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The common sense in the field of commercial vehicles is to increase production without increasing revenue. How can Foton Motor break such a cycle and achieve high growth in performance?
Comparing with the production of cars and other vehicles, commercial vehicle manufacturing is a bit like Transformers, because the needs of commercial vehicle users are bizarre, such as whether the need for containers, what kind of rear axle to choose, what kind of filters to install, and the diverse market demand It has determined that the commercial vehicle order is very personalized.
"We can achieve a single vehicle and a single vehicle," said Li Xiaolong, deputy manager of Futian Automotive Information Technology Department. From 0.5 ton trucks to heavy trucks, Foton Motor has a long product line.
This means that from the R&D to the order, production, and sales processes, Foton Motors faced a very “arbitraryâ€, which is undoubtedly a huge challenge for a modern organization seeking high efficiency.
Under the knowledge management system, Yang Guotao is currently responsible for the business of Olympia commercial vehicles and has built standardized processes, operating templates and management systems.
How to sort out this seemingly chaotic situation and bring it into the track of scale and efficiency? In fact, in the 13 years since Foton Motor was established, it has produced and sold more than 3.2 million automobiles, all of which are independent brands. It has ranked second in the global commercial vehicle industry for three consecutive years and has ranked first in China for commercial vehicles for five consecutive years. It is worth mentioning that the profitability of Foton Motor has steadily increased in recent years. Even in the context of the financial crisis, the profit margin of Foton Motor will hit a record high this year and may break through double digits.
It should be noted that in the commercial vehicle industry, the common sense is that the increase in production does not increase income, but Foton Motors has managed to get rid of such a turmoil and achieved considerable performance growth. What is the secret behind this?
Develop two heads to drive the middle
Prior to 2003, Foton Motor did not have a unified R&D platform and adopted a two-tier R&D model in its R&D structure, namely headquarters R&D and R&D of the business division. Taking a car as an example, in the memory of Li Xiaolong, after the design of the research institute at the time was completed, there was an information blind spot in the design drafts and subordinate business units - because after the transfer to the factory's technical center, how did the factory's technical center change? The institute "doesn't know it"; if this model is transferred from one division to another division, "there are two BOMs for the same model," which creates huge obstacles to cost accounting and material feeding. The bigger problem is that this has caused "a lot of things."
From another perspective, at the time of Fukuda's R&D, production, and sales, because there was no single source of data, it was possible that the same product would become 3 kinds of data in 3 departments. Because of different interpretations of the language, many misunderstandings have resulted in misunderstandings. For example, A-products for sales appear to be their own B-products in production, and they become C in the R&D department. Collaboration among departments is very difficult.
In 2003, Yang Guotao and Li Xiaolong, CIOs from Haier to Foton Motors, set a strategy of “developing both ends and driving the middle†for Foton Motor, which first developed the system for R&D and sales, and then driven the supply chain.
The first to start is a unified vehicle coding system. The encoding principle of all products of Foton Motor is the basic type and optional equipment. If there are too many optional components for a certain type of vehicle, the coding may be extremely confusing. "Ouman's longest product code is 98, and Auman chose to use the SAP system, the material coding requirements are 18, do not transform the data, information system investment is to spend money." Yang Guotao and Li Xiaolong will all products The encoding is unified to 18 bits, making all product data consistent.
As a remarketing company, the lifeline of Foton Motor Marketing was not optimistic at the time. The sales data is still passed through salespersons, sales managers, branch offices, and head office, and then aggregated and analyzed, often with delays. At the same time, the data handed in is also very unreal. The salesman may adjust the data for his own benefit. For example, the sales are very good this month. If he is afraid that the task will not be completed in the next month, he will use this month’s method of under-reporting to hide a batch of sales. At the same time, there are many problems in the after-sales service of accessories, such as the old ones, and the loopholes are particularly large. At that time, the old parts were not returned to the factory, resulting in frequent frauds.
Through the establishment of a marketing platform, Foton Motor has built marketing information IT projects such as vehicle sales systems, parts and service management systems, call center systems, and market management information systems, covering more than 3,700 distributors and more than 4,500 service providers across the country. , "Anything they do is traceable."
