Xu Deyu listened. She was shocked by the few figures that Tao Tang had said. I didn't expect the company to have such a big stall, and it would have a fixed expenditure of 3 million per day...... She knows the scale of last year's marketing, and the gap is too big, no wonder the company is in difficulty......

Tao Tang took a sip of water, "But even if the scale of 12 billion is realized, it will not work." Because that's the food finance. All the money earned is only enough to maintain simple reproduction, which is certainly not enough. Do companies want to develop new products? Do you want to carry out technical modifications? Do you want to increase the salary of your employees? Do you want to improve the quality of life of your employees, such as investing in real estate? The answer is yes. No one will agree to maintain the status quo. In this way, it raises the question, how do we achieve profit growth? The first is, of course, pure scale growth, for example, we add 2 billion yuan per year, but it is very difficult to achieve this goal. After I came to the factory, accompanied by relevant leaders and departments, I investigated several markets and had a preliminary understanding of our business environment. The market is not subject to human will, and it is not possible to increase sales as much as you want. That only exists in the event of an extreme shortage of goods. Marx's economic theory says that the transformation of a product into a commodity is a thrilling leap, and if it cannot jump, it is not the commodity but the operator of the commodity who will be damaged. The argument that blames marketing as a constraint on growth is absurd. What's going on now? An all-encompassing buyer's market has been formed, where there are only things you can't think of, and nothing you can't buy. Therefore, the path of relying solely on scale growth is doomed. Moreover, the current situation has shown that the downward pressure on the macroeconomy is very strong......"

Tao Tang stopped and picked up the teacup, as if thinking about something.

"You mean that lean management can solve this problem?" Xu Deyu listened to it, especially Marx's words, which she seemed to have seen in some book. Very impressive, the original words are not like this, but the meaning is correct.

"Blindly through the expansion of the scale to achieve the company's efficiency improvement, since it does not work, then there is only a second way, this road is to focus on management, tap internal potential, control costs, eliminate waste, in order to achieve an increase in profits. There is an important indicator of enterprise management called the cost ratio, that is, the ratio of total cost to total revenue. For example, we are about 98%, that is, the cost accounts for 98 yuan per 100 yuan of income. The remaining 2 yuan is the profit. You can figure out this ratio and see what every percentage point reduction means at the current scale of marketing......"

"Every 100 million will increase the profit by 1 million."

"Correct. When the scale of revenue reaches 10 billion, every 1 point reduction can bring 100 million net profits. Our salary is mostly 50 million per month, that is, we can get back two months' salary. In other words. If all the benefits of cost reduction were used to increase wages, the average wage increase per person would be 16.7%"

Xu Deyu is calculating how much the 16.7% capital increase is for himself......

"So, is it difficult to reduce the cost by 1 point? I don't think it's difficult. At least it's easier than bringing about a 1% increase in profit through an increase in revenue. What is our current situation? In short, the waste is staggering, and there are holes everywhere. There are bleeding spots everywhere. The loss of scrap products is a large block, just in the vehicle parts sector, the loss of three packs last year was 38 million, plus mining machines and agricultural machinery. The quality loss will not be less than 100 million. Bank interest, we have to pay 160 million a year. Last year, the company spent more than 30 million on entertainment alone. The numbers are staggering, right? That's the reality. On the one hand, I felt that I was struggling to operate, and my cash flow was very tight, and on the other hand, I was bleeding everywhere. That's right, Red Star is a big factory, and the expenses are very huge, bank loans cannot be without, and waste products cannot be completely eliminated...... But there is no denying that the waste is very serious. Our implementation of lean management is to compress all unreasonable expenses and continuously improve the cost ratio. I once said at the mid-level conference that the cost and expense ratio index of Shengdong Company has been decreasing at a rate of one point every year in the past three years, and if we Red Star also achieves this level, our business situation will be greatly improved......"

"So, how do you implement lean management?" Xu Deyu listened intently and forgot to record.

