The corporation has implemented more than 700 projects with a financial income at over 100 million yuan ($15.88 million) since 2009 when CI was first carried out. Officials at the kick-off meeting of the 2012 World-class Manufacturing / Continuous Improvement (WCM / CI) announced the results.
Haohua Group has 31 wholly owned companies and holding subsidiaries throughout the nation.
It began implementation of CI in January 2009. In the past three years, it launched the Lean Six Sigma project and operational improvements to reduce losses and increase profits.
Among the first batch of pilot units, Haohua Yuhang Chemical Co Ltd focused on technical and practical issues to ensure stable production.
Since 2009, the company has conducted 13 projects and generated more than 10 million yuan($1.59 million) of economic benefits. Two projects had been rated as Outstanding Projects of the years 2010, 2011 respectively, according to the China Association for Quality
Haohua Honghe Chemical Co Ltd commissioned McKinsey Company to conduct research on ”5S Methodology” (sorting, straightening, systematic cleaning, standardizing, and sustaining), as well as TPM (total productive maintenance), to identify its weaknesses and make improvements.
Based on eight suggestions by McKinsey Company, Haohua Honghe made 163 improvements. Through its leveraging of the Lean Six Sigma, Lean Manufacturing and Visual Managements, it has enhanced management and profitability levels.
By 2011, 117 projects were completed with secured benefits amounting to over 74 million yuan ($11.74 million). The company has transformed itself from racking up huge losses to earn big profits.