The plight and situation of Manufacturing

The changing World # 1---Population Changing

1 ） Quantity increasing rapidly: Global population is 7 Billion in 2011 and will reach 9 billion

in 2050,

and increase by 1 billion every 20 years

2 ） Aging ： Currently 893 million populations over 60 years old, cover 12.8% of total

population;

forecast will reach 2.4 billion in 2050 and cover 30% of total population. Aging society is

coming.

The changing World #2---Urbanization

Urbanization: The rural population first time overpass the urban

population in 2007.

Over 50% people living in city in 2012---60% in 2030---67% in 2050

The changing World #3---Climate Changing

World Climate Changing: Compare to 18th Century, The global average surface temperature increased 0.76 centigrade. The most hottest 12 years from meteorological observation, 11 years are in between 1994 and 2005. The emission of greenhouse gases increases rapidly, The imperil to Human is bigger and bigger. The environment and its protection is a common issue for all countries

The changing World #4 ---Globalization

Globalization: Due to the global communication, IT, transportation is more and more

convenient, the “Global village” makes the contact between countries more and more close,

the globe is changing “smaller and smaller” .

1 ） From 1950 to 2004, the global trade volume increased 27.5 times;

2 ） The organization performing the global business increased from 17000 to 70000;

3 ） In the past 40 years, The sea transportation increased from 60 kilo ton.miles to 270 kilo

ton.miles.

The changing China #1—from “ Quantity” to “Quality”

Since opening to the outside world for the last 30 years, China is the most quickest economy increasing country(1979-2009), the average economy increase with the high level of 9.8%, Chinese GDP already exceed Japan and play the number two of global business, lots of index ( car sales, phone user etc.)reach No. one, “Quantity” realized, the pressure of resource, environment and competition increased, so the development must change from “ quantity” to “Quality, targeting the biggest both the strongest.

For the first time, Chinese urbanization is over 50% in 2011, the future urbanization will speed

up growth.

The changing China #2—Urbanization progress

The changing China #3—Cheap labor cost will no longer back again

In the past 30 years from Reform and Open, labor cost increased average 14% annually.

Salary doubles every five years. Comparing with developed countries, the gap of labor

cost reduced from 20 times to 4-6 times

The changing China #4--- Environment and resource pressure increased rapidly

The current volume of 45 main minerals will only remain 24 after 5-10 years, only 6 after

15-20 years, 1/4 people still drink unqualified water, one third of city people breath

polluted air, city rubbish innocuous treatment less than 20%, Industry hazardous wastes

treatment only 32%, the top 10 polluted cities and 5 of them in China.

The changing China #5—Over capacity, intensifying competition

Unbalance growth on investment and consumption

1 ） Average growth rate on fix asset investment was over 20%

in continues four years from 2002-2005, but growth on

consumption(social retail goods)was between 9%-13%, the

former one is about two times quicker than the later

2 ） Typical industry: steel, electrolytic aluminium, car, alloy,

calcium carbide, copper, casting etc. over capacity and

competition more aggressive.

The changing China #6—the power of Times

The progress of the times create the new products and new industry, same time also

speed up the elimination of products and industry.

Times progress, intensifying competition. No continue innovation means to be

eliminated quickly.

China aerospace-manifest the power of technology

The changing China #7– The power of Technology

Future manufacture must integrate the advanced technology：Support technology——IT

Key technology——virtual manufacture, Rapid Prototyping, intelligent manufacture……

Technology innovation and talents

？

Bi-power of innovation: Technology +Talents

KOCEL ”Four” innovation model

Innovative idea ： Continue create innovation idea, construct innovation environment;

Innovative plan ： Promote the innovation by new scheme, innovation plan;

Innovation regulation and system: Build innovation regulation and matrix research & innovation

system;

Innovation working mode ： CSP/6σ—The way we work.

Three management revolution, three ideological emancipation, overcome three crisis

Continues innovation

Set up specific duty leader and staff.

Adapt company transition, flattening organization, cancel section system

Reorganization

Talents Creating: boost ”KOCEL rapid talent creating”

Volume is precondition, stable is the base, quality is indemnity.

Focus on long term structure adjustment

Current demand volume and future development demand volume

Position, age, education background, skill, job title etc. structure.

.

Health, morality, skill

Green manufacturing

The whole life of product from designing. Manufacturing, package, transportation, using until

dumping, the impact (negative affect)to environment is minimum, resource efficiency is

maximum .

Green manufacturing

“Five green”( Green design, Green material, Green technology, Green package, Green treatment)

Green manufacturing mode

Green manufacturing is integrated apply biotechnology, green chemistry, IT technology and

environmental research result make the manufacture process no or less create waste and pollutant or

manufacture system comprehensive integrated ecotype manufacturing technology。Green manufacturing mode is the way to realize manufacturing long term continues development model.

The way to solve the problem

Anything can be done as far as your thought can go to

Research of transition development mode

Manufacturing

Research

Market

Sales

Management……

Manufacturing

Market Research

Service

Feature 1: Pre-Manufacturing( marketing, research) and after Manufacturing( service) will be bigger, manufacturing process will be smaller.

Feature 2: Supply total solution

WanDa Square

Sell stuff→ sell program, sell service, sell stuff etc.

80% employee work on site→ less than 50% employee work on

site

Profit from manufacture→ profit from research and service etc.

Feature 3: Digital company

The symbol of 21 century manufacturing will be the double I ( Intelligent and Integration)

Feature 4”: Win By Speed

Speed will determine the competition capability of manufacture company. Sales

revenue requires double every 3-5 years. Win By Speed.

Feature 5: Advanced technology, Green Manufacturing, Continue innovation.

Rapid develop technologyUse in the company

Web of the things DNC intelligent facility

Cloud computing Private cloud, thin client

IT technology TDM

New material, new technology, biotechnology

Virtual manufacturing, green manufacturing

New system, New process ERP, PDM, MES, RF, Bar code

One year no innovation, development will stop;

Two years no innovation, Company will retrogress;

Three no innovation, face to be eliminated!

Feature 6: High-end products, Boutique, guide consumption, win with the brand

Feature 7: Cooperation and win-win, Share the glory

KOCEL CONNOTATION: WORKING TOGETHER, GROWING TOGETHER, SHARING THE GLORY