Research On The Application Of Six Sigma Management In The Project Cost Management Of A Company

Government statistics show that the gross output value of construction industry in 2015 was 18.76 trillion,than in 2014 increased 3.6078 trillion yuan.Growth of 2.3% below 10% for the first time.International construction projects are facing more and more challenges such as political and social cultural risks.Construction enterprises must adjust the company's strategy and management to change the "first-class construction technology,management level,low efficiency" problem.Saving costs and opening up the market are two measures to improve profit margins.Saving costs and reducing costs to increase the profits of the project is a better choice for construction enterprise.Jack Welch,the former president of General Electric said "Quality is very important,but no one can saying our quality level".In the same way common cost management methods can not quantify the level of cost management.Common project cost management methods include Earned Value,deviation,the cost accumulative curve technique,dynamic input-output model and Activity-Based Costing and so on.Six Sigma management can quantify the level of project cost management through DMAIC process analysis,and realize the coordination management of project cost,quality and progress.First of all,this paper introduces the research status of project cost management and six sigma management methods.Secondly,Six Sigma Management is analyzed from the background,the actual meaning,the organization structure and the implementation process,and compared with Common project cost management methods.Thirdly,the paper takes China Railway A company as an example,analyzing the specific steps and results of the X project using Six Sigma management.Calculate X project and the not used Six Sigma project sigma level.Finally,the research results are summarized,and the shortages and prospects are put forward.