CTTC Transformer Production Project Purchasing Management Research

CTTC is a Sino-foreign joint venture, which manufactures high performance and high capacity transformers. In recent years, the transformer industry faces fierce competition, since the transformer sales market excess production capacity, CTTC's orders reduce abruptly, the net profit reduce sharply at the same time. At the very moment, reduce purchasing cost is the most important matter. Aiming at the problem in purchasing management, the thesis manly studied how to lower the purchasing cost, keep the purchasing item arriving time under control, reinforce the communication between different departments.At present, the mainly problem of CTTC company purchasing management is lack of communication,noneffective of cost control, the lack of control of the delivery time; no safety storage of inventory; no credit rating system of suppliers. This thesis apply project management theories and methods. Firstly, it improves the purchasing process, which commands the manufacture schedule and the time of issuing drawing paper, at the same time,use the theory of project management, it set up a purchasing project manager who has the responsibility to supervise the purchasing process and keep the cost and delivery time under control.Secondly, a set of strategies of purchase cost control and cost accounting are given.The strategies include two aspects, one of which is an Economic Order Quantity(EOQ)model under assumptions of ladder price discount and market price relatively stable or regular inventory, the other is an extraordinary purchase model under assumption of volatile price occasions.Thirdly, a cost control strategy of project purchasing and purchase plan are given.To result purchasing items(the ones are needed for transformers) in the process flow as a shortest path problem, one can obtain the earliest demand time of the items in the process flow and which materials are the tight constraints by the solution of the shortest path model.Supplier credibility evaluation method is also established. According to the supply credibility evaluation, one can decide which supplier could be taken into account as a long-term partner,which of the suppliers as alternative partners, and which should be terminated of the cooperation. This strategy also provides the foundation of further cooperation with the suppliers in purchasing tasks.Finally, the purchasing management platform frame is designed.Aiming at the problems of communication between different departments and inside thedepartment, we come up with a frame design of purchasing management platform. It brings the information deliver between different departments on line.Through the above series of improvement, the purchasing management is enhanced, the problem of purchasing not on time is almost eradicate, and the company achieved the goal of save cost 50 million RMB, and the products are all qualified.