The Strategic Consideration of China's Foundry Industry under the New Situation
The Strategic Consideration of China's Foundry Industry under the New Situation
Miao Liang (China Foundry Association)
1, The Chinese foundry industry is facing a new situation
1.1 The economy has entered a new round of growth
The world economy has been stable in recent years. China’s economy has been growing at a rate of 7% for two consecutive years. All aspects have shown a good development. On April 17, 2003, the National Bureau of Statistics announced at the press conference on the operation of the national economy in the first quarter that the gross domestic product in the first quarter reached 23562 million yuan, an increase of 9.9% year-on-year, 2.3% more than last year, and it was the same period since 1997. The fastest growing. China is entering a new period of economic growth and the foundry industry has a relatively rapid development.
1.2 Casting output ranks first in the world, and castings exports increase
In the international foundry market, except for China and Germany, the production of castings has continued to increase in recent years. For the comparison of the total casting output between the United States and China in 1996, see Table 1
Table 1. Total Casting Production in China and the United States, 1996-2001 (10,000 tons)
In the United States, since 1999, casting production has declined at an average rate of 6.9% in 2 years, from 13.7 million tons to 11.9 million tons, while China has increased at an average rate of 8.4% to reach 14.9 million tons in 2001, surpassing some developed countries. Total casting output.
Based on per capita consumption of castings, China is about 10kg/person, and developed countries are 45~50kg/person. Therefore, as far as domestic demand is concerned, there is still great room for development in China's foundry production.
The scale of export of castings from developing countries to developed countries will expand in the next 5 to 10 years. The foundry industry in developed countries has been overwhelmingly alarmed. However, the market competition will become increasingly fierce. Moreover, the oversupply situation in the international casting market may not change in the foreseeable future. At present, our main competitors are Brazil, Mexico, and India. The only advantage we have is price. However, in an environment where the Chinese economy continues to develop and people’s income continues to increase, the advantages of prices will gradually be lost. Therefore, if Chinese entrepreneurs do not respond quickly to adjustments and improvements in business concepts and management, the great opportunities in the export market will not be fully utilized.
1.3 Product Situation: Lightweight Heavy Duty, Faster Update
The products referred to here are all mechanical, electrical, civil, architectural, and other products that use castings as their key components. The study of the situation of such products - mainly the development trend, must arouse the great attention of our foundry workers. Because of the rapid development of high technology and the globalization of the market, people are increasingly critical about their products, the cycle of product replacement is getting shorter and shorter, and the requirements for parts and components are getting higher and higher. Of course, follow. Take the automobile as an example: In order to reduce its own weight and enhance its own performance, the engine speed is increased from 2000 to 3000r/min to 4000 to 5000r/min, and the heavy metal is changed to light metal as far as possible. The rotational speed of metal processing machines has increased from 1000 to 3000 r/min to more than 10,000 r/min. Therefore, higher demands are placed on castings, and many examples can be cited. If the foundry worker does not understand the trends and requirements of the products he serves, he will lose the direction of the development of the company. This issue is very important and is a new topic under the new situation. It is recommended that foundry workers seriously consider and ponder.
The overall trend of product development is "more performance, greater power, lower energy consumption, lighter weight, smaller size, easier operation, faster update, and better appearance."
1.4 Characteristics of the New Situation: Fast, Innovative, Service, and Environmental Protection
To sum it up, there are the following points:
Quick All fast-paced development: rapid technological development, rapid information transfer, fast production pace, fast-paced life, and faster product replacement;
Innovation Innovation becomes the first element of competition;
Services Services have been promoted to the top position in terms of the quality of goods that have generally met high standards: pre-sale services, after-sales services. The purpose of the service is to attract customers. The quality of service is seen as part of the quality of the product;
Efficient is a prerequisite for "fast." Have high efficiency, only have "fast";
Globalization Market globalization is a prominent feature of all globalization, considering that all issues must start from a global perspective;
Environmental Regulations Strictly All human beings have begun to care about "returning to me". Casting pollution is the brunt of the problem.
