Research On The Cost Control Of Real Estate Project Based On System Dynamics

For the maturing real-estate industry,it is becoming more and more important to reduce the cost of enterprises in the implementation process of real-estate projects. Effectively improving the investment efficiency of enterprises and reducing the cost of enterprises is an important factor to enhance the competitiveness of enterprises. Therefore, the cost controlling of real-estate project has also been widespread concerned in academic and business circles. In this paper the theory and modeling of system dynamics have been studied in real-estate project cost controlling,and taking the cost struction as the object of real-estate project life cycle, analysing the influencing factors from the perspective of system and being combined with the characteristics of real-estate project cost controlling,cost controlling model is established for real-estate. The aim is to use the dynamic feedback mechanism of system dynamics to help enterprises better control cost.First of all, the present situation of the real-estate industry development in our country and the significance of this study are introduced. Secondly, the theory of the real-estate project cost controlling is reviewed, and the research status at home and abroad,as well as the previous research results are summarized. The system dynamics theory is reviewed and the VENSIM modeling method based on system dynamics is introduced, which provides the technical support for the real-estate project cost controlling. And the two were combined, the cost controlling system based on system dynamics is put forward and its advantages compared with the traditional method are introduced.Then the real-estate project cost classification and analysis are carried on and finding out the generating time and cost type of real-estate projects in the whole process. The system dynamics theory is applied to analyze all kinds of factors affecting the cost, and these factors are divided, besides the system boundary is delimited. By combining the factors affecting the cost and the causal relationship between the factors the causal loop diagram of the cost controlling is structured, and according to the causal loop diagram, the real-estate cost controlling inventory flow chart and the model are constructed.Based on system dynamics and cost controlling theory the real-estate controlling model is simulated and the feasibility and rationality are verified, through the variable experiment of system dynamics VENSIM simulation software the key factors that affect the project cost are fount out and the policy recommendations for the project cost controlling are put forward. The "simulation laboratory" for the operation of the real-estate cost controlling system is established, which lays the foundation for the analysis of the real-estate project cost controlling system. And the application of the model is developed, and its application in prediction of the real-estate project cost which has carried on the test and the results shows that the model has certain practical value in the cost forecast.Finally, the contents of this paper are summarized, in view of the existing problems in the model the following research direction and improvement measures are put forward.