Practicing Internal Skills; Tapping Potential and Increasing Efficiency; Optimizing Management; Concentrating on Technology

    Wanxiang Precision Industry Co., Ltd. constantly improves its product quality, strives to reduce cost and increases efficiency with initiative, enthusiasm and creativity. Through optimizing management and concentrating on technology, the company created a more mature and more scientific development environment. "Now it is the time that tests the enterprise. As long as we have suitable plans, keep optimizing internal management and enhancing our technical advantages while doing a good job in market development, this test will also be an opportunity for further development." The deputy general manager said. It is of great importance to adhere to the "9+N" market strategy and ensure the market share. The company continues to improve itself in order to win more orders with great OEMs and consolidate the competitiveness.

    Implementing Cost Reduction basing on Data

    At present, the automobile market fluctuates greatly and the technological level cannot be improved overnight. In face of the current situation of reduced gross profit, cost control has become a top priority. Wanxiang Precision Industry Co., Ltd. decided to manage production lines, analyze data and set benchmark; Starting from assembly production lines, Wanxiang Precision Industry Co., Ltd. analyzed the production capacity and indicators of each shift, and then gradually did the same thing for grinding, turning and quenching production lines; Through a large amount of analysis of capacity, equipment utilization rate, personnel allocation and other data, multi-dimensional comparison was done and the company set up its internal benchmark; Through the comparison of theoretical data and actual data of each production line, the company found the deviation and tried every means to improve.

    "Changes in the market require us to make internal management as detailed as possible. While improving management and optimizing processes, we managed cost reduction based on data." The head of the Intelligent Manufacturing Center said, "In the stage of data collection, the staff accurately recorded the beat of the equipment. They took data seriously, which laid a solid foundation for later data analysis. Every employee contributed to the development of the company with practical actions."

    Wanxiang Precision Industry Co., Ltd. has successfully organized the basic data of assembly lines while that of other production lines are also being gradually improved. Taking the production lines’ beat and capacity improvement as an example, it is found that the beat of the matching process was 22 seconds through data analysis and comparison, which restricted the capacity. The team immediately contacted the equipment manufacturer to optimize the program and reduced the beat to 18 seconds. By which the shift production capacity increased from 1000 sets to 1100 sets and the annual output value was increased by 3.276 million yuan. Through refined management, internal deployment, technical improvement, personnel improvement and other measures, the team targeted to solve problems, strove to reduce useless labor, constantly improve the production line capacity and the core competitiveness.

    “Improving the technical ability and refining the cost reduction”

    In the new era of intelligent manufacturing, enterprises' innovation ability has become a significant factor affecting the core competitiveness. In order to ensure its competitive advantages, Wanxiang Precision Industry Co., Ltd. began to plan a new manufacturing mode years ago. In 2017, it renamed the original Investment and Development Department to Manufacturing and Engineering Department and set up the Intelligent Manufacturing Studio in 2018. In 2020, the company reorganized its organizational structure and renamed the studio the Intelligent Manufacturing Center. In order to optimize the engineers team, the company focuses on recruiting professionals majored in mechanical design, mechanical manufacturing, machinery and electronic automation and etc.,. The company hopes to build a "professional team of intelligent manufacturing " and lay a foundation for technology improvement and cost reduction.

    "'Let data create value and empower manufacturing with wisdom' will no longer be a slogan." Dr. Chu Ning, the person in charge of the Intelligent Manufacturing Center, said," Since the set up of the automatic production lines, the company has paid close attention to 'digital' and 'intelligent manufacturing', focusing on improving technical capacity and reducing manufacturing costs, and has achieved good effects.”

    Previously, the workshop’s personnel often carried out equipment debugging and maintenance with experience. Due to which, the processing efficiency and the maintenance cost could not be optimized. As a result, it was of difficulty to achieve cost reduction and efficiency increase. Since the implementation of the new manufacturing mode, the quantitative optimization in product processing has been realized. Through debugging and matching, not only has the beat been improved but also the output has been effectively increased. Taking grinding as an example in terms of cost reduction, the maintenance cost is well controlled through the establishment of "equipment electronic resume" by which the workshop could systematically record and analyze the grinding equipment number, model, operators, maintenance frequency and so on. Intelligent manufacturing helps the company not only optimize the product process, but also realize cost reduction and efficiency increase.

    "Reorganizing the supply chain and taking the cost reduction prudentially"

    The company reorganized production supply chain and formulated scientific and effective response plans through combining the production and operation situation under the epidemic. At present, the company has integrated single suppliers and shifted the supplier model of forging, turning and drilling into a continuous form. The company shifted from decentralized procurement to centralized procurement and expanded the procurement share of excellent suppliers. The company also introduced new suppliers actively to make sure a benign competitiveness.

    Reorganizing and integrating suppliers not only improved the overall strength of suppliers, but also further enhanced the company's capacity. According to the manager of purchasing department, Gao Ke, the technical center, the quality department, the financial department and other departments gathered together to discuss the cost reduction work of forgings and formulate plans to help suppliers optimize forging design, reduce the weight of material to be used and achieve profit sharing.

    "Reorganizing the supply chain helps us identify room where we can improve and reduce costs. In my opinion, the key to supplier integration and cost reduction lies in suppliers. Only when suppliers' costs are reduced and their capabilities are improved, can we truly achieve the optimization of the supply chain and make the cost reduction work more detailed and concrete." Gao Ke said, "Take the magnetic ring for example. We used to import them before finding that there is a big space in cost reduction. Now, we are actively developing domestic suppliers to keep benign competition with foreign suppliers, which is helpful to improve the quality of products and also save the purchasing cost."

    Improving competitiveness is a continuous process and an important measure to cope with the changes in the current external situation. Cost reduction and efficiency increase is an endless task, which is also an important support for sustainable and high-quality development. Wanxiang Precision Industry Co., Ltd. will continue to implement various measures to ensure potential release and efficiency increase so as to achieve more substantial results and help the enterprise better achieve the annual goals.