The Northeast Industrial Group Dahua Company Volkswagen EA111Flywheel Lean Production Practice

Having entered into the21st century, the trend of economicglobalization is increasingly obvious, process of China’smarket-oriented economy is accelerating，so Chinese auto parts market isunder fierce competition，furthermore United States, and Japan, Europeanand other international auto parts companies, by virtue of the brands,products and the advantages of years’ cooperation with auto makers, areentering into the Chinese market. It can be said that China’s market isthe global market. Meanwhile, the auto parts industry has stepped in alow-profit competition period, raw material prices are rising, andproduction cost is continuously floating up, while the auto makers cuttheir purchase prices each year. Under this situation, how an auto partcompany can lower products prices while ensuring product margin, is thekey to survive.As part of traditional manufacturing industry, how an auto partcompany can get rid of long-term conservative&closed management mode,such as the way of thinking and management method established up in plannedera, from combined workshops, equipment-cluster layout, muchwork-in-process turnover, and man-machine engineering doesn’t matchreasonably, and production efficiency is not high, and quality managementlevel is low etc., adapts economic environment of fierce marketcompetition, it becomes China car parts enterprises’ problem to be solvedurgently. Either being driven out of the market, or seeking to change themby way of improving management and accept market challenges, so as toenhance the sustainable development capability, and win purchase orders in the fierce market competition.Lean management, summarizing and refining of the Toyota productionsystem, aiming to reduce waste, improving efficiency, enhancing quality,has developed into a system of scientific management mode, get moreappreciated by the manufacturing companies.This paper takes Northeast Industries Group Dahua Company yeas’development course as research object, in-depth analyses enterpriseyears’ advance method and course of lean management, and enterpriseadvance lean management achievements, combining lean management researchtheories of China and foreign countries, based on China traditionalculture thinking and China enterprise characteristics, researches anddiscuss how lean management is rooted in China manufacturing enterpriseespecially car parts enterprises.This paper also studies lean manufacturing practices case ofVolkswagen EA111power train fly wheel, and provides guidance formanagement mode improvement, gropes out and creates a set of theoreticaland practical ways feasible for China manufacturing company, help Chineseenterprises to upgrade and enhance their core competitiveness.Dahua Company begins to implement5S management as a starting pointof practicing lean management, continues to strengthen its managementfoundation, along with the gradual establishment of the lean thinking andthe wide application of lean tools, lean management expands gradually fromproduction management to the enterprise operation of all aspects in thewhole value chain.By production line innovation from original clustered production toassembly-line production, it improved technology process, implementedstandardized operating, optimized production cycles, greatly enhanced production efficiency and products quality. After the innovation,work-in-process(WIP) reduced from130,000to38,800, reduced by70%;Inventories dropped from113,000to73,000, reduced by35.8%;Productivity/per person per day increased from73to124, increased by69%.Through the implementation of TPM, the production capacity isincreased by more than10%.By promoting of team building and rationalization proposals, DahuaCompany ranks the first in NORINCO by7proposals per person per year,creates economic benefits of more than10million Yuan annually. Throughyears of lean practices, Dahua Company has accumulated rich of experiencesin fields of line construction, pre-production material preparation, andlogistics distribution service, equipment maintenance and the qualitymanagement etc aspects has formed a full set of management system.Flywheel assembly lean line leads the machine-building industry, deservesto be promoted in China North Industries Group Corporation, and has beenthe benchmark of China North Industries Group Corporation lean management.In recent years, Dahua Company has trained many learning teams from ChinaNorth Industries Group.Dahua company lean management has resulted in good achievements, madeimplementation of lean production management strategy as long-termstrategy of enterprise basic management transformation upgrading, hasmade the lean concept as cornerstone of reforming enterprise culture, willbe thoroughly introduced to improve lean management as recourse of fullvalue chain. The enterprise are experiencing with once historical leapfrom quantitative to qualitative changes never happened before. Thesuccessful introduction of lean management practices and experiences ofDahua Company deserves of learning and popularizing for Chinese manufacturing enterprises.