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Innovation of Construction Machinery Enterprises

Innovation of Construction Machinery Enterprises

To meet ever-increasing customer demand with higher requirements and larger diversity and build world-class manufacturing enterprises, machinery industry is facing great challenge. At present, main problems are: falling rate of profit, lack of sufficient capacity to meet customer needs, declined market share, decreased customer satisfaction, while these several problems are closely related to cost control, quality control, delivery performance, service level and the quantity and efficiency of new product launch within companies. 

Two aspects can be improved to enhance the profit margin of products. The first is to broaden sources of income by speeding the launch of new products. Machinery industry has an obvious longer launch cycle of new products. For most companies, main problems existing in new product R&D are as follows: low R&D efficiency, frequent changes of design, long cycles of process trial production, mismatches between development of new technologies and development of new products, low arrival rate and yield of suppliers’ parts, the existing process capability failing to meet the demand of new products, etc. although the R&D of new products only accounts for about 5% of total cost, it will affect 70% of operating cost. Therefore, it is of great significance to improve overall R&D capability, shorten the launch cycle of new products and reduce the changes of design, so as to strengthen enterprise’s overall competitiveness. 

 Make your enterprise a perfect engine for profit growth
 Changes of Lean Six Sigma
 Design for Six Sigma    Lean Six Sigma    Value chain of Lean Six Sigma
Concept design New product and process Process design Product improvement Just-in-time Flow and quick response
Automation Process improvement Supplier development Order receiving and delivery
Lean distribution
 Voice of customer    Stable equilibrium of production    Process plan and control
 Process capability of Six Sigma
 Breakthrough of improvement method
 Leadership of top management
 Medium and long term  Short term  Medium and long term
The second refers to reducing expenditure to reduce operation costs of the company. Currently most companies have not established a set of complete and perfect cost calculation and control system yet, including mature products and new products. Manufacturing cost, being a major part with greatest improved potential in operation cost, is mainly reflected in direct material cost, indirect material cost, equipment maintenance cost and cash flow on hand. Currently there are many companies of which the product scrap cost and rework loss cost are so high in each manufacturing plant, especially under the current situation of pursuing delivery timeliness rate, quality losses of product including internal quality loss and external quality loss are fully exposed. Improving product quality and reliability is an urgent affair for each company. Indirect material cost is mainly reflected on consumptions of cutters, oil materials and energy, there are some companies of which indirect material costs account for 20%~40% in total cost, improving technological stability to extend lifetime of cutters and replacing imported cutters with more domestic ones through process debugging can substantially reduce consumption of indirect materials. The other important indirect material cost is energy consumption, reducing energy consumption can not only reduce operation cost of the company, but also can realize energy conservation and emission reduction, thus receiving national special funds support. With respect to equipment monitoring, many companies have still stayed on traditional management mode, in which the effective availability of equipment is difficult to be reflected, currently foreign advanced enterprises have adopted Overall Equipment Efficiency (OEE), i.e. the proportion that net production time accounts for in total available time. Reducing machine blocking time of equipment, reducing equipment maintenance cost and improving equipment reliability can reduce equipment maintenance cost and improve overall capacity of the company.

    The forth major part of cost is inventory cash flow, inventory includes finished product inventory, raw material inventory, equipment spare part inventory and semi-finished product inventory. Currently most companies have not conducted strict management and control on finished product inventory, for the purpose of delivery, improving turnover rate of inventory is greatly helpful for improving cash flow turnover of the company, besides, as currently market develops so rapidly, low inventory turnover rate may result in risk of slow moving, additionally, holding cost of inventory can not be reduced. Equipment inventory accounts for a great amount in each manufacturing plant, and it has a lot to do with low predictability and analytical ability for dependence of machinery industry on imported spare parts and reliability of such industry on equipment and insufficient equipment maintenance. How to hold safety inventory with certain amount and at the same time not influencing service level of customers are closely related to production mode and delivery cycle in machinery industry. Semi-finished product inventory is seen everywhere in each manufacturing plant, and currently equipment in machinery industry is basically processed in the manner of single piece, however, because of unbalance beat at each process and equipment failure etc. problems, a large number of semi-finished products inventories are in each workshop. The quantity of semi-finished product inventory is the most visualized mode for exposing all capacities in enterprise, in addition, semi-finished products may seriously influence delivery cycle in the meantime.