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Guest Yang Pei, Chief Editor of Chinese and Foreign Management Magazine
Yang Zhuang International President of Peking University
Sasaki Yugi, Director of Japan's Central Industries Alliance
Hua Jinsheng Cummins Global Vice President, Chairman and CEO of China
Rilavin Caterpillar Global Vice President, Chairman of China
Yin Jiaxu, General Manager of China Southern Automobile Group and Chairman of Changan Automobile Group
Ying Wang Chairman, China Real Estate International Consulting Group
Sun Jian Vice President of Kearney Consulting Greater China
Wang Yuxi Director, Institute of Enterprise, Shougang Research Institute
Hosting
Yang Guang Executive Editor of Chinese and Foreign Management Magazine
China has become a global manufacturing power, but it is not yet a manufacturing power. Just a "smile curve" will pressure many Chinese companies to stop breathing and smile. Moreover, with the successive introduction of various foreign management concepts over the past decade, the future direction of China's manufacturing industry has remained unresolved. At the same time, the elites of the global manufacturing industry have also entered China with a view to using China's unique manufacturing resources. However, the phenomenon of distorted or unsatisfied soils still occurs frequently.
Then, how can Chinese domestic manufacturing companies better understand the essence of global manufacturing excellence management thinking and its adaptability conditions? How to draw on people's strengths and make their own company so that China's manufacturing industry can find its way out for the future as soon as possible and achieve the necessary profits for sustainable development? How can foreign-funded manufacturing industries in different contexts, based on China's actual conditions, learn from their own operating experience that has been tempered for many years, so as to achieve sustainable global competitiveness?
To this end, on June 9th, Sino-foreign Management, together with the Peking University International MBA, Mid-Capital of Japan, and Ricci International Consulting Group, jointly organized the ''Manufacturing'' China - the essence of Global Management Excellence Forum'' and invited them to the 9th place. The U.S.-Japan tripartite manufacturing elite and more than 100 Chinese and foreign manufacturing enterprise managers gathered together to express their views. The fierce debates of the guests in the seminar made us deeply feel the impact of cultural differences and wisdom, and greatly expanded our horizons!
What is the way out of "Made in China"?
Sun Jian: R&D!
Chinese manufacturing industry must establish our strategy from the perspective of global markets and global resources. At present, one of the challenges of the local manufacturing industry is that our original advantages and the multinational companies that have entered China now also have our disadvantages. Then, how can our brand be upgraded to become an international brand, how can we raise the R&D weaknesses, and how can we increase the possibility of global resource utilization?
In the end, it still comes back to this word, which is to "innovate." If we want to win in the global market in the future, we must innovate the current business model and the status of the supply chain. Perhaps the biggest opportunity is not from manufacturing, but from product development. In the future, China's manufacturing companies must succeed in the market, and only through creative product breakthroughs.
Ying Wang: Brand!
The two basic features of economic globalization are the shift from developed to underdeveloped areas, and the shift from high-end value chains to low-end value chains - from imports to permit production, then to joint ventures, and then to joint research and development. In order to achieve true independent innovation, Chinese manufacturing companies must extend their own value chain and must grasp the brand. We must put ourselves on a global perspective and use cost advantages to accelerate value innovation and extend to the upper reaches of the value chain. China's manufacturing industry is truly moving towards China's creation. It is not just about the level of technology and capital. It is essentially a breakthrough in management and innovation in business philosophy.
Sasaki Yuan: Management! cash flow!
I think: Business and management must be separated. Business is a molecule and management is a denominator. Businesses need to constantly change with the changes in our external environment. Therefore, strategic and other factors belong to the business scope and must be constantly changed. To improve management, the first thing to do is to pursue the essence. The essence of management is that no essential changes will occur over time. That is the endless improvement of the process.
Business is something at the result level, and management is something at the process level. With the Chinese concept, business is masculine and management is yin. Yin Yang, so business is sent out from the management students. Here, yin and yang must be distinguished, but in no way is it a relationship of opposites, but a relationship of cyclical development. Therefore, management and management are also a cyclical state, complementing and improving each other. Business is in quantity, and management is expenditure. Involved in expenditure and expenditure is to constantly seek to increase inflows while controlling outflows. The result is an increase in cash flow. Therefore, improving management is actually an increase in cash flow and control of an outflow.
In the current global business philosophy, the concept of cash flow becomes more and more prominent, and the experience of Japanese companies is mainly on the continuous improvement of cash flow. The improvement of cash flow depends on the managers of the company.
However, the current situation of Chinese companies is: Business is constraining management and disrupting management. It can be said that the management layer of Chinese enterprises has deprived the management of middle-level managers! Therefore, I hope that the management of Chinese companies will be able to delegate more authority to managers, allowing them to think, act, and exert their talents. I think the business model is bred from the management model, so I hope Chinese managers can seriously consider: How to cultivate our own managers!
In the past few years, Sony of Japan has been very difficult. It is not so much a failure of strategic change as it is the failure to use the management technology flexibly. Its technology research and development is doing well, but there is a lack of research at the management technology level.
Yin Jiaxu: Comprehensive force!
China should cultivate its own managers. Only when the Chinese can build a strong China can we truly establish an international enterprise. I believe that Chinese companies should not be plagued by Western management thoughts and ideas. They should draw on their management wisdom and establish their own systems in the process of growth.
