On the morning of December 17, as one of the major conferences in Yuchais 60th anniversary celebration, Yuchai Machinery Suppliers Conference 2012 was held at Yuchai Culture Center. With the theme of professionalism, lean, collaboration and win-win, the conference brought together over 540 representatives of more than 320 suppliers to map out a strategy for cooperative development. Among attending leaders are Yan Ping, chairman of Yuchai Group and Yuchai Machinery Co., Ltd. (YM), General Manager Wu Qiwei, Deputy General Manager Chen Ningbin, Assistant to General Manager and Chief Quality Assurance Engineer Tan Guirong of YM. Chen presided over the conference.

Conference scene

Yan delivered an important speech at the conference, sharing achievements in the construction of Yuchais supply system in recent years, pointing out existing problems, looking into the future and raising expectation for suppliers. According to Yan, Yuchai has made visible achievements in supply chain construction in recent years, Yuchai has attached great importance to supply chain construction since the beginning of the eleventh five-year period, Yuchai and suppliers have thought in each others shoes, have made great strides in such aspects as supply chain management, supplier capacity building and product quality improvement with concerted efforts, and have entered into a stage of healthy development. Yuchai and suppliers have established a favorable communication and interaction platform based on Yuchai Supplier Federation to cement equal communication and relations, effectively solve suppliers concerns and accomplish mutual benefit and win-win. Currently, Yuchais supply system construction has entered into a new development stage, Yuchai will renew efforts to build the industrys best supply chain and establish a fair and equal supplier cooperation mechanism to protect suppliers interest. Yuchai has great determination and confidence in solving existing problems and doing good work, Yuchais engine sector will contribute sales of RMB 50 billion by the end of the twelfth five-year period, hopefully, suppliers will be confident of future development, bring themselves in line with Yuchais strategic development and tighten quality control to provide strong support to Yuchai, said Yan.

Yan speaks at the conference

Chen summarized the purchase work in 2011 and came up with the work idea for 2012. According to Chen, Yuchai tightened purchase quality control and achieved remarkable effects in 2011. To date, the ratio of warranty compensation has decreased by 1.46% year on year, the failure rate in the first three months and the first six months plummeted by 31.2% and 25.12%respectively year on year. Quality improvement comes with favorable market feedback and constant enhancement in product satisfaction and customer satisfaction. Yuchais annual sales are expected to drop by 5.8% year on year, far lower than the average industry decrease of 11%. Yuchais industry share picked up by 1.42% from 2010 and led the industry in total sales.

In 2012, Yuchais purchase system will, under the guidance of the work idea of lean improvement, fast response and coordinated development, stay focus on the objective of improving quality by 100% within three years set in 2011 and set about building a lean supply chain in a bid to build Yuchais supply chain into the best supply system.

Conference scene

Chen added Yuchai would conduct systematic planning to improve the production capacity of its supply chain to increase the annual production capacity from 550,000 units to 1.1 million units. To this end, Yuchai required that all suppliers should, with the vision of great Yuchai, great development, keep pace with Yuchai and achieve win-win with Yuchai in the project of building a group with annual sales of RMB 100 billion.

Wu delivered a speech at the conference, introducing the idea of future supply chain construction. To sharpen overall competitiveness, Yuchai has launched the program of lean manufacturing and achieved preliminary effects, will extend lean manufacturing to its supply system, build a lean supply system, and build the core competitiveness of every engine model by refining purchase management and sharpening parts competitiveness, said Wu. To this end, Wu required suppliers to deepen collaboration with Yuchai, keep pace with Yuchai, strengthen the capacity for product R & D and production capacity building, follow Yuchai into the market, participate in service and strengthen service support.

At the conference, Tan gave a work report on technical quality of products; Zhang Ting, deputy general manager of Yuchai Sales Co., Ltd. and director of Yuchai Service Center, gave a work report on customer services; Fan Jiang, chairman of YC Supplier Federation, gave a work report of the federation; Xiao Jianguo, deputy manager of the Purchase Department, read a list of core suppliers. 

(Text by Huang Zhirong, photo by Wen Zhenghua/Li Junhui)