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A Study on the Procurement Cost and Risk Control in the Landscape Engineering Project

Author: HuangSongYi
Tutor: ZhouXia
School: South China University of Technology
Course: Project Management
Keywords: Landscape engineering project Procurement process Cost control Risk management
CLC: F406.72
Type: Master's thesis
Year: 2011
Downloads: 399
Quote: 0
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Abstract


As an important component of enterprise business chain, procurement has significant effect on the overall cost, quality and profits. It is an important and difficult work to use scientific procurement processes to reduce business costs, output high-quality products, and improve the overall profit of enterprises. Since the 90’s of the 20th century, enterprise management methods tend to retain and make the company’s core business, while the other non-core business are outsourced in the form of procurement due to profound changes in industrial society. As with most of the architectural enterprises, garden business often adopt procurement outsourcing in the implementation of projects management, to concentrate the limited internal resources, make full use of external resources and improve the core competitiveness of enterprises, minimize the cost of business operations, enhanced its competitive advantage.Garden as an integrated project of Art and Science necessarily requires scientific procurement process to create excellent project of good visual effect, low cost and high-profit. However garden is taken for granted as simple class project, and there is less research on their procurement systems, which results in not adequate attention on the procurement cost control and risk management on it. Therefore, it is practically significant to make targeted research and model investigation on excellent procurement process of garden project.The topic is from the integration of the professional direction during ME study and practical working experience. Taking the existing garden procurement system in LH Company as the research object, from the aspects of cost control and risk management to explain the theory of cost accounting and control of procurement, classification of sources of purchasing risk, and discuss the specific issues of procurement cost and risk management for the garden company.Secondly, the paper introduces the organization and management system of engineering procurement in LH Company, and then according to the status quo proposes an optimal design for the gardening engineering procurement system in LH. The first is an improvement of procurement system based on cost control, which is a valuation and accounting on the procured products’cost by value analysis (VA/VE). And then is an improvement of procurement system based on risk management, which includes the potential risk identification of garden engineering procurement based on the analysis of flaws in current procurement process. The following strategies on risk response are also proposed. Finally, apply Petri Nets to establish procurement process optimization model based on the two above aspects of procurement system optimization design, and also evaluate the model with application examples.Finally, the paper analyzes and evaluates the project procurement process by typical case study on LH company’s“Landscape Project of BY International Conference Center”with the relevant conclusion and enlightenment.

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CLC: > Economic > Industrial economy > Industrial economic theory > Organization and management of industrial enterprises > Financial management and accounting > Financial management, cost management
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