Discussion On The JIT Purchasing Mode In Hexagon Qingdao

Today, JIT (Just In Time) Mode is being more and more widely applied in the production process of manufacturing companies. JIT is already a critical tool for manufacturing companies to achieve advantages in efficiency and cost. Purchasing, as one of the most important functions in manufacturing companies, is supposed to revolute in JIT Mode. Traditional purchasing mode should be converted into JIT purchasing mode.In comparison with the western countries, rubber compounding industry in China shows some interiority, especially in the late starting period, weak basis, backward technical and R&D capabilities. Under such situation, it is very unfavorable to participate in the international competition.In concern of some factors like environment protection and technical contents, the western countries began gradually to transfer their rubber compounding industry to the third world countries. China, as the "World Factory", has certainly obtained a great portion of it. As a result, the rubber compounding industry in China had merged into better scale and begun to thrive. So, the rubber compounding industry in China is facing both opportunity as well as challenge. How to verify the efficiency and cost becomes the most prioritized question. It is believed in this thesis that applying advanced purchasing management theories, especially JIT purchasing mode under supply chain environment, will bring the domestic rubber compounding companies improved efficiency and better cost to enhance their international competencies.This thesis focuses on domestic rubber compounding companies, discusses on both the theoretical and practical sides, to prove the constructive influence of JIT purchasing mode in rubber compounding companies.This thesis first starts with theory basis, introduces theories from home and abroad related to purchasing mode studies under SCM (Supply Chain Management) environment, and narrates the key factors of JIT purchasing mode such as the origination, principle, advantage and main significance, which makes the theory basis for the parts hereinafter.Secondly comes the practice illustration, analyzing the circumstances of purchasing mode in domestic rubber compounding companies, points out the existing practical problems and gives root cause analysis to the concrete problems, to emphasize the necessity of promoting JIT purchasing mode in domestic rubber compounding companies, which are the analysis and researches in practice aspect.Thirdly, this thesis introduces the building of JIT purchasing mode from three factors Balanced Production, Kanban Control System and Supplier management, to illustrate how to build up an effective JIT purchasing mode as a systemic theory matrix to guide the practice.Fourthly, this thesis goes back to practice, focuses on a WOFE rubber compounding company in Qingdao—Hexagon Polymers Compounding (Qingdao) Co., Ltd. (Hereinafter "Hexagon" for short), analyzing the existing problems in purchasing mode and the root causes, then performs the JIT purchasing mode transformation, from the team formation, preparation till the implementation of the project. The whole procedure was based on and guided by the theories mentioned above, and the results will be good proof to test the theories. All was done under the principle "Theory guides practice, and practice proves theory.'In the end comes the conclusion. Through the above theories and implementation, affirms the progress achieved, and indicates the insufficiency, the direction and goals for next step improvement. This will lead to the future improvement direction for the whole industry of rubber compounding in China.