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Equipment manufacturing industry is the basic industry for national economic development and national defense construction, and mechanical parts and components manufacturing is the foundation and core of equipment manufacturing industry. To vigorously revitalize equipment manufacturing industry, the revitalization and development of parts and components manufacturing industry must not be ignored.
The revitalization of parts and components manufacturing industry, on the one hand, should carry out technological innovation and improve the technical level. On the Other hand, it is necessary to strengthen risk control, standardize enterprise management, and continuously promote the development of parts and components manufacturing industry through the synergy of the two wheels of technology and management.
Parts companies face five major risks
Mechanical parts manufacturing companies are typical discrete manufacturing companies. Although its products may be in the core components in the host equipment, the technical requirements are high, but it is in the subordinate position in the market chain, is the supporting enterprise of the host, so the characteristics of its discrete manufacturing companies are more obvious, the risk in the market competition And the difficulties are even more pronounced.
The first is decision-making risk. Parts manufacturing companies face host companies rather than end users, so changes in market demand are filtered by the host companies, reflecting that parts and components companies tend to slow down, and the macroeconomic situation, raw material prices, and other changes have increased in recent years. Large, the parts and components companies have made market early warning, rapid response, efficient decision-making, and effective capture of business opportunities, bringing the challenges of whether decision-making mechanisms and market opportunities can adapt.
The second is marketing risk. Parts manufacturing companies often only produce certain host components (such as engines, gearboxes, bearings, etc.), so companies must have a large customer base for development, ranging from large multinational companies to individual users. Different customer objects will also result in diversification of product sales models. Some companies have both export sales and domestic sales; both order-based sales and warehouse-based sales; and zero-inventory sales and cash sales, sales of credit sales in coordination with OEMs. ,and many more. The diversification of customer objects and marketing models will inevitably require parts and components companies to have a very flexible marketing organization system. Whether they have such marketing capabilities to deal with the multitude of customer needs is an issue that parts and components companies must face.
The third is supply risk. The risk involved in the marketing of parts and components manufacturing companies is reflected in internal organizational production, resulting in a wide range of product supporting areas, wide variety coverage, and a large number of product models, as well as small-volume, multi-user and small-volume demand for individual users. The characteristics of varieties and inserting orders are frequent, which puts high demands on the production and organization methods of the parts and components companies. Whether scientific production can be organized scientifically and reasonably, and under the precondition of guaranteeing supply in a timely manner, it can effectively prevent inventory overstock. Will encounter problems.
The fourth is quality risk. All products of component manufacturing companies are intermediate products, which are all supported by OEMs. The dominant position of OEMs in the Chinese market has resulted in the weaknesses of supporting component companies, and the relative barriers to entry for component companies are relatively high. Low competition among parts and components companies has intensified, and the host plants have also introduced more stringent policies. To survive in the gap between competitions and to impose higher requirements on the product quality and service of parts and components companies, whether it can provide high quality products and services to the market is the key to the survival of the company.
The fifth is benefit risk. In recent years, due to rising raw material prices, declining prices of mainframe companies and competition among their peers, resulting in continuous declines in product prices, rising labor costs, and other three-fold squeezes, the gross profit margin of mechanical parts manufacturing companies has continued to decline, resulting in more profit margins. The narrower it is, whether it can fully tap potentials and reduce costs under the premise of guaranteeing quality will become an important channel for enterprises to obtain economic benefits.
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Risk control needs to start from the value chain
For the difficulties and risks of parts manufacturing companies, how can management effectively avoid risks? After analysis and comparison, the author believes that taking the value chain as the starting point, not only can the problems and risks be ranked in order, and the risks can be clarified. Second, seize the key links of risk, and it is easy to establish a risk control system in a targeted manner, which is very suitable for discrete mechanical parts manufacturing enterprises.
