Cai Zhenfa: FAW Xichai seeks diversified development

"We must not only solve the problem of survival, but more importantly, we must achieve sustainable development. We must plan ahead, face the future, accelerate innovation, and enable our company to develop sustainably, healthily, and stably." Cai Zhenfa, secretary of the party committee of FAW Xichai , said.

In recent years, FAW Xichai has expanded its bus engine, off-road engine and other market sectors with the FAW Liberation Market as its fulcrum, and has achieved good results, which marks the successful transformation of Xixi Diesel’s diversified model.

It is reported that as of the end of June, the production and sales volume of FAW Xichai Engine exceeded 170,000 units, and the output of modified vehicles exceeded 6,300 units, which was a different degree of growth compared to the same period of last year.

"A slogan shouted to the end, a way to go to the end, a work done in the end" of the work style, so that Xixi people to solidly seek development, in the fierce competition in the market, to create a decisive market after the advantages.

Advantage

Entering the “Twelfth Five-Year Plan”, Xi Diesel stood at a new starting point and new height and planned a development blueprint for “four ventures”. Cai Zhenfa told the reporter that FAW Xichai had proposed the “6518” target, that is, by the end of the “Twelfth Five-Year Plan” period, Xichai Diesel's annual sales volume will be as much as 650,000 units, and it will strive to reach 700,000 units; sales revenue will be secured 18 billion yuan, and efforts will be made to reach 20 billion yuan; Realize a profit of 800 million yuan. What is the development goal of Xichai?

First of all, in the fierce market competition, Xichai has enough "speech right" to master a set of product development processes and methods. Second, Xichai products cover very comprehensive. Among the domestic diesel engine manufacturers, only Xichai has established a product development platform for product development covering a full range of light, medium and heavy weights, and formed seven series of W, X, K, F, L, M, and N, becoming The domestic engine industry has the largest displacement span and the widest power coverage.

In addition, Xichai is the core engine of liberation. Using the engine to drive the sales of the entire vehicle is a request made by FAW to liberate Xiechai. It can also be said that it is one of the strategic ideas of FAW Group.

In order to support the liberated sales and provide excellent products for liberation, Xichai strengthens the quality and rigidity of quality assessment. In the first half of the year, the failure rate of three-component assembly responsibility fell from 4.2% in 2012 to 4.01%; the failure rate of assembly-line zero-kilometer assembly responsibility fell from 0.29% in 2012 to 0.23%. Among them, the frequency of claim for 1,000 vehicles for J6 road vehicles, J6 construction vehicles, J5 road vehicles, and J5 construction vehicles was 36.4%, 40.4%, 39.8%, and 24.5% lower than the beginning of the year respectively.

Diversified development

The FAW Liberation Market is the survival safe of Xichai. However, in order to seek greater development, Xichai has chosen diversified development. So its vision is not limited to liberation, and passenger cars, non-road engines and other fields are all new markets for their development.

Among them, in the “Twelfth Five-Year Plan” of Xichai, the passenger car field is regarded as a strategic market for future business development. For the development of passenger car power, FAW Xichai not only planned early and made early decisions, but also had clear directions and clear goals. "In 2011, when we started our fourth venture in an all-round way, we further put pressure on ourselves to propose that we must adjust the structure around the market and look for opportunities based on changes in the market, so as to increase our share over our competitors," Cai Zhenfa recalled. In the past two years, Xichai has made preparations for product development, human resource allocation, and personalized service measures. It has formed a stable customer base and has won a good reputation in the market. After careful development in recent years, Xichai has emerged in the field of passenger car engines. According to Cai Zhenfa, Xichai has achieved excellent results in the passenger car engine market. From January to April this year, 4522 units have been sold.

In the economic "winter", the sales volume of Xichai's various series of engines has risen against the trend. In particular, the CA6DM and CA6DL engines that support the liberation of heavy trucks have seen increasing demand, and the passenger car market is also undergoing orders. In addition, the non-road market, highway market, overseas market and special special market of Xichai also performed well. In the first half of this year, its non-road market sales increased by 31.49% year-on-year; overseas markets increased by 15.56% year-on-year; special Product sales increased by 15 percentage points year-on-year.

Management innovation

Diversified development has pointed out the direction for the continued healthy development of Xichai, which has brought about sales and profits. However, the sustainable development of enterprises depends not only on products, management is also very important.

In 2011, Xie Chai proposed to achieve “Four Transformations” through “four ventures”, namely: the transformation of enterprises from learning to innovation; the transformation of technology from following to leading; marketing from product marketing to brand marketing; It is necessary to change from content management to lean management.

"It is not only good for the present but also for the long-term." In the first half of the year, the completion rate of key Xiichai projects reached 98%, and the total asset turnover rate reached 1.8, ranking first in the industry.

The transformation from intension management to lean management is the arduous task of Xichai’s “four ventures”. Since the beginning of this year, Xichai has focused on this goal, taking management and promotion activities as the starting point and grasping the phased work. Xichai also insists on lean employment. First of all, it encourages the departments to use less staff from the policy orientation, and taps potential and increase internal efficiency, and gives policy support. Secondly, in terms of manpower allocation, Xichai rationally deployed personnel according to the seasonal needs of production workers and met the production demand with relatively low labor costs. (

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