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People’s Daily: how to reduce the cost of supply side reform enterprises

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“at present, the price in this industry is very transparent, the market competition is also very fierce, and the profit is only 6-8 points. If we hadn’t started to reduce costs earlier, I’m afraid we wouldn’t have such a good time at present.” In the delivery warehouse of Guangdong bilun Household Paper Co., Ltd., Liu Yuanquan, the operation director, kept sighing as he looked at the rows of Van trucks being loaded
the only way for enterprises to pursue profits is to obtain the highest income at the lowest possible cost. But “cost reduction” is much more difficult than talking about it. In view of the rising labor costs, Byron focused on the “machine replacement”. A “process upgrading project of automatic post-processing equipment” saved 1 /3 of the labor for the post-processing link
the labor cost has been reduced by 40%, and the benefit of replacing the machine has been achieved.
take good care of the “full-automatic high-speed rewinding and punching machine” in front of you to ensure its normal operation. It is the new job of “post-90s” young man Xin Mengbo. Before that, he could only repeat operations on the assembly line day after day
Liu Yuanquan explained: “In the past, there were machines and equipment, but they needed to be operated section by section; the equipment between each process was isolated from each other, and the middle needed to be connected manually. Now, with this fully automatic production line, the base paper goes in from one end and comes out directly from the other end. The packaged paper can be shipped directly, and the process takes only one minute. In the middle, only a small number of workers are needed. Take a look at the machine, adjust the direction of the paper roll on the conveyor belt, and make sure there is a Pick out the defects. “
in the words of Liu Yuanquan, Byron was forced to introduce such a production line. “From about 2011, we obviously feel that the whole cost is rising, especially the employment. In the past, the monthly salary of 3000 yuan and 3500 yuan can still recruit people, but now it is basically about 4500 yuan.”
facing the cost pressure, Byron also realized the urgency of replacing labor with automatic production line early. Household paper is an industry with small profits and quick consumption. Most of the operating income rolls into the next production cycle. Where can I find so much money to complete the initial investment
the increasingly popular financial leasing model in the market provides Byron with a “third way” to solve the problem. “The down payment is 20%, the first purchase is put on the production line, the guarantee is provided by the financial leasing company, the installment is paid off in three years.” Liu Yuanquan told reporters that through this model, the pressure of one-time investment was relieved
with this change, the benefits will come out. Take this fully automatic rewinder production line for example. The purchase cost of each line is 2.3 million yuan, and bilun has launched a total of 4 lines. In the past, with old equipment, 15-18 workers were needed for a line, but now only 10 workers are needed; The paper output efficiency jumped from 17 kg per person per hour to 83 kg; The qualified rate has also increased from 93% to more than 99%
from 2012 to 2015, Byron successively invested 40 million yuan to carry out the “machine replacement” transformation project of equipment such as suction towel paper folding machine, high-speed rotary (towel paper) folding machine and automatic household paper packaging machine, realizing the automation of production lines such as one-time automatic glue spraying, edge sealing and trimming, reducing the number of front-line employees from 372 to 252, while increasing the production capacity by 1.5 times. On the whole, the labor cost per unit product has been reduced by 40%
technological innovation and tapping the potential of processes also save money
on the wall of Liu Yuanquan’s office, there is a map of China. On it, in addition to the company’s headquarters in Dongguan, Guangdong, a circle is drawn in Hubei and Anhui in the middle and lower reaches of the Yangtze River, with the centers of Jiayu and Dangtu counties respectively. Those are the two production bases of Byron in the mainland since 2008. At present, the annual output value is about 380 million yuan
why does a Guangdong enterprise go so far to build factories, and why does it try to drill into small places? Liu Yuanquan said that the selection of these two places was after repeated consideration. “For FMCG such as paper products, the transportation distance from the production place to the consumer market is within 500 kilometers, and the logistics cost is the lowest.” For Byron, if he wants to expand the markets in central and East China, he must produce nearby. Jiayu and Dangtu are just at the geometric center of the 500 kilometer radius of the two regions; In addition, compared with central cities such as Wuhan and Hefei, the labor, land, water and electricity costs of the county are lower
in addition to the external layout, there is also a potential for the optimization of production processes, which takes place within the enterprise and requires benefits from management
this year, Byron implemented the “lean production” management mode, hired professional consultants to conduct industrial engineering analysis, and re optimized the distribution and connection of each process and node, so as to achieve the effect of “the shortest straight line between two points”; On this basis, customized management and “7S” management mode are implemented, and the operation actions of employees are standardized in combination with human mechanics to maximize benefits
some processes are “omitted” directly through technological innovation. Still in Byron’s post-processing workshop, the defective products sorted out in the production process or the leftover materials from cutting in the past must be returned to the furnace for beating again. A special person must be responsible for taking out the paper core tube inside, because the material of the core and paper is different, so it can’t be thrown into it all
in 2015, the company cooperated with professional scientific research institutions to develop a new material paper core tube, which can be broken and returned to the furnace directly with paper products. Such a small innovation alone will reduce the use of four workers per machine per shift and save 600000 yuan in salary expenditure a year
the government helps promote transformation and upgrading
“not only do enterprises think of their own ways, but now the government is also helping us reduce costs.” Liu Yuanquan said
for “machine replacement”, Dongguan Municipal Finance has arranged a special inclusive fund of no less than 200 million yuan every year. Among them, for the purchase of intelligent equipment made in Dongguan, the subsidy standard will be increased to 15% of the total investment in equipment and technology; For those who purchase Dongguan robots and implement “machine replacement”, the subsidy standard shall be increased to 25% of the total equipment and technology investment, and the maximum reward for a single project shall be 5 million yuan
among the purchase amount of the complete set of equipment in bilun, more than 10 million comply with the policy. Therefore, the company applied for a special subsidy of 1.2 million yuan, which is used for discount interest of financial leasing, etc. Liu Yuanquan believes that this policy of benefiting the people reduces the operating costs of enterprises and expands the space for the operation and development of enterprises. The saved money can expand reproduction and further explore the market, which is of great help to the development of enterprises
from September 2014 to January this year, Dongguan has declared 1319 special fund projects for “machine replacement”, of which 881 projects were declared in 2015, with an investment of 7.003 billion yuan. After the completion of the project, it is expected to reduce the employment of about 46600 people. Based on the monthly salary of 3500 yuan per employee, the labor cost of the enterprise will be reduced by 1.957.2 billion yuan per year
in April this year, Dongguan again issued the implementation plan of supply side structural reform in Dongguan (2016-2018) and five action plans, among which the cost reduction action plan played a combined fist to reduce the cost of enterprises in the real economy
“the more under the downward pressure of the economy, the more obvious the policy effect of the government on reducing the burden on enterprises, like ‘providing carbon in the snow’.” In the view of Lin Jiang, deputy director of the Hong Kong Macao Pearl River Delta Research Center of Sun Yat sen University, we can’t simply look at the policy of reducing the burden. The chain reaction it brings will benefit the whole Dongguan economy. “Reducing the burden is not only a real way to reduce the burden on enterprises, but also a signal to enable enterprises to promote transformation and upgrading without worries. It is an important means to promote the optimization of economic structure.”

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