Focus on improving quality and efficiency and cost reduction, the stock era of the manufacturing industry breakthrough

China's industrial capacity utilization rate was 74.3 percent in the first quarter. According to the National Bureau of Statistics, it declines 1.5 percentage points and 1.4 percentage points from the previous quarter. It is generally believed that if capacity utilization is below 90% and continues to decline, indicating that equipment is too idle and the economy shows signs of recession. It shows market is weak demand and represents that the market has entered the era of stock competition. In order to survive and develop in this era, enterprises must pay attention to quality improvement and cost optimization. On the other hand, with the intensification of competition among major countries and the high risk of decoupling chain disconnection, the global industrial chain and supply chain are evolving towards the direction of "diversification and regionalization", leading to more and more instability in the supply chain of enterprises, causing trouble to the operation and production. Especially in terminal block, connector and reflex reflector field.

Terminal Blocks

So today we see more and more enterprises will be lean thinking into the production management of the factory, hoping to achieve an ideal production state, that is, when needed, according to the amount of the required products, through the pursuit of a minimum inventory to reduce the capital occupation, to minimize the impact of market risk. However, in the rapidly changing market, how to ensure that we can purchase quantitatively on demand and provide superior supply capacity to customers is a huge challenge for enterprises.

Lean ideas to guide the reform of the production and supply chain

In 2023, it was originally thought that the release of the epidemic would bring a blowout of market demand, but the statistics show that we have already entered the era of stock competition. In addition to the differentiation strategy, cost reduction and efficiency increase has become the main theme of the survival and development of enterprises. However, which links should be started to promote the enterprise cost reduction and efficiency, the enterprise is some confused. According to my experience in industrial intelligent transformation in recent years, I think the most direct and effective method is to control the procurement cost from the source, reduce the inventory, and improve the efficiency of production management and supply chain procurement and distribution.

Specifically, can proceed from two directions, one is the supply chain integration optimization, using more effective methods to integrate suppliers, manufacturers and customers, make the product in the right quantity, distribution at the right time to the customer, in order to be under a customer satisfaction service level, make the enterprise overall system cost minimized, to gain competitive advantage. The second is to improve the ability of plan implementation, and use the ability of supply chain planning scheduling and scheduling to adapt to frequent planning changes and orders, timely grasp the current situation of supply chain resources and logistics supply, provide accurate, real-time and agile decisions for the production and distribution of enterprises, and realize the production and distribution supply chain management planning and control.

In essence, the supply chain execution and supply chain planning are complementary to each other, and the two are mutually active and passive relationship. The internal plan should consider the possible fluctuations of the supply chain, so that the plan can be inclusive of the fluctuations of the supply chain. When these fluctuations inevitably affect production, they are either buffered by means or quickly adjusted by quick response. This is a core point of lean production practice, that is, the enterprise supply chain is required to have strong resilience, to respond and adjust timely and accurately according to changes in production demand in frequent fluctuations, to achieve the goal of efficiency and cost reduction.

Although the direction of transformation is very clear, but from the current situation of enterprises, there are still many enterprises stay in the traditional production plan and production scheduling stage, by manual way with simple computer form function to complete the huge production distribution plan, in the timeliness and accuracy can not meet the requirements of enterprise competition. And the plan of each department is also designed separately, and is not completely coordinated, the above situation makes the production and sales of enterprises can not be balanced and synchronized to complete the overall plan, resulting in a lot of waste. In terms of supply chain, between suppliers, manufacturers and customer system is generally in a state of fragmentation, not transparent supply and demand information and supplier evaluation standards, cause enterprise find source randomness is strong, easy to raise procurement costs, appear unqualified quality and delayed delivery, etc., to the enterprise business production.

Post time: Dec-28-2023