On the afternoon of April 18, Yuchai Machinery Co., Ltd. (YM) held Phase 1 summary conference & Phase 2 launch conference on lean projects. At the conference, eight Phase 1 projects were rewarded. Leaders of YM, including General Manager Wu Qiwei, Deputy General Manager Ning Xingyong and Liang Qingyan, and Chief Engineer Qin Xiaohong, were present. Also were present were President Bai Hao and Trainer Liu Jiwei of QualiSys Consultancy Services, as well as more than 140 delegates from YMs subsidiaries. Wang Wei, chief economist of YM, presided over the conference.  

Conference scene 

At the conference, the eight project teams made summaries of Phase 1 lean projects. The review group represented by Wu reviewed achievements in Phase 1 lean projects. Wang announced review results: the heavy engine assembling efficiency improvement project of Engine Plant 1 won the special prize with a bonus of 100,000 yuan; the smelting/core making/modeling project of the Foundry won the first prize with a bonus of 80,000 yuan; the logistics efficiency improvement project of Engine Plant 2 and the 6M body efficiency improvement project of the Vehicle Engine Assembly Department of the Machining Plant won the second prize with a bonus of 60,000 yuan each; four others including the TPM equipment project of the Production Department won the third prize, with a bonus of 50,000 yuan each. 

After a brief summary of the implementation of Phase 1 lean projects, Wang stressed Phase 2 lean projects will be advanced in full swing from this month to late this year, and eight company-level and eight department (plant)-level projects will be included. The idea of advancing Phase 2 lean projects has three essentials: firstly, efforts should be made to extend the emphasis from D of QCD in Phase 1 projects, i.e. production efficiency, to comprehensive improvement in QCD, and to establish a basic structural system for YCOS. Secondly, lean improvement will be progressively integrated with annual business principles and KPI indicators of companies, departments and plants. Lastly, Phase 2 projects will cover more fields and extend from four plants to the entire manufacturing line and even to some quality departments, R & D departments and process departments.   

Liu summarized Yuchais lean plans for three to five years from five aspects including lean manufacturing, lean R & D, lean supply chain, lean marketing and project management.  

Wu makes a concluding speech at the conference

Wu made a concluding speech, saying the company advanced cautiously in Phase 1 and finished tasks with the efforts of all staff and the systematic theoretical guidance of QualiSys trainers. Over the six months, lean projects have produced initial effects, and many projects have progress smoothly. From separate operations at first to coordination under the overall planning of the lean office later, with the progressive involvement of the process and quality departments, the company has formed favorable lean atmosphere. Wu added, despite remarkable achievements in Phase 1, all staff should realize that we are still at the elementary level and some problems are emerging, for example, some sectors are uncoordinated and mismatched. As QCD stresses high coordination, Phase 2 lean work in 2012 should focus on solidifying and standardizing the system, quality and cost of Phase 1 and raising the level of QCD. 

(Yang Mingze)