Supply chain management has been more and more important for mostenterprises in such a competitive market. And China as ‘The World’sManufacturing Center’ is attracting a huge number of them to expand theirsupply chain right here, not only for the cost factor, but also for the marketand other advantages etc.This paper focused on the theories of supply chain management, vendormanagement, cost management and manufacturing engineering.This paper taken gas turbine components of Siemens as an example,investigated the product’s supply chain along with the current manufacturingcondition and supplying potential in China which provide a way to optimizethe product’s supply chain.This paper also develops a cost model for job-shop products such as gasturbine to estimate the cost of the product. The elements of the cost model andcost calculation methods are explained in this paper in details. The applicationof the cost model on two important components of the gas turbine (CD andCIC) showed a reliable result. This cost model not only provides an importantindicator for the vendor selection, but also resolved the cost transparencyproblem during design stage which provides effective methods to cut theproduct cost. |