Chapter 238: Lessons for you

"Are you worried that the manufacturing cost of the whole vehicle will rise greatly?" Chen Geng smiled: "You can rest assured, we have made a detailed calculation for this point, compared to your original idea, in fact, the cost of the vehicle has decreased." ”

"This can't be," as soon as Chen Geng's words came out, Professor Feng of Xi'an Jiaotong University immediately questioned: "Mr. Chen, I read the data you gave, this car, both in terms of body size and vehicle mass, is larger than the Fiat 126P, and there are two more doors, it stands to reason that the cost should have increased significantly." ”

The other members of the delegation nodded their heads and thought the same.

Everyone's reaction was not unexpected by Chen Geng, he nodded: "Forgive my question for being a bit direct: gentlemen, do you know all the cost factors of a factory?"

In other words, I Chen Geng thinks that you don't know all the production cost factors of a factory.

This is simply insulting!

Even Professor Song Jingying of the Department of Automotive Engineering of Huaqing University, Professor Feng of Xi'an Jiaotong University, and Professor Zhao of Harbin Institute of Technology also have experience working in factories.

Professor Zhao's temper was the hottest, and he couldn't help it first: "The cost of a factory is nothing more than the wages of workers, raw materials, and water and electricity bills.

Although no one nodded, the other members of the delegation all agreed with each other in their eyes: Yes, isn't the cost of a factory just the wages of workers, utilities, and raw materials? That is, now that the reform and opening up has begun, we have to talk about the cost, otherwise we can do without any cost in the past, and we are not afraid of the factory operating at a loss. They did not think that the reason why the country wanted to carry out reform and opening up was because the previous economic policy made the central government almost unable to afford it, so it had to carry out reform and opening up.

Chen Geng was a little disappointed.

These people in front of them are already part of the most elite group in China, but their cognition of the cost factors of a factory is still in this "primitive social stage"?

Although I know that the reason for this kind of cognition is that the planned economic system that has been implemented since the founding of the People's Republic of China makes everyone very insensitive to the cost composition of a factory, and even whether the daily operation of a project is losing money and whether it will go bankrupt for a long time cannot follow the basic economic laws, and there is not even a person who can be called an economic expert present, but their understanding of the economy is so shallow that Chen Geng is still very disappointed.

Couldn't help but shake his head, Chen Geng said with a disappointed face: "Do you really think that these are the only factors that make up the cost of a factory?"

Isn't it?

Chen Geng's words made everyone couldn't help but look at each other.

It was still Professor Zhao, who had the hottest temper, and he stiffened his neck: "I want to ask Mr. Chen, what are the costs of a factory?"

With the intention of teaching the local class, Chen Geng was not polite: "In this case, I will briefly say, for example, if the cooperation between our Fernandez company and the Jialing factory can be reached, then from the moment the contract is signed, the cost of the factory will be: site leveling, plant construction, procurement and depreciation of production equipment; Procurement costs and inventory costs......"

Briefly talking about the cost structure of a factory, Chen Geng is still a little unsatisfied: "Even the waiting process in the production process will cause an increase in production costs, of course, these are only the most superficial descriptions, more and more refined cost components There are many factors, such as extensive inventory management will also cause an increase in costs......

Listening to Chen Geng's words like a few family treasures, these dazzling, unimagined but solid costs, everyone was dumbfounded, and some people were sweating profusely: When a factory is in operation, there are so many cost components? !

Some of these costs they have already thought of, some have not thought of them, some have vague feelings but do not know how to bid for the document, and some are directly unaware of them at all...... No wonder Mr. Chen Geng's business can be so big and make so much money at such a young age!

But some people are not convinced.

Although what you said is also true, but being taught a lesson by such a young man pointing his nose, he is a little uncomfortable after all, such as Professor Zhao, he stubbornly said: "Mr. Chen, please forgive me for not agreeing with what you said, extensive inventory management will cause an increase in costs, this is normal, but how can the contemporary in the production process cause an increase in costs? I think this is unreasonable?"