"The essence of lean management is continuous improvement and elimination of waste. Continuous improvement is the means, and eliminating waste is the goal. Now some of our cadres, pay attention, I'm talking about leading cadres, pinning their hopes for improving Red Star's management on the so-called big deals, that is, big input and big output. I don't agree with the idea of investing hundreds of millions of billions of dollars at every turn. As I said earlier, there is a cost to be paid for input, interest to be paid on bank loans, and depreciation to be raised after consolidation, all of which must be included in the cost. Moreover, we cannot easily deny our existing products, some people believe that Red Star's current products have no future and need to be changed. This is wrong, you know, there have never been bankrupt enterprises, no bankrupt industries, whether it is mining machinery, agricultural machinery or vehicle accessories, there are broad prospects. Even if you make a pin, you can't say that you don't have a future, right? The key is your position in the industry. The technology and management accumulated by Red Star in the traditional products and markets is a valuable asset, and what we want to do is to carry forward the wealth left to us by our predecessors, rather than abandon it...... Of course, we still have to do the work of product structure adjustment, each product has its own life cycle, technology is also improving, whether it is mining machinery or agricultural machinery, we must focus on the technological progress of existing products, with low cost, high quality and high technology content to consolidate the market, win users...... To answer your question, lean management is such a kind of management, the first is bottom-up, that is, full participation, spontaneous management behavior, to find and overcome all the waste we have in our work: save a pair of gloves, a towel, a bag of detergent, a piece of paper, a pen, an envelope, a kilowatt-hour of electricity, a drop of water, is not difficult? Don't underestimate the bits and pieces, we have 30,000 employees, and any number multiplied by 30,000 should not be underestimated. Of course, lean management is not a simple saving, it has a wider meaning, such as the improvement of technology, the improvement of production efficiency, the saving of kinetic energy, especially the saving of labor costs, are the direction of our efforts. Please firmly believe that as long as all employees realize the true meaning of lean management. If we take action, we will definitely see changes in all aspects, which are real, and will converge into the reduction of costs and the increase of benefits.

The second is to reform and improve the company's unreasonable management, plug all kinds of visible and invisible bleeding points, and save profits little by little. For example, we are carrying out the inventory of off-duty personnel, and the number of people who have been determined is more than 480 people, and only based on the social security cost of 800 yuan per person, we will have to pay more than 380,000 yuan per month, which is of course an unreasonable expenditure. Selling products to earn 400,000 may require 4 million or more sales. But we saved it with one decision...... At the company level, according to the requirements of the central government and the headquarters, the company's senior management has reached a consensus and is formulating detailed regulations to resolutely reduce the high management fees, and reduce as much as they can. For example, the company has issued new regulations to regulate the occurrence of this part of the expenses. Internally, there is a specific goal, which is to reduce by 30% on the basis of 2012 and continue to reduce by 20% in 2014; For example, cars, although the company did not do specific research. But I would like to announce that the company will no longer buy non-production cars for three years. For example, in addition to necessary safety maintenance, the company no longer renovates guest houses and office buildings...... I'm here to make a statement to all the workers in the factory. We must resolutely put an end to all phenomena that harm the public and private interests, and all phenomena of unreasonable consumption of duties. No mercy. ”

"Mr. Tao, what you said is really good, I hope that lean management can achieve the results you want...... Just now you talked about cleaning up the off-the-job, which is the second question I want to ask, and now some people wonder if the company can really solve the problem of off-the-job......"

"I think so. But there is a premise," Tao Tang's face turned grim, "what premise?" It is the establishment of a sense of justice throughout the plant. Without a sense of justice, this cannot be done. I believe that behind this incident is the indifference of the broad masses of workers to the collective interests, and they always feel that this matter has nothing to do with themselves...... How does this work? Which is more important than four or five hundred or thirty thousand? I think that Red Star belongs to everyone, everyone has a share, and it is by no means my Tao Tang alone, nor is it the more than a dozen people in the Red Star leadership team. If a quarter of workers had a sense of ownership, the problem of leaving the job would not have accumulated to such a serious level. The company is determined to solve this problem, that is, to tell everyone with actions that all behaviors that harm the fundamental interests of employees will be stopped by the company. Please really love our enterprise, please really show the spirit of ownership, to damage the interests of the company to do a resolute and uncompromising struggle, to do this, I believe that our Red Star factory will quickly get rid of the business difficulties, recast brilliant. ”

Tao Tang ended his speech and signaled that Master Zhang, who was in charge of the video, could finish, and Xu Deyu was still pondering.

"Xiao Xu, do you have any more questions?"