2, Problems faced by the foundry industry in the new situation
2.1 Thoughts to keep up with the situation
Foundry innovation, people's ideas must first be reformed. Concepts stand in the forefront of the world and casting leaders have the hope. So what ideas should be reformed? The following are the main seven:
Strategic - to be far-sighted, investigate and research, analyze the development of the situation, formulate strategic plans, and adjust strategies according to changes in the situation, so that they are always at the forefront of development and invincible ;
Quality -The scope of quality extends beyond castings;
Competition - The core is not price but innovation;
Reputation - Contains two major components: Casting Quality Reputation and Corporate Behavior Reputation. The establishment of a good reputation depends on long-term accumulation of hardships, but it can be ruined by a slight oversight. Restoring credibility is harder than building;
Products - Most of the castings are for products, and the development of the product is about the fate of the company;
Services - domestic producers of castings rarely speak for buyers, and this gap must be quickly filled;
Efficiency - efficiency is efficiency, profit. Efficiency is a necessary condition for achieving "fast" and competitive advantage.
2.2 The concept of enterprise management to be updated
From a historical point of view, management has gone through three stages: the first stage, people-oriented workshop-style experience management, which is the main mode of the agricultural economy era. In the second phase, machine-based quota management, which is the main mode of scientific management in the era of industrial economy, is a model in which man is subordinate to the machine and becomes the slave of the machine. In the third phase, the humanities and management of both human and logistics are the main modes of the current era of knowledge economy.
In the past more than 20 years, the world's enterprise management has made groundbreaking progress. It has not only developed into a science, but also has become a special technology combining science and art. The concept of modern enterprise management has not only been deepened and perfected within the enterprise, but has also been extended to the front and the back of the company's business. The purpose is to improve the economic efficiency of the company. The current management level of China's foundry companies is mostly in the first stage, or the first stage of improvement, while the minor part belongs to the second stage. Into the third stage, has not yet reached full. Therefore, although management has received the attention of people in the industry, it is still slow to increase, and it is still a major problem in the foundry industry.
2.3 Environmental protection and labor protection should be strengthened
In the process of industrialization, when industrial development reaches a stage of prosperity, the contradiction between environmental protection and labor protection is outstanding. This is an inevitable law of social development. China has entered this stage. These two protections, on the face of it, are investments that do not receive direct revenue, but also require a considerable maintenance cost. Therefore, long-term neglect is a weak link. However, these two issues are related to the long-term life and health of the people and social stability. They cannot be ignored. The nature of casting production determines that these two protections are part of the investment in foundry production, and casting companies have no right to disregard them.
2.4 Personnel quality should be improved
Since entering the era of knowledge economy, China's casting life field has exposed various new issues, such as concepts, management, operations, costs, and efficiency, all pointing to a new issue - The quality of employees. There are a large number of foundries that have world-class technology and equipment, but several of them have fully reached the world production level. In this case, we want to improve the quality of personnel from casting a big country to casting a strong country. The quality of personnel includes three major contents: ideological quality, knowledge quality and ability quality.
3, Build China into a Founding Powerhouse
How to build China into a founding power? It is our test of strategic awareness. Strategic awareness is the recognition of the importance of the logical research, analysis, and decision making of the near-term and long-term development prospects. The right or wrong strategic decision has a decisive influence on the success or failure of the company in the coming period. Well-known companies at home and abroad have made serious consequences because of strategic decision-making mistakes. Strategic decision-making involves a wide range of fields and requires high analytical capabilities. It requires arduous investigation and reflection. However, in modern society, the pursuit of survival and development by enterprises is a major issue that cannot be ignored. After China's accession to the WTO, foreign entrepreneurs have come to China to do a large increase in their operations. They all come with clear strategic goals. If we continue to blindly upset us, we will have unbeaten reasons.
After the strategic decision is made, the tactical measures must be followed immediately. The measures must be specific, practical, and responsible.
In the next 5-10 years, from a strategic point of view, it is recommended that the foundry industry focus on the following things.
