FAW Xichai Qian Hengrong Director Qian Hengrong, the leader of the internal combustion engine industry at the helm of FAW- Xichai , learned about the "supply-side reforms." He shared his views: "As early as the 1970s and 1980s, Reagan passed the state-owned enterprise reforms and other measures to get out of the economy. The predicament of recession can be regarded as a typical success of the supply school. Focusing on "supply-side reforms," ​​the 'side' can be defined as 'one end', reforms from the supply side, structural reforms through talent, capital, innovation, etc. The structural reform of the side, the main body of the market, is still the enterprise in the final analysis."
For the challenges that the future needs to meet and opportunities to embrace, the money factory is full of confidence and has made a statement. He also told reporters: “Now, the tough battles of reform and transformation continue to swell, and the struggle for new energy is the king. It is extremely urgent to resolve the contradiction between energy demand and emission reduction. In fact, it is a gradual process to deal with the contradiction between supply and demand, from mitigation to complete resolution. The process is still a long way to go. The task is arduous, and what we need to do is not to 'wait' but to take the initiative to attack; difficult to do, what we need to do is not to 'avoid', but to face problems and open the 'green development' model. Open source festivals, cost-cutting and efficiency enhancements, and go all out to compete for the 'open road vanguard' of the circular economy."
Green upgrade difficult to hide the edge of the core
According to the latest data released by the China National Internal Combustion Engine Industry Association, the overall sales of internal combustion engines fell in April 2016. The “dragging†of diesel engine sales fell by 9.22% month-on-month, and cumulative sales for January-April decreased 8.26% year-on-year. The cumulative decline in the volume of diesel engines was particularly alarming.
“The reason for this is closely related to the “Exhaust Pollutant Emission Limits and Measurement Methods for Diesel Engines Used in Non-road Mobile Machinery†(China's Third and Fourth Phases) (GB20891-2014), which was announced by the Ministry of Environmental Protection in 2014. Since the official implementation of the three-phase standard in October last year, diesel engine products have been upgraded, replaced, and upgraded in a six-month period, and the non-road three-stage products have been widely used, but there are still many market users for the two phases. The products have a soft spot and the market acceptance of the three-stage products is relatively low.With the April of this year, the non-road two-phase formally announced its exit from the market, which has a greater impact on the sales volume of the domestic diesel engine market, and the overall sales volume has shown a downward trend.†FAW Xi Qiang, executive vice president of Xichai Sales Co., Ltd. pointed out: "Of course, this also precisely shows that in the future, the non-road three-phase power market has great potential for development, and we will dig deeper market potential, strengthen existing advantages, and create new advantages. In a sense, it can also stimulate the market to release new demands and ease the contradiction between supply and demand."
Focusing on the veterans of the internal combustion engine manufacturing industry for more than 70 years, FAW Xichai has rapidly deployed domestic and international trucks with the combination of three major brands, Aowei, Hengwei, and Conway's seven major series of dynamic products and core services. Non-road vehicles, mechanical engineering vehicles and other fields have opened up brand awareness, and corporate reputation has been increasing. It is difficult to shake the leading position in the industry.
A few days ago, the market reported another good news. In the first four months of this year, the sales of Xichai Aowei engines exceeded the 20% mark year-on-year, and the cumulative sales volume of Aowei 11L machines was easily crowned and become the king of domestic same-displacement engine sales. More than half of the same power engine in the country, with the low fuel consumption known for Xichai "green core" edge exposed.
Open source has done everything possible to increase efficiency
Open source, as the name suggests, is to promote production and prop up the room for increasing income. FAW Xichai seeks breakthrough in “open sourceâ€, accelerates the adjustment of market segments, and has achieved remarkable results in adjusting product mix. In 2015, the sales growth of Xichai's products slowed down, but the total cost of the company was significantly reduced, and the total profit exceeded 70 percent. The total asset contribution rate and net asset profit ratio that reflect profitability were far ahead in the industry.
“Time is efficiency, efficiency is development vitality. All our work is centered on production efficiency. Only in this way can we guarantee the amount of market put in, meet market demand, and bring maximum benefits to the company.†Head of Production Department, FAW Xichai Say.
Technical Innovation Discussion
How to improve production efficiency? Inseparable from the sincere cooperation of the management team, but also inseparable from the training of technical personnel. All along, under the leadership of management, FAW Xichai strictly manages its requirements, increases project reserves, rationalizes the use of resources, and improves the frequency of peer-to-peer inspections. It also takes into account the management of short-circuit boards to ensure the efficient operation of the company’s production operations. Improve business productivity.
Over the years, Xichai has fully demonstrated its role in management, human resources, technology, management innovation, bright talents, high-precision and talented personnel reserves, technological innovations, multiple interlocking, mutual guarantees, and gradually realized localization of spare parts for imported machines, and technological independence. To optimize procurement costs and increase the efficiency of work output.
“As of now, we have completed more than 90 autonomous maintenance of spare parts for imported machines, and 55 for localization. Among them, only the heavy-duty diesel engine Huishan base has completed 22 domestically-manufactured spare parts,†said the person in charge of the production department of FAW Xichai. . Stand up to the present and seek long-term results. Xichai has practiced "internal strength" to promote production through management and technology, supply sufficient market, and do everything possible to increase efficiency.
The depth of excavation control book
Open source, side-by-side, throttling.
Since the "Implementation Opinions on Promoting Structural Reforms on the Supply Side" and "Implementation Opinions on Reducing the Costs of Enterprises in the Real Economy and Promoting Steady and Healthy Development of the Economy" have been issued and implemented, focusing on "cost reduction" has become one of the major tasks of the government. The policies are favorable and lighter and lighter. This has created conditions for Xichai to reduce various types of costs and eliminated the unfavorable factors of the external environment.
Internally, FAW Xichai insists on brand leadership, bold innovation, scientific and rational formulation of cost reduction objectives, reducing ineffective supply, expanding effective supply, and improving the adaptability of the supply structure to the market demand structure so as to achieve optimal allocation. Instill the concept of cost reduction and efficiency increase into the hearts of every employee, and establish a business philosophy of “strictly controlling all costsâ€. Xichai earnestly digs deeper and enhances efficiency, and takes cost control as an entry point to control costs from the source of product design. , Cut costs, reduce unnecessary costs, and build high quality at low cost.
It is reported that, in order to replace the lighting system of more than 200 units of GROB machine tools in the CA6DL processing workshop, the purchase of imported lamps is a huge expense. After repeated weighing and research, Xichai adopts the method of domestic equivalent replacement, which can reduce procurement annually. With a cost of more than 50,000 yuan, the scientific cost reduction is significant.
Divide potentials one by one, one by one, and one by one. Xichai focuses on the reuse of resources and takes advantage of the benefits of open source. It has extensively launched a number of full-scale energy-saving potential mining activities to prevent excess production capacity and improve productivity, and to create a full range of high-quality power products to stimulate consumption and boost demand. Improving the quality and quantity of the company's sustainable development, improving profitability, and contributing its own strength to seeking a new balance between the supply side and the demand side.
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