The Honghe Chemical Co, Ltd held a cadre training meeting on WCM/CI, on Jan 20, with Xie Xuerui, Honghe’s chairman and general manager present to describe the WCM/CI work this year in detail.
The WCM/CI work this year will cover four areas. The first involves overall budget management (TBM) deployment, a McKinsey diagnostic report, cost management, and dealing with some typical problems. The TBM will be introduced to help each unit meet its profit goal, with group discussions to be held each month to see how far they have gotten and to establish the next month’s goal. Also, a team of leaders for work improvement will be set up, based on a McKinsey diagnosis. Each improvement will be connected to a specific leader and department, and carried out by a specified unit. Cadres at all levels will be responsible for certain projects, and each team will have a yellow belt project, to help with cadre and worker assessments.
The first area will deal with getting rid of bottlenecks in the production process, boosting output, improving quality, and reducing consumption, with less or even no input.
The second involves the implementation of the WCM/CI core management indicator system. The objectives and related units for 2012 will be defined thorough a detailed analysis of eight financial indexes and 57 operational indexes. Each aspect of the work is to be assessed in strict accordance with 65 continued improvement indexes.
The third area is an implementation of the WCM/CI’s three best practices and six tools. The company will further assess its economic added value (EVA), improve income, cut manufacturing costs, and improve capital efficiency. Depending on the management level and implementation abilities, it will strive for excellence at all stages.
In the fourth area, there will be greater enforcement of the five principles of lean production, against the eight forms of waste. The company will continue to work for frugality, and cut costs across a range of things. Cadres at all levels are expected to motivate every worker enthusiastically, take every worker’s ideas about continued improvement seriously, and make certain that annual goals are met.