Real life after the merger and acquisition of Shangong: large sales guide: on March 20, the site in front of the office building of Shangong Machinery Co., Ltd. (hereinafter referred to as Shangong), a heavyweight enterprise in China's construction machinery industry, became somewhat empty because of the celebration ceremony for the second anniversary of caterpillar's acquisition of Shandong Shangong machinery factory. On weekdays, it was full of employees' cars. Mountain machinery Office
on March 20, the site in front of the office building of Shangong Machinery Co., Ltd. (hereinafter referred to as Shangong), a heavyweight enterprise in China's construction machinery industry, became somewhat empty because of the celebration ceremony for the second anniversary of Caterpillar's acquisition of Shandong Shangong machinery factory. On weekdays, the site was full of employees' cars. Liguangfa, director of the office of mountain machinery, complains with a little pride, "the original parking space is far from enough. The private cars purchased by employees occupy the open space in front of the office building, so it is difficult to find a place for office parking." In the mountain workers with only 1680 employees, the number of private cars in the polyurethane plant has reached more than 500
in the chatting with the nagging family, the workers attributed the reason and enthusiasm for buying a car to the distance between work and work. They found that they often ignored the most important point - their own purchasing power. Director Li disclosed that the average monthly wage of workers in this joint venture is 200 yuan, which constitutes about 0 yuan for purification technology and complete sets of equipment with independent intellectual property rights. An engineer who led a visit to the workshop told us that mountain workers are the most profitable enterprises in the local area except tobacco companies
the positive side of M & A
in the two years since caterpillar acquired Shangong, the workers' income has increased by 10%. In fact, measuring the income change alone can not accurately reflect the overall change of the enterprise. Luo Xiaoyu, the financial director of Caterpillar's mountain workers, believes that although the wage increase is not very large, compared with before the acquisition, the working hours of workers are significantly shorter, and the overtime hours of workers are also decreasing. After the arrival of caterpillar, it retained its original employees and leadership, but transferred several middle managers from Xuzhou company to assist the mountain workers in improving quality, process, finance, supply chain and new product management. Luo Xiaoyu is one of the managers
Luo Xiaoyu, who is engaged in financial work, likes to talk with numbers. He calls up relevant information from his computer. Luoxiaoyu told us that "the profits of mountain workers increased from more than 10million yuan in 2005 to 110million yuan in 2006". In addition to the effectiveness of management and technology investment, the reduction of steel prices has also helped. However, not all enterprises in the industry have seen such a big growth as mountain workers. In fact, the market share of Shangong has risen from the seventh in the industry to the sixth, and its profit margin ranks the thirdLeap-x1c engine is a large-scale jetliner engine developed by CFM international, a large-scale aircraft engine manufacturer jointly established by the international company General Electric of the United States and SNECMA of France with a 50% capital ratio
in the two years since the joint venture between caterpillar and Shangong, Shangong's sales have increased significantly. Luoxiaoyu said that the sales volume of mountain workers in 2004 was more than 5700, and nearly 8000 in 2006. At the same time, the inventory turnover rate of the enterprise increased from 2.26 times in 2005 to 3.42 times in 2006, thus speeding up the flow of funds, reducing loans and greatly reducing costs. Luo Xiaoyu accurately reflected this change by comparing the figures: "the time from placing an order to delivery has been reduced from the past 10 days to 4.5 days." Yangcongxuan, the quality manager assigned by caterpillar to Shangong, told us about another change. In the past, the three guarantee fee for Shangong loaders accounted for more than 3% of the sales. By 2005, it had dropped to 2%. Last year, this figure had dropped to about 1.5%. This improvement directly reduces costs
"making the two sides more compatible" is usually the main problem to be solved after the M & A
despite the two-year running in period, Li Guangfa, director of the office of mountain machinery, who works in the same office building, and Luo Xiaoyu, the financial director of caterpillar, who is stationed in mountain machinery, have completely different business card styles. People can't see that there is a close relationship between the two enterprises from the business cards. Both sides of the cooperation focus on the unification of management methods
the big slogan - "I am the only mountain worker in spring, summer, autumn and winter" is particularly conspicuous outside the factory. However, when entering the workshop of the factory, the huge black bilingual slogan "nothing is so important that you have no time to do it safely" with "Carter yellow" as the background occupies a prominent position on the wall of the workshop. The chart of subdividing the production process with the "Six Sigma" method is posted in each workshop of Shangong. In the factory of Shangong, those who are required to wear safety helmets and protective eyes can see that the wall is also pasted with icons of various processes and quality improvement, as well as illustrations and icons of safety production. According to a minister in charge of safety production and safety of the mountain manufacturing department, these are the changes brought about by caterpillar
