On November 28, 2007, Sinotruk ushered in a historic moment. Sinotruk Hong Kong Co., Ltd. was listed on the main board of the Hong Kong Stock Exchange and made an international public offering. The first round of financing was 9.9 billion Hong Kong dollars, becoming the 2007 Hong Kong Federation. The largest red chip company listed on the stock exchange, China Shouqi has thus entered the global arena.
Visit "Heavy steam"
On these two days, people frequently heard a name in various media: China National Heavy Duty Truck Corporation. We have to interpret the company in detail today. Many manufacturing companies in China have faced a roadblock this year. Raw material prices, rising labor costs, poor export, and tightening monetary conditions have caused some companies to lose profits and even lose money. However, we have found that domestic companies are feeling pressure. At the time, China National Heavy Duty Truck was flying against the wind and created one miracle after another.
Just eight years ago, it was still an old state-owned enterprise that was on the brink of collapse. Eight years later, it not only survived, but it also ranked among the top five in the world. What are the tricks that this enterprise has brought back to life?
In July 2008, CNHTC headquarters in China National Heavy Duty Truck Group reported that in the first half of this year, the production and sales volume of heavy-duty trucks of the CNHTC Group exceeded 70,000 vehicles, with the main indicators increasing by more than 40% year-on-year.
Cai Dong, General Manager of CNHTC: "Our efficiency in the first half of the year increased compared with the same period of last year. The growth rate increased compared with the same period of last year. Profit increased by about 30%. Under the premise of price increase, profit growth. About 30%."
With global prices of energy and resources rising and steel prices rising substantially, the overall efficiency of the domestic heavy-duty truck manufacturing industry has declined. The overwhelming majority of companies are operating at a meager profit level. Therefore, Sinotruk’s headwinds have created a miracle. What kind of secret behind it? When reporters tried to find out the answer, they discovered that for CNHTC, the current performance is only a matter of course. In the past eight years, China National Heavy Duty Truck has created a legend of a life-giving and Phoenix Nirvana.
China National Heavy Duty Truck Group Chairman Ma Chunji: "It should be said at the time of production and semi-discontinuity. At that time, the company's book loss amounted to 8.3 billion yuan, and the actual amount of losses has exceeded 10 billion yuan."
In 2000, when Ma Chunji led the new team to take office, he faced a mess that was on the verge of collapse.
Ma Chunji: "There have been no wages for 10 to 13 months. Old-age insurance has defaulted to 370 million. Interest on banks, including utility bills, has been heavily delinquent. It can be said that it is on the verge of bankruptcy."
Today, eight years later, we see a heavy truck like this: the major economic indicators have grown more than 20 times, and the market share ranks among the highest in the nation's heavy truck industry. The total vehicle export volume and foreign exchange earned amount to the national heavy truck industry. First, the production and sales of finished vehicles rank among the top five in the world heavy truck industry.
Ma Chunji: "The overall concept is one step further than the international advanced level."
China National Heavy Duty Truck up to date three magic weapons: order production, information management through the first line, zero inventory logistics management
8 years ago, Sinotruk Group suffered a loss of up to 10 billion yuan. It was already dying. At that time, no one could believe it. Today, it can compete with the giants of international heavy-duty companies and compete on the same stage. In the year, the change can be said to be the mulberry field, what is the secret of China's heavy gas back to life? Take a look at the story of a Phoenix Nirvana.
China National Heavy Duty Truck once had a glorious past. In April 1960, the former Jinan Automobile Manufacturing Plant of China National Heavy Duty Truck successfully produced the first heavy-duty truck in China, the Yellow River brand JN-150 8-ton cargo truck. China’s history of not producing heavy-duty vehicles became the cradle of heavy-duty vehicles in China. However, 40 years later, Jinan Automobile Manufacturing Plant was on the verge of collapse.
China National Heavy Duty Truck Group Chairman Ma Chunji: "So the State Council's 74th Prime Minister's Office will be set down, implementing separation, reorganization, adjustment, and reform."
Song Qidong, deputy chief accountant of China National Heavy Duty Truck Group, said: "This is a document of the decentralization and reorganization at that time. This is the summary of the 74th Premier Office meeting of the State Council in 2000, which clearly defined the principle of demobilization and reorganization by CNHTC. The system of the CNHTC Group will be transformed from the state-owned pilot enterprise group of the former Central Government into a key enterprise in Shandong Province and will implement the management of Jinan City."
In August 2000, Ma Chunji, the then vice mayor of Jinan City, took over as the chairman and concurrently secretary of the newly formed Sinotruk Group. At the beginning of his term, he accepted a death order that must be completed.
