Application Of Earned Value Method In Cost Control Of H Project Of China Railway Company

In pace with the development of economy and the amplify of city scale,for the sake of meet people’s requirement,make people’s travel become more convenient and easier,there has been an upsurge of urban rail transit construction all over the country.More and more enterprises participate in the construction of subway projects,and the competition among enterprises is becoming more and more fierce.However,the current metro projects are characterized by larger investment scale,longer construction time and more complex engineering geological conditions.Consequently,the enterprises which participate in the underground construction need to improve cost control while assuring project quality.We can realize that the schedule objectives and cost objectives are complementary and interactive.If enterprises do not pay attention to the construction progress,they can not carry out effective cost control.Therefore,if the subway construction enterprises want to successfully complete the construction work of the project,they can only adopt scientific management methods.The higher enterprise’s capability to control project costs,the more profits it can be gathered in the crops,and better improve the establishment’s earnings.In this paper,field research method,case analysis method and other methods are adopted to carry out relevant theoretical research.After taking THE H project of China Railway Corporation as the research object,a series of problems existing in the cost control of the H project are found from the aspects of the construction organization structure and cost accounting process.The traditional cost management method adopted in the early construction stage of H project resulted in cost overruns and backward progress.In subsequent construction process,adopted by the company,with the method of earned value method and target cost method to solve the problem of the cost control of subway construction industry,by using the decomposition structure,establish the responsibility distribution list,cost calculation and deviation analysis,corrective measures are put forward and applied to tasks such as earned value management in H project,comprehensive analysis of the project schedule and cost,Improved the H project cost overrun and backward schedule.The practice proves that China Railway Corporation can realize the purpose of project cost control through the dynamic monitoring of cost and progress by using this method to carry out cost control,and improve the cost control of H project.The combination of earned value method and target cost method can not only find the cost control problems in construction projects,adjust the deviation in time,but also improve the timeliness and comprehensiveness of cost control.In order to ensure the smooth application of earned value method in H project of China Railway Corporation,the corresponding safeguard measures are put forward.Through the application in the actual project,it shows that the earned value method can effectively control the cost of H project,provide valuable reference for other subway construction projects of the same type,and improve the enterprise’s management level and overall competitiveness.This paper has 13 figures,18 tables and 61 references.