cuileiming, the process manager assigned by caterpillar to take charge of this work, explained some abstract management methods: in short, it is to integrate quantitative methods into management and refine the production, evaluation and incentive mechanisms. Cuileiming believes that the injection of these mature management methods is the main reason for the changes in mountain workers. He told us, "we have carried out a series of lean production process management to eliminate waste and improve efficiency." At the same time, it also focuses on eliminating production bottlenecks and improving process capacity. In 2006, the mountain workers invested nearly 30million yuan in this field, and the budget in 2007 was nearly 50million yuan, and most of the projects have been implemented. In 2006, the training conducted by mountain workers was equivalent to the sum of the previous 10 years. The biggest benefit of the new management method is that while the output and sales volume increase, most of the process equipment and workers have not increased, and the working hours have not increased
in fact, this is a process of mutual learning and common improvement. As Owens said, caterpillar brings advanced management methods. At the same time, "caterpillar learns from mountain workers, understands the Chinese market, understands construction machinery users and major suppliers"
Chinese enterprises will also reap good results if they are good "Fengwei"
when Owens said that he wanted to know more about Chinese users and suppliers, local suppliers had already started their own preparations. They made caterpillar's arrival more popular. In Qingzhou, caterpillar industrial park covering an area of more than 2000 mu is being planned. What benefits will it bring to aripack? Bengiyat responded: "We provide customers with innovative packaging and the construction of sustainable new end-to-end solutions. At present, there have gathered more than 20 supporting enterprises, with a total investment of 400million yuan. These enterprises, based on their own business expertise and through fine division of labor, have respectively cast accessories for mountain workers, produced mud retaining tiles and engine covers, thus forming a large machinery industry chain.
expectations for local suppliers in China, Caterpillar Also quite in tune. Owens revealed in an interview that caterpillar is accelerating the localization procurement process, he said, "We will take more localization measures on the suppliers of parts, which will make our products more cost-effective and competitive. For example, many electronic components in hydraulic excavator products, and some of them have also been purchased locally in the Chinese market. We will cooperate more with local suppliers." It is learned that caterpillar's 13 wholly-owned and joint ventures in China produce core products in China, including hydraulic excavators, crawler bulldozers, graders, road machinery products, large diesel engines mainly used for marine and generator sets, and generator sets supplied to the markets of China and the Asia Pacific region. Generally, these equipment have a great demand for parts, of which 80% of the parts are purchased in the production of loaders
liuyoujun, Caterpillar's new product manager in Shangong, told that one of the goals of Shangong after the transformation is to support caterpillar's global supply chain. At present, the price of imported parts abroad is expensive, which is at least 10% higher than that of domestic parts. Therefore, caterpillar has been committed to expanding domestic procurement to offset market risks. In the past, Shangong and caterpillar had their own suppliers. However, with the launch of Caterpillar's China strategy, these suppliers will be gradually integrated. At present, the two sides have more than 10 common suppliers, including Weihai triangle tire, Jinan Iron and steel, Mobil, etc. Already, 30% of the procurement of Shangong is provided by these suppliers
however, it is not easy to enter the procurement system of multinational enterprises. Zhangyuling, supplier development manager of caterpillar, told us, "buyers attach great importance to the cost control and quality control of purchased parts." Quality, cost, delivery, development, management and supplier evaluation are the six major indicators for this multinational enterprise to measure whether its suppliers are qualified. Only suppliers with more than 70 scores in the evaluation can enter the caterpillar global supply chain. In Qingzhou, suppliers have begun to make active preparations. More than 10 enterprises have organized to set up a "supplier advanced technology promotion committee", which plans to conduct regular monthly training and organize visits to Caterpillar's factories to better understand the requirements of safe and economic production for suppliers. Leaders of Qingzhou government will also attend some meetings of the Committee. Local government departments expect that with the deepening of cooperation between caterpillar and Shangong, the machinery manufacturing enterprises in Qingzhou will become an indispensable link in the global industrial chain from a local leading enterprise