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Study On The Control Of Planning And Cost Of Logistics For MTS TURNKEY Project Of HUAWEI Company

Posted on:2013-01-06Degree:MasterType:Thesis
Country:ChinaCandidate:Y XuFull Text:PDF
GTID:2249330371479815Subject:Project management
Abstract/Summary:
HUAWEI is an big international technology company, the top3biggestcommunication equipment supplier in the word. As HUAWEI company’s firstTURNKEY project in R country, MTS project is a milestone for the company.TURKEY project is directly translated to Chinese as turn-key project, which means ina contract, Party B in charge of all supply work, and Party A can directly enjoy theproject achievements just after taking over the key from Party B. This kind of projectwas primarily popular in some American companies. Among most of Chinesecompanies, HUAWEI has been leading the telecom technology, and representing thehighest level of Chinese telecom technology, thus, compared with other companies,HUAWEI is more easily to comply with international standards. In HUAWEI, theoperation of TURNKEY project is quite a successful, and now it a benchmarking inChina.Logistics took an important segment in MTS TURNKEY project. Logistics isprocess that carries the contracted goods from supply location to receiving locationaccording the TURNKEY project contract. Based on actual needs, logisticseffectively combined domestic transportation, international transportation, localdistribution and warehousing etc. major supply chain links together. Therefore, thequality of logistics determines the project result.For the importance of MTS TURNKEY project as well as the importance oflogistics, we planned and managed the logistics work from the project perspective,and designing a logistics scheme which in compliance with the project needs became extremely important. Taking product characteristics and company operationcharacteristics into consideration, learning from operation regulation and advancedexperiences, we adopted project management mode and design logistics schemecatering to the project needs. We learned the experiences from the first delivery whichwas not guided by project management methodology, and made analysis for thedelivery time redundancy, therefore we calculated the lost. The conclusion was thatwithout project management methodology, company suffered great lost duringcontract fulfillment.Using project management methodology to guide the project, this paper mainlystudies on project management for logistics, deeply focusing on logistics projectplanning and progress control as well as logistics cost controlling. First, we made athorough analysis on MTS TURNKEY project, and then, based on HUAWEI supplyability and actual logistics fulfillment, by application of WBS work decompositionmap, route network, critical route a serials of methods to work out appropriatelogistics plan. And then we monitored whole logistics dynamic progress on regularbasis.6negative factors which impacted and delayed the project progress wereidentified. We took active initiative to these factors, and adjusted project plan, andfinally prevented the whole project from delay.Cost is another important KPI for this MTS project. Cost influences projectfulfillment quality, and the failure or success of cost control directly leads to thefailure or success of the whole project. If we keep the cost on too low level whichmight not cover the project needs, then the project quality will be impacted, on thecontrary, if we maintain the cost on very high level, doubtlessly, the project revenuemight be endangered. Meanwhile, during the project fulfillment, whether theimplementation of cost control is in compliance with the cost controlling plan willalso impact the project progress. By using of WBS work decomposition, this paperfigured out cost plan for each work unit, and worked out quite challenging cost controlling objective; and during project implementation, we adopted the method ofearned value analysis, and controlled the logistics cost by dimension of projecttimeline, to finally ensured the project smooth progress.Through study and analysis of this paper, the application of project managementmethodology in logistics was successfully verified. Based on the characteristics ofTURNKEY project in R country and logistics itself, we adopted project managementmethodology to cater to actual needs and finally achieved good results.
Keywords/Search Tags:Logistics, TURNKEY project, logistics planning, logistics cost control
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