Cost Control and Earned Value to Improve Project Performance

摘要

The example company in this paper has nearly 40 years of project development experience. Through long and dedicated commitment to the importance of cost control - The company has developed a cost control system with the flexibility to be used both on megaprojects and minor modification projects. The cost control system is used in management of projects and to supply the line management and owners with updated and correct information of cost developments; provide a basis for actions necessary to complete within approved control estimates. A key issue of the cost management system is the earned value and from the cost management system information is provided on planned, earned, actual, booked and committed costs. This information then forms the basis for monitoring, analysing, forecasting and reporting of cost and progress development. Involvement of the whole team secures common understanding and ownership to the project; it's challenges and need for mitigating actions.