Ma Chunji: "On the one hand, we must basically allow our employees to have their meals, and companies must turn a profit into profits. On the other hand, we must achieve development on this basis."
The 100,000 employees who did not pay wages for 13 months had their meals eaten and turned into profitable companies. At that time, it was almost an impossible task.
Cai Dong, general manager of China National Heavy Duty Truck Group Co., Ltd.: “The company has no money, and the market for its products has not opened up. It is very difficult for the company to operate.â€
The problems are piled up, all things need to be done, and where to start looking for breakthroughs? After investigation, the decision-makers of CNHTC have found a breakthrough: It is to innovate production and marketing methods and implement order production.
Ma Chunji: "It should be said that the biggest problem for this company is the market issue. As a company, how can it capture the market and get orders before it can start production? It is precisely in this case that our company has grown up under the planned economy. We do not know how to take orders on the market."
Arrangements for production according to orders have been implemented in the international industry for many years, and other domestic industries are also common. However, prior to the implementation of the reorganization in 2000, the heavy-duty trucks are still lagging behind in the planned production mode. The types of heavy-duty trucks produced are of a single type and yield is low. Not easy to sell.
Cai Dong: "If you get 1000 cars, you may be waiting for them to sell and sell 600 cars. The remaining 400 cars will be very difficult to sell. You will sell them at a drastic price cut. This will make you lose money, as if you had a car or a car. Money is earned, and the end result is no money."
In 2000, the output of heavy trucks was only 3,780, which actually formed a backlog.
Ma Chunji: "The inventory of a large number of vehicles has been created. This is actually very wasteful. First of all, under the circumstances that liquidity is so difficult, there would have been no capital, it would be extremely difficult to operate, and it will take up so much capital to form two stocks."
For the waste in the planned production mode, the reporter heard a bizarre thing.
Xing Hao, Logistics Manager of Sinotruk Jinan Truck Co., Ltd.: “When we checked the database, we discovered that, for example, there was a nut. At the time, I discovered that the inventory of this nut library can be used for about 150 years.â€
After clearing inventory of warehouses, CNHTC found that most of the accessories and materials in the warehouse have been accumulated for more than four years and more than eight years, which means that they have become obsolete.
Xing Hao: "It can't be used for more than four years. It is such a thick one, probably worth more than 40 million."
Ma Chunji: "In that case, it brought about the occupation of a large amount of capital on both sides. The more vicious cycle there is, the more people are determined to change the previous model in order to survive."
Cai Dong: "Then we think that the most important one is that we must follow international standards and rush orders. Then the company will switch from self-sales to agency sales, and the products will quickly reduce costs and bring the price of the product into line with the main customer base. At the same time, it made a difference between its products and its competitors."
This is a complete vehicle assembly and loading of China National Heavy Duty Truck. The reporter found that in the same production line, two different cars, white and red, were produced at the same time.
Ma Chunji: "This shows that different orders, different users, in a production line equipped with different vehicles every day, this is mainly based on customer needs."
After CNHTC changed the planned production model to the order production model, it carried out personalized production according to the different needs of each customer of each order, and produced vehicles of different brands, different specifications, and different configurations on the same production line.
Reporter: "If different cars are produced on the same order, wouldn't it be difficult to control and be confused?"
Ma Chunji: "It should be said that this is a major step forward in our management. In the past we used to produce the same vehicle every day. If we have to adjust it, it is very troublesome. After several years of reforms, we have in particular strengthened our management and turned order production into orders. Distribution, so that the supplier in the distribution process, according to our computer to give him information, then the assembly operator also in accordance with our computer information, monitoring from the back to the maintenance are in accordance with the computer this information to go down, so to improve the scientific management ."
In line with the order production model, CNHTC has independently developed an information management system called FirstLink, which has completely upgraded the original production, operation and management methods.
Cai Dong: "From the moment of accepting orders to the last-mentioned delivery of users, our company is now running on an information-based platform."
Liu Zhengde, Chief Engineer of China National Heavy Duty Truck Group Jinan Commercial Vehicle Assembly Plant, said: “The entire information platform is unifiedly dispatched through the computerized information system. We call it the internal ERP system. Its main function is based on the needs of users and from the sales management system. The sales information system transfers the user's request to the specific vehicle configuration to the production management system. The production management system conducts production inspection according to the production plan and natural conditions. After the inspection, the procurement department or the dispatching department There is also a planning department, and according to the general information, we then make requirements for these vehicles, various requirements, material requirements, and material requirements tables, and then assign them to various suppliers."
The CNHTC Group called this management system independently developed by CNHTC as a chip of CNHTC because it not only changed the production and operation methods of CNHTC, but also brought about a revolutionary change, that is, it achieved zero inventory, that is, heavy-duty trucks. Instead of using warehouses to store accessories, they rent out warehouses to suppliers.
