Shaanxi Construction Machinery Co., Ltd.: "confidence" for the high quality development


2021 is the 100th anniversary of the founding of the Communist Party of China, the first year of the national "14th Five-Year" strategic plan, and an important year for Shaanxi Construction Machinery Co., Ltd. (hereinafter referred to as SCMC) to promote the high-quality development. In recent years, the company has intensively cultivated and pragmatically innovated. SCMC has taken the demand side of the industry chain as the access point, taken scientific and technological innovation as the starting point, deeply promoted the value engineering, accelerated the sinking of the leasing market, cut down the internal costs and continuously improved the modern management level. In the face of unfavorable factors in the domestic and foreign markets, the business performance has achieved steady growth, fully demonstrating the confidence of the high-quality development.

"Confidence" comes from the stability and the improvement of the business performance.

This year, unfavorable factors such as the continued recurrence of overseas epidemics, the strengthening of global inflation expectations, the general rise in domestic commodity prices, and the intensifying industry price wars have caused certain adverse factors to the company's overseas market layout, product exports, increase in operating gross profit and product cost control. The company flexibly adjusted the sales promotion strategy, strengthened regional business development, cut down the cost, promoted the efficiency, actively hedged against the increase in raw material prices, made prudent decisions, and operated steadily to promote steady growth in the company's operating performance. The operating income of 2020 was 4.001 billion yuan. The total profit of 2020 was 661 million yuan. SCMC got the award of "2020 Target Responsibility Assessment Excellent Enterprise" of Shaanxi Coal Group. In the first quarter of this year, the company achieved operating income of 896 million yuan, a year-on-year increase of 94.30%. The net profit is 65.84 million yuan, an increase of 127 million yuan year-on-year. Compared with before the epidemic, the core business indicators show a general recovery and a slight increase.
"Confidence" comes from the continuous improvement of management capabilities.

