Most domestic manufacturers are born out of family workshop-style factories and focus on OEM products.After experiencing a period of rapid development, along with the expansion of enterprise scale and the transformation of the living environment, this type of Chinese manufacturing enterprise is facing a painful period of change.The troubles they face are also strikingly similar to the consistent survival status quo. These companies can be said to be typical representatives of the pre-survival era.
Since the reform and opening up, China’s average annual economic growth rate has approached 10%, but such rapid development has been at the expense of traditional "high input, high consumption, and high pollution" to drive output.The Chinese manufacturing industry as a whole has not been able to get rid of the dilemma of high loss and low efficiency.China creates 4% of the world’s gross national product every year, but consumes 15% of the world’s fresh water, 25% of alumina, 50% of cement, 28% of steel... China’s traditional manufacturing industry is creating huge wealth at the same time , Has also become a major energy consumer.At the same time, the annual labor productivity of my country's manufacturing industry is only 3.8 per capita, which is 4% of the United States and Japan and 5.5% of Germany.
Through the above data, we can see that the current state of existence of Chinese manufacturing companies can indeed be described by dark clouds.In the context of global integration, how China's manufacturing industry can break through the bottleneck of survival and development is particularly important.
On December 12, the Manufacturing Training Center of the Ministry of Science and Technology of the People's Republic of China, the "China Manufacturing Informatization" magazine, and CCID.com, and Digital China Management System Co., Ltd. jointly held the "21 Manufacturing Informatization Achievement Exchange Conference" in Guangzhou. Exchange and summarize the experience gained by domestic manufacturing enterprises in the application of informatization, in order to effectively promote the informatization process of the manufacturing industry, help manufacturing enterprises improve management with the help of informatization tools, and meet the imminent opportunities and challenges.Leaders of Guangdong Provincial Information Industry Department, CEOs, CFOs and CIOs of nearly 2006 companies in the Pearl River Delta attended the meeting.The exchange meeting will be held in more than a dozen cities including Shanghai and Beijing.
Recently, a domestic mainstream media also announced that it had recently conducted a survey of the survival conditions of more than 70 manufacturing companies of different industries and scales across the country.The results show that more than XNUMX% of the manufacturing enterprises are in distressing conditions. Among them, there are many large-scale and well-known enterprises, and some listed companies with good profitability are also listed.
The media president explained that: to measure the pros and cons of a manufacturing company’s survival status, popularity, company scale, and current profitability are not the main criteria for consideration. One of the most important criteria is to see whether the company is benign at this stage. Operation mechanism, whether it has a clear positioning and sustainable development ability in the future, we call the enterprise with such ability the enterprise of the post-survival era.
The development crisis of China's manufacturing industry is highlighted
Most domestic manufacturers are born out of family workshop-style factories and focus on OEM products.After experiencing a period of rapid development, along with the expansion of enterprise scale and the transformation of the living environment, this type of Chinese manufacturing enterprise is facing a painful period of change.The troubles they face are also surprisingly consistent, and their survival status is extremely similar. These companies can be said to be typical representatives of the pre-survival era.
From the perspective of the external environment, rising energy and raw material prices have become a global trend, and rising costs have put tremendous pressure on manufacturing companies.On the other hand, global economic integration has made competition in the domestic market fierce and unprecedented.On the one hand, there are Chinese companies with a history of several years, more than ten years, or at most decades, and on the other hand, most Western companies with hundreds of years of accumulation. Regardless of whether the domestic manufacturing industry has repaired the "fortifications", international giants have already killed them. Arrived in front of my house.
From the perspective of the internal operation of the enterprise, the continuous increase in management costs is of no avail to the chaotic process and frequent problems, and the road of extensive operation is no longer feasible.In the survey conducted by the media, it was found that manufacturing companies generally have serious inventory backlogs, difficulty in capital turnover, poor internal information circulation, and inaccurate production plan forecasts.When there is no production order, I worry about market development, and when I receive an order, I start worrying about production management again.Even though many companies get orders through various efforts, their ability to digest and deliver orders is facing bottlenecks, and the flexibility of production capacity is not enough. This is like a moving car, even if there is still carrying capacity, there are passengers on the way who want to get on. The car did not dare to open the door again.All resources and work focus in the enterprise are carried out around existing orders.
The core problem of this order-driven manufacturing company lies in the lack of its own green supply chain.In the company’s local supply and demand chain, the company lacks a smooth supply chain with coordinated import, sales, and inventory operations. The existing order delivery capabilities cannot meet customer requirements or barely meet customer requirements in terms of quality, and cannot do it or are not aware of the initiative. Higher than customer requirements; in the larger operation chain, the company has not formed a virtuous cycle of research, production, and sales. All energy is in coping with existing orders, and there is no clear plan for innovation and future development.But only focusing on short-term survival, unclear development ideas, lack of strategic planning and market adaptability, this is almost a common problem common to manufacturing companies in the pre-survival era.
Take home appliance manufacturing companies as an example: long-term price wars have left home appliance companies incapable of innovation and research and development, and price has become the only means for low-end survival. This creates a vicious circle.Professor Miao of the Central University of Finance and Economics believes that "a company that does not have the ability to innovate and foresight, even if it enters other industries, it can only clean up this industry."
