Innovation and quality complement each other, Weichai enters into high-quality development

Weichai Power won the third China Quality Award

High-end strategic base starts from "high growth"

On October 31, Weichai showed the latest transcript of “Quality Development”: In the first three quarters of this year, Weichai Power achieved operating income of 118.182 billion yuan, up 5.95% year-on-year; net profit attributable to shareholders of listed companies was 6.01 billion yuan. , an increase of 30.37%.

China Quality Award Certificate

Since the realization of the V-shaped reversal in 2016, Weichai has maintained a high growth rate, and the market continues to be hot, mainly due to the comprehensive upgrade of product quality and technology.

This year's government work report proposes to promote the spirit of artisans and come to a quality revolution made in China. The chairman of the People’s Congress, who is listening to the report at the Great Hall of the People, Tan Xuguang, the chairman of Weichai Group, is very excited: the quality revolution is indeed a high-end manufacturing industry in the big countries and the high-end manufacturing industry, which should be a core issue. We must further improve the quality management level and promote the quality revolution of Weichai.

Weichai engine

"Either don't do it, do it best." Weichai's quality revolution is mainly based on scientific and technological innovation, and promotes the “move to high-end” strategy to achieve full-scale, and achieve a world-class level of the full range of products. Today, Weichai's new N, H, M platform engines have been listed one after another, becoming the "new darling" of the high-end market. At the same time, in the upcoming "National Sixth Era", Weichai's full range of Guoliu Power not only achieved environmental and emission upgrades, but also surpassed domestic counterparts and led international trends in terms of technology and performance.

On the product, Weichai closely focuses on the "reliable and durable" differential positioning, focusing on the reliability of internal combustion engines, relying on the State Key Laboratory of Reliability of Weichai Internal Combustion Engines, conquering key technologies of the industry and consolidating the foundation of China's internal combustion engine industry. After years of innovation, Weichai's main power products have an average failure cycle interval of more than 250,000 kilometers, leading the development trend of China's heavy truck power; Weichai's independent research and development of high-end diesel engines set a global high-speed heavy-duty with 1.8 million kilometers / 30,000 hours The highest standard of engine life.

Weichai Boduan M26 series engine ferry

In the Chinese market, the price of Weichai engines is 10% higher than that of internationally renowned brands, and it is still in short supply. In the high-end market in Europe and America, the reliability of Weichai engines has also captured the enthusiasm of overseas customers. The ferry that runs on both sides of the East River in downtown New York, USA, is loaded with the Weichai Boduan M26 series engine.

Weichai's "reliable and durable" performance advantages have won the trust of customers. Take Weichai's high-powered engine WP13 as an example. This is the first 13-liter "500-horsepower +" engine in China's heavy-duty truck market. Since its official launch in 2015, sales have doubled year after year, with a market share of over 30%. Wang Taishan from Yingkou Bayuquan, Liaoning Province, is a loyal user of Weichai WP13. Wang Taishan has been engaged in port transportation for many years. He admits that the purchase of chopping wood products is based on the fact that the engine skin is durable, large in quantity and reliable in fuel economy. "From the National Second Machine to the National Five Machines, I have never left Weichai, and the Weichai engine has helped me to go further and further on the road to success."

Weichai engine

Core technology, the country's heavy equipment, corporate lifeline. To achieve high-quality development, China's manufacturing must adhere to the development path of independent innovation. The general secretary pointed out: "The key core technology is whether it can't come, buy it, or can't get it." Regardless of the ups and downs of the economic situation, Weichai has always maintained a large investment in research and development. In the past 10 years, only engine R&D investment has exceeded 15 billion yuan. It has built a world-class engine R&D and manufacturing base, and has the only national key laboratory with reliability as its research direction. It is the only engine test laboratory certified by the US EPA. In recent years, Weichai has successively established cutting-edge innovation centers in Chicago, Aachen, and Tokyo, Japan, to maintain its technology at the forefront of international standards.

WOS builds a "global map"

Weichai vigorously promotes the “related diversification” and internationalization strategy, and completes the globalization layout through the overseas operation strategy of “trade export + localized production + technology output + merger and reorganization”. In 2017, Weichai Group achieved annual revenues of over RMB 220 billion, of which 40% of its revenue came from overseas. Today, overseas business has occupied the “half of the border” of the Weichai industry. It is an important part of the high-quality development of Weichai, especially the vigorous development of overseas subsidiaries, which has effectively promoted the transformation and upgrading of domestic industries. However, mergers and acquisitions are difficult to integrate, and how does Weichai operate overseas subsidiaries?

WOS, the Weichai operation system, provides strong support for Weichai's global map and the construction of “half of the country” to promote high-quality development.

Shaanxi Automobile Delong tractor with Weichai Power

With the expansion of the industrial layout, Weichai has gradually explored and established the unique quality management of Weichai WOS in the process of solving the two-way extension of the industrial chain facing the development, the regional cultural differences of each subsidiary, and the difficulty of quality improvement. Mode (Weichai Operation System). Based on the concept of “big quality” in the whole process of enterprise operation and emphasizing customer satisfaction, this model integrates strategy, indicators, value chain, institutional process, performance evaluation and improvement under the guidance of ten operational principles. With the quality management as the leader, the quality management system of sales, R&D, manufacturing and management quality can be quickly responded to and meet the needs of customers in large quantities.

Through the implementation of this model, Weichai's new product development cycle has been shortened by 60% in the past three years, the new machine failure rate has decreased by 72%, the rework rate has decreased by 40%, the single controllable variable cost has decreased by 46%, and the delivery cycle has been shortened by 45%. The benefits are comprehensive and rapid.

More importantly, the WOS quality management model is highly open and inclusive, and can be replicated, promoted, and landed. It plays an important role in the integration of resources at home and abroad and the coordinated development of the industry chain. In the M&A companies at home and abroad, the active introduction of WOS has achieved great success. In the acquisition of Yangchai for 5 years, the unit price of the product has been raised from less than 5,000 yuan to nearly 20,000 yuan; the strategic restructuring of the Hunan Torch has been 13 years, and Shaanxi Heavy Truck has successfully entered the first echelon of China's heavy truck. Among the overseas M&A companies, France's Boduan engine, Italy's Ferretti, Germany's Linde Hydraulics, etc. have achieved a turnaround and rapid development; Germany's KION maintains a growth rate of more than 10%.

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