The Tobacco Industry Enterprises Silk Production Management Studies

Chinese tobacco industry, though under restrictive monopolistic administration, plays an important role in the national economic development with 200 billion taxation contribution annually, being No.1 among other industries. As China entered the WTO and the demand mode has been modified, Chinese tobacco industry established under planning economic system confronts severe pressure and challenge, especially for tobacco industry enterprises as manufacture units. In order to further development and improve the core competition of tobacco enterprises, it is vital whether or not they can evaluate themselves appropriately, adjust the management mode for the primary production and improve the qualities of operation and products. The main characters of the primary production of tobacco enterprises: 1) complex manufacturing procedures and excessive equipment categories and amount; 2) very important stage of cigarettes production; decisive influence on the quality of cigarettes products; high requirements for the stability of products quality; 3) soft production mode containing large production and small production of various categories. Beijing Cigarettes Factory (BCF) has a 4000kg/h tobacco manufacturing line with annual production capacity of 300,000 boxes of cigarettes. As a medium size tobacco industry enterprise in China, BCF possesses its own unique characters and advantages after many years of development. However, as the demand level changes and the competition increases, there will be a higher requirement regarding the product quality and operation mode. This report in details introduces the important significance of analysis of production management under new development environment. Based on the BCF case, it analyzes the main problems regarding primary production management of a tobacco enterprise from three aspects (quality, equipment and cost) with an aim to provide some useful ideas and methods as to how to improve production, quality and equipment management and decrease costs. At the same time, it provides opinions on relevant general problems regarding the production management of Chinese tobacco enterprises.