"I'm sorry...... Mr. Tao, can I publish all your speeches just now? ”

"Absolutely. Although some things have not been studied in detail, the company's senior management has reached a consensus and is determined to share weal and sorrow with all the employees of the factory and overcome difficulties together. You can log out all I said......"

"Thank you for your time. I think the union will support your decision and devote yourself to lean practices with the utmost enthusiasm......"

"That's a very good point. Lean is a practice of all employees, and only when all employees take action, its effect can be demonstrated. Now the company has formally set up a lean management department to guide and supervise the development of lean management, the next step, all units, whether it is a business unit or a management unit, must develop a lean management plan suitable for their own reality and earnestly implement. The company will formulate a series of rewards and punishments, such as rationalization suggestions, all reasonable suggestions that receive results will be given a certain percentage of cash rewards according to their income. In this regard, the company is by no means stingy. A technician in Shengdong Company once got a one-time bonus of 38,000 yuan for this, and I hope that some of our Red Star will also get a heavy reward. Well, let's talk about it today, and I hope to see your report soon. ”

"We'll try." Xu Deyu stood up.

"Listen to Lu Qi, there are some difficulties at home?"

"No, nothing ......"

"I've always wanted the company to be a warm family, really. I made a suggestion to the deputy secretary of the Standing Committee to restore the mutual aid fund system that had been in place for many years, so that workers who were temporarily in difficulty could receive some help...... This will take some time, and as for the difficulties you encounter personally, you can come to me in the future...... I am telling you these things because of your brother. You have to trust me, can you? ”

"Mr. Tao, you have taken good care of me...... Really, thank you so much ......"

"I have prepared a little money for you," Tao Tang took out a bank card from the drawer, "There are 30,000 yuan in this, you can take it to the emergency first." ”

"No, not really." Xu Deyu firmly refused.

This interview has solved some of Xu Deyu's confusion, and she is not sure how to complete the draft of the rectification of the off-duty personnel. The off-duty personnel could not be found for the time being, so Xu Deyu had to follow the list provided by the Human Resources Department to several branches with relatively many such problems. She used to be a reporter for the factory newspaper, and later repeatedly asked the leader to change her position because she was not good at talking, and started a copy editor, but she is no stranger to the interview business. Because of the relatively adequate preparations, Xu Deyu's interview went relatively smoothly -- she was looking for "suitable" and representative people, and after the interview was sorted out, she felt more satisfied, and after showing Minister Cui the proof, the leaders were also very satisfied, but they deleted a draft from the retirement center, thinking that it was too intense. But Xu Deyu thinks that the manuscript is the heaviest. It was said by two retired cadres: praising Tao Tang as a true Communist Party, and the original rulers of Red Star were all bastards.

Almost all of the interviewers affirmed that the company's personnel handling was fair this time. Including three off-duty relatives, the same said. Xu Deyu felt that after this investigation and rectification, Tao Tang's prestige was higher, and he exchanged his ruthlessness for prestige.

If it weren't for his brother, Xu Deyu would think that Tao Tang was a pretty good leader. He is not very old (in terms of his position), but he has the style of a legendary old cadre. It is this that makes the old men and old ladies in the retirement center praise each other. They are always nostalgic for the past in the fifties and sixties of the last century, babbling about the old days, blaming the current leaders for this is not right or good. But for this new boss who has just arrived for two months, it is one-sided, "This is the cadre of the Communist Party." ”

She doesn't care about anything else, but it is in line with her moral outlook to rectify the style of the Propaganda Department, change the propaganda direction of the factory newspaper and radio station, and focus on the workers, especially the front-line workers. In fact, the conversion had a very good effect, as evidenced by the fact that she was approached for the factory newspaper, because the issue published the advanced deeds of a certain worker, and he asked for a copy to show his son, who was in elementary school. The factory newspaper of the unit was robbed, and he, an advanced figure who had been listed in the newspaper, did not get a copy, so he asked the Propaganda Department for that issue of the factory newspaper.

The incident itself is news. She knew exactly what the original factory report was. At the end of the year, old newspapers were recycled at a discounted price (one of the means of income generation by the Propaganda Department), and the newspapers that were recovered were all new ones - almost no one read them.

Xu Deyu believes that after the series of reports on the inventory and dismissal are published, the number of prints of the factory newspaper will be increased. But she didn't expect that when an accident occurred, the focus of the company's discussion quickly shifted. (To be continued......)