Ningbo: help enterprises to empower their brain

Internet economy subversively opens a door of manufacturing + users for enterprises. In the new business mode with both challenges and opportunities, manufacturing enterprises have to complete the restructuring of inside value chain and complete the integration of end-to-end industrial supply chain.

It is a necessary means in the strategy to break the information screening. The integration of information technology and industrialization means that the information technology can promote the industrialization and vice versa. It explains why the deep integration is a national policy and the basic guarantee to fulfill the goal of Made-in-China 2025.

How many Ningbo enterprises have adventured to eat the crab and equipped themselves with a powerful brain? What industrialization achievements did these enterprises make in the integration of informationization and industrialization? We have made an interview.

Ningbo Steel Company 6M system to build an intelligent company When it comes to the integration of informationization and industrialization, what impressed the journalist most is not sophisticated IT men like the Chief Information Officer or Dean of Information Center, but a security guard at the gate of the company.

The other day, the reporter was registering the visitor's information at gate 5 when there came a voice from the nearby system, Zhe B***, come in please . The journalist joked, can this gate identify car plate and automatically let them in? To my surprise, the doorman replied in deprecating way, it's nothing, our gate also knows whether our truck has to enter our company today. Only truck with task can be allowed in.

It is only a miniature of the informationization of Ningbo Steel. Pan Jian, Dean of ERP, said that Ningbo Steel has built a 6M information system which consists of sale, manufacturing, material, equipment, HR, and finance. It is an overall management concept, which can fulfill the online business which is related to production and marketing.

Compared with the traditional production mode of manufacturing industry, there seems to be an irreconcilable conflict between supply, production and sale. Ningbo Steel 6M system uses a visual platform. On platform people can see the data of stock and the arrival time of materials like iron ore, coal, coke and solvent on the computer or mobile phone platform. With the system, people can also immediately know the increase and decrease of stock based on the price information captured from the system, which can help to guide the purchase and production. Besides, this system will also enable clients to place orders directly on then online E-commerce platform, which can be directly transformed into production orders. The processing and management control can be connected smoothly. It usually takes 15 days for a traditional enterprise to deliver its goods after receiving the order. But the whole process will be halved in Ningbo Steel.

The integration of informationization and industrialization will finally serve to increase efficiency and cut down cost, said Liu Zhu, Director of operating and planning office. Ningbo Steel has an important index-ROCC, namely resource occupation capital cost, which pays attention to both the process cost and its occupation of capital and resources behind it.

Despite its advantages, the system requires complex calculation. Therefore, many enterprises just keep a respectful distance from it. It is with the strong support of 6M system, Ningbo Steel can fulfill the ROCC management concept, said Liu Zhu. After using ROCC, the storage period of raw material coal in coke factory is condensed from 30 days to 23 days; the tar stock is reduced from 5662 tons to 1000 tons; the benzol stock drops from 778 tons to 300 tons. All these greatly cut down the capital occupation cost. The minimum input in process, the maximum output in return.

Huaxiang SAP contributes to a more stable expansion

Do you still remember the Toyota recall' incident? As soon as the journalist took the seat, Zhang Huilong, Chief Information Officer of Huaxiang Group put forward this question with great interest. In October 2012, due to a defect in the automatic window switch, Toyota recalled 7.43 million cars in the world, setting a record high and losing more than 10 billion yuan, a heavy blow to Toyota. The recall is just caused by a flawed part from the suppliers.

An expert once pointed out that the recall of Toyota is directly related to the neglect of scientific management with the rapid expansion of production. The incident gives a warning to all whole car manufacturers and auto parts suppliers.

Now let's come back to Huaxiang, said Zhang Huilong. Despite the rapid growth, the informationization did not catch up. Each subsidiary used different informationized products, which leads to a serious isolated information island. There is no unified basic information. Information cannot be shared. The problems cannot be tracked. Let alone the integration of the group system. Besides, about 80% of the whole car manufacturers have applied SAP system. Therefore, there is no choice but to apply SAP.

However, because of the different products and different requirements of management in the 16 subsidiaries, the blueprint requirements and parameters have to be discussed and built again. Therefore, it is quite difficult. But, we have to do it. Through four measures, we unified the management of our group, said Zhang Huilong. The first measure is the standardization of management language; the second one is the normalization of management structure; the third one is the processed practical mode; the last one is performance evaluation of performance visualization. So far, the project has been completed and has achieved happy results.

For example, Changchun Huaxiang, a subsidiary, used to use ERP system be

LINK:	http://en.nbwh.gov.cn/art/2015/8/11/art_1325_73632.html...
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