Vendor Pan Jinliang, general manager of Changzhou Liangxu Vehicle Fittings Co., Ltd.: “The coffers pay us rent, rent their parts, rent their warehouse.â€
The supplier said that the original transport costs, storage costs and other costs are borne by the heavy truck group, after changing to zero inventory, transport and inventory costs borne by the supplier, but the supplier gradually accepted this approach, Because they also benefited from it.
Pan Jinliang: “Now we are sitting at home and knowing how much freight we have in the warehouse today. How much cargo is used on the big line today? We can all calculate this one and it is at a glance. Basically, our home is based on heavy-duty steam. Production to arrange our production, so everyone is also very beneficial to us."
Ma Chunji: "For me, I have greatly reduced inventory. At the same time, I have a zero inventory from the form of funds. This way, I have reduced my costs. At the same time, I have also improved the quality level. I think such a positive and interactive win-win solution is for everyone. welcome."
Reporter: "How much does this cost reduction to Heavy Truck each year?"
Ma Chunji: "This is a piece of light. In any case, we count the two heads each year. The inventory at the two ends is at least 20 billion yuan, and it is saved."
Through order production, frontline information management and zero-inventory logistics management innovation, the severely collapsed heavy-duty trucks have become a modern enterprise that can quickly adapt to the market, and the production and sales volume of vehicles have doubled for four consecutive years. 3,780 units; increased to 7,800 units in 2001; increased to 13,068 units in 2002; increased to 2,018 units in 2003; and increased to 45,263 units in 2004; the growth rate of production and sales of heavy-duty vehicles was far ahead of the domestic industry. However, in 2005, CNHTC once again came to a point of survival.
Ma Chunji: "It is a watershed that can make our business either sink or decline, or we can stand up and stand taller."
China National Heavy Duty Truck Breakthrough in Two Reorganizations to Realize the Transformation of Production Management and Technology R&D
With the production of orders, information management of the first line and zero inventory logistics management, Sinotruk opened up the market externally and significantly reduced its operating costs. With these three magic weapons, this unsustainable company finally emerged from the death line. Struggling up, from 2001 to 2004, the annual production and sales volume doubled for four years in a row. However, when the company just recovered its strength, China Heavy Duty Truck suddenly encountered an unexpected threshold.
At the end of 2005, CNHTC was reorganized, and the original part of the supply of engines for CNHTC's production of complete vehicles was independent. After the separation, the engine production company stopped supplying to the CNHTC Group.
Cai Dong, general manager of China National Heavy Duty Truck Group: "We had an annual output of more than 40,000 units in one year. Then this change can be said to be one of our company can continue to survive or that the company will stop The situation was lost."
The engine is the most important part of the heavy truck. With painstaking experience, CNHTC has found that if the engine is controlled by others, it will seriously restrict the future development of CNHTC. In the face of unexpected incidents when suppliers stop supplying, CNHTC has prepared for both hands. Instructed its subsidiary company Hangzhou Engine Co., Ltd. to speed up production to save emergency.
Li Kekuan, general manager of Sinotruk Hangzhou Engine Co., Ltd.: “The demand for power from the headquarter is very urgent. We deeply feel that one less engine will face the production and sales of one less vehicle. Therefore, we carefully organized and opened up all bottlenecks. This, in the case of the original monthly maximum production of only 2,000 units, the use of three or four months to achieve a monthly output of more than 5,000 units immediately, in 2006, we achieved a 120% increase in the basis of 2005 production. â€
At the same time, CNHTC built a new engine production plant in Jinan at a speed that is rare at home and abroad.
Xing Zhong, general manager of CNHTC, CNHTC: "We made this decision in May 2005. That means we have to build the engine factory by the end of the year. It's only eight months now and we should say The task is very arduous. On December 31, the end of the year, our first engine was successfully ignited."
At present, the annual production of the engines produced by the CNHTC Group in Hangzhou and Jinan two engine plants reaches more than 200,000 units. This not only meets the demand for heavy-duty trucks, but also exports a large number of products. This miracle relies on the heavy-duty trucks digesting and absorbing world advanced technologies for many years. Deeply accumulated, especially in the innovation of engine core technology, at the same time, out of stock has also accelerated the speed of technology research and development of the CNHTC Group. In 2006, CNHTC Hangzhou Engine Co., Ltd. took the lead in launching an engine that meets Euro III standards.
