Kingoro Group: The Transformation Road of Traditional Manufacturing(part 2)

Moderator: Is there someone who has a better set of management plans for the company?

Mr. Sun: While changing the industry, we have fixed the model, which is called the fission entrepreneurial model. In 2006, we introduced the first shareholder. There were five to six people in Fengyuan Company who met the conditions at the time, but the other people didn’t want to intervene. It was enough to do my own work. An operation of the year. At that time, the performance was slowly rising, and the profits were getting higher and higher. Looking at the others, I regretted not buying shares at that time. When Shandong Kingoro was founded, there were seven high-level managers who bought shares in the company. The first year is losing money. This project will lose money in the first year, whether it is put into the market, costs, money, research and development, including marketing, or market operations. But the next year I encountered a centralized procurement project, which was also at the end of 2014 and early 2015, when it made a profit of 2 million RMB, because the company’s investment was 3.4 million RMB at that time.


Moderator: The rate of return for a profit of 2 million is very high.

Mr. Sun: Yes. So at that time, many people felt particularly good when they saw this model and wanted to participate. The maturity period is reached in 2018, when Qiao Yuan Intelligent Technology Co., Ltd. was established. At that time, there were 38 senior managers, middle managers, backbones, and team leaders. Therefore, we are the whole development process. The first one is to gradually upgrade from the product structure step by step, and then the management model also slowly brings everyone together, that is, one heart is the same.

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Moderator: In addition to the management mode you mentioned just now, I learned that there is another management mode called lean production management mode. What kind of mode is this? You can introduce it again.

Mr. Sun: It is to standardize some of the original scattered things. When we first did it in 2015, we introduced on-site 5S management at that time. What does the on-site 5S management say is to improve on-site efficiency, minimize accidents, and improve safety. That was the idea at that time. One of the biggest problems encountered is that the customer requires the delivery time to be relatively short, so a large amount of inventory is required, which takes up a lot of money. So I introduced lean production, which can only be done on the basis of on-site 5S management. Lean production is divided into these sections. The first is the need for on-site analysis; the second is lean on-site; the other is lean logistics; and there are five sections in total, including lean office . The goal is to improve efficiency, reduce inventory, and optimize the entire scheduling. In addition, by 2020, our district’s Bureau of Industry and Information Technology will introduce 5G + industrial Internet to cooperate with telecommunications. The first pilot was carried out in our Kingoro biomass pellet machinery production workshop. So far, in the entire year of operation in 2020, the inventory has dropped by 30%, and the delivery date and the on-time rate of delivery to customers have reached 97%, which was about 50%. The most important thing is that the wages of workers have increased by 20%, 20% more, and profits have increased invisibly by about 10%. It should be said that the maximum degree of revitalization has been achieved. This kind of interaction and cooperation with people, property, and surrounding enterprises and a benign business environment.

Post time: Apr-07-2021

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