Case study on improving production efficiency of manufacturing enterprises

Case study on improving production efficiency of manufacturing enterprises

At present, most enterprises in China still focus on manufacturing, and I believe many enterprises are also facing the same problems as CUHK. This is because the basic management of Chinese enterprises is relatively weak, and it is almost impossible to expect to promote production efficiency only through the improvement of business philosophy. Then, the following is a case I provided to improve the production efficiency of manufacturing enterprises, and you are welcome to refer to it.

How to improve the production efficiency of manufacturing enterprises?

China enterprises have a strong ability to accept new things. In recent years, with the globalization of information, advanced western management concepts and ideas have continuously entered the China market. China enterprises have gradually narrowed the gap with international enterprises in management theory, but theory is not equal to behavior. On the concrete operational level, compared with the international leading enterprises, we still have a big gap, especially in the basic management and execution ability. The automobile industry of Zhong Da Group has fully demonstrated this phenomenon.

Zhong Da Group is a private enterprise listed in Hong Kong, and also a leading enterprise in China auto insurance industry, occupying more than 60% of the domestic auto insurance market. Since 2002, Zhong Da Group has entered the bus industry through capital operation, and has successively controlled bus manufacturers such as Yancheng Zhongwei, Shanghai Guanghui, Beijing Yanjing, Sichuan Emei and Nanjing Jinling. , thus forming the Zhong Da bus department.

From the beginning of entering the bus industry, Zhong Da Group's automobile industry has established a unique strategic plan: the first step is to seek influence in the industry, so that people inside and outside the industry and target customers have a certain understanding and recognition of Zhong Da bus; The second step is to make CUHK a famous bus brand in the industry by introducing international advanced technology and marketing innovation. The third step is to strengthen internal basic management, improve production capacity, achieve a balance between production and sales, and enter the top three in the industry. After nearly five years of continuous innovation and efforts, the first two steps have been successfully completed. Although the market share of medium and large buses is still very small, its efforts in marketing and branding have made it one of the fastest growing and most concerned enterprises in the industry, and it has gradually changed from showstopper in the bus industry to innovator. It can be said that at present, medium and large buses have achieved certain development and are in the high-speed growth period. However, the delay of manufacturing and production has become the most important problem that restricts the next development.

Bus manufacturing is far from the production system of mass consumer goods, mainly for two reasons: First, it is difficult to form large-scale production because of the different needs of customers (bus production is carried out according to customers' orders, and customers will specify the main parts of buses according to actual needs, even seats and interiors. Usually ten cars have ten different configuration requirements); Secondly, it is impossible for bus manufacturers to have all the means of production needed for bus production.

As we know, the bus factory is actually an assembly factory for all kinds of bus parts, and the assembly technology and speed are one of the core competitiveness of bus enterprises. Because of different customer needs, it is difficult to form large-scale procurement. Except for a few large parts such as chassis and engine, which can have long-term partners, most parts suppliers are changing. This puts high demands on the purchasing department, and purchasing is only the first step of manufacturing. The manufacturing process also includes steel cutting, welding, painting and other steps. Problems in any link will delay the delivery time stipulated by the sales company, and most customers generally choose to place orders before the peak passenger traffic period, resulting in a large number of orders in winter, which has caused great pressure on the manufacturing department.

Because most of the bus manufacturing enterprises acquired by CUHK are state-owned enterprises, the management system is relatively lacking and there is no clear system management. In addition, the city where the enterprise is located is a third-and fourth-tier city (as many automobile companies do), and the overall quality of employees is relatively low. Once there is a problem, all departments shirk their responsibilities, and the result is often lost, which makes many customers lack trust in CUHK, which leads to the damage of the brand image of painstaking efforts. In order to improve the production efficiency of the manufacturing department, the group changed several managers for the manufacturing center and took some measures. However, due to the lack of systematicness, it has not been greatly improved. Production delays still occur frequently, and sales companies and manufacturing centers often argue, but these can't solve practical problems.

Is the group leader clearly aware? Improve the production efficiency of the manufacturing center and shorten the manufacturing time of bicycles? This is the key to the next development of CUHK. The newly-built bus manufacturing center of the Group in 2004 can reach the annual production capacity of more than 1 10,000 buses, and there is no problem with the hardware facilities. At the same time, the next few years will be a period of rapid traffic development in China, which can be said to be a period of improving production efficiency, and the development of CUHK automobile industry is inevitable. For this reason, the group leaders have repeatedly studied and adopted many methods, among which strengthening performance appraisal has achieved certain results, but this result-oriented management method can only stimulate short-term work efficiency, but it has certain negative effects on the long-term. Performance appraisal is based on salary increase. Once the salary of employees cannot be improved, it is difficult to achieve obvious results: the salary is improved year by year, but the production efficiency is not improved or even decreased year by year.

