Modernized steel plant belongs to high technique and capital-intensive industry. However, the independent ability of domestic industry in supplying steel plant equipment is so limited. Hence, almost all the equipment of steel plant are provided by foreign supplier. How to assure the big investment of project could be successful eventually, the selection of qualified equipment supplier becomes critical.
The evaluation of equipment supplier is so difficult due to too many factors to be considered. Today, the evaluation by personal subjective thinking can’t be applied to the assessment of both technique and non-quantifiable factors. Therefore, it is necessary to develop a wide, comprehensive and practical approach for the evaluation of equipment supplier. This research adopt AHP(Analytic Hierarchy Process) to construct multiattribute decision-making mode. Then, by using the decision-making process to evaluate the equipment supplier. So that such a decision-making behavior is more objective and integrity, and the sequence of priority of equipment supplier can be referred by decision making level.
This decision making model is to be applied to the actual case-China Steel Corporation NGO (Non-Grain Oriented) electric steel project which is currently proceeded on. This research will evaluate and distinguish the priority of potential equipment supplier. The top three will be selected for final run of the bidding. Trust the above-mentioned method for selection of equipment supplier is quite in order. It not only helps to reduce the risk but it also increases both efficiencies and quality of decision making. Through study, we acknowledged that equipment technology management is the most important item. Per priority and weight in whole evaluation factors, the top five are selected. Finally, the top three equipment suppliers in NGO project are selected as well.