Yuchai: A new course of transformation and upgrading, the second venture

The "new normal" is becoming a new posture for China's economic giant. Under the “new normal”, what are the company's outlets? Faced with brand-new propositions and challenges, Guangxi Yuchai Group , China’s largest internal combustion engine production base, has started its “second entrepreneurial venture,” transforming and innovating, breaking through self, and starting a new business cycle. In the meantime, we will achieve transformation and upgrade and create new advantages.

From a “small workshop” to a large modern enterprise group that ranks among the top 500 Chinese companies, Yuchai has been actively adapting to changes in internal and external environment.

Reviewing the situation and reorganizing the plan

With aspirations striding over, Yuchai's progress has never stopped.

In the whole year, the Group achieved a total sales income of 42.467 billion yuan, an increase of 2.15% over the same period last year. The engine segment developed steadily. Yuchai's share production and sales volume continued to rank first in the industry, and its market share continued to grow. Yuchai United Power ushered in the spring and completed its annual sales target one month ahead of schedule. Yuchai Lubricants realized a substantial increase in profits, initially showing the complementary effects of the joint venture. The logistics, trade, energy, and chemical industries grew steadily. The cooperation projects and technological research and development achieved a lot in success... In 2013, Yuchai marched forward in the state of micro-growth in the machinery industry, with impressive performance.

However, Yuchai, which has been in a state of rapid development, has a sense of crisis and disparity.

The sense of crisis and disparity comes from the external environment.

Saying goodbye to the slogan, the Chinese economy has entered a new orbit. High-speed, superior structure, new momentum, and multiple challenges... The Chinese economy has entered a new phase that is different from the period of high growth over the past 30 years. Entering the "new normal" of the economy and transforming the mode of development have become a hurdle for most Chinese companies.

At the same time, a strong equipment manufacturing industry is the foundation of the real economy and it is the key to transformation and upgrading. In the face of informatization and new technology revolutions, the equipment manufacturing industry has to face changes in the manufacturing model, and face the severe squeeze challenge of industrial upgrading space. It must shoulder the important tasks entrusted by the times and formulate a new round of development strategies and growth models.

The sense of crisis and disparity comes from Yuchai itself.

In 2014, the “Twelfth Five-Year Plan” of Yuchai Group has entered its fourth year. However, due to the constraints of international and domestic economic environment and various factors within the company, there is a big gap between the development of enterprises and expectations, since 2011. Since then, the group’s marketing scale has been hovering at 43 billion yuan for three consecutive years, highlighting the bottleneck of development.

In addition, after years of development, Yuchai’s internal development environment has also undergone changes. During the development process, it has encountered many problems, such as the lack of high-end talent, rigid management system, too narrow a financing platform, and the failure to maximize the development of human resources bonuses. .

......

Under the new development environment, how can Yuchai achieve greater development and realize the grand goal of internationalization?

"Second Venture", Transformation and Upgrading!

Under the background of changes in the internal and external environment, in April 2014, Yuchai responded to the situation and proposed the concept of “second venture”. In conjunction with its own development, it adjusted the development strategy and officially released Yuchai Group twice. Entrepreneurship and Outline of Strategic Plan 2014-2018.

In the development strategy, Yuchai proposed to accelerate the construction of Yuchai Industrial New City, expand domestic and international joint ventures and cooperation, and the introduction and application of high and new technologies, and focus on expanding the “engine” and “petrochemical” two industrial chains to build “financial "And logistics" two major service platforms, integrate resources, optimize the structure, promote the transformation and upgrading, enhance the core competitiveness, and achieve sustainable development and healthy development of the company.

In terms of strategic positioning, Yuchai proposed to establish "two industrial chains, two major service platforms", namely "engine" and "petrochemical" two industrial chains, "finance" and "logistics" two major service platforms.

In terms of strategic guarantees, Yuchai proposed to implement “one core, two reforms, three innovations, and five upgrades” (a core, that is, the company’s core competitiveness, and must focus on “team, innovation, product, market, financing, “Management” and other six elements, that is, through this series of measures, nurture and develop a strong product force, market power, innovation, management, financing and team strength, so as to consolidate and enhance the core competitiveness of Yuchai Group; Reform, namely, institutional reform and mechanism reform; three innovations: business model innovation, management system innovation, and cultural system innovation; five upgrades: product structure upgrade, technology research and development upgrade, quality control capability upgrade, marketing capability upgrade, investment and financing Capacity upgrade.) Strategic security system, supported by key projects, to ensure the Group's second venture, transformation and upgrading, and the realization of strategic goals.

Yu Ping, chairman of Yuchai Group Board of Directors, said that Yuchai should make full use of the platform and opportunity for the construction of a new industrial city, focusing on the core of transformation and upgrading, and strive to build “one headquarters base + four industrial areas” within 3-5 years, forming 1,000 The annual output value of more than 100 million yuan, the local supporting rate of parts and components has reached more than 50%, build a national new equipment manufacturing (internal combustion engine) industrial base, and complete its own industrial revolution.