3.1 Technical Transformation
Many senior leaders of the factory have already noticed this issue and have started to work on it. This is a gratifying phenomenon. Unfortunately, most of the factories did not follow the scientific methods and steps in the concrete measures for technological transformation. As a result, the money spent a lot but they did not receive the desired results. The biggest problem is that the market does not investigate and study clearly, and boldly decides on technological transformation programs. The market here refers not to the market for castings, but to the product markets that use castings, and not only to the current sales status of those products in the market, but also their future development trends and their development dynamics. All affect the direction and future of the development of the foundry industry. For example, the advent of digital cameras has seriously affected the film industry; automotive engines have used EFI technology; carburetor plants are looking to close their doors; in the future, if there is a problem with oil and environmental protection, cars will use other energy sources, then a large number of internal combustion engine plants Have to change course. Therefore, if you do not investigate the development trend of research products, it is very likely to attract large losses and passive situation.
Technological transformation is a major event for companies. Casting companies have thin profits and it is not easy to raise funds for technological transformation. Be sure to reduce the blindness of spending money. A reasonable way to carry out technological transformation should be to entrust a formal factory design unit to propose planning plans, feasibility analysis, design plans and construction drawings together with the company in accordance with the company's strategic decisions. Then follow the design documents, purchase equipment and construction.
The primary purpose of technological transformation is not production but quality and efficiency.
3.2 Quality of raw and auxiliary materials
China's foundry workers have spent more than half a century since the founding of the People's Republic of China and have suffered from the poor quality of raw and auxiliary materials. The most typical example is the use of metallurgical coke in the cupola in the molten iron above 1500 °C, to spend a lot of human and financial resources to move the cupola structure of the brain, but did not think of ways to produce casting coke. Until today, the foundry also seriously affected the stability of the casting quality because of the inferior quality and quality of the cast material. This phenomenon can no longer be continued. The solution can be to formulate a set of relatively complete specification of raw and auxiliary materials quality, which not only serves as the quality target of the material production plant, but also can serve as an important basis for the purchase acceptance of the casting factory. The specification should focus on the chemical or mineral composition of the material, on the physical or chemical properties, list the upper and lower limits of tolerance, and allow maximum limits for the presence of impurities.
In terms of casting materials, the country has already had a number of standards, but it is still not wide enough, and some of the contents do not seem to be fine enough. It can be further supplemented on the basis of existing national standards. If there is no national standard, it will be edited. After a period of production tests and amendments, it officially became the norm of the foundry industry. Some of them, such as national approval, can be accepted as national standards.
3.3 Adopt new technology
Light Alloys - This is a new material that countries are competing to develop under the trend of high strength, light weight, easy processing, and good cost performance. The current popular material is magnesium alloys, but other than the United States, other countries have not reached the stage of extensive commercial applications. The United States has recently developed new lithium alloy light materials, and China should also catch up; commercial applications of composite materials; Commercial application research of light alloy extrusion casting process; promotion and application of computer technology in foundry production; high efficiency (>92%) low cost cupola dust removal device.
3.4 Education and Training for Personnel
"Ten years of trees, a hundred years of people", improving the quality of personnel is China's fundamental factor for becoming a founding power, and it is not something that can be accomplished in the short term. At present, the university has canceled the casting profession. Therefore, to improve the quality of personnel, only the foundry industry can solve it by itself, that is, education and training.
The content of education and training should be comprehensive, including ideas and morality, not just technology and culture.
One of the important tasks of education and training is to help students change old concepts and establish new concepts. For example, the importance of casting in the national economy and the difficulty of its technology; new concepts of competition and quality. Training should also pay attention to the students' ability to analyze and solve problems. On-the-job training is a practical and effective way. The training can be divided into three levels: national, local, and factory-owned. The China Foundry Association Education and Training Committee has cooperated with Tsinghua University. Over the past few years, it has organized many national training courses at various levels. It has been welcomed and valued by some domestic foundries. Since 1994, it has trained more than 4,000 talents of various types. people. Students returning to the factory have emerged a large number of advanced scientists who are willing to study, work hard, and have strong ideas and skills, and become the backbone of enterprise technology management. Facts have proved that such training is effective for improving the quality of personnel. In addition to this national training, local and factories should expand their own scale to meet the needs of production development.
From "Casting Technology"