Research On The Control And Application Of Project Performance Based On Improved Earned Value Management

As the continuous development of Project Management (PM), there is a fairly sophisticated understanding on PM regarded as a practical discipline. Currently, the methods of Project Management are not only used to the "project" according with the traditional definitions, but to the "projects" not called a "project" in the past. With the requirements for management practices, particularly the comprehensive analysis on requirements on cost and schedule, the Earned Value Management (EVM) has become one of the basic integrated controlling tools.The Earned Value Management can be applied to various types of projects, but there can be existing vague or erroneous understanding on concept of the EVM theory and deficiencies for its application in the project practice. Therefore, a clear understanding on its theoretical basis is a necessary prerequisite for application of EVM. The following three areas of the study have been carried out on the existing problems in the application of the traditional Earned Value Method in the theoretical model and project management.Firstly, based on the strict definition of the concept on earned value (EV), it does a more comprehensive analysis to the theoretical foundation from its basic parameters, deviation analysis and project performance index, and interpreting the specific implication of each concept. And the new basic parameters and the deviation analysis indicators are presented based on the differences between the schedule tasks and the new tasks.Secondly, by introducing the improved Factor Analysis Method (FAM) with cost variances analysis and combining the improved Critical Path Method (CPM) with schedule variances analysis, the improved earned value method is raised to rich its capabilities in controlling project performance in accordance with the refinement logic of detailing deviation reasons. Then it makes a better performance prediction of the traditional EVM based on its improved theory basis. Finally, take the preliminary part of a construction project as a practical example, to illustrate the performance control (including the cost and schedule performance control) in project implementation based on the improved earned value management, and it makes a verification of its theory feasibility and effectiveness combining with project management software (MS Project2010).The study offered a comprehensive and rigorous theoretical foundation to the traditional earned value management system (EVMs) from strictly defining the concepts of earned value (EV).Then, it improved the controlling and predicting capabilities of EVM in project performance. Combining the CPM and FAM with the improved EVM, this study not only comes up with some theoretical innovation, but also has the great significance of steering project management practice.