Revival Road

Chapter 128 Interview II

Xu Deyu listened.She was shocked by the figures Tao Tang told.I didn't expect the company to have such a big business before, with a fixed daily expenditure of 300 million... She knew the scale of marketing last year, the gap was too big, no wonder the company was facing difficulties...

Tao Tang took a sip of water, "But even if the scale of 120 billion is achieved, it will not work. Because it is food finance. All the money earned is only enough to maintain simple reproduction, which is definitely not enough. Do companies want to develop new products? Carry out technological transformation? Do you want to increase wages for employees? Do you want to improve the quality of life of employees, such as increasing investment in real estate? The answer is yes. No one will agree to maintain the status quo. This brings up a question, what kind of The first way is to achieve profit growth? The first is of course the growth of pure scale. For example, we increase the scale of 20 billion a year, but it is very difficult to achieve this goal. After I came to the factory, I investigated several companies accompanied by relevant leaders and departments. The market, we have a preliminary understanding of our business environment. The market is independent of human will, not how much sales you can increase as much as you want. It only exists in the case of extreme shortage of commodities. Marx's economics The theory says that it is a thrilling leap for a product to become a commodity. If it fails to jump, it is not the commodity that will be damaged but the operator of the commodity. The argument that blindly blames marketing for restricting growth is extremely absurd. What is the situation now? A buyer's market has been formed, and there are only things on the market that you can't think of, and there is nothing you can't buy. Therefore, the path of completely relying on scale growth is doomed to fail. Moreover, the current situation has shown that the downward pressure on the macro economy is very strong. big……"

Tao Tang stopped and picked up his teacup, as if he was thinking about something.

"You mean, lean management can solve this problem?" Xu Deyu listened to it, especially Marx's words. She seemed to have read it in some book and was very impressed. The original words were not like that, but the meaning was not Incorrect.

"Since blindly expanding the scale to improve the company's benefits does not work, there is only the second way. This way is to focus on management, tap internal potential, control costs, and eliminate waste to increase profits. Enterprise management has an important The indicator is called cost expense ratio, which is the ratio of total cost to total income. For example, for us, it is about 98%, that is, cost accounts for 100 yuan in every 98 yuan of income. The remaining 2 yuan is profit. You can think about it This ratio, let’s see what it means to reduce by one percentage point under the current marketing scale..."

"Every 100 million will increase the profit by [-] million."

"Correct. When the revenue scale reaches 100 billion, every 1 point reduction can bring 1 million in net profit. Our salary is mostly 5000 million per month, that is to say, it can be exchanged for two months' salary .To put it another way, if all the benefits of cost reductions were used to increase wages, everyone’s wages would increase by an average of 16.7%”

Xu Deyu is calculating how much the 16.7% capital increase will be for him...

"So, is it difficult to reduce the cost by 1 point? I don't think it is difficult. At least it is easier than increasing the profit by 1% through the increase in revenue. What is our current situation? In a word, it is amazing waste and holes everywhere. , There are bleeding points everywhere. The loss of waste products is a big one. In the vehicle parts sector alone, the three-package loss last year was 3800 million. Including mining machines and agricultural machinery, the quality loss will not be less than 1 million. Bank interest, every year we It needs to pay 1.6 million. Last year, the company spent more than 3000 million on hospitality expenses alone. The figures are amazing, right? The reality is like this. On the one hand, it feels difficult to operate, and the cash flow is extremely tight, but on the other hand, it is bleeding everywhere. Yes, Red Star is a big factory with huge expenses, bank loans are indispensable, and waste products cannot be completely eliminated... But it is undeniable that waste is very serious. We implement lean management to eliminate all unreasonable Reduce expenses and continuously improve the indicator of cost expense ratio. I once said at the middle-level meeting that the cost expense ratio index of Shengdong Company has been reduced by one point every year in the past three years. If we Red Star can also achieve this level , our operating conditions will be greatly improved..."

"Then, how to implement lean management?" Xu Deyu listened attentively and forgot to record.