At present, most enterprises in China still focus on manufacturing, and I believe there must be many enterprises facing the same problems as those in CUHK. This is because the basic management of Chinese enterprises is relatively weak, and it is almost impossible to expect to promote the improvement of production efficiency through the improvement of business philosophy. Therefore, we need to consider how to promote the development of enterprises from the actual situation of enterprise management and the essence of problems. For CUHK, once the golden age of development is missed, it will be difficult to gain a leading position in the industry. So, how can we help CUHK, a manufacturing center, improve production efficiency?

Innovate corporate culture, system, process and people in an all-round way.

The problems of CUHK Group are representative in manufacturing enterprises. China's manufacturing enterprises, whether state-owned or private, have been struggling with low production efficiency for many years, and are actually making progress.

At present, the problems of CUHK have been exposed very clearly, first of all, the supply of spare parts, followed by production efficiency, and then the coordination between departments.

First, institutional innovation. Before solving this problem, we should consider one of these problems, that is, the system problem. If the system problem is not solved, any of the following methods will be in vain. Cuhk is a private enterprise, but most of its acquisitions are state-owned enterprises. There is a question here. Are these state-owned enterprises completely transformed? Are manufacturing workers and managers still eating the same old pot of rice? Is it still the same as before, even a worker can't be fired? If these problems cannot be solved, then CUHK will be very dangerous, and no amount of efforts will be in vain. The market economy will never favor an enterprise operated by an outdated state-owned unit management mode unless it changes its mechanism to adapt to the competitive environment of a free market economy. Therefore, the system problem is the fundamental problem to solve these former state-owned enterprises.

Secondly, introduce professional managers and formulate new processes. ? People? It is both the maker and the executor of the process. For CUHK, what it needs is to introduce a large number of professional managers? Especially middle managers? And rely on the ideas and professionalism of these newcomers to influence the original state-owned enterprises? Old man? It is almost impossible to rely on the middle-level cadres of these former state-owned enterprises to formulate new processes and strictly implement them. State-owned enterprises are almost synonymous with inefficiency and outdated concepts. They may continue to linger in monopoly industries, but it is almost impossible in a market economy environment.

Third, coordinate the cooperation of various departments. In addition to human problems, unreasonable organizational structure, unclear departmental responsibilities or insufficient authorization are also important reasons for the problem of inter-departmental election committees. The key to solve this problem is to find the bottleneck, adjust the organizational structure of the company, and clarify the responsibilities of each department and post. However, no matter how good the organizational structure is, there will definitely be some gray areas between departments, and it is impossible to fully describe the job responsibilities. At this time, I am afraid that it is more necessary for employees to do things according to the culture and values of the enterprise in order to achieve perfection, which requires professional managers.

If there is a problem, the more realistic way is to set up an inter-departmental coordination group headed by the general manager, and notify all departments of the things that need to be coordinated and solved in the form of regular meetings (such as once a day) or on-site office, and the general manager will make a decision immediately. When there are defects in the organization, the most effective way is the strong leadership of the general manager. Its defect is that it will lead to the centralization of the general manager, but it is of great benefit to improve efficiency. In the long run, authorization is necessary and responsibilities must be clear. The relationship between rights, responsibilities and interests is always equal, and there is a logical relationship in turn.

Fourth, constantly strengthen corporate culture and values. Inter-departmental coordination is indeed a job that only the general manager can do, but the general manager can't talk about it. He must constantly strengthen the culture and values of the enterprise through cross-departmental coordination, because this is the key to solving problems and the only value criterion for employees in cross-departmental coordination or unsupervised work.

But the problem comes again, that is, the integration of employee culture under the background of multi-occupation. In fact, this is also a serious injury to CUHK. The corporate culture it acquired is very different, and it is not easy to integrate even without introducing professional managers. Then, what we have to think about is, is it a problem with the strategy itself to acquire CUHK so quickly? Actually, I doubt it. Can companies in the auto insurance industry be passenger cars? Successful cases of upstream and downstream integration of industrial chain are rare. If this is wrong, CUHK might as well simply sell these inefficient bus manufacturers.

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