Accelerate the Transformation and Upgrade Yuchai to Combat Competition at Home and Abroad

Transformation and upgrading, the current theme of China's economic development.

How to transform? How to upgrade? In the face of increasingly stringent environmental protection, energy, and sustainable development requirements, facing the pressures of technology, market, and industrial restructuring, as the largest internal combustion Engine production base in China, the Guangxi Yuchai Group has handed over an answer sheet that attracts attention.

Innovating the management model of subsidiaries, starting lean design projects, strengthening product technology upgrades, actively expanding overseas markets, and nurturing new profit growth points... Since 2013, Guangxi Yuchai Group has persisted in a new-type industrial development path driven by innovation and connotation. With steady development scale and speed, it will continue to consolidate its leading position in the field of internal combustion engines, achieve steady improvement in operating efficiency and market share, and gradually enter a new track of safety and health during the transitional development.

Transform and upgrade healthy development

“Low growth is undoubtedly the future development trend of the equipment manufacturing industry.” The data for the first three quarters of 2013 showed that although the internal combustion engine industry in China began to stabilize at a low level, the market demand growth was still lower than expected and continued to show a slowing trend.

At the same time, a figure announced by Yuchai Group has attracted a lot of attention: In the first three quarters of 2013, Yuchai Group's sales revenue reached 31.2 billion yuan, a year-on-year increase of 5.6%.

What is even more remarkable is that the Yuchai Group, a core subsidiary of Yuchai Group, has achieved significant growth in production, sales, and profits this year, exceeding the industry's average growth rate.

The details worth paying attention to are much more than that:

In the logistics and auto trading sector, Yuchai Logistics' first-half profit target achieved 57.2% of the annual target.

In the energy and chemical business segment, after experiencing rapid growth in the past two years, the company's development has entered a deepening period. Subsidiaries of the Yuchai Group have achieved sales growth. Yuchaimar Petroleum Lubricant Co., Ltd. has completed a joint venture and cooperation, and the company's indicators have maintained a good momentum; Maoming Changchun has increased by 11.25% year-on-year in the first half of the year, accumulating strength for the rapid development in the second half of the year.

In the special-purpose vehicle sector, Yuchai Gas will benefit from the construction of the "beautiful China" ecological civilization, and orders for sanitation equipment will increase significantly. In 2013, it is expected to build another level on the basis of 2012.

......

One tiny detail condenses together to become an exciting fact: Since 2013, Yuchai Group has adjusted its existing industrial sector, revitalized its resources, and leveraged on its own advantages to rapidly promote transformation and upgrading. Maintained healthy development.

The efforts of Yuchai to promote transformation and upgrading are reflected in the implementation of lean manufacturing.

This is a typical case of lean manufacturing:

In order to improve the dispersal situation of the “different parties” of the teams in each unit, Yuchai’s shares in the 11 pilot teams have achieved excellent results, expanding the number of lean project teams to 104, and participating in a total of 1,700 team members, gradually constructing a A set of project management mechanisms that help efficiently collaborate on the strength of each team.

The project team developed a map of the lean team project and defined a series of countermeasures and activity standards to achieve the goal, so that the team management of each unit can not only maintain their own characteristics, but also achieve the basic requirements of harmonization. The project team relied on the coordinated and efficient “Hundred Regiments Offensive” to complete various objectives on schedule.

More than 3,000 problems were found in the reflection society and 2180 were improved. In the small group improvement activities, the failure rate of the quality of the equipment of the engine of the first engine factory was reduced from 4.02% to 0.29%, and the improvement rate of the operating time of the engine plant No. 2 was increased by 12%. The safety, quality improvement, cost reduction and efficiency increase of the second engine plant were ensured. It has achieved fruitful results.

Lean to create benefits. From January to June 2013, Yuchai Corporation sold more than 270,000 engines; the engine market share increased by 1 percentage point over the same period of last year and continued to rank first in the industry; sales revenue exceeded 10.5 billion yuan, up by 13% year-on-year, and production and sales achieved Substantial growth.

The improvement of the operational efficiency of Yuchai is only a microcosm of the achievements made by Yuchai Group through comprehensive and in-depth advancement of lean manufacturing and continuous improvement of operational efficiency. Driven by lean manufacturing activities, Yuchai shares are gradually becoming the industry benchmark.

Since the implementation of lean manufacturing activities, only in 2012, the quality of Yuchai's model sample line has increased by more than 28%, efficiency has increased by more than 27%, and the average failure rate of equipment has dropped by 29%. In October of last year, Yuchai Group fully launched its lean manufacturing activities. Three subsidiaries including CSR Yuchai, Yuchai Power, and Guangxi Huayuan were selected as pilot units for lean manufacturing. In the first phase of Lean, a total of 19 projects were established, of which 18 projects were up to standard at the time of acceptance. The compliance rate was 94.7%, and it is expected to bring financial income of 12.5992 million yuan.

In 2013, based on lean manufacturing, Yuchai launched a lean design project. At the same time, lean manufacturing was extended to the supply chain in order to increase the level of parts manufacturing at upstream suppliers. At present, Yuchai Lean Chain has been developed into lean research and development, lean procurement, lean sales and other aspects, and a complete lean system is constantly being constructed.

The efforts of Yuchai to promote transformation and upgrading are also reflected in the innovation of business management and control model.

In 2013, while maintaining the healthy development of the company, Yuchai built a “full, dynamic, and three-dimensional” business management and control model, and created a “five-dimensional matrix index management and control system” to comprehensively monitor the company’s operating capability indicators and profitability indicators. , Repayment ability indicators, risk management and control capabilities indicators, human resources management and control indicators, thus building a solid foundation for the entire group's health and safety development.

A series of efforts to persevere in promoting transformation and upgrading have injected Yuchai with an infinite power of “continuous improvement”, and Yuchai has found a way to reshape the “connotation of growth” when the external market is weak.

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