"This cost is very hidden, but it is solid," Chen Geng was not angry, and explained to Professor Zhao and the members of the delegation present: "Let's think about it, if the switching between different varieties on the production line is not sufficiently prepared, it will inevitably cause a waste of waiting," seeing that they seemed to be unable to understand, he simply explained: " Well, if nothing else, although your production line is not running, you can't stop the power of the production line all day, and the whole or part of the production line is in standby, and you will also incur electricity bills, right?"

“......”

Nodding speechlessly, thinking about it carefully, this cost really really exists.

"Also, if the daily workload changes too much, sometimes it is very busy, sometimes it causes personnel and equipment to be idle, or there is a problem in the upstream process, resulting in the downstream process having nothing to do, and the production line is uneven, the original ideal state can produce 100 products a day, but now it can only produce 95 or even 90 pieces, which is all a waste caused by waiting, but this waste is hidden deep and is not easy to be noticed......"

“......”

Continue to be speechless, it's so amazing, why didn't we think of these real costs?

Even Professor Zhao opened his mouth, but he was speechless: what can he deal with, can he, a professor in a university, know more about the cost structure of a factory than Chen Geng, a boss with a value of tens of millions?

Chen Geng didn't mean to be unforgiving, and then said: "Continuing to the topic we just had, why did I just say that although this car is much larger than the Fiat 126P, it has two more doors, its weight is larger than that of the Fiat 126P, and the steel plate is more than the Fiat 126P, but the overall cost will be reduced? I believe that this is exactly what everyone is wondering about, right?"

"Yes, yes, that's it. Hearing Chen Geng's words, everyone hurriedly nodded.

That's right, what the Jialing factory wants is a miniature family car with your engine and gearbox in the shell of the Fiat 126P, but it is not such a newly developed family sedan that is a big circle larger than the Fiat 126P and has four doors...... 180 kg, right?

The extra 180 kilograms, not to mention the processing cost required, even if you sell scrap iron, you can sell it for a lot of money, not to mention that you are purchasing brand-new high-grade steel plates for automobiles.

Knowing this, don't break it for them, crumple it, with the caution of the domestic comrades, they must not believe, "Let's talk about this little by little, the production cost of the vehicle is definitely rising, after all, there are two more doors, from the production point of view, there are a few more stations in the production process, and the curb weight of the vehicle has also increased, compared to the small car like the Fiat 126P that you liked before, the cost must have risen, although the increase is not large, about 6.6% to 7.1%."

But let's not forget that if you had two very different powertrains from the van, you would have to build two engine and transmission lines in the same engine plant.

How much does a powertrain production line cost?

I'll tell you, it's not less than $2 million, but if the two cars use the same powertrain, the purchase cost of this second line will be saved.

Of course, maybe when the total production reaches 100,000 or 150,000 units, this part of the cost can be wiped out, and then the manufacturing cost of this four-door miniature family sedan is really more expensive than the Fiat 126P, but compared to the cost that will be equalized in the next few years, are you willing to choose the lower construction cost in the early stage or ......"

"Of course, it's a lower upfront construction cost. Without waiting for Chen Geng to finish speaking, Sun Shoupeng and Cheng Xingming said without hesitation.

Joke!

Although according to the previous agreement, all the places that need to spend money are considered to be Fernandez companies, but when Fernandez Company is a living Lei Feng, people spend money, of course, they want to get what they want.

No one in the whole delegation objected, because they actually thought the same thing in their hearts, although the production cost in the future is a little lower, but the front saves money, as long as the construction cost in front can be the first, and the production cost in the back is slightly higher, which is completely acceptable.

"Very good, I think so too," Chen Geng nodded: "Then the last question is next: you require that all the construction costs in the early stage be borne by Fernandez, and the Jialing plant must account for more than 50% of the shares in the joint venture, we can agree to this condition, but our request is that the dividend rights and management rights of the shares must be separated." ”

"Separate the right to dividends from the right to manage?" The members of the delegation, who had never heard of such a mode of operation, were suddenly confused: "What do you mean?"