For manufacturing, the supply chain is the core, but Li Xiaolong does it behind R&D and sales. Li Xiaolong pointed out that the supply chain is actually a summary of the two data. R&D data flow is from top to bottom, and order flow is from bottom to top. If you start from the supply chain, you will be enemies, and you will “be often deadâ€. When the two are ready, as long as the integration of production planning, inventory planning and procurement management is completed, the supply chain construction is very simple.
IT plus management
At the beginning of the informationization revolution of Foton Motor, Yang Guotao and Li Xiaolong actually encountered many difficulties from the business department. Li Xiaolong recalls that at first, in a certain business department, he wanted to go online and set up a very small system of verification and verification. The function was very simple, but for a long time, “what could not go up is not usedâ€. In fact, if there isn't any right, it's very difficult for the information department to get involved in the internal business department. The most commonly heard word is, “Your IT is doing its own thing. I will ask you to implement it. When will you go online? It's my business department that has the final say," which puts IT in a very low support service role.
The deadlock has already formed. How can it be broken?
At this time we can not but mention the previous sector restructuring of Foton Motor. One year after the establishment of the Department of Information Technology, it was merged with the Integrated Planning Department at that time into the Integrated Management Department. This is the department responsible for performance assessment, organization and processes, and new product development. IT is closely related to organization, processes, personnel, and benefits. Related.
With this adjustment, the previous stalemate will be solved. Li Xiaolong recalled that seeing this scenario, CIO Yang Guotao, who was concurrently the manager of the comprehensive planning department, stipulated that linking 20% ​​of the monthly salary of this factory's full-time staff with the application of the information system. “The leadership of this business department had opened a Yes, the system will be normal by the end of the month."
It is precisely because of this organizational structure that lays a good foundation for the promotion of Foton Automotive IT. Now, the IT department and general management department of Foton Motor are divided into two departments, because the overall atmosphere has been completely changed, "does not need to be under the name of the Integrated Management Department, and people in the IT department can fully understand the business department. And support," Li Xiaolong said happily.
Nowadays, people in the IT department are often scattered in various business units and become the most popular people. In Li Xiaolong's view, through the IT plus management model, Foton Motor has developed an IT culture that allows all employees to know that IT is not only a tool, a service, but more importantly, a management. It is bi-directional. Through IT, you can improve your management. Many management ideas cannot be implemented without IT.
The integration with business units has made IT more effective. After the on-line after-sales service system has been put into operation, Foton Motors will be able to save tens of millions of yuan each year. This is a considerable cost savings for Futian, which originally had an annual profit of only 200 million yuan.
Li Xiaolong pointed out that the net interest rate and gross profit margin for these years have been approaching, and the profit has grown steadily. This is because many similar problems have been discovered and corrected under this kind of IT plus management model. “Our input-output ratio is at least one ratio. Fives".
As the largest domestic self-owned brand enterprise with a full range of commercial vehicles, according to plan, Foton Motor’s future overseas production and sales will account for half of the total business. Li Xiaolong shoulders the heavy responsibility of building information systems globally.
At the beginning of this year, Li Xiaolong had just received a new task that focused on intellectual assets. Li Xiaolong led the team to start research on knowledge management and found that in fact, the experience accumulated by many business departments can provide support for other departments. For example, a logistics system that is well-established in a business unit can be translated to other business units, which will greatly shorten the system implementation cycle.
Now Foton Motors' knowledge assets are managed through IT. IT fixes the behavior and experience of employees. For example, original drawings that need to be printed out and folded, and signed everywhere, can now flow through the system and can be managed through the system. In fact, the original Foton Motor Design and Research Institute had a precedent for people to go out and design their own company, because of the poor management of intellectual assets at that time.
Under the knowledge management system, Yang Guotao is now responsible for the Ao Ling commercial vehicle business, and has built standardized processes, operating templates, and management systems. The assessment is also standardized. This model will be moved to the overseas factories that Futian Automobile is building.
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