Yuchai's "Second Venture" Promotes Enterprises to Advance into High-end Manufacturing Industry

At the beginning of the new year, some Chinese people's enthusiasm for overseas “manufacturing” of goods, while making the Chinese manufacturing industry feel very embarrassed, it also revealed that there are many shortcomings that need to be reinforced from “Made in China” to “China's intellectual creation.”

According to "re-start, build internal forces, promote industrial upgrading," the operating principles, Yuchai and open implementation of the "second pioneering." In 2014, Yuchai’s cumulative sales revenue exceeded RMB 40 billion; brand value has once again jumped: In the ranking of the 500 most valuable brands in China, Yuchai ranked first in the domestic engine industry with a brand value of 18.816 billion yuan.

Yuchai's "Second Venture" Promotes Enterprises to Advance into High-end Manufacturing Industry

This is the result of Yuchai’s commitment to corporate management and technological innovation. Yuchai keeps pace with the country and promotes enterprises to move toward high-end manufacturing through “second startup”.

"Soft" and "hard" together to create a world-class production line

The era in which China's manufacturing industry is competitive with low costs has passed. High-quality manufacturing power is the foundation for manufacturing companies to settle down. To this end, Yuchai’s comprehensive layout has opened up a curtain for exploring management models that suit the development of Chinese companies and achieve transformation and upgrading.

In recent years, Yuchai has been combining the "soft" and "hard" development trends of the international and domestic manufacturing technologies, and has been making progress together to improve manufacturing capabilities. In terms of software, lean manufacturing was promoted, Yuchai's lean manufacturing management model (YCPS) was established, flat production management was realized, and hardware was used to build an intelligent production line to produce high-quality products.

3D printing technology is the most cutting-edge technology in the current manufacturing field. Since 2006, Yuchai has started the research and development of “dieless rapid manufacturing technology” (one of the 3D printing technologies). At present, Yuchai's moldless and rapid manufacturing technology has been applied in the areas of trial production of new products, lightweight product testing, and cutting-edge high-end technology testing. In 2014, a total of more than 10 kinds of new model prototypes were accumulated without die. Yuchai uses cold-formed 3D printing sand core technology and laser thermoforming 3D printing sand core technology and independently produces 2 mm ultra-thin water jacket sand cores. The body core samples were successfully cast by the core and the application level reached the international advanced level.

Improve the level of manufacturing power, talent team is indispensable. In 2014, Yuchai dispatched management teams, technical teams, and technicians teams to advanced European and American companies and domestic advanced companies to benchmark their studies. First of all, they made changes in thinking. At present, Yuchai is cooperating with German companies to develop high-end thin-film core high-end technology, and cooperates with the General Research Institute of Machinery Science to build the Yuchai Rapid Manufacturing Base, the nation’s first state-of-the-art advanced forming technology and equipment laboratory. The cooperation and exchange of new technologies, new processes, and new methods in equipment manufacturing will enhance Yuchai's manufacturing capabilities.

Lean manufacturing is an important starting point for Yuchai’s management reform. In early 2014, Yuchai's production plant completed major reforms. Starting from specialization and serialization, the original four engine plants were split and integrated into six engine plants. After the adjustment of institutions, the capacity of each production line has been systematically upgraded, and professional manufacturing capacity has greatly increased.

In the aspect of new production capacity, Yuchai has invested a lot of capital to improve gas engine and ship electric power production capacity according to the development trend of gas engines, marine power, and power generation power markets. In August 2014, Yuchai's high-power ship electric engine assembly line entered the trial production stage, laying a solid foundation for entering the ship power market.

In the next step, focusing on the future of manufacturing power, Yuchai will continue to increase its manufacturing power from the “soft” and “hard” strengths to achieve high-quality “Made in China”.

Technological innovation shifts from product manufacturing to technical service

Technological innovation is the magic weapon that Yuchai always leads the market. In 2014, we firmly grasped the opportunity of switching between commercial vehicle countries 4 and Yuchai invested more than RMB 500 million in research and development, and continued to exert efforts in product R&D and technological innovation. The innovation results have been fully affirmed by the society, and won the "Top 100 Manufacturing Process Innovation Base" and "China Industry Award Nomination Award" and other honors.

