A Case Study Of Goods Purchasing Management For MSC Hot Strip Rolling Mill Project In China First Heavy Industries

With the continuous updating of technology, Chinese equipment manufacturing industry of modern hot strip mill has been developed rapidly and become an important part of the global steel manufacturing industry. As one of the international20largest steel enterprise, Iran is encouraging the local steel company to purchase hot strip mill from China in order to get rid of dependence on the United States and Europe’s technology and reduce production costs. MSC is one of them. CFHI has to improve the materials procurement and management in order to meet the growing Iranian customers and ensure the smooth implementation of the manufacturing project.The main business of CFHI is the metallurgical equipment manufacturing, petrochemical&nuclear power equipment manufacturing. Since its establishment in1954, CFHI has made a great contribution to China manufacturing industry. However, there are still some problem of the company’s materials procurement and management. For example, the lack of effective management of purchasing bidding, no traceability of supplier development and management, and also need improvement of the procurement contract management, procurement planning and control.This thesis does detailed analysis of the practical problems of CFHI company of Purchasing Management in combining management theory, including the theory of project procurement, vendor selection and management, project procurement contract management, procurement planning control, and then find the root cause of management problems and make constructive suggestions, offers a range of specific and feasible management measures for the development of company. The specific activity includes selecting reasonable purchasing method, strengthen the vendor evaluation and management etc.This thesis provides a series of solution for the goods purchasing and management of CFHI. It could provide decision support for improving the competitiveness ability. Also, it could be a reference for many similar companies for competing international projects as the special character of metallurgical industry involved in this paper.