Earned value method and specific features application for project cost control

Abstract

Nowadays the term of «project» is considered as a kind of task with pre-defined initial data and has specific issues, confirmed by resources available to the owner. Hereof the essence of project management is – to ensure the correct implementation of the set goals with a minimum costs, without exceeding the level of available resources, and the appropriate level of product quality. The broad definition of the project gives advantages to the wide application of the project management methods. In project management, the term «cost management» appears initially as a Project Cost Management. The aims of the system of cost management based on expenses is the development of policies, procedures and methods allowing to carry out planning and timely cost control. The following article describes the methods of cost control based on expenses, comprising the processes ensuring the execution and completion of the project within the frames of approved budget and features of using the earned value method explored for the assay of the project.