Cash flow refers to the net amount of cash income and expenditure generated by an enterprise through operation, investment and financing activities in the actual course of operation.

Cash flow is more important to a business than an income statement and balance sheet because it reflects the actual cash position of the business, i.e., whether the company has enough cash to meet needs such as business operations and debt repayment.

Dong Shengnan's opposition to increasing inventory shows that she is fully aware of the importance of cash flow.

In recent years, the reason why Toyota's JIT model has become so popular has been learned by many companies around the world.

It is because the JIT model can make the cash flow of the enterprise more sufficient.

The core idea of the JIT model is to reduce inventory as much as possible in the production process, and to achieve real-time adjustment and optimization of production planning through an order-driven approach.

On the production line, each production step is carried out on a specific order, and the products on the production line are produced only in the quantities required for the order and delivered to the customer as soon as the production is completed.

This model can effectively reduce inventory costs, reduce logistics costs, and thus make cash flow more sufficient.

Cao Yang naturally understands this truth.

However, he couldn't explain his considerations to Dong Shengnan.

"Dong Bu, what you said is very reasonable, it is true that the inventory should not be increased under normal circumstances."

"But as you know, 70% of our turnover is contributed by exports, and if there is a time when parts are not delivered to customers such as Ford Motor and General Motors on time, they will immediately consider using other companies' products to replace us."

"Even if we try to recover it later, it will be difficult to get back the lost share."

"It could even undermine the good relationship we have with General Motors and Ford."

"Of course, I fully understand your concerns."

"We're going to prepare the inventory according to the standards I just said before July 2003 for a six-month deadline."

"Will it continue after July, and then we'll talk about it?"

Cao Yang did not give a direct and blunt order.

That would chill the people below.

Although the company is its own, it is also everyone's to a certain extent.

It's like this year's year-end bonus, because all the goals have been achieved, Cao Yang will give everyone an extra month as promised, and the basic salary will also be raised.

If Cao Yang's chaotic actions lead to the failure to achieve the goal in 2003, the bonuses of all employees will be affected.

"That ......"

"Then let's do it for half a year for the time being."

Although Dong Shengnan has a very bad relationship with various departments, this does not mean that her emotional intelligence is very low.

On the contrary, it shows that she can carry it clearly.

has already expressed her opinion in front of Cao Yang, and she naturally will not continue to insist on her opinions so bluntly.

"All departments will report next year's budget to the finance, and then they will be handed over to you to follow up and implement."

Seeing that Dong Shengnan compromised, Cao Yang expressed his importance to her in a timely manner.

The finance department has offended all departments of the company, and if they don't feel the support and trust of the boss, they will definitely feel cold.

When the time comes, people choose to compromise and say hello to various departments, hello, hello, everyone, Cao Yang will be bad.

"No problem!"

"The finance department of each project will organize a monthly report, and I will personally follow up when the time comes."

Dong Shengnan breathed a sigh of relief in his heart.

It seems that his boss is also a smart person.

……

While Nanshan was busy summing up, BYD was also doing something similar.

It's just that the atmosphere is a little different.

"Mr. Wang, the current engine prototype has been made, but the data in all aspects are not ideal."

"First of all, the vibration and noise are much higher than the original 2.4L inline-four naturally aspirated engine on the Honda Accord."

"Then there was the poor fuel economy, which was far from the level of the original, and there was even an oil leak."

"In addition, the efficiency of the engine is low, the combustion is not sufficient, a lot of pollutants are generated, and the emission aspect is also problematic."

"The most troublesome thing is the frequent failure of parts, which has not yet reached the level of mass production."

"Obviously, the size of each part is about the same as the original, but after installing it, there will be all kinds of problems."

"Especially when doing endurance tests, problems can occur after running on the bench for a few days."

"I think this engine, let alone catching up with mass production in the middle of this year, may not be able to catch up with the end of the year."

Liang Chuanqing is the head of research and development of BYD's F6 cabin.

With the exception of the engine, the rest of the car is now progressing relatively well, and the company is counting on the car project to be in full production by mid-2003.

Lest there has always been only input, no output, dragging down the battery business.

"The threshold for this engine seems to be really high, can we consider directly producing electric vehicles, or producing plug-in hybrid models?"

"So that the engine can be dispensed with, or the requirements for the engine will be greatly reduced?"

Wang Fu did not lose his temper directly.

He also knows that the development of automobile engines is not so easy.

So many domestic car companies have not come up with any decent passenger car engines after many years of research.

BYD does not have the foundation to build a car, and it is not surprising that it cannot be done in a short time.

"There is no market for electric vehicles now, and with our current battery technology, the range of electric vehicles produced is estimated to be only 200 kilometers."

"This is still without turning on the air conditioner and not driving in a low temperature place."

"Besides, even if it is the production of electric vehicles, it also involves the research and development of various parts such as motors and electronic controls, and our accumulation in this area is also very weak."

"Mr. Wang, at present, most of the engines of domestic cars, whether it is Great Wall or Chery and Geely, are purchased."

"Why don't we also consider outsourcing? Dongan Power has taken the initiative to contact us before, and Aerospace Mitsubishi has also expressed its willingness to supply us. ”

"In particular, the 4G6 series engine introduced by Aerospace Mitsubishi from Dongying Mitsubishi is still very compatible with our F6 model, with both 2.0L and 2.4L displacements."

"This engine has the characteristics of leading technology, low noise, low vibration and low fuel consumption, and can fully catch up with our schedule."

Liang Chuanqing knows that he can't get the engine in a short time, but he can't even give a solution, right?

However, it is obvious that Wang Fu is not satisfied with his plan.

"Is there no other way?"

Aerospace Mitsubishi's products, Wang Fu is naturally clear.

But he also knows very well that it was Mitsubishi's engine technology more than ten years ago.

The latest engine already has variable valve timing and lift technology, and if they sell this one, they can still consider it.

Or......

"Or let's talk to Nanshan and see if they have any suggestions?"

"So far, the parts they have given us to study have not had a single problem in the engine experiments."

"On the contrary, it is our own research and development, as well as purchased parts, and problems are frequent."

"This shows that their technology accumulation in engine parts is much deeper than we imagined!"

Liang Chuanqing put forward a very novel idea.

(End of chapter)