The concept of "value chain" was proposed by Professor Michael Porter of Harvard Business School in 1985. Porter believes that the value creation of enterprises is constituted by a series of activities that can be divided into basic activities and auxiliary activities. The basic activities include internal logistics, production operations, external logistics, marketing and sales, services, etc.; Activities include procurement, technology development, human resources management and corporate infrastructure. These different but interconnected production and business activities constitute a dynamic process that creates value, the value chain.
According to the risk characteristics of machinery parts manufacturing enterprises, the enterprise risk control system constructed according to the value chain theory mainly includes:
In the pioneering activities of corporate operations, the institutional risks should be regulated. The governance structure and the internal organizational structure and decision-making mechanisms should be standardized; the responsibilities and rights of all levels, departments, and organizations within the company should be clearly defined and used to solidify the system. Aiming at strategic risks, a dedicated agency should be set up to study macroeconomic policies, market trends, development characteristics of host companies, and regularly study reports; and form a strategic plan that combines a five-year strategic plan, a three-year rolling development plan, an annual implementation plan, and a key task statement. Correction system. For investment risks, investment projects must undergo rigorous project feasibility analysis and project plan review; a strict follow-up system is implemented for the project.
In the basic business activities of the company, it is necessary to set up sales companies and establish an effective marketing network by dividing products and regions according to market risk; adopting different sales models and marketing policies for different products and customers; establishing market information networks and information collection, Feedback, acceptance mechanism; establish customer files and competitor files, analyze regularly. In order to fulfill the risk of contract implementation, the contract management department and personnel shall be established to improve the contract management system and system; establish general contract record and major contract review system, control contract loopholes; establish contract performance tracking and receivables monitoring system, receivables collection Implementing the sales company, finance department, and legal department gradually upgrade the responsibility system. In view of the risk of inventory overstocking, plan accuracy control should be strengthened, and a plan mode in which the rolling stock plan and product production plan should be linked; an ERP system should be established to monitor the production logistics in real time; a warning line should be set up for stocks and materials, and the computer system should automatically alarm program. In view of product manufacturing risks, a comprehensive quality management system should be established and the quality management system must be rigorously evaluated; customers in the simulation market should be evaluated and evaluated for quality before leaving the factory; new products must be subjected to computer-aided calculations and tests before they can be put on the market.
In supporting activities for enterprises, a price-based procurement system should be established for the purchase of supporting risks, and bulk materials should be subject to tender procurement; a long-term strategic partnership with suppliers should be established; a supplier file and supplier rating system should be established; Management, joint quality claims and three-package service system for supporting suppliers. Establish a comprehensive internal control system and a comprehensive budget management system for financial risks; increase internal auditing efforts and discover financial risks in a timely manner. In response to product development risks, it is necessary to improve the treatment of scientific and technical personnel and skilled workers, establish incentive mechanisms for product development, conduct regular technical exchanges with scientific research institutes, obtain the latest scientific research information, and regularly carry out new product promotion activities. In response to personnel management risks, a strict selection of open and mid-level management personnel and a recruitment system based on procedures are adopted; a graded authorization system and a full-person performance evaluation system are established; performance is linked to income; culture is fostered, education and infiltration of corporate culture are emphasized, and employees are concerned , Give the staff the opportunity to display their talents and express opinions.
Of course, in addition to the construction of the aforementioned systems and measures, in order to truly achieve the effectiveness of risk control, we must also pay attention to and grasp the following three links:
The organizational security link is a fundamental guarantee for the effectiveness of comprehensive risk control. Its main measures include the establishment of specialized agencies (such as the establishment of risk control committees, investment review teams, internal audit department, etc.) and the implementation of a full-scale risk control responsibility decomposition.
Comprehensive budget management, which is a prerequisite for comprehensive risk control can achieve results. Without a full budget, without prior planning for business costs and capital, production and sales, inputs and outputs, risk control cannot be truly implemented.
Informatization-assisted management links, which are important auxiliary measures for comprehensive risk control to achieve results, have a multiplier effect on the overall risk control of parts manufacturing companies.
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