Research On Materials Purchasing Management Of Qiangang Hot-rolled Strip Line Project

Qiangang company is an iron and steel production enterprise hold by Shougang, which are mainly for the hot-rolled sheet product. With the development of these years, Qiangang company needs to take the improvement and upgrading of product structure. In accordance with national disposal schedule, Shougang’s shift work on the relocation of the steel industry in Beijing area should be finished by2010. In order to implement this work and to meet the improvement of Qiangang company’s product structure, Shougang decide to launch Qiangang hot-rolled strip line project, which to build a new hot-rolled strip steel product line whose annual output is3.5million tons. It will provide high-grade sheet for the automotive, appliance, construction and structure, mechanism and other industries. At the same time, it set up a materials purchasing department specially in order to do a good job on materials purchasing and supply work for Qiangang hot-rolled strip line project.Since the economic crisis in the end of2008, the steel industry was in trouble Low products price and sales with rising materials costs became Shougang’s new pressure never felt before. Qiangang hot-rolled strip line project had also been influenced, the direct influence was to reduce hot-rolled strip line project expenses and material procurement costs; Procurement and supply work on materials had a significant impact on the progress of project construction and cost controlThis paper starts with the status of Qiangang hot-rolled strip line project, then it leads up the necessity of implementation of taking project management on materials purchasing of Qiangang hot-rolled strip line project. Next, the application of advanced project management methods and tools are presented for materials purchasing management of Qiangang hot-rolled strip line project.In the project planning stage, the use WBS Chart and Gantt Chart to define the project’s work breakdown and the schedule. The responsibility matrix definitude the respective responsibilities of personnel. In project implementation and control stage, the use of earned value method control the progress and cost of the project; Finally, the finishing work of final phase accomplish the materials purchasing and supply work for Qiangang hot-rolled strip line project.