The Study Of Schedule And Cost Based On Earned Value Methodology In Project Management

Earned Value method of modern project management body of knowledge is originated from the"Cost/Schedule Control System Criteria", which was put forward by the Department of Defense (DOD) of USA in 1967. The cost and schedule of project are integrated by this method. Compared with the traditional method of project management, Earned Value method is a practical way,Earned Value Method (EVM) is a schedule-cost-combined performance appraised method in international project management. This method can measure and reflect completely project condition. This theory can be simply generalized that we can evaluate project implementation by a mount of money. And according to compare the cumulative value of the budgeted cost of work performed (Earned Value) at the original allocated budget amount to both the budgeted cost of work scheduled (Planned Value) and to the actual cost of work performed (Actual Cost). We will get schedule variance (SV) and cost variance (CV) and others performance index. So it forecast project estimate at complete by these parameters and know project budget and schedule plan performance information.Therefore, this thesis base on earned value method basic principle and second-level earned value method analyze deeply traditional earned value method and understand earned theory by statistics. Moreover, A actual project is used, we can know that earned value method is a important in project schedule-cost-combined control.This thesis is divided into five parts, the abstract is as follows:Chapter 1 is an introduction.This chapter introduced the background of earned management theory. It stated development and research in America and China. So study of the theory is not long time. But is developing and perfecting. And it widely use in actual project.Chapter 2 is project earned value management theory.The essence of earned value management is that, at some level of detail appropriate for the degree of technical, schedule, and cost risk or uncertainty associated with the program, a target value (e. g.,budget) is established for each scheduled element of work. As such, work progress is quantified and the earned value becomes a metric against which to measure both what was spent to perform the work and what was scheduled to have been accomplished. This chapter defined three basic elements: Planning value is named the Budgeted Cost of Work Scheduled too, Earned Value is named the Budgeted Cost of Work Performed too, Actual Cost is named the Actual Cost of Work Performed too, It compared them variance. We could get some index. Such as variance index. performance index and forecasting index. It stated basic procedure in actual work.Second-level earned value method based on tradition earned value method.Combined plan schedule network diagramming. analyzed schedule-cost performance in sub-project. Considered completely data information. And appraised project implementation.This chapter defined the contents of earned value management system standard. Explained essential principle about the project management method. Provided some guide in actual project.Chapter 3 is earned value method based on the principle of the statisticsThe project make the value analysis method has utilized the application statistics qualitative index generalized analysis basic principle establishment one kind of project management technology. Makes the middle variable which the value analysis method introduces "to make the value" in statistics to have the explicit significance, but does not have the actually economical meaning, it purely is the middle variable which introduces for the development statistical analysis, the statistical middle variable which by the project expense and the project time limit for a project these two variables is which constitutes the composite index introduces for the establishment. The introduction "makes the value" the establishment is "the project cost and the project time limit for a project composite index", its basic goal is must use the change situation which this index analysis project time limit for a project and the project cost respectively appears, these development tendencies, as well as the forecast from this the influence which creates.This chapter used basic principle of the statistics to study earned value method. Through middling variable to analyze that this method is scientific. Such as"P₀×Q₁"(EV=P₀×Q₁). P₀ is the plan value of quality variable. Q₁ is the actual value of mathematical variable. And it used principle of index analysis method in the statistics to expand contents.Chapter 4 is the study of schedule and cost based on earned value methodology in project managementIn the project management process progress, the expense and the quality are three main controlling factors. Among them, the quality is a relatively static factor, but the progress, the expense are unceasingly changes the two most active factors along with the project progress. The traditional project management always is mutually independent the progress and the expense, in fact, in the project timplementation, between the progress and the expense the relation is extremely close. If the progress ahead of time or the project the duration excessively to be long, possibly causes the expense rise. If the compression expense or the reduced resources investment, the corresponding progress also can come under the influence.Through schedule and cost variance, performance index and so on. We can control project schedule and cost and can know that this project schedule is in front of the work plan or behind the work plan and cost is underrun of the budget or overrun of the budget. And so we need to adopt some corrective actions to bring expected future project performance into conformance with the project management plan.Based on critical and non-critical path method in the project plan network diagramming, analyzed project schedule condition, and provided some decision information for project manager.This chapter wrote important meaning of earned value method in the project schedule-cost management, tooChapter 5 is actual analysis of JiL in province ZX network engineering projectThe article based on the Jilin in Province ZX weak electricity engineering project actual case, namely the office building network transformation project practical experience, through the data material which obtains in project some point in time, through earned value method, analyzed project schedule and cost variance in project implementation. Research and analysis project achievements whether do achieve the project goal, And gave some suggestion. Provided some corrective actions. The method had the important function to get to final project object.Conclusion: summarized some contents from chapter 1 to 5. for example project earned value management theory and second-level earned value management theory, earned value method based on the principle of the statistics, etc. through the practice, Explained the validity of the method. Finally, we gave some suggestion because earned value method had some questions in the actual project.