Research On Cost Reduction And Productivity Improvement In HTW Centrifugal Compressor Factory In China

China’s economy has developed rapidly and stably for many years,as the general machinery industry,air compressors are also rapid development,and has played a catalytic role in the development of real economy,and the market competition is increasingly fierce.The enterprise try their best to research on cost reduction and productivity improvement to improve their products competitiveness,expand market share,while ensure their profit margins in intense competitive environment,and the cost reduction and productivity improvement management has play a major role in enterprise strategy.This paper research on cost reduction and productivity improvement in HTW centrifugal compressor factory in China by analyzing the production situation and the problems in purchasing management,uses theory of procurement and supply chain management,combines with the product characteristics and the industry development direction and actually supply chain of air compressor.Use supply chain management theory to optimize supplier development processes and supplier management to constructed a supplier management system based on supplier performance evaluation which suitable for the development of the factory.By using target cost and function value analysis,combining quantitative and qualitative analysis,put forward the target cost setting strategy and implementation method which suitable the development of HTW factory in China.And by implementing JIT lean production theory and the implementation of total quality management plan,strengthen the value analysis and the lowest total cost,as far as possible to reduce procurement costs and improve productivity,keep the development of the long-term stability of the supply chain.This paper on the innovation research on the implementation of cost reduction and productivity improvement in HTW centrifugal compressor factory in China successful to solve the problems and difficulties in the process of enterprise development,comply with the trend of enterprise development and future market competition mechanism.Provides a supplier management solution which suitable for a small quantity order type factory supply chain conditions,and also provides reference and theoretical guidance for procurement management of the small and medium-sized order production enterprises.