A Research On Cost Control Of PYZ Geological Exploration Project Based On Earned Value Method

In the era of planned economy,the Geological Exploration Institute is a full-funded institution.There is generally no cost pressure.Since the 1990 s,although the Geological Exploration Institute is still a public institution,it has retained the appellation of the institution,but the source of funding has become a state-financed subsidy.The leadership began to focus on cost savings,but the effect is not obvious.After entering the 21 st century,with the deepening of reforms,the geological exploration units gradually changed from public institutions to market-oriented units.The drawbacks of the previous “extensive” project cost management methods gradually emerged,such as formalistic project cost budgets;separation of project cost and schedule control,outdated project cost control methods,which couldn't match technical and economic development;and lack of process control and assessment mechanisms.All those attribute to the confined geographical environment of geological exploration projects and to the inadequate utilization of bulk purchase and supervision.The long-term existence of these problems has led to the meager profit of geological exploration projects,and the geological exploration units are increasingly disadvantageous to participate in market competition.Therefore,it is very necessary to adopt a suitable method to solve the above problems.The earned value method is a scientific and advanced cost management method that is more common at home and abroad,and can solve the main problems in the project cost control process.The method can obtain basic data in time and monitor in real time,fully reflect the exploration cost and progress,and contribute to improvement,which not only plays a key role in improving the competitiveness of geological exploration units,but also has a positive impact on the healthy development of China's future geological exploration industry.According to the earned value theory method,the PYZ project team designed the cost control plan for the PYZ geological exploration project based on the written implementation plan of the project,including preparing the project implementation schedule,drawing the cross-section map,establishing the work breakdown structure,forming a cost control management team,setting up a sound system of regular cost analysis,a system of rewards and punishments,and estimating target values.In the implementation process of the project,the cost control plan is strictly implemented,and the process of the PYZ geological exploration project,which is divided into four stages is timely monitored and analyzed.In the second phase,there was a large deviation in cost control.The actual cost continued to climb higher than the budgeted cost.The over-expenditure of the project was more serious.The project department assessed the members and deducted some personnel risk mortgages,and adopted targeted corrective measures.At the end of the fourth phase,the cost control was good,the cost was saved by 4.75%,and the progress was changed from delayed to advanced.In the implementation of the earned value method in geological exploration units,it is also necessary to take some safeguard measures to pr omote cost control,such as enhancing the information construction and performance appraisal construction.After the project is completed,the fuzzy comprehensive evaluation method is used to evaluate the cost control effect of the PYZ geological exploration project.Among the evaluation results,the “good” evaluation set is the largest,indicating that the experts on cost control effect of the evaluation committee and supervisors on the PYZ project is generally considered “good”.The final result is that the concept of cost control has been significantly improved,the cost and progress have been effectively controlled,and good economic and social benefits have been achieved.