Study On Procurement Management In International Projects Of China Petroleum Pipeline Material & Equipment Corporation

Procurement management is the important component in an international EPC project, and is the key element that results in success or failure and affects project quality, construction period and cost control crucially. In order to achieve the aim of quality control, schedule control and cost control in the EPC projects, procurement management must play the role of managing and controlling the purchase schedule and cost. China Petroleum Pipeline(CPP) have contracted for EPC projects in Sudan, Libya, Kazakhstan and so on since 1998, and have gotten lots of achievement, at the same time, with many problems waiting for being solved. China Petroleum Pipeline Material and Equipment Co. (CPPMEC) plays very important role on the purchasing cost control as the main company in charge of the procurement in all the international projects of CPP. With the method of combining the practical work with the researching, the paper analyses and summarizes the practical operation and the whole process of a project on the basis of the theory of purchasing management and project management for the purpose of finding the best method of maximizing the benefits of a whole project. The innovation of the paper is that it targets and analyzes the whole process of a project from the previous schedule plan preparing to the three aspects of in-process, including personnel inner quality, vendors selection and long-term equipment procurement. The solution is systematic and complete discourse, especially with the feasibility analysis of centralized procurement and perfection of vendors' management system as the focal points.