Optimization On Procurement Internal Control Of EPC Firm A

In international EPC project, procurement is one core part of project execution. Procurement is the important guarantee of engineering quality and project schedule. Procurement is the important assurance of smoothly executing project. Facing the international environment and the economic instability, procurement has many uncertain factors. General contractor of international EPC will have to focus on the internal control in procurement if they want to control the unnecessary risks and make the procurement cost savings and create profit.Research methods of this thesis are:documentary research method, investigation and observation method, case study method and comparison analysis method. Combing with the case company, this thesis takes research on optimization of procurement internal control of international EPC general contracting. Firstly, as per stages of procurement process of a company, divide the procurement business into four sections: procurement decision, procurement planning, procurement execution and procurement closing. They are a foundation of the optimization of procurement internal control. Secondly, as per related theories of structure of internal control, take analysis from four sections and find out defects of procurement internal control. This will draw the attention of enterprise leadership. Thirdly, sort out methods of risk evaluation and their advantages of disadvantages, and as per characterics of four section, find out suitable method for these section and utilize them, namely, find out key control points which influence procurement quality, safety, construction period and cost from the whole risk points. The key control points are the most important risk points of procurement. Fourthly, as per defects in internal control and key control points founded, combing with the case company, specifically provide pinpointing and constructive suggestion for internal control.This thesis takes research on Optimization of Procurement internal control of International EPC General Contracting, on the one hand, make managers directly understand the importance of determining key control point to perfect internal control of enterprise; on the other hand, provide valuable suggestions for establishing procurement internal control regulations for similar enterprises. Hopefully, through control of control point in management stages, realize the optimization of procurement internal control, and enhance core competition ability of EPC general contracting enterprises.