Demystifying the "source password" behind the "grand slam" of Weichai

In recent months, on December 10, 2018, the 24th Asia-Pacific Quality Organization International Conference in Abu Dhabi, the capital of the United Arab Emirates. Weichai Power won the "Global Performance Excellence Award---World Class", and Chairman Tan Xuguang was awarded the "Asia Pacific Quality Award Individual Award---Excellent Integrity Enterprise Leader".

On November 29, 2018, the 40th anniversary of the National Quality Management Group and the closing ceremony of the 2018 China Quality Association Annual Meeting. Tan Xuguang, Chairman of Weichai Power, won the “Liu Yuanzhang Quality Technology Contribution Award” and gave a keynote speech at the conference on “The Practice of Weichai High Quality Development”.

November 2, 2018, the 3rd China Quality Awards Presentation Ceremony. Weichai Power won the China Quality Award for its first place in the manufacturing organization with the “WOS Quality Management Model”.

Weichai won the China Quality Award

Over the years, Weichai has won the "Asia Quality Innovation Award", "National Quality Award", "Province Quality Award", "Quality Light Year Charm Brand", "China Export Quality and Safety Demonstration Enterprise", "China Famous Brand" and "China Famous Brand" "After many awards, Tan Xuguang has also won the honorary title of "China Outstanding Quality Person", "National Machinery Industry Outstanding Quality Person" and "National Machinery Industry Excellent Quality Operator Gold Cup Award".

Keeping pace with quality development is the continuous enhancement of customer's stickiness to Weichai products, which is a substantial increase in product sales and market share. At the Weichai Global Supplier Conference just ended on December 14, 2018, Tan Xuguang, Chairman of Weichai Group, announced that the Group expects to achieve operating income of 240 billion yuan in 2018, an increase of 8% year-on-year; engine sales reached 700,000 units. It increased by 13% year-on-year.

20 years of groping and practice to break the "source password" of quality enterprises

Twenty years ago, Tan Xuguang’s “mass hammer” lifted hundreds of engine waste blanks, awakened the quality awareness of Weichai people, and opened the curtain of the quality of Weichai. It also promoted this state-owned enterprise giant wheel to set foot on the correct channel of riding the wind and breaking waves and high quality development.

In the past 20 years, Weichai has mobilized all employees, focused on products and focused on quality. Through continuous learning, digestion and absorption of international advanced experience, on the basis of independent integration and innovation, we have formed a WOS quality management model with Weichai characteristics and advantages. This model is based on the concept of “high quality” in the whole process of enterprise operation, and establishes a unified index, standard process and evaluation improvement system, and guarantees the punctual, efficient and reliable lean manufacturing process through data, visualization and continuous optimization. Meet the needs of individualized customers under large-scale manufacturing conditions.

Through the implementation of this model, Weichai's new product development cycle has been shortened by 60% in the past three years, the new machine failure rate has decreased by 22%, the rework rate has decreased by 40%, the single controllable variable cost has decreased by 46%, and the delivery cycle has been shortened by 45%. The benefits are comprehensive and rapid.

Twenty years ago, quality was the life-saving straw for Weichai development; 20 years later, quality became the strong backing of Weichai development. Under the strong support of quality, Weichai has been bankrupt from bankruptcy to an annual income of 240 billion yuan, creating a “Weichai speed” with an average compound annual growth rate of 37%, which has injected “the strongest power” into China's equipment manufacturing industry.

Tan Xuguang won the "Liu Yuanzhang Quality Technology Contribution Award"

The whole industry chain is introduced to pursue the goal of "win-win"

Weichai WOS quality management mode is a highly open, inclusive, reproducible, scalable and landable model that combines the world's advanced quality management concepts to meet the quality management needs of the entire industry.

Weichai has always been pursuing the common improvement and common progress of the entire industry chain, and finally achieves the goal of "win-win", and thus promotes the realization of the dream of a quality power. The promotion starts first from the inside. With the pace of mergers and acquisitions at home and abroad, Weichai also successfully introduced the WOS management model while exporting funds and technology. In 5 years, Yangchai Company increased the unit price of its products from less than 5,000 yuan to nearly 20,000 yuan; Shaanxi Heavy Motors successfully entered the first echelon of China's heavy trucks in 13 years; overseas mergers and acquisitions companies Boduian, Italy, Ferretti, Germany Linde Hydraulics has achieved a turnaround and rapid development; Germany Kaiao has maintained a growth of more than 10% for many years.

The Belarusian Maz Weichai Company, which was put into operation in the same year when the factory was built, was introduced into the WOS quality management mode from the beginning of the establishment. In October 2018, the company dispatched a professional team to study firewood to learn advanced manufacturing, production and quality management experience.

Up to now, Weichai has promoted the quality management standards of more than 80 suppliers and achieved the system upgrade of the industrial chain. At the recent Weichai 2019 Global Supplier Conference, Tan Xuguang also proposed that in the future, Weichai will work with suppliers partners at home and abroad to jointly build a world-class quality control model and promote it among suppliers. The Chai WOS model eventually achieves 100% coverage.

Quality-driven effect highlights the best “reward” in the market

Quality, production and sales have always been mutually integrated and inseparable. Behind the quality "grand slam" is the customer's enhancement of the Weichai brand's stickiness, the overall increase in market share, and the continuous increase in the indicators of production and sales increments.

"Buy the best school bus, use the best engine" is the belief and principle that Peng Hongguang, chairman of Hunan Leifeng Transportation Development Group, has always adhered to. His company has more than 500 school buses, all equipped with Weichai engines. The 270 school buses that were newly tendered this year are still equipped with Weichai engines. Weichai's highly reliable product quality and excellent after-sales service are the "two reasons" for him to become the "loyal powder" of Weichai.

Data show that in 2018, Weichai engine sales are expected to exceed 700,000 units, and sit firmly in the "top spot" of China's internal combustion engine industry, which is the sum of the second and third place in the rankings. Among them, heavy-duty power was 368,000 units, an increase of 10% year-on-year. Sharp Power increased by 19% year-on-year. The power performance of the bus for school buses is particularly eye-catching, up 70% year-on-year, accounting for 52% of the total sales of school bus power in the country, and supporting half of the school bus market in 2018. Agricultural equipment power increased by 66% year-on-year, occupying an absolute leading position in the fields of large tractors and corn harvesters.

With stable and reliable product quality, Weichai continues to lead the development of the power industry with unstoppable momentum. Facing the new challenges in the future, Weichai has completed the layout of the National Sixth, and will drive the upgrading of China's internal combustion engine industry through the N+H high-end platform to move towards a high-quality development track.

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