Research On Improvement Of The Theory And Methods Of Project Earned Value Management

Project integration management is an very important area in project management. However, the inadequate tools and techniques have impeded the development of the theory. Therefore, we need to do further research of it.Among the theories of project integration management, project earned value management is the comparatively mature. By introducing intermediate variable of 'earned value', project earned value management integrates the management of project schedule and cost. To be more specific, at the moment of project measurement, we obtain the information of project progress by comparing the planned cost and the earned value and information of cost by comparing actual cost and earned value. One the result, corresponding methods are taken to integratedly management the project time and cost in order to achieve the goals of project cost and time. Project earned value management has been accepted widely in project management practice, yet problem still remains in this area.Project earned value management theory and method were developed by U.S. Department of Defense for the need of national defense projects. The strict quality and time regulations of national defense projects make the project earned value management theory and method have a premise that project quality and schedule are of the highest priority. This premise is conformed to the similar projects in which project time is the most important. However, in projects where project cost is more or as same important with time, it is not the case. From the analysis, we see the problems exist in the theory. This paper develops a universal method which satisfies project time and cost integration management demand at the basis of fully understanding the principle of project earned value management, history of theory development and recent research results. The research concludes the basic theory and core viewpoint of the Earned Value Management and analyzes the problems of existing theory and method of project earned value management using systemic principle and method with the normative methodology. Comparing research method is used to analyze project complexion in different assumptions; theoretical evolvement method is used to develop the theory and method of Earned Value Management for all projects; and case study is used to prove the conclusion. So this research is a complexity system research of different specialty.The paper brings forward integration management principles based on configuration relationship and the integration method of step by step. The paper also analyzes the restrictions to the existing earned value management theory and researches the most important and basic four areas which are on the base of the certain quality. The four areas are as follow:the cost and schedule indicators of Project Earned Value Management, improvement of the Project Earned Value Management performance measurement baseline, improvement of project management earned value forecasting method.and the method of establishing project data structures.The main results and innovation of the research are as follow:1. Update the assumptions of existing Project Earned Value Management theoryAlthough the current definition of the Project Earned Value Management is an integration management method about project cost, schedule and quality, it is substantively a method of project cost management under the certain schedule and quality. The research sets both project cost and schedule as flexible and variable, that is, according to the specific circumstances of the project, we can manage integratedly project in term of the configuration relationship of the project cost and schedule. The improvement of theory premise is a fundamental innovation for the existing Earned Value Management theoretical system.2. Update and interpret further the cost and schedule indicators of the Project Earned Value ManagementThe cost indicators and schedule indicators are the base of Project Earned Value Management. Because of the premise of set project schedule in the existing theory the schedule indicators dependent on cost indicators to measure, which makes many problems. The existing schedule indicators can't measure the project progress accurately. This research proposes new schedule indicators which can easily measure and forecast project schedule. It will help project managers analyze and make decision availability. The unattached schedule indicators and cost indicators compose the base of the project cost/schedule integration management. The paper also improvement the cost indicator for a more scientific picture of project cost information.3. innovation of the method for project performance measurement baselineProject Earned Value Management performance measurement baseline is not only the base of project control,but also a very important research topic for project management researchers. The Project Earned Value Management method requirements for detailed plan, while project is uncertainty inherently. The contradiction makes it very difficult to establish a veracious baseline. The research develops new approach to establish the initial baseline and modify the baseline as the progress of progress and change. It is an important innovation and additions to the existing methods.4. Innovation for forecast method of Project Earned Value ManagementProject Forecast is a very important function of Project Earned Value Management, we can prepare project resources and decisions in advance in we can forecast precisely the future status of the project. The research develops the forecast method which is on the base of tracking assessment and uncertainty analysis of the project, and further proposes new indicators which combining cumulate indicators and dynamic indicators so as to forecast project future cost and schedule more accurate and scientific.In short, this paper put forward the new theory premise which is the base of the four main aspects above and make great improvement for Project Earned Value Management theory and methods.