Li Kekuan: “This is our current high-pressure common rail system. The three engines of the country. We started researching with the well-known foreign R&D institutions in 2003. We started the trial prototype successfully from the end of 2005, and then we passed the vehicle with about half a year. After the trials on the roads and after repeated trials, we started mass off-line from our production line on July 7, 2006. That is, on July 7, 2006, our company has started to mass-produce the engines that our country needs. This, I remember, was called Euro III."
Reporter: "What is the relationship with this?"
Li Kekuan: “European Euro III is an emission standard in Europe. Now we often refer to the country’s three national standards as an emission standard that is equivalent to the Euro III emission standard.â€
The mass production of Euro III engines means that Sinotruk trucks can enter the world's broader market. In 2000, China National Heavy Duty Truck's vehicle exports were zero. In 2007, China National Heavy Duty Truck achieved 16250 vehicle exports, which earned foreign exchange 5.15. Billion US dollars, ranking first in the domestic heavy truck industry.
It can be said that during the two reorganizations in 2000 and 2005, China National Heavy Duty Trucks faced a major test of life and death choices, but with breakthroughs in production innovation, marketing innovation, management innovation, and technological innovation, they each broke through a major barrier. The transformation of production management and technology research and development has been realized. Now that CNHTC not only keeps a close eye on the domestic market, but also has already set its sights on overseas, then they rely on international auto giants to compete on the world stage.
On November 28, 2007, Sinotruk ushered in a historic moment. Sinotruk Hong Kong Co., Ltd. was listed on the main board of the Hong Kong Stock Exchange and made an international public offering. The first round of financing was 9.9 billion Hong Kong dollars, becoming the 2007 Hong Kong Federation. The largest red chip company listed on the stock exchange, China Shouqi has thus entered the global arena stage, but then ushered in another severe period, is the skyrocketing prices of energy resources.
Cai Dong: "For the simplest example, the most basic casting material we use is pig iron. When pig iron was originally used, a ton of pig iron was worth more than 2,000 yuan. Now it costs 5,800 yuan per ton of pig iron. Within a few months, it quickly rose to This state."
It is in the case of a substantial increase in the cost of such raw materials, China National Heavy Duty Truck still maintains a strong momentum in the first half of this year, profits increased by 30% compared with the same period last year, then, what is the secret of heavy truck?
Chairman of China National Heavy Duty Truck Group Ma Chunji: "The most profound is technological innovation, relying on technological innovation to save potential, energy saving and emission reduction."
Li Kekuan: "This is our electronically controlled EGR three engine. This engine is based on the full wisdom of the Group on the basis of our high-pressure common-rail three-engine. We have made an innovation in the technical route on the fuel supply system. Now that this key system meets the requirements of the national emission regulations and standards, we have significantly reduced our costs and improved our performance."
Ma Chunji: "Through the development of the engine's R & D and production capabilities, we have made our technological innovation capabilities stronger, which has given us more confidence in our development."
Although the current industry-wide production situation is grim and global competition is extremely fierce, China National Heavy Duty Trucks has not concealed its own goals.
Ma Chunji: "I think that there will be another five to eight years. We will certainly be able to reach the advanced level in the world. We can compete with the heavy trucks of any developed country in the world."
Half-hour observation: Where is the way out of China?
China National Heavy Duty Truck, like many large-scale state-owned enterprises, once experienced a painful walk on the edge of life and death. Many companies have fallen, but Sinotruck has stood up. Not only has it succeeded in resolving the issue of survival, it has also created a miracle that has increased 20-fold in eight years.
The sole reason why China National Heavy Duty Trucks is miraculous is innovation. In terms of technology and innovation, China National Heavy Duty Truck has made great efforts in these years. When they were reorganized in 2000, there was only one series of 78 models with zero patents. At present, 9 series of more than 2,700 models have been developed; 803 patents have been applied for in total, of which 656 have been granted patents and have become the most heavily patented enterprises in the national heavy truck industry. Through technological innovation, the competitiveness of the products has been improved; the cost has been reduced through management innovation, and the benefits have been increased; through the concept innovation, international perspectives have been opened up. So even if today is facing the pressure of RMB appreciation, inflation and the global energy crisis, China National Heavy Duty Truck not only did not slow down the pace of development, but also able to withstand pressure to achieve the first half of this year's profit growth of 30% year on year performance.
All external unfavorable factors do have an adverse effect on the growth of the company and may even lead to the emergence of a survival crisis. However, the story of China National Heavy Duty Truck shows that "Made in China" can survive and show its own vitality and competitiveness. It all depends on oneself. Innovation is the only way to rejuvenate the "Made in China" and the only reason that "Made in China" becomes "Created in China." Only through continuous innovation, "Made in China" can open up a "Chinese style" road and gain more say and dominance in the trend of globalization.
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