis     25-41
2.1 Company substation civil works project profiles and characteristics     25-28
2.1.1 Company substation civil works project profiles     25-26
2.1.2 Company substation civil works project characteristics     26-28
2.2 Xue-shi Bridge Substation Civil Construction Project Overview     28-33
2.2.1 Project Description     28
2.2.2 construction projects by the participating units     28-29
2.2.3 size of the project     29
2.2.4 engineering characteristics     29-30
2.2.5 Project Department Organization
relationship     30
2.2.6 building the main works     30
2.2.7 project management, the goals     30-33
2.3 Xue-shi Bridge substation civil works project schedule Gantt chart and network schedule     33-36
2.3.1 Xue-shi Bridge substation civil works project schedule     33
2.3.2 Xue-shi Bridge substation civil works project network plan     33
2.3.3 Xue-shi Bridge substation civil works project progress with the problem of network planning     33-36
2.4 Substation Civil Construction Project Cost Management and the problems     36-41
2.4.1 Substation Civil Construction Project Cost Management     36-37
2.4.2 substation civil works project cost management problems     37-40
2.4.3 Xue-shi Bridge substation civil works project cost under control of the formation mechanism     40-41
Chapter 3 based on the earned value method, Xue-shi Bridge substation civil works project cost management and control     41-63
3.1 Xue-shi Bridge substation civil works project cost structure and control principle     41-45
3.1.1 Xue-shi Bridge substation civil works project costs constitute     41-43
3.1.2 Xue-shi Bridge substation civil works project cost control principles     43-45
3.2 Earned Value method in the application of Xue-shi Bridge substation civil works project cost control steps     45-51
3.2.1 to establish a unified work breakdown structure and project responsibilities breakdown structure     45
3.2.2 to establish the progress of the benchmarks of the cost of completion of     45
3.2.3 Earned Value method of index calculation     45-46
3.2.4 earn the value of deviation analysis     46-48
3.2.5 cause of the deviation analysis     48-49
3.2.6 to take corrective measures     49-51
3.3 earned value method for control of the monthly cost of the school official Bridge substation civil works projects     51-57
3.3.1 application of earned value analysis of basic assumptions and the control angle     51
3.3.2 unit project target cost established     51
3.3.3 the work breakdown structure to establish     51
3.3.4 allocation of responsibilities matrix of the establishment of     51-54
3.3.5 Control Building schedule adjustment     54-56
3.3.6 the monthly cost of the master floor plan     56
3.3.7 cost savings, control measures     56-57
3.3.8 progress control plan     57
3.4 earned value method for project management of the school official bridge substation civil and effect evaluation     57-63
data calculated in the earned value method
3.4.1 March     57-58
3.4.2 progress, cost variance analysis     58-59
3.4.3 Control Improvement measures     59
3.4.4 Control Building project construction phase for each month the earned value curve table     59-62
3.4.5 use the earned value method before and after the effect of contrast     62-63
Chapter 4, based on the earned value method of cost control and project management of the implementation of protection     63-67
4.1 strengthen the organization and management     63-64
4.1.1 reasonably determine the project manager organizational structure     63-64
4.1.2 play to the initiative of the production management personnel     64
4.2 to strengthen quality management, quality control costs     64-65
4.2.1 reduce rework, downtime losses     64-
4.2.2 to reduce the quality of the excess expenditure     64-65
4.2.3 control the additional losses caused by inferior materials     65
4.2.4 increase the cost of prevention, and strengthen the sense of quality     65
4.3 inspire the project team combat effectiveness     65-67
4.3.1 to improve the working environment     65
4.3.2 to strengthen the work of the early work of training     65-66
4.3.3 for a team to constructive activities     66
4.3.4 to take effective recognition and reward system     66-67
conclusions     67-69
Appendix A goal of the project unit cost calculation table     69-75
Appendix B of the
Hunan Province, Transmission and Distribution Construction Company     75-76
References     76-79
Acknowledgements     79

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