An Application Study Of Finance Control On Project Management

With strong competition and the carrier of the enterprise developing, Project Management has become the basic assurance of existence of companies. The level of PM is relatively low in our country, and this situation is mainly caused by the financial factors. The correlative research shows that the cost overspending is widely exist in the PM, and nearly 55% of project cost overspend its budget, only less than 50% of them can meet its object cost. So it is urgently and significatively to analyze the financial issue in PM.Base on the research of PM and FM, we find the cross point of both theory, and introduce the PM method to develop the FM method. We learned relation between financial control and PM, and then decide to apply the financial control method and value index to the PM to improve the level of PM and make the both object to be consistent with each other. This article made contributes to reformance of traditional PM system.Normative research and case analysis are the major methods in this article. Based on the modern accountant theory, the author not only integrated the conclusion of PM study & practice all over the world, but also absorbed the achievements of modern PM theory, motivation theory as well as company financial theory. According to the reality and economic situation of our country, the author studied the financial control in PM from two aspects.There are some shortcomings in this article yet. Firstly, there is no case analysis of project risk control since the limitation of the information. Secondly, because of the less information of Boeing 777 that the author can get, the author can not do the project financial analysis much detailedly and drastically. Thirdly, the author do not introduce devised cost control method in detail, especially the parameter model since its less use in financial control.