On November 26, the annual National Conference for Excellence in Excellence (National Quality Awards Conference) was held in Beijing. Weichai Power Co., Ltd. has been ranked among the top 10,000 outstanding companies in the country and won the National Quality Award. It has become the only equipment manufacturing company that won this award. This indicates that the management level and operating quality of Weichai Power have reached the international level.
It is understood that the National Quality Award is known as the “Quality Oscar†and is the highest award in the field of quality management in China. It is commensurate with the three major world-class quality management awards of the American Baldrige Award, European Quality Award, and Japanese Deming Award. This award is judged by the top management experts in the country and covers many aspects such as corporate strategy, business philosophy, management process, quality control, customer satisfaction and service quality system. It is only awarded to the most outstanding companies that have achieved outstanding performance nationwide. The highest award for organizations that have made outstanding contributions in terms of quality, economy, and social benefits.
During the review of this year's Quality Award, experts agreed that Weichai Power is based on the strategic goal of “building a world-renowned general-purpose power production base†and that technological independent innovation is the fundamental driving force for development, and insists that “customer satisfaction is our goal. The concept of innovation, innovative products and service models, emphasizing continuous innovation and management reforms, and rapidly growing to become China's largest brand of power and China's largest auto parts company with the speed of doubling growth for five consecutive years, has created China's equipment manufacturing The history of the development of the "wood fire miracle." The expert review highly appraised the management quality and operation quality of Weichai Power and agreed to grant the Weichai Power National Quality Award.
Tan Xuguang, Chairman and CEO of Weichai Power, received the award on behalf of the company. He said that winning the National Quality Award shows that Weichai Power's management level and operating quality have reached the leading domestic and international advanced level, which is the basis for us to maintain good, fast and sustainable development. We will start with a new platform to further enhance our management capabilities, accelerate the pace of internationalization, and add experience and exploration paths for the international development path of China's equipment manufacturing industry.
Outstanding performance comes from excellent management “To build a world-class advanced universal power manufacturer and establish the largest auto parts group in China†is the strategic goal for the development of Weichai Power. Faced with increasingly fierce competition in the industry, as the largest auto parts and components group in China, continuously improving and maintaining the high quality of operation and management has become a major task facing Weichai Power to achieve this goal.
Weichai Power firmly established the "cost-centered" management model first. According to its own industry characteristics and management requirements, Weichai Power has developed a unique “comprehensive budget management system†and established a cost control center, which not only implements “all three†management of the entire production process, all staff, and all expenses. We must strictly control the flow of funds in accordance with the budget; and mobilize various related talents such as technology, quotas, and finance to form a special project team to conduct in-depth cost accounting and analysis at the supplier site to realize scientific reduction of costs from the source.
At the same time, Weichai Power gradually established and improved personnel assessment and incentive mechanisms. Incentive mechanism has always been the weak link of state-owned enterprises. Weichai Power has carried out continuous reforms and innovations, and has established and gradually improved various assessment and incentive mechanisms for personnel with different positions and responsibilities: R&D achievements have been implemented for R&D personnel. A double-linking mechanism with market sales; for marketers, a double link between marketing performance and user satisfaction; and for managers, a double link between management innovation and expense. A series of scientific and reasonable assessment indicators system, the company's management links and performance indicators detailed, quantified to the individual job, and personal income are strictly linked to rewards and penalties, inspired all kinds of staff work enthusiasm and responsibility.
In order to fully integrate the management model and establish a management-oriented nervous system for the entire group, Weichai Power fully promotes information construction and establishes information platforms such as ERP, PDM, CAPP, WMS, and OA covering the entire company; and leverages balanced scorecards. The concept determines the company’s business evaluation system, promotes the overall management level of the company to internationalization, and enables the company’s business status to be delivered to the company’s management team on a daily basis, which has played a good role in better understanding the changes in the competitive situation and improving the efficiency of decision-making. effect.
