Research On Materials Purchasing Management For Shougang Hot Rolled Project

With the management of modern projects more increasingly lubricate in the domestic markets, such advanced management concept is also more and more applied to the project constructions of all walks of life. As an old steel enterprise with a history of one hundred years, Shougang group has removed all of its production facilities and plants out of Beijing in response to Beijing "Building a green Beijing" call&according to the national arrangement deployment of positive signs. Namely, all of steel industries shall be fully stopped and removed out of Beijing to re-build new steel manufacturing foundations surrounding Beijing. Under the adverse conditions that the international and domestic steel industry are experiencing a hard time and the industrial bases are dispersed over various places, the project construction will undoubtedly bring to the company more pressure on the funds. Therefore, to strengthen the management of the construction projects and especially the science&reasonable control of procurement costs is important. It also relates to the success or failure of the future development of Shougang.From the perspective of layout, the above-mentioned companies under Shougang corporaton are located in several provinces and cities, which causes a lot of inconveniences for materials purchasing and is not benefit for costs’ reducing. On condition that the current international and domestic steel industry is suffering a hard time, the newly-built steel project constructed by Shougang is in the duration of lactation. It’s well known that the pressure can be imagined. To strengthen the purchase management and reduce the project construction purchasing cost is urgent and top priority which is related to the life and death of Shougang.This Paper starts from the current situation of the hot rolling steel project belonging to Qianan steel company. With advanced project management concepts, methods and tools, this Paper has a study on the Shougang procurement management. At the project planning stage,WBS Figure is used for determining breakdown items and working schedule of projects. Responsibility matrix is used for clarifying responsibilities of related persons; In the stage of implementation and control, the earn value method is adopted for comprehensive controlling of the progress schedule and costs. To make applicable, economic, timely, cooperation as goal oriented, it shall be fully considered that Shougang has been involded in this single industry and has many plants in different areas as well as varieties of items to be purchased in the scattered areas. A practical and feasible management mode which is suitable for Shougang’s development is to be established as to largely reduce the cost and establish Shougang group’s strategic position in the domestic markets as well as the world’s.In this paper, the author of this paper made a research about the material purchasing process management of Qiansteel Hot Rolled Project through using the theory of procurement management and methods, which fullly explained the profound meaning of monitoring and management for the whole procurement process to ensure that the whole project purchasing schedule, reduce procurement capital&risk and the successful completion of whole project.