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Weichai Power Creates A Century Enterprise the leading enterprise in equipment manufacturing industry of China, Weichai Power adheres to operation strategy of product and capital all along, and enhances the core competitiveness continuously. Therefore, it built up a new coordination layout of powertrain, vehicle and machine, hydraulic control, automotive electronics and components, forming the most complete and competitive industry chain in the domestic auto industry.

In May 21st, in the “Get to Know your Stockholders & Go into Listed Company” of “Fulfill Chinese Dream & Build Upgraded Multilevel Markets” held in Shenzhen Stock Exchange, almost 50 investors entered Weichai Power, visiting the malleablizing plant, No.1 plant and Science & Technology Exhibition Center, and communicated with executives, getting to know plan and strategy of Weichai and gaining a chance to observe how Weichai creates a century enterprise.

“According to the plan, domestic, international and after-sale business would keep breast of each other, with respective target of a third.” Dai Lixin, president secretary of Weichai Power said in the conversation with investors. In addition, he focused on after-sale business and overseas market exploitation. He said that by positively resource integration and innovative commercial mode, both the business develop rapidly. In 2013, taking the opportunity of carrying out “the year of lean”, the company would proceed vigorously lean management of R&D—manufacturing—selling, accelerate product structure adjustment and enhance its anti-risk capability. Simultaneously, it would develop after-sale market and overseas market, enhance the transition from investment business to collaborative consumption development.

Lean manufacturing to lean management

In May of 2011, Weichai Power hired management expertise to build a professional management team and establish a lean office. With the top-down approach as well as all members involved, lean and timely manufacturing, state-of-the-art manufacturing methods including board management and auto manufacturing were introduced and spread.

With lean manufacturing, the most outstanding changes of Weichai Power are on-site 5S management, visualization of corporate standard and work standardization. Frontline workers said that on-site inventory, unqualified products and labor intensity were less. And multi-skill, lean improvements and working efficiency were improved a lot.

To realize its transition from lean manufacturing to lean management, the company set 2013 as “the lean year of WOS”. Starting from manufacturing site, management office is introduced to manage lean manufacturing project, building corporate lean manufacturing management system and making the organization chart of lean management clear. Therefore, transition from “lean manufacturing form” to “lean management normal system” can be realized.

Budding after-sale business

Dai Lixin said “Sales volume of our engines keeps being the top of the world for consecutive six years. Our market volume has come to nearly 3 million at a growth rate of over 30,000 per year, which brings huge space for engine after-sale business.”

In overseas market, Weichai Power also developed its after-sale business. Kion company provides various kinds of service to customers, including after-sale service, forklift renting and used forklift trades. More than 40% of Kion’s annual sales revenue comes from service. Linde Hydraulics established vertical spans over global sales and service network covering almost all the customers. What’s more, it had its own business in service, system and finance, which could all provide customer-oriented solutions to customers and establish a long-term cooperation based on all value chains.

At present, the present after-sale business of Weichai Power has included spare parts, specialized fuel, service, remanufacturing and logistics with almost 5,000 maintenance stations. It also advocated innovative 5P service project, exclusive service, parts, fuel, equipments and remanufacturing. By strong service to meet customers’ one-stop and package demanding, Weichai Power provided more value-added service and differentiate service.

Further extension to overseas market

Some related principal of Weichai Power said “Our international goal is to become a leading equipment manufacturer around the world with international manufacturing, elites and R&D.” In recent years, the company not only has deploited overseas market but also extended itself all over the world by merging and reorganization.

In September 3rd of 2012, Weichai Power and Kion, the leading enterprise of industrial forklift manufacturing and hydraulic technology, signed strategic partnership agreement, completing delivery in December 27th of 2012. By now, Weichai Power has made a significant step toward its global strategic layout. By this trade, Weichai Power entered the leading forklift and high-end hydraulic fields, which would help to break monopolistic situation by foreign companies in global hydraulic field and change the status quo of long-term dependence on importing high-end hydraulic products in China.

The following years will be the key to Weichai international layout and development. Weichai will accelerate its development of overseas business, gradually making vehicle as its direction and becoming international enterprise with powertrain core technology. It will endeavor to be the important part with its characteristic in global equipment manufacturing, laying a stable basis for being one of the Top 500 of the world in the future.


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