The improvement of management quality has promoted the rapid improvement of the company's operating performance. Since 2002, Weichai’s main economic indicators have doubled in five consecutive years. Sales revenue has risen from less than 1 billion yuan to a new high of 24 billion yuan in 2006. The group company is expected to achieve 40 billion yuan this year. Sales target. The company has been rated as “Model Enterprise for Independent Innovationâ€, “China Top Brandâ€, “Most Influential Enterprise in Chinaâ€, “Most Growing Independent Brand Enterprise in China Manufacturing Industryâ€, and has been awarded “China Famous Brandâ€. "China's machinery industry enterprises in the core competitiveness of the top 100", "China's auto parts and components companies comprehensive competitiveness of diesel engine manufacturing gold medal", "National top 100 auto parts suppliers" and other honorary titles.
Technological Innovation: Source of Weichai Power Development
In March 2007, Weichai Power independently developed and successfully developed China's first “Blue Engine†engine that met the national 4 emission standard, and successfully equipped domestic well-known heavy-duty vehicles. This is the fourth time that Weichai Power has advanced the national standard for more than two years in the process of improving the emission standards from country 1 to country 4, leading the domestic counterparts to successfully develop advanced diesel engines, marking the technological strength of Weichai Power. It has reached world-class level. This result has benefited from Weichai Power's great emphasis on technological innovation.
From the introduction of digestion and absorption to independent innovation, Weichai has achieved a lot of innovation in the engine business sector over the past few years: from the advent of China's first Lanqing Ou III engine with its own brand to the only mature WD12 large-displacement mature commercial in China. With the engine of the vehicle playing and the successful development of the Euro IV engine this year, the Weichai engine has brought surprises to the market every year, leading the engine industry from China manufacturing step by step to China's creation, from China to the world leader.
This year, the WD12 engine launched by Weichai Power for less than a year can achieve sales of more than 15,000 units. In mid-November, Weichai created a new record for the production and sales of the 250,000th engine. It is the unremitting efforts to advance scientific and technological progress and strengthen independent innovation. Weichai has maintained the leading position of products and technologies in China and gradually narrowed the technological gap with international advanced companies. While leading the Chinese power to the world, the company’s own scale and strength have been continuously expanded, creating a “speed of Weichai†that has doubled and increased for five consecutive years, and has achieved a sound and rapid development of the company.
Two-wheel drive: Significant enhancement in overall strength On April 30 this year, Weichai Power under Weichai and Shandong Juli listed on the Shenzhen Stock Exchange at the same time, marking a unique capital platform for China's equipment manufacturing industry and creating a capital. The market's "firewood model." In August of this year, with the approval of the People's Government of Shandong Province, Weifang Diesel Engine Factory was successfully restructured into Weichai Holding Group Co., Ltd. This marks the successful conclusion of the 10 year reform of Weichai: the company has three stocks in both domestic and overseas capital markets. It has also achieved a complete transformation from a factory-based enterprise to a modern enterprise group, and has achieved a completely new transformation.
Utilizing two open-ended capital markets at home and abroad, Weichai Power is not only integrating its capital, but more importantly, it is taking the core business of General Dynamics and carrying out an eye-catching industrial integration, making Weichai also own The world's only industrial chain with engines, axles, and transmissions as the powertrain constitutes the highest quality heavy truck resource industrial chain in China and forms in the field of basic components such as powertrains, transmission systems, and axle systems. China's highly competitive industrial clusters have the advantages and conditions for the integration of innovation. All relevant products have shifted from single-market competition to joint market competition. Under the circumstances that the commonality and diversified market strategies remain unchanged, they have created conditions for seeking market maximization, and the overall strength has been significantly enhanced, and profitability has been greatly improved.
At the same time, Weichai successfully reorganized Shandong Juli through the “asset replacement and reorganization†approach. After the company’s main business such as marine engines and power generators that have been infiltrating the company's 60-year efforts, Shandong Juli transformed itself into an owner. The wide power range from 300 horse power to 3000 horsepower and the series of products such as 160, 170, 200 and 250, have a high brand awareness and loyalty in the Chinese ship power and power generation equipment supporting field.
Weichai Group has operated with innovative capital and has played a series of dazzling "combination punches" in the capital market, realizing the two-wheel drive of the company's development and increasing the company's strength. In 2006, Weichai Power's ranking in the China Top 500 announced by the China Enterprise Confederation jumped from 181 in the previous year to 161, making it the No. 1 spot in China's internal combustion engine industry and auto parts industry.
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