The company takes the scientific management as the goal, taps the potential of internal resource elements, and promotes the continuous improvement of the overall operating efficiency. By strengthening the assessment of target responsibilities, the operation management responsibilities of each unit are consolidated. The decision-making ability of the company has been improved by the implementation of statistical functions.
In terms of the production management, SCMC has formed a weekly production plan and strengthened the precise management of nodes based on the demand of customers. SCMC has strengthened the cost awareness and initially completed the cost reduction work for outsourcing. The comprehensive reduction of the process outsourcing and the pin shaft prices was about 30%.
In terms of the quality management, the ISO9000 Quality Management System and the Special Equipment Quality Management System are operated integratedly. SCMC adheres to the traceability management of the whole process of the product quality. SCMC has strengthened the process verification, the optimization, the improvement, the perfection, the progress, increased the investment and the research on tooling, and continuously improved the level of the enterprise process equipment. SCMC focuses on promoting the quality work of the "golden idea", and adopts the quality solution and QC Team Activities to solve important projects. SCMC carefully analyses the product process cost and optimizes the product quality and services. SCMC strengthens the awareness of high-quality products. The praise of the tower crane market has been increased significantly. The self-developed STC600A Tower Crane has been identified as the "New Key Product of Shaanxi Province". In June, Pangyuan Rental Company ranked 22nd on the global top 100 leasing list announced by the internationally renowned industry evaluation agency KHL Group, an improvement of 9 places from the 31st in 2019. Up to now, the tower crane inventory and the total lifting torque continue to be ranked among the forefront in the world.
"Confidence" comes from the synergistic effect of the close combination of the talent and the technology.
Breaking the dependence of the development path of the traditional manufacturing enterprises, the company has established a development strategy of "innovation-driven, specialization, branding, and internationalization" to continuously cultivate competitive advantages in core technologies. As the only project leader of the tower crane innovation team in the Northwest in China, Yang Hongjun, the Secretary of the Party Committee, the Chairman and the General Manager of SCMC, had been successively recognized as the "The Local-level Leading Talent" and "The National-level Leading Talent" by the Organization Department of the Xi'an Municipal Party Committee.
The core power is accelerated by the technology research and the development. The company's technical research and development personnel conduct in-depth inspections and observations on the front line of construction, make the company's products more suitable for user terminal needs, and lay the foundation for the overall improvement of subsequent products. The company successfully researched and developed the STC160 and STC7025 Series Tower Cranes. SCMC signed a school-enterprise strategic cooperation agreement with Xi'an University of Electronic Science and Technology to jointly carry out 4 R&D center topics including the design and the optimization of the STC600 Tower Crane. SCMC carries out the research on the remote operation platform of the tower crane and the automatic cruise driving technology of the paver. SCMC obtained the National Invention Patent Certificate, and applied for 2 Utility Model Patents and 8 Software Copyright Patents by "The Protection System of the Moment of Inertia of Tower Crane and the Tower Crane". SCMC had participated in the revision and the preparation of several standards such as "The Compilation Guidelines of the Tower Crane Operation Instruction", "Compilation Guidelines of the Operation Instruction of the Construction Lift" and "The Support System of the Tower Crane ".
The digital construction is the "most powerful brain". The dynamic accuracy rate of the data of the "Pangyuan Online Platform" has been improved continually, which provides an important basis for the coordinated utilization of the company's equipment, completes the preliminary construction of the warehouse management and the safety management modules, and refreshes the data of the internal rental fee settlement and the equipment utilization rate and other data. SCMC is guided by the improvement of the gross profit, uses the ERP System as a tool, continues to deepen the cost management and the planning management, and furthers to optimize the integrated business process of purchasing, warehousing, production, and sales.      The ERP system is settled every day. By supplementing and improving the database, the circulation and timeliness of production supporting facilities are improved. The scientificity and operability of the production and procurement plans are improved.
SCMC focuses on the cadre team building, expands the professional workforce by carrying out the external introduction and the internal training, and improves the reserve structure of the cadre team. The company formulated and issued the "Three-year Innovative Action Plan". SCMC cultivates capable and entrepreneurial cadres with the characteristics of the "six essentials" through various methods such as the talent introduction and the cadre exchange, which shapes the corporate ecology of "can enter and exit, can go up and down, can be high and low", and reserves the intellectual capital for the sustainable and the high-quality development of the company.
"Confidence" comes from the effective control of the risk points.
The company has always adhered to the development concept of "people first, life first" and "green water and green mountains are the golden mountains and silver mountains". In view of the still severe epidemic prevention and control and the hidden dangers of the seasonal characteristics of the hot summer, the company actively carries out the 100-day safe production by "controlling risks, eliminating hidden dangers and ensuring safety". Combined with the 6S On-site Management System and the 100-day ecological protection campaign with the large-scale investigation and renovation, SCMC strengthens the safety awareness of all employees. The leading cadres at all levels firmly shoulder the responsibility and grasp the responsibility in our hands. We always eliminate the "neutral gear" and "loopholes" to the greatest extent, and integrate the meaning of "two lives" into the daily production and the operation of the enterprise. SCMC strengthens the inspection and the rectification of the key parts and the key hidden dangers to realize the transformation of the safety management from the passive obedience to the active protection. Since the beginning of this year, the serious injuries and the above accidents of the company are zero. The new occupational diseases are zero. "The three wastes" are discharged under the standard. There is no general or above environmental pollution accidents, which contributes to the completion of the company's objectives and tasks throughout the year, the celebration of the centennial of the founding of the party and the 14th National Games.
With the continuous expansion of the scale of the company, the company adopts the multi-party linkages, strengthens the internal control management, revises more than 90 internal control systems intensively, performs the detailed mechanisms of the implement, the supervision, the inspection and the evaluation, forms a closed management loop, and effectively improves the effectiveness of the internal control. SCMC deepens the cost management, continues to reduce costs and increase the efficiency, reduces all non-productive expenses, and tightens the budget management and the approval procedures for various expenses. SCMC formulates the new supplier access standards to form a healthy competition for the survival of the fittest among suppliers. SCMC further strengthens the clearing of accounts receivable, subdivides the account aging and responsible persons, establishes a reward and punishment mechanism, and accelerates the return of funds. SCMC standardizes the order receiving standards of subsidiaries and operating departments, and reviews contracts seriously based on the concept of putting the risk prevention and the control first. SCMC further orderly advance the construction of an intelligent re-manufacturing base, which is expected to become a new performance growth point for the company.
"Confidence" comes from the increasingly prominent leading role of the Party building.
The company practices the Party building to lead the corporate culture construction and continues to integrate it into the corporate governance. Since the development of the Party history learning and education, the company's Party Committee has conscientiously implemented the requirements of the Party Committees of the Central Province and the group company, closely following the tasks of the Party history learning and education, and carrying out the distinctive party history learning and education. Sponsored by the Party Committee of Shaanxi Coal Group and undertaken by the SCMC’s Party Committee, the theme exhibition of "Shaanxi Coal Workers’ Heart to the Party-Jiang Xiaoping’s Personal Collection of Hundreds of Party History and Cultural Relics Offering Gifts to the One Hundred Founding Years of the Party" was confirmed and appraised by the Ninth Steering Group of the Party History Learning and Education, the Publicity Department of the Provincial Party Committee and the Party Committee of Shaanxi Coal Group.
Centering on the actual production and operation of the company, SCMC focuses on the effectiveness of the practical activities of "To do practical things for the workers and the masses", fully guides and mobilizes the participation enthusiasm of Party members and cadres at all levels and the broad masses of workers. Yang Hongjun who is the company’s Party Committee Secretary, the Chairman and the General Manager, Chai Zhaoyi who is the Vice Chairman and other senior management leaders play an exemplary and leading role. The leaderships successively go deep into affiliated units, the first line of production and service targets to conduct investigations, inspect the production and operation sites and the living and working area of employees, and control the direction of the high-quality development of the company. The leaderships step up the renewal of mutual medical insurance for 1065 employees of the company to effectively help alleviate the "difficult and expensive medical treatment" of employees. The leaderships coordinate and solve the practical problem which is difficult for employees’ children to go to school. The leaderships ensure that one promise has been made and that one has to be fulfilled, and do practical and good things for the masses of employees. Taking the opportunity of in-depth study and education of the Party history, all units strive to improve the work style, enhance the ability and the responsibility, constantly improve the work enthusiasm, participation, satisfaction and happiness of cadres and employees, and share the development achievements of the enterprise more and better, which continues to be transformed into a powerful spiritual driving force and political guarantee to help the company achieve the "15533" strategic goal.