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Earned Value Management in Cost Control of RFID Project

Author: XuYong
Tutor: ZhangAiXin
School: Shanghai Jiaotong University
Course: Project Management
Keywords: RFID Project Management Cost Management Earned Value Management Quality Value Management
CLC: F275
Type: Master's thesis
Year: 2011
Downloads: 101
Quote: 1
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Abstract


As the continuous development of modern management science, project management has been utilized into the daily work of apparel industry. Cost management is a fundamental part of the project, it is an unavoidable path to achieve success through sound cost management. The thesis raises the research topic of how to effectively control and reduce the project cost by advanced cost management.Earned Value Management (EVM) is a comprehensive method to fully measure the implementation situation of the project procedure and cost. EVM overcomes the difference caused from the cost and procedure control, measures the progress status by the project result transferred from the capital. It clarifies the implementation status by three basic parameters:Planned Value, Earned Value and Actual Cost, and applies Variance Analysis and Performance Index Analysis to measure the individual variation in project duration and project cost and the consequent impact due to the variation. But there is also some limitation in traditional EVM, because it overlooks the internal connection and impact between quality level and cost and procedure. Towards above questions and based on the deep study of EVM’s basic theory and analysis method, by implementing Quality Cost Index, the thesis restructure the index system of EVM and implement it into the actual management of YongQing Company RFID project.The fact proves that the progress and cost are effectively controlled by the implementation of Quality EVM, and it assists the successful implementation of the RFID project of YongQing Company. During the actual procedure, we found some issues as well, e.g. the Dependence of EVM to project plan, the Independence of EVM to cost and progress analysis, the Variation of cost, the issue of Calculation and Analysis of EVM and the Inaccuracy of forecast progress etc. The thesis analyzed the reason of these issues and raised relative solutions. The outcome of the thesis proves that the Quality EVM could effectively and scientifically control the project progress, cost and quality, which is an effective cost management method.

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