Project Cost Management Improve On Hot Rolling Mill Of A_Company Approach

Project management is an important branch of management science; and project cost management effective application on projects improves the utilization of project resources, resulting in huge economic benefits. Currently, Chinese steel industry is oversupplying at present, A_Company is also facing choices of developing direction under the overcapacity environment. This article explains how to apply project cost management theory in A_Company to cope with the overcapacity situation.Chinese steel technology is now among the advanced ones in the world, the critical task for Chinese steel industry is not a technological breakthrough, but the implementation of a overall project cost management, the optimization of the steel production flow sheet to improve efficiency, the reduction of costs to cope with challenges brought by overcapacity.Focus on the defect cost management of steel industry, this article find the method to control the project of values and to improve the cost management, and this method have been used in A_Company.This article also present three lines’products division principles based on each line equipments, logistic allocation, and quality and production techniques analysis, to realize project cost management and achieve the lowest production costs.From a real project example, this paper is focus on the cost management application on A_Company’s three hot-rolled production lines. Under the oversupplying environment, since the selected line has the lowest energy consumption and enjoys more direct-materials so it should be in full-load operation as possible, also to consider the situation that some line undertakes the important task of producing oriented silicon steel, therefore the hot-rolled line production restriction can be divided into two modes:full stop, interlaced limited production, Cost contrast between full-suspension models and hot-rolled staggered limited production model had done to make the decision.