Application of Improved Earned Value Method in Project Management Processes

Conducted research on the application of earned value method in the management process of type engineering projects. The method was improved to overcome its disadvantage in the analysis on project quality effect factors, adding three quality-cost parameters based on cost limited control method. The three parameters are quality budgeted cost for work scheduled (<em<C</em<<sub<QBS</sub< ), quality actual cost for work performed (<em<C</em<<sub<QAP</sub< ), and quality budgeted cost for work performed (<em<C</em<<sub<QBP</sub<). By using the three additional parameters, four project quality estimation indexes were further developed,including quality cost variance (<em<V</em<<sub<QC</sub<), quality schedule variance <em<(V</em<<sub<QS</sub<), quality cost performed index (<em<I</em<<sub<QCP</sub<) and quality schedule cost performed index (<em<I</em<<sub<SCP</sub<). The improved method can monitor project quality, cost and schedule comprehensively. Its efficiency in the application of integrated project monitoring was illustrated with an example of engineering project management process.