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Study On Methods Of Early-stage Management Of Projects For Jilin Petrochemical Company

Posted on:2012-05-15Degree:MasterType:Thesis
Country:ChinaCandidate:G FengFull Text:PDF
GTID:2189330332997320Subject:Business Administration
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Jilin PetroChemical Company (hereinafter referred to as Jilin PetroChemical) is a large refining and chemical enterprise, whose business is managed by PetroChina Refining and Chemical Branch Company. By the end of 2010, Jilin PetroChemical has developed into a large-scale integrated refining and chemical enterprise with crude oil processing capacity 7.5 million MTPA, ethylene production capacity 850,000 MTPA, 115 kinds of main refinery products and 28 billion RMB total assets based on the initial dye, fertilizer, calcium carbide factories. The company's rapid development is inseparable from the promotion of project construction. With the company's scale expanded, Jilin PetroChemical begins the fifth development stages when thousands of tons of oil refining and 400000 MTPA ABS (Acrylonitrile Butadiene Styrene) project begin to construct. By the end of 12th Five-year plan, Jilin PetroChemical will form the largest synthetic resin, synthetic rubber, basic organic chemical raw material production bases and form an integration enterprise with million tons of oil refining and millions of tons of ethylene as a leader, characterized by prominent core businesses, intensive leading product, obvious competitive advantages and adequate development capacities.Many years of project construction make Jilin PetroChemical accumulate lots of experience in project management and produce a complete set of project management system, which built the base for the development of Jilin PetroChemical. Since Jilin PetroChemical was allocated to PetroChina in 1998, it has showed obvious competitive advantages over economic aggregate, plant scales and differentiation, diversification of products etc. because of continuous investment from the head office, and gradually developed and grown up. But at the end of 2005, a serious explosion accident happened to an aniline plant in Jilin Petrochemical. Ever since then PetroChina head office has almost aborted approvals of development projects in Jilin PetroChemical, the early project management was in dead state. PCS, phenol and acetone projects etc., which had just finished their early phase work, were forced to terminate. At the same time, more than million tons refinery and one million tons ethylene projects have been started in other enterprises. So the original capacity and technical advantages of Jilin PetroChemical do not exist any more. In June 2007, Jilin Chemical Group Corporation and Jilin PetroChemical Company were integrated into PetroChina Jilin Petrochemical Company. After the integration, Jilin PetroChemical has produced some management methods, such as a fixed-asset investment and investment plan management methods in order to perfect and improve early management work and strongly promote the smooth development of project management work. Million tons refinery, 400000 MTPA ABS and 320000 MTPA styrene three major projects began to start smoothly.Although Jilin PetroChemical has got some achievements in the early work and played a significant role in whole project management work, but in the process of project implementation, there are still many problems in the early management which will affect the overall management of the project results. Outstanding issues are incomplete early project management, defect scientificity in feasibility study, inadequate cost control and weak technology introduction management. These problems prevented the project management from developing orderly and normally more or less as well as project cost, progress and quality. Therefore, combined with years of management experience and with the help of project management theory, the author analyses the problems existing in early project management work of Jilin PetroChemical Company and seeks solution in order to ensure the result of project implement.Fist of all, the author states that there are a series of problems such as bad quality on the feasibility study and design at the early project management work, insufficient objectivity and scientificity of early investment budget control and inadequate technical programme study. appeared in early project management work are all caused by changes in project approval authority, the feasibility report and preliminary design standard changes. The early project management methods have not been perfected correspondingly. So the author perfects the company's feasibility study, preliminary design and technology introduction management methods again according to new produced by PetroChina, considering the different views from the old one, based on many years of experience in project management and combined with problems appeared in feasibility study and preliminary design stages. So the feasibility studies, preliminary designs and technology introduction management can comply with certain laws and regulations.Secondly, combined the features that repeating production and construct of the project of Jilin PetroChemical carry out simultaneously the author suggest to adopt matrix mode on the project management and organization in order to guarantee the implement of above management method. So the requirement of the specialization management for the repeating production and the coordination for the project work can all be met.Thirdly, the author addresses solutions to establish and perfect basic document database, assessment expert resource pool, project feasibility study report audit system and improve administrator's diathesis in accordance with construction practice in home and abroad projects and problems appeared in early management of the project. The project management is in practice based on science, facts and figures, not based on experience and feelings. Really incorporate the feasibility study into the management in order to obtain the best economic and social benefits.Fourthly, according to the problems in project investment control, for how to effectively control the project investment, the author proposes to strengthen investment budget strength, improves level of project management budget reviewer, changes old ideas and increases assessment efforts and other initiatives in order that the investment is in a controllable state and prevent the enterprises'benefits from losing.Finally, for the indifference of technical program introduction, the author addresses to accelerate technology introduction and technology innovation system, strengthen the guides to technology and innovation in order to change weak situation in the company's technology introduction management.
Keywords/Search Tags:project management, project proposals, feasibility study, preliminary design
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