Application Research Of Earned Value Management In Defense Project In S Research Institute

As an important part of China’s State-owned economy, the military enterprises have made great contributions to the development of China’s military equipment. In recent years, the security situation around China is increasingly grim, and the start-up of a large number of key defense projects makes the country’s military budget becomes increasingly tight. So how to effectively control the cost of national defense projects became an issue that all military enterprises must face.Recognized as one of the world’s most effective project management tools Earned Value Management (EVM) has made an important breakthrough in the project management field by achieving a joint monitoring and forecasting of the project cost and schedule performance. Although EVM has been effectively applied and validated in thousands of military projects procured by U.S. Department of Defense, there was quite few successful EVM application case in China’s defense projects. Currently, project management level of Chinese military enterprises is low, and the high-end talents of project management are insufficient, so the in-depth study and implementation of EVM can significantly enhance the military enterprises’capabilities of China in project management.This paper aims to explore the application of EVM in China’s defense projects. The author has participated in the whole process of EVM in a defense project in S Research Institute, and achieved good results by taking advantage of EVM to control it.Firstly, this paper introduced the major problems facing China’s defense project management, namely the delay of schedule, the reducing of performance, and the overuse of budget. Then combined with a real case of S Institute, the author studied and analyzed the specific application of EVM in a national defense projects. Finally, the author summarized the effects of the EVM implementation in this project, and gave suggestions on how to implement EVM effectively in national defense projects. The research showed that EVM can systematically and quantitatively monitor the operation of national defense projects, and can effectively solve the problems that Chinese military enterprises face, such as the extensive way of project schedule and cost management, and the low level of project performance management. And it is believed that EVM is suitable for the management activities of national defense project under the management culture and the management platform of Chinese military enterprises.Meanwhile, EVM is a system engineering, and the successful application of it in military enterprises has some basic conditions:the construction of EVM system and organization, the EVM process design and the training of personnel should be integrated to ensure the successful implementation of EVM in national defense project.