There are several issues that China's manufacturing industry needs to pay attention to in its next growth: First, there is a need for improving technology and development. Second, the focus on brand promotion is not just awareness, but more importantly reputation. Third, the establishment of independent innovation of industry technology, there is no free lunch in the world, the core technology, core competence training depends on their own. Fourth, establish its own business operation model and business management model to achieve management reform and process reengineering. Fifth, improve the level of professionalism and professionalism of employees, and further provide training for employees based on actual and development needs, and build a platform to bring talents to play and a cohesive corporate culture. Sixth, fulfill their social responsibilities.
What is the combination of Chinese and foreign manufacturing?
Riera: Based on trust, not contract
Many people think that there is a difference between Chinese and Western management models: the West is more of a contractual model, and China is more of a moral model. In fact, even when Caterpillar enters into contracts with hundreds of agents around the world, the contract is not the real foundation of our solid relationship. This means that only the things that are on the table do not become truly solid foundations. The basis for our strong relationship with local partners is: technology transfer, mutual trust, and mutual respect.
Historically, Caterpillar has dealt with the relationship between agents, whether it is establishing a supplier relationship, or is it with our users, we all follow a principle that I just mentioned: integrity, commitment, teamwork, Lean production and lean services.
Hua Jinsheng: To ensure the success of partners
The biggest key to Cummins' success in China is that we have quickly achieved localization. The scope of this localization is broad, including: our people, our management team, our products, and our comprehensive capabilities. In addition, during our 30 years of entry into China, we have always had a proven business model. This business model has two key projects: the first is to seek local strategic partners; the second is to achieve diversification in market management.
Cummins has always taken care to ensure that every effort is made to ensure the success of our local partners in the market. To this end, we follow a principle that is: We only work with local car manufacturers, not local competitors. Because this can quickly achieve mass production of the engine, the most effective reduction in engine production costs. At the same time, we can make full use of existing distribution service channels of joint venture partners.
For localization, for example, one of the key measures we have taken in cooperation with Dongfeng is: We recruited a director from a large state-owned enterprise in China, and then sent him to the United States for a year of training to learn Cummins' experience in production and manufacturing management. After he returned to China, we gave him full authority to allow him to recruit and form a management team. So in terms of management, Dongfeng Cummins has taken a lot of detours.
Yang Zhuang: Cognizing the Complexity of Chinese Culture
The Chinese people are looking forward to two management ideas: Chinese young people want an American-style performance appraisal, and rewards and punishments are immediate. However, U.S. companies may overlook the other aspect of the Chinese people. Even if China’s history is not afraid of being rich for thousands of years, it is afraid of inequality. From this point, the Chinese people actually look forward to Japan’s long-term employment, but they don’t say anything, but once the employees are expelled, the reaction is fierce. This is a question that countries in various countries need to seriously consider when entering China.
How to learn the essence of global management?
Sasakimoto: Do ​​not obsess over skills
There is a causal relationship between the problem and the solution. However, I have found that when Chinese companies conduct causality analysis, they often generate a lot of problematic critics, do databases, write reports... Take these technical things as their own work. When Chinese companies analyze and solve problems, it is easy to take this path. In other words, it is always hoped that problems can be solved by formulating regulations, systems, manuals, standards, etc. But if you don't change the operational level process, the problem cannot be solved fundamentally. (For related content, please refer to the "Management Road" in this issue)
Sun Jian: To realize the details
What we want to learn is not shape but its heritage. Why is it difficult for Chinese companies and even Japanese companies to really learn the Toyota thing? Because it is a religion, it does not mean that you can read the Bible and you become aware of religion. What is Toyota's TPS? What are we going to learn? It is not this process, not these concepts, not these regulations, but the idea behind it. TPS itself is an idea. It is a culture. To put it deeper, it is a belief. Therefore, everyone in our company must uphold the same belief: cash flow, zero inventory, and punctuality.
Wang Yubiao: We must look at the similarities and differences
Japanese companies are concerned with creating products and creating people, while American companies focus on customers. How can they increase value for customers? Japanese manufacturing companies pay more attention to the production process, while American manufacturing companies pay more attention to the architecture system. Japanese companies are more concerned with single products, and American companies are more focused on a wider range of overall products. However, we must realize that the Eastern and Western advanced management systems all have one thing in common: they are returning to the most basic "honesty" of people.
Yang Zhuang: Strategy and implementation are correct
The relationship between business and management is, in other words, the relationship between strategy and tactics. Business is not a simple operation. At present, in China, this shift from the original planned economy to the market economy and to the world suddenly has to face many important tasks. Therefore, a leader’s ability to grasp the overall situation is important in his vision and concepts. So I don't think of it as a simple operation but as a strategy. Based on the strategy, we must implement it. We want to learn Toyota, learn Cummins, and learn Caterpillar. This kind of exquisite operation skills.
It is impossible for a company to keep its foundation everlasting, without a sustained and eternal spirit. The common characteristics of Toyota, Cummins, and Caterpillar are that they all have their own core value systems, have their own strategies, and have every strategic deployment and implementation in development.
Yang Peixi: Synthesis is creation!
Comrade Yuan Baohua has repeatedly stressed: "I am the mainstay, draw on all the people, get through, and become a family." This is also the way to go for our company. Remember the words of Matsushita Kosuke: "Integration is creation."
Experts question the way out of Chinese manufacturing