The Chinese manufacturing industry as a whole has not been able to get rid of the dilemma of high loss and low efficiency.Since the reform and opening up, China’s average annual economic growth rate has approached 10%, but such rapid development has been at the expense of traditional "high input, high consumption, and high pollution" to drive output.China creates 4% of the world’s gross national product every year, but consumes 15% of the world’s fresh water, 25% of alumina, 50% of cement, 28% of steel... China’s traditional manufacturing industry is creating huge wealth at the same time , Has also become a major energy consumer.At the same time, the labor productivity of my country's manufacturing industry is only 3.8 yuan per person per year, which is 4% of that of the United States and Japan and 5.5% of that of Germany.
Through all kinds of shocking data, we can see that the current state of existence of Chinese manufacturing companies can indeed be described by dark clouds.
Where is the manufacturing industry heading?
Among the XNUMX manufacturing companies surveyed this time, there are also some leaders, and their ecological status is a different picture.
"In the past, my management of the company was like directing them to queue behind a block of frosted glass. I shouted the password. They didn’t make any movements, and I couldn’t see them clearly; but now that the frosted glass is gone, I just It looks like there is a magnifying glass and a ruler in hand, not only can see clearly, but also more precise." Director Liu of Beijing Petroleum Machinery Factory said with a smile, "We are just now entering the post-survival era."
In fact, pre-survival and post-survival are not just two terms with different names, but represent the enterprise in two completely different states and ways of survival.It is also a domestic manufacturing company, why is there such a huge difference in the state of existence?There are only two words at the root, "management".The management process of an enterprise is the process of information transmission and control, including plans, demand, supply, prices, market environment, government policies, competitors and many other information.No one would doubt that traditional family management and manual management modes are not up to the current management needs. Information management is a shortcut for manufacturing enterprises to enter the post-survival era, and it is also an inevitable way.A group of excellent manufacturing companies represented by Beijing Petroleum Machinery Factory have all implemented ERP information systems to create their own orderly and vibrant green living conditions.
The leaders of the High-tech Department of the Ministry of Science and Technology said at a meeting a few days ago that manufacturing informatization is a revolution.The first refers to the technological revolution.From a market perspective, it means that companies improve competitiveness, reduce costs, and increase market response speed.The second refers to the management revolution, and management is where the most fatal weakness of Chinese manufacturing companies compete with the world.There are only two roads facing Chinese manufacturing companies: one is to continue to be immersed in the appearance of "the world's fourth largest manufacturing country", to continue to fish and deal with fewer and more difficult orders; the other is to Actively innovate, drive the development of industrialization with informatization, and shift from Made in China to Created in China.The role played by this other path ERP cannot be ignored and replaced.
Take the US manufacturing industry as an example. The US was once the most powerful manufacturing center in the world. From razors to steel, from chemicals to airplanes, almost all machine-processed products at one time were labeled "MADE IN USA". This trend has continued for more than half a century.With the rise of Japan, the Four Little Dragons in Asia, and the Chinese and Indian manufacturing industries, the United States has gradually faded out of many manufacturing sectors.But fading out does not mean declining, but is quietly undergoing continuous transformation and upgrading.At present, there are only 11.5 small and medium-sized manufacturing companies in the United States, and more than 80% of them have applied ERP systems.Investment in manufacturing is also increasing year by year, with R&D investment accounting for 2/3 of US industrial investment.Caterpillar Chairman James said at a manufacturing conference: American companies are committed to integrating the latest technology into design and production, implementing the principle of "lean production", improving the use of robotics and automation, and using precise Plan, standard process and quick response cycle to achieve "immediate perfect delivery".This is the ultimate reason why the total number of US manufacturing companies has decreased slightly, but is still the world's largest manufacturing country, accounting for nearly a quarter of the world's output.
Informationization reform refreshes the competitiveness of enterprises
The consultant of Shanghai Accure Management Consulting Company once said that the flexibility of management is an art, and the flexibility of the process is a disaster.It is necessary for Chinese manufacturing companies to think deeply: use the change of management tools to refresh the disordered process of manual work, and use the change of management thinking to correct the short-sighted behavior driven by orders-Chinese manufacturing companies should enter the post-survival era, in addition to this Is there another way?
Business operations are like sailing against the current. If you don't advance, you will retreat.There is no standing still, because the times and the environment are constantly rushing forward.In today's competitive environment, Chinese manufacturing companies have no retreat, either survive or die.This is no longer alarmist.The statement made by Li Jiandong, deputy general manager of Digital China Management System Co., Ltd., may be of some reference to Chinese manufacturing companies. He said: "The business competition in the 21st century will be management competition and information competition. Chinese manufacturing companies are already on the starting line. Lagging behind the advanced countries of the world, if you take a slower time on the way to improve the management level and move towards the post-survival era, then I am afraid that what you will lose is not only today’s profits, but future survival. Manufacturing companies can only through informatization Only by reforming, innovating the green supply chain, improving the internal living environment of the enterprise, and strategically realizing the shift from order-driven to management-driven, can we successfully enter the post-survival era."
