Research On Purchase Management Of Seawater Desalination Project For The DG Iron&Steel Corporation

DG Corporation is an oversize iron&steel enterprise and is expanding its scale steadily in order to promote its comprehensive competitiveness. However, due to high consumption of water, DC has decided to be response to the national policy in order to seek the survival space during its expansion of production scale with constructing energy-saving, environmental friendly, high efficiency seawater desalination plant, the products-desalinated seawater will be used for the iron&steel production. Therefore the implementation of this project will not only ease the serious pinch pressure of fresh water locally, but also make the free of limitation of water during DG’s expansion. For the moment, the technology of large-scale seawater desalination (10thousand tons/day)is not so mature yet, therefore DG decided to imported the complete set of seawater desalination equipment, the foreign party will take overall technical responsibility for the project. Based on the case of imported seawater desalination project, the essay referenced the ideas and methods of project management to manage the purchase of seawater desalination project.This thesis is divided into six chapters. Chapter I is the introduction which mainly describes the background and significance of the article. Chapter II summarizes the relevant theoretical research. Chapter III is the description of process management of making purchase plan for the seawater desalination project including work breakdown structure, project time and the basic estimates of cost. Chapter IV is about the process management of contract signing including the management of bidding process and contract negotiation process. Chapter V describes the contract execution control with the application of Gantt chart and earned value concept to make the tracking control for the progress and cost of the project to ensure the completion of the project as scheduled. Chapter VI introduces the assurance measures for the seawater desalination project in the fields of organization, empowerment, and human resources.In the project, through the establishment of matrix organizations, the organizational structure of seawater desalination project is improved compared with other enterprise who has also imported this project. Through the application of a series of project management methods, the process was optimized, labor time shortened, cost well controlled, and the enthusiasm of the team was enhanced for bonus system, which ensured the smooth progress of the project. So far, the project has made some stage progress. This essay predicts the project will keep up with the progress schedule, the overall cost will be controlled within the pre-estimation. Some precious experience has been obtained during the purchases management of the project which can be taken as a reference for other iron&steel companies in our country.