On July 11, 2000, Zhongxiang Jinyang Automobile Half Shaft Co., Ltd., which has been established for 7 years, ushered in a turning point in its development: the company's former manager Dai Zixiang bought out all net assets at a price of 300,000 yuan, and Jinyang has since "withdrawn from the public to the private", realized the private ownership, and changed from "public" to "private". "Identity" has changed, what is the current situation of its production and operation?

On September 22, the author came to Jinyang Company, which had just been transformed with the engineers of Hunan Automobile Axle Factory. Since the purpose of this trip is to carry out product quality certification, it is related to the overall situation, and Hunan Axle Factory did not notify in advance. After walking around, facing the glittering electric telescopic door, smooth and clean cement avenue, renovated office building, orderly production workshop, tense and busy production line and garden-like factory area, the engineers of Hunan Axle Factory praised: I didn't expect a private company to have such a level!

It is really not easy to interview the new owner of the company, Dai Zixiang. The author chased from the office to the workshop, from the workshop to the inspection room, turned around for a long time, and finally found him in the raw material warehouse, a trolley, a pair of greasy black gloves, sweaty ... It turned out that due to the tight production tasks, the production workers could not be busy for a while, and Dai Zixiang was leading the logistics staff to transport bar materials to the workshop.

Talking about the changes after the restructuring, Dai Zixiang accurately summarized that "the vitality of enterprise development comes from the change of the management system". He told the author: After Jinyang "turned to the people", it was full of vitality. In the past, Jinyang was known for its strict management, but after the restructuring, it still made a fuss about tapping potential internally, relying on strong political and ideological work to enhance cohesion and centripetal force, and its development prospects were promising. Indeed, walking into Jinyang, there is a rigorous and pragmatic work style from top to bottom, and a highly tense and busy atmosphere can be felt everywhere at all times.

Dai Zixiang believes that the focus of the current competition of industrial products is the competition of quality and price, and only high-quality and inexpensive products can become "evergreen" in the market. After the restructuring, while steadily improving the quality, Jinyang concentrated on digging potential and reducing consumption, combined internal and external, and implemented two major reforms: First, the internal management was "dead", combined with several years of practice, the "Jinyang Half-shaft Company Post Material Consumption Management Implementation Rules" were introduced, which made detailed provisions on the management of consumable materials such as knives and oil required by 27 processes and 43 sets of equipment every month, and 13 processes even used oil to one decimal place, truly stuck in the "dead end" of "running and dripping"; The second is to engage in external "activity." Reform the procurement system of tools and materials purchased from abroad, and "compare prices and choose the best". Raw materials are purchased by the manager personally, and other materials are purchased directly by the manufacturer, reducing intermediate links and reducing production costs. In the third quarter of this year, the company's production cost per automobile half-shaft was reduced by 4.5 yuan compared with the second quarter, saving 187,000 yuan in seven or eight months.

Production costs are reduced, and market sales prices are correspondingly reduced. The company took this as an opportunity to increase market development. On the one hand, in the retail of products, we should seize the opportunity of the state's large-scale development of the western region and seize the western region. Since August, the company has developed 18 new agents in Guizhou, Guangxi, Yunnan, Chongqing, Shaanxi and other provinces and cities, with a year-on-year increase of 32.5%; On the other hand, it actively seeks new supporting businesses. After reaching a supporting relationship with Xiantao Yongda Machinery Company, Jinyang Company signed a formal supporting contract with Suizhou Axle Factory, and has entered the supply stage, and has reached an agreement of intent with Daewoo forklift to produce half shafts. So far, Jinyang supporting enterprises have grown to 8, and the annual supporting capacity has exceeded 110,000. In mid-September, Jinyang ushered in the second peak production period since the establishment of the factory, and the daily output increased to 450 pieces, which still could not meet the market demand. Dai Zixiang told the author that Jinyang Company only has a production line designed to produce 50,000 pieces per year, and due to reasonable scheduling and scientific arrangement, it has actually played the production capacity of three lines, which was not available before the restructuring.

In the forging workshop, the large slogan of "enterprise management revitalization, efficiency created by employees" is particularly eye-catching, which is the true portrayal of Jinyang's wholehearted reliance on employees to run enterprises. After retiring from the public to the private, Dai Zixiang has done more deeply and meticulously in this regard, so as to enhance the cohesion and centripetal force of the enterprise. He advocated that "everyone should do their job as their own business". Under the guidance of this spirit, Jinyang has created a capable and efficient workforce. Since September 15 this year, due to the great increase in production tasks, all employees of the company have taken the initiative to give up monthly rest and invest in intense production, with an average daily overtime time of more than 3 hours, and no one complained. Xiong Hailong, an employee of the processing workshop, said in his heart: Although the working hours are long and the tasks are heavy, he is in a good mood and still does not feel tired after working overtime.

Because, the company starts from the interests of employees, steadily increases employee income, can get piecework wages at work, has 10 yuan of living expenses every day during holidays, and pays on time every month, and never defaults. It is understood that as of September, the per capita income of employees of Jinyang Company increased by 18.8% year-on-year, and 60% of employees purchased motorcycles.

Dai Zixiang told the author: After the conversion of the public to the people, the internal and external environment of Jinyang's development has been further optimized, and various relevant functional departments have been "green light" all the way and vigorously supported. Due to the complete separation from the embrace of the government, independent decision-making, self-responsibility for profits and losses, the power of enterprises is fully guaranteed, and the vitality brought by the reform of the management system is truly reflected. Since the beginning of this year, Jinyang's output, income, profits and taxes and other indicators have increased by 17.5%, 22.3% and 16.1% respectively year-on-year. Jinyang is developing healthily and steadily under the guidance of the new mechanism.

Originally published in China Automotive News, October 18, 2000