China National Heavy Duty Truck Group reform and innovation

In the first half year of 2008, costs of energy and raw materials increased dramatically which nibbled away profits of many enterprises. However, as a leading domestic truck maker, China National Heavy Duty Truck Group has achieved a synchronous increase in sales volume and profits. There are 3 factors leaded to their success.

Production according to orders
China National Heavy Duty Truck group takes the lead to change its policy of “production according to plan” into “production according to order”. Mr. Ma Chunji Chairman of Sinotruk says “In the past, we sale produced trucks while now we produce trucks that have been sold.” The change of their production signifies a change from “Production oriented” strategy to “Customer oriented” strategy.

Cost savings
“Reducing cost is like squeezing water from a towel “. Ma Chunji said. The key to reduce cost is to implement a scientific responsibility system. According to this way, China National Heavy Duty Truck group divides cost goal and assigns to each assembly and even the industrial chain of each session, and links it to staff evaluation. Thus a vigorous cost saving activities was started in China National Heavy Duty Truck Group.

One line system
In ordinary people’s opinion, a production line assembling so many truck models, producing so many types of parts and components, must be a mess. However, in China heavy truck assembly plant, the spare parts are not as many as imagined but they are well placed.

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