Research On The Procurement Of Multi-variety Small Batch Castings By F Pump Company

Along with the deeper processing of economic globalization and information globalization,the global competition between manufacturing enterprises,represented by pump manufacturing enterprises,is getting intense.The competition between enterprises is gradually becoming the one between the supply chain behind the enterprises,purchasing and supply management are therefore getting much more vital to the enterprises' operation.Headquartered in Indiana,F company was founded in 1944.After a half century of development,F company has become the leading manufacturer in submersible motors used in well.F company started expanding its business to pump industry since 2004,with its self-innovation and acquisition of pump enterprises,now it becomes a professional pump manufacturer specialized in sewage pump,jet pump,garden pump and trash pump and etc.in a short period of 10 years.The successful product strategy and marketing strategy implemented by F company gains its stronger competitive edge rapidly in the global market.From the time being established and focused on submersible motors for well to recent years acquiring pump enterprises frequently,the ability of being keen in capturing products and market drives F company to succeed in launching its new products and acquisition activities,facilitates its pump business to grow rapidly against the strong competitors around the world.While F company doesn't pay too much attention on its procurement and supply management for years,problems associated with procurement and supply are arising along with the process of expanding its business and size.Seen from the perspective of casting category among many purchased components,with an analysis supported by related procurement theory and lean management,this paper finds out the root cause of the problems,arisen from current purchasing,against the multi-variety&small batch casting,and then figures out the solution for the problems.The 1st Chapter of this paper is to briefly introduce the development history of pump industry and the common problems being faced by the pump manufacturers under the trend of product differentiation,also introduce the background,purpose and significance of the study.In the 2nd Chapter,the development history of procurement and supply,purchasing risk and product influence as well as lean management are introduced.In the 3rd Chapter,starts with the development status of F company's business initiated by submersible motors and then expand business to pump industry,current organization structure of procurement and procurement situation,proportion of purchased material,then describes the procurement condition and problems,points out the detailed issues against the purchasing on multi-variety&small batch casting.At last,figures out the root cause based upon the detailed analysis made on each problem.The 4th Chapter presents the solution for each exposed problem by using the procurement theory,lean management addressed in Chapter 2.Introduces preliminary effectiveness of solutions after they're implemented,and the anticipated effectiveness of the solutions that are in process.Chapter 5 summarizes the paper,point out the vital role acted by procurement&supply management to the companies' operation under the much more intense global competition,and the importance of continuous improvement navigated by lean management to help the pump company and its suppliers achieve mutual benefit,puts forward some extra thoughts from this paper writing.