The Optimization Research On Spareparts Management Of Baosteel

Baosteel’s spare parts management features huge amounts, different varieties and complicated species. And it’s highly demanding for all the relative departments of planning, purchasing, storage, distribution, etc.Though Baosteel’s spare parts management work has achieved great progress since its establishment, there still exist some problems in the aspects of plan accuracy, storage scale, supply chain risks control and overall benefits.In the principle of "a-whole-life management of spare parts", this paper carries out a deep research on Baosteel’s spare parts management. On this basis, and with reference to the practices and experiences of the most advanced iron and steel companies in the world, this paper makes a diagnosis of the major problems in Baosteel’s spare parts management according to the theories of ABC Classification, Kraljic Supply Matrix and Equipments Life Cycle. The paper suggests that Baosteel should make its plan more accurate,control its storage scale, control the supply risks and summarize up its spare parts consumption standards. The improvement advices are as follows:(1) Make distinction between strategic procurement and batch procurement according to the Theory of ABC Classification and the Kraljic Supply Matrix;(2) Control spare parts storage scale with the application of the Theory of Equipments Life Cycle;(3) Set up a risk-sharing model, and promote a win-win situation;(4) Mining the value of the spare parts management IT system.It is hoped that with the management ideas and methods put up in this paper, Baosteel’s spare parts management will be helped to achieve the ideal state of low cost, low inventory, and low risk.