"The essence of lean management is continuous improvement and elimination of waste. Continuous improvement is the means, and elimination of waste is the goal. Now some of our cadres, pay attention, I am talking about leading cadres, pinning the hope of improving Red Star's management on the so-called big money, that is, Large investment and large output. I don’t agree with this point of view if you want to invest hundreds of millions or billions at every turn. As I said just now, investment has to pay costs, bank loans have to pay interest, and depreciation has to be provided after the conversion , these must be included in the cost. Moreover, we cannot easily deny our existing products. Some people think that Red Star’s current products have no future and need to be changed. This is wrong. You must know that there have always been only bankrupt companies, no The bankrupt industry, whether it is mining machinery, agricultural machinery or vehicle parts, has broad prospects. Even if you are a pin, you can’t say that you have no future, right? The key is your position in the industry. Red Star has accumulated in traditional products and markets Technology and management are a valuable asset. What we have to do is to carry forward the wealth left to us by our predecessors instead of throwing it away...Of course, we still need to adjust the product structure, and each product has its own characteristics. The life cycle, technology is also improving, whether it is mining machines or agricultural machinery, we must focus on the technological progress of existing products, use low-cost, high-quality and high-tech content to consolidate the market and win users... To answer your question, lean management is such a kind of management. The first is bottom-up, that is, full participation, spontaneous management behavior, discovering and overcoming all waste in our work: saving a pair of gloves, A towel, a bag of detergent, a piece of paper, a pen, an envelope, a kWh of electricity, a drop of water, isn’t it difficult? Don’t underestimate the little things, we have [-] employees, multiply any number by Thirty thousand is not to be underestimated. Of course, lean management is not a simple saving, it has a much wider meaning, such as the improvement of technology, the improvement of production efficiency, the saving of kinetic energy, especially the saving of labor costs, all of which are our efforts Please firmly believe that as long as all employees realize the true meaning of lean management and take practical actions, everyone will see changes in all aspects. This change is real and will be brought together to reduce costs and benefit increase.

The second is to reform and improve the company's unreasonable management, block all kinds of visible and invisible bleeding points, and save profits little by little.For example, we are conducting an inventory of off-duty personnel. The number of people who have been identified is more than 480. Based on the social insurance fee of 800 yuan per person, it will cost more than 38 yuan per month. This is of course an unreasonable expenditure.Selling products to earn 40 may cost 400 million or more in sales, but we save it with one decision... There are many similar situations. At the company level, according to the requirements of the central government and the headquarters, the company's senior management has reached a consensus and is formulating Detailed regulations, resolutely reduce the high management fees, and reduce them as much as possible.For example, catering expenses, the company has introduced new regulations to standardize the occurrence of this part of the expenses. There is a specific internal goal, which is to reduce by 2012% on the basis of 30, and continue to reduce by 2014% in 20; , Although the company has not done specific research, I am here to announce that the company will no longer buy non-production vehicles within three years.For example, in buildings and halls, except for necessary maintenance related to safety, the company will no longer renovate guest houses and office buildings... I would like to express my opinion to all the employees in the factory. We must resolutely put an end to it and will not be soft. "

"Mr. Tao, what you said is really good. I hope that lean management can achieve the results you hoped for... just now you mentioned the clean-up of layoffs. This is the second question I want to ask. Now some people doubt whether the company can really solve the layoffs. question……"

"I think it is possible. But there is one prerequisite." Tao Tang's face turned serious. "What prerequisite? It is the establishment of a sense of justice throughout the factory. Without a sense of justice, this matter cannot be done. In my opinion, this Behind the incident is the indifference of the majority of employees to collective interests. They always feel that this incident has nothing to do with them... How can this be done? Compared with 500 people or 3 people, which one is more important? I think that Red Star It belongs to everyone, and everyone has a share. It is definitely not mine, Tao Tang, or the dozen or so members of the Red Star leadership team. If a quarter of the employees have a sense of ownership, the problem of leaving their posts will not accumulate to such a serious level The company is determined to solve this problem, and it is to tell everyone with actions that the company will definitely stop any behavior that harms the fundamental interests of employees. Please truly love our enterprise, and please show a sense of ownership. We will fight resolutely and uncompromisingly in all kinds of behaviors, and if we do this, I believe that our Red Star Factory will quickly get rid of its operating difficulties and regain its glory."

Tao Tang finished his speech and signaled to Master Zhang, who was in charge of the video recording, to finish, while Xu Deyu was still thinking.