Entering 2014, Yuchai started the “second venture” and opened up a new journey.

Save the internal force to lay the foundation stone

Hard work is the foundation stone for the company.

Promoting the “second venture” means Yuchai’s efforts to improve internal strength, accumulate energy, and speed up transformation and upgrading.

From advancing institutional restructuring to improving management efficiency, and building a lean operating system to enhance Yuchai’s core competitiveness, Yuchai paid more attention to the development and development through the reform and innovation of the original institutional mechanisms. .

On December 16th, 2013, Yuchai carried out a massive institutional adjustment and comprehensively standardized the names of organizations and cadres, which solved the problems of inconsistent names and confusability of the previous tier 1 and 2nd tier organizations. However, it is more from the strategic goals of the company to reorganize various departments to form a business unit mechanism, to integrate effective resources on a single platform, and to gather all the forces to prepare for Yuchai’s “second venture” that has already begun. .

Yuchai’s efforts to promote transformation and upgrading through hard work are also reflected in the implementation of lean manufacturing.

In order to shorten the gap with the world's most advanced companies, in October 2010, Yuchai shares were officially introduced into lean manufacturing, sending out a cry for product, market, marketing, service, cost, and other aspects. The brilliant chapter of the most competitive professional power supplier.

After continuous efforts, with deepening of lean, deep-seated problems are gradually exposed. In particular, due to the lean implementation of the previous period, emphasis on practice, while neglecting the theory of cultivation, talent construction, etc., weakened the effect of the late implementation of lean. In order to break this short board, Yuchai has hired Japanese expert Yamada Ichiho to become the manufacturing director and systematically leans Yuchai's “pulse”.

With many difficulties, the lean research team made up of Yamada Ichigo was deeply involved in various factories and functional departments of Yuchai. After more than three months of research, the lean research team identified a series of problems that needed to be improved in the foundry and established 16 improvement projects for the fourth level of the foundry. In March 2014, the foundry pioneered the first shot of comprehensive lean improvement, focusing on improving products, production activities, and production thinking.

Internally initiated comprehensive lean improvement efforts, and external efforts are being made to build supply chains. In order to improve the level of the existing supply chain, Yamada Miichi pointedly pointed out that the overall quality of Yuchai products would not be tenable without solving the quality control of parts. He suggested that Yuchai change his concepts and learn from advanced companies such as FAW-Toyota to advance the quality control of purchased parts.

Comprehensive lean improvement requires more professional personnel, theory, and tools to support it. In order to ensure the smooth progress of the overall lean improvement work, Yuchai started a series of Lean special training internally since the beginning of this year. In the first half of the year, Yuchai Co., Ltd. completed the training and assessment of a total of 153 team leaders and 16 courses.

The lean philosophy inspired Yuchai to make a series of changes in the introduction, training, and use of talents. In addition to internal demand, Yuchai has also learned from abroad. In April this year, it organized lean personnel to go to Nissan to learn from the theory, and in theory, plump the lean wing of Yuchai. Fuping returned an order to the human resources department. This year, in addition to publicly selecting the best talent, Yuchai also needs to recruit three high-level talents from the Fortune 500 companies: Quality Director, Human Resources Director, and Purchasing Director.

Combing and optimizing management processes, implementing large project management, and implementing a comprehensive budget... Lean concepts are guiding and driving Yuchai's management to a new level.

Today, the spark of the “lean” concept has gradually become a trend for Yuchai Group.

A series of efforts to persevere in reform and innovation have found a solid foundation for Yuchai’s transformation and upgrading.

Industrial new town starts

Creating a brand new platform is crucial for Yuchai’s “second startup”.

On May 14, 2014, Yuchai Group established Yuchai Industry Xincheng Company in Yulin City, Guangxi Province, which is an important measure to implement the new strategic plan of Yuchai Group and realize the concept of “second entrepreneurship”.

Over the years, the Yuchai Group's corporate system has affected the development of the company due to the small amount of assets and the lack of a platform. The construction of a new industrial city has created a brand new platform for Yuchai.

Junping said Yuchai Industry New City is the carrier and platform for Yuchai’s “second venture” and is an important measure for Yulin City to implement the strategy of “strong Chai Xingyu”. After the completion of the new industrial city, will become a high-end equipment manufacturing and modern service industry efficient linkage of the new industrial complex city, Guangxi strategic emerging industry leading regional, national circular economy demonstration park, will be an important platform to promote the scientific development of enterprises, promote Yulin City and even Guangxi to accelerate the new industrialization to achieve a strategic fulcrum over the development.

According to relevant plans, Yuchai Industry New Town and Yulin New Equipment Manufacturing (Internal Combustion Engine) Industrial Base are located in the southern suburbs of Yulin City, Guangxi Province, north of Luoyang-Zhanjiang Railway, south of Luchuan North Industrial Park, west of Yuxiu Expressway, and east of Luchuan River. Moon Rock Scenic Area, the overall planning area of ​​7.3 square kilometers.

High starting point, great atmosphere, great ideas.

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