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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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Abstract


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.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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