"Xiao Xu, do you have any questions to ask?"

"I'm sorry... Mr. Tao, can I publish all of your speech just now?"

"Of course. Although some things have not been studied in detail, the company's senior management has reached a consensus and is determined to share the joys and sorrows with the entire factory staff and overcome difficulties. You can publish everything I said..."

"Thank you for accepting my interview. I think the employees will support your decision and devote themselves to lean practice with the greatest enthusiasm..."

"You are very good. Lean is a practical activity for all employees. Only when all employees take action can the effect be manifested. Now the company has formally established the Lean Management Department to guide and supervise the development of lean management. Next, each Units, whether they are operating units or management units, must formulate lean management plans suitable for their own reality and implement them conscientiously. The company will formulate a series of reward and punishment methods, such as rationalization suggestions. A certain percentage of cash rewards will be given to the proceeds. In this regard, the company is not stingy. A technician from Shengdong Company once received a one-time bonus of 3.8 yuan. I hope that someone from our Red Star will also get a heavy reward. Well, today we will talk about Here it is, I hope to see your weighty reports as soon as possible.”

"We will work hard." Xu Deyu stood up.

"I heard from Lu Qi that the family encountered some difficulties?"

"No, nothing..."

"I have always hoped that the company will become a big warm family, really. I made a suggestion to Deputy Secretary Chang to restore the mutual aid system that has been in place for many years in the past, so that employees who are temporarily in trouble can get some help... this It will take some time, as for your personal difficulties, you can come to me in the future...I told you these things because of your brother. You have to trust me, can you?"

"Mr. Tao, you have taken good care of me... Really, thank you very much..."

"I prepared some money for you," Tao Tang took out a bank card from the drawer, "There is 3 yuan in it, you can use it for emergency."

"No, I really don't need it." Xu Deyu firmly refused.

This interview did resolve some of Xu Deyu's confusion. She just didn't know how to complete the manuscript for the rectification of the off-duty personnel.The off-duty personnel could not be found for the time being, so Xu Deyu had no choice but to follow the list provided by the Human Resources Department to several branch factories with relatively many such problems.She used to be a reporter for a factory newspaper. Later, because she was not good at speaking, she repeatedly asked the leader to change her position and started a copy editor, but she was no stranger to the interview business.Xu Deyu’s interview went smoothly because she had made adequate preparations—she found “suitable” and representative people. Satisfied, I just deleted a manuscript from the Retirement Center, thinking it was too intense.But Xu Deyu thinks that manuscript has the most weight.It was said by two retired cadres: Tao Tang was praised as the real Communist Party, and the original power holders of Hongxing were all bastards.

Almost all the interviewers affirmed that the company's personnel handling was fair this time.Including three off-duty relatives also said the same.Xu Deyu felt that after this investigation and rectification, Tao Tang's prestige was even higher, and he exchanged his ruthlessness for prestige.

If it wasn't for his elder brother, Xu Deyu would think that Tao Tang is a very good leader.He is not too old (as far as his position is concerned), but he has the style of a legendary veteran cadre.It was this that the old men and women in the retirement center praised.They always miss the past in the 60s and [-]s, chattering about the old stories, accusing the current leaders of this and that.But for this new boss who has only been here for two months, he is one-sided, "This is a Communist Party cadre."

She didn't care about anything else, but rectifying the style of the Propaganda Department, changing the propaganda direction of factory newspapers and radio stations, and focusing on workers, especially front-line workers, were in line with her moral values.In fact, the transformation has brought about excellent results. An example is that someone asked her for the factory newspaper, because that issue published the advanced deeds of a certain worker, and he wanted a copy for his son who was in elementary school.The factory newspaper of the unit was robbed, and he, an advanced person who published the newspaper, didn't get a copy, so he asked the Propaganda Department for that issue of the factory newspaper.

This incident itself is news.She knew exactly what was going on with the original factory newspaper.At the end of the year, old newspapers are recycled at a discount (one of the income-generating means of the Propaganda Department), and the newspapers that are recycled are brand new—basically no one reads them.

Xu Deyu believed that after the series of reports about the investigation and deportation appeared in the newspapers, the factory newspaper would increase its print run.But she didn't expect that when an accident happened, the focus of the company's discussion quickly shifted.

(End of this chapter)