The significant achievements in the research and development of heavy-duty engines, gas engines and marine engines have solidified the market competitiveness of Yuchai products. Among them, the heavy-duty engine introduced a 400-horsepower 6MK engine for highway trucks at its 2014 new product launch. The product has excellent performance. The vehicle's high-speed fuel consumption rate reaches an excellent level of 32 liters per 100 kilometers, which is about 6 liters less than the competing product. In terms of gas and gas engines, the 5 gas engines of the country completed the upgrading and technological research, and began batch rectification and switching, and the market performance was steadily controlled. In terms of marine engines, the research and development of the Dajiang Electric products achieved a breakthrough, and the first ship electric prototype was successfully developed. Electric and electronic control products are gradually introduced into the market to form a competitive advantage.

With product innovation, Yuchai has made new breakthroughs in the field of non-road engines. In 2014, in response to the upcoming T3 emissions regulations for off-road engines, Yuchai introduced two dedicated power sources for the T3 emissions standard to the market in advance.

In 2014, the Yuchai Engineering Research Institute Nanning Base was put into use, and the Suzhou Base started construction. Since then, Yuchai's R&D hardware infrastructure has been further improved, and technological innovation has been more fully protected. Yuchai Co., Ltd. has applied for 695 patents and has obtained 515 authorized patents. It ranked No. 1 in Guangxi for consecutive 9 years. At the same time, Yuchai Joint Stock Company has issued 1 item of national mandatory standards and 1 item of industry standards, and has participated in the revision of the national standard/line standard.

In terms of engine emissions technology, Yuchai has mastered the Euro VI emission control technology. The YC6L-60 model has successfully passed the EU E/e-mark certification test and is fully prepared for the successful marketization of the Euro VI engine. In 2014, Yuchai Euro VI diesel engine was the only domestic European VI engine to obtain orders from Beijing buses, which fully proved Yuchai’s leading position on low-emission engines.

Euro VI emission standards are regarded as the ultimate emission standards. In 2011, when the Yuchai Euro VI engine prototype was announced, many European auto engine companies were still in the product development stage. Now Yuchai has achieved marketization on Euro VI engines, and has synchronized technology and manufacturing with developed countries, demonstrating that Yuchai has the ability to export technology and products.

In addition to advancing independent research and development, Yuchai has continued to expand its foreign cooperation in research and development, manufacturing, and other fields, and has conducted joint technical research with international and domestic well-known scientific research institutions. For example, it signed a strategic cooperation agreement with Stenai Corporation of the United States and signed a strategic cooperation agreement with the General Research Institute of Machinery Science to upgrade and expand Yuchai’s research and development and manufacturing of off-road engines, digital forming technology, advanced forming processes, and advanced forming equipment. Advantages to accelerate the industrialization of Yuchai's rapid manufacturing and intelligent manufacturing.

From product research and development to manufacturing, Yuchai has established mature technological advantages and will strive to advance the process of transition from product manufacturing to technical services.

Facing the international promotion of enterprises' "second venture"

In the face of changes in the internal and external environment, in 2014, Yuchai took advantage of the situation and released the “Second Venture” strategic plan, with transformation and upgrading as the core, to further clarify the future direction and focus of the Group’s development: to accelerate the construction of a new Yuchai industry. Expand domestic and international joint ventures, cooperation and introduction and application of new and high technology, focus on expanding the “engine” and “petrochemical” two industrial chains, build “financial” and “logistics” two major service platforms, integrate resources, optimize structure, and promote transformation Upgrade, improve core competitiveness, and realize sustainable development and healthy development of the company.

After one year of implementation, the "second venture" has achieved initial results. In 2014, Yuchai Electric Co., Ltd. sold 484,000 engines, and its production and sales volume continued to rank first in the industry. Sales continued to grow, and its market share continued to grow by 1.3%. Yuchaima Petroleum Lubricant Company reversed the trend and achieved double-digit growth in operating income and operating efficiency.

In the future, opportunities and challenges coexist. In 2015, Yuchai will focus on the adjustment of industrial structure, continue to promote “second venture”, strive to complete system upgrade in 3 years or so, and optimize various systems such as production, organization, research and development, marketing, and service to improve quality and efficiency. , improve the ability of international operations, and foster the creation of internationally renowned brands.

Yuchai has already taken actions: to start construction of Yuchai’s overseas R&D centers, build an international technology R&D platform, accelerate internationalization, and make substantial breakthroughs in strategic cooperation with a number of internationally renowned companies. A number of major cooperation projects will soon take root.

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