Winning the turnaround battle in the fourth quarter of the decisive battle, the "top leaders" expressed their determination to complete it!

2023-10-26


The Operations Management Department focuses on lean management and extreme operations. Firstly, it deepens benchmarking and identifies gaps, continuously improving the company's six major categories, 30 items, and 74 KPI indicators. In combination with the Baowu series's "Full Process Benchmarking and Improvement" special labor competition, as well as a deep benchmarking with the Laiwu base's 18 improvement checklist, it aims to identify opportunities, gaps, and positions. The second is to strengthen lean management, tighten 98 KPI indicators for 16 company level and 43 factory level lean management projects, and strengthen the implementation and effectiveness of lean projects. Daily tracking, weekly scheduling, and monthly evaluation will be carried out to achieve a project compliance rate of over 80% in October, ensuring the effective implementation of the potential of 220 million yuan in the fourth quarter; Targeting the company's key management bottleneck issues, we will use the existing 12 lean management improvement projects as the main focus to effectively enhance our development capabilities. The third is to assist in extreme cost reduction, organize and promote lean diagnosis of outsourcing business, sort out contracts item by item, and lay the foundation for significantly reducing outsourcing costs; Strengthen bidding to reduce costs, especially carry out further price negotiations after determining the transaction unit, and supervise the creation of an efficiency of over 5 million yuan; Efforts should be made to rectify audit issues, reduce costs, and increase profits by over 10 million yuan. The fourth is to drive innovation and increase efficiency, strengthen the management of technological innovation projects, improve product quality and technological innovation efficiency; Accelerate the selection and issuance of "unveiling and leading" projects, and effectively solve the bottleneck problems that hinder the high-quality development of the company; Actively research government support funds, tax preferential policies, etc., and make full use of policies to create efficiency. The fifth is to provide precise assessment guidance, use the assessment baton effectively to reduce costs and increase efficiency, develop special assessment methods for business goals, and strictly implement special assessments for cost reduction work. The second half of the year's business goals will be closely combined with the "team horse racing" and the "one person, one table" in the middle level, to ensure the comprehensive achievement of the annual business goals.

Faced with crises and challenges, the finance department has highlighted the "accounting" operation, transitioning from "doing calculations" to "doing calculations". Each month, we focus on each month, step by step, and spare no effort to battle the fourth quarter and win the turnaround battle.

1、 Process tapping, benchmarking and cost reduction, achieving cost reduction and efficiency increase

Firmly establish the awareness of "all costs can be reduced" and ensure that the comparable cost per ton of steel in the fourth quarter is reduced by 190 yuan; Comprehensively sort out outsourcing expenses, conduct in-depth benchmarking and learning with Laiwu Branch, and ensure that outsourcing expenses decrease by 75.5 million yuan compared to last year in the fourth quarter. On the basis of the decrease from January to September, tap into the potential of 25.5 million yuan.

2、 Strictly control risks, reduce the occupation of two funds, and ensure fund safety

We attach great importance to the safety of the capital chain, adhere to the principle of 'cash is king', and ensure that the cash flow deserves a pay for ratio of ≥ 90%. By combining procurement and sales plans, we will effectively manage funds, continuously strengthen budget management, and enhance our ability to guarantee funds. Strictly control non productive expenses, not spend a penny of money that should not be spent, ensure stable cash flow, and ensure the safety of the capital chain.

3、 Strengthen research and judgment, market-oriented, and continuously adjust the variety structure

Adhere to the principle of "production with orders, marginal production, profitable income, and cash profit". Strengthen market research and judgment, control the pace of receiving orders, and avoid being short-sighted. Dynamically optimize resource allocation, achieve high contribution in cold rolling and galvanizing production lines, with extremely high production, heat treatment, thin specifications of 3500 mm production lines, and stable and high production of 9Ni steel.

4、 Lean control and make every effort to reduce inventory

Extremely reduce product inventory and reduce capital occupation. Steel billets, intermediate products, and finished products are controlled at 4.4+7.3+27000 tons; Purchase bulk raw materials and fuels as needed, strictly prevent them from falling short and avoid impairment losses; Ensure that raw fuel inventory is minimized while maintaining normal production.

The Equipment Management Department plays a key role in ensuring the stability and smooth operation of equipment, using lean management as an effective means to reduce costs, comprehensively reduce equipment control costs, achieve economic operation of equipment, and make every effort to stabilize equipment, improve efficiency, and promote production, providing solid equipment support for winning survival and defense battles.

Strengthen professional management, establish 7 assistance teams, carry out 67 on-site problem solving tasks, and implement precise on-site assistance. Optimize mainline maintenance contracts, conduct in-depth on-site research, analyze the situation of contracts that are about to expire, accurately integrate maintenance scope, optimize procurement strategies, and significantly reduce maintenance costs. Deeply promote the on-site observation method for maintenance, optimize maintenance organization, improve maintenance efficiency, improve maintenance performance, strive to reduce maintenance time, and provide conditions for increasing production. Strengthen the full lifecycle management of functional accuracy control point status, further optimize and improve equipment functional accuracy control measures, and ensure that functional accuracy meets production and quality assurance needs. Utilizing information platforms to gradually simplify, intelligentize, and informationize equipment management, achieving intelligent spot checks, status warnings, maintenance strategy prompts, and other functions, providing reliable support for precision preventive maintenance. Following the principle of non essential procurement, replacing procurement with repair, and precise supply assurance, we will carefully and effectively control the source of spare parts planning. Carry out management measures such as repairing old and recycling waste, and replacing spare parts with domestic ones, further reducing equipment control costs and minimizing costs.

The marketing department quickly recognizes the tasks and objectives assigned by the company, unifies its thinking, strengthens confidence, and deeply explores the market potential of both purchasing and selling markets externally. Internally, lean management is implemented to achieve ultimate cost reduction and efficiency increase.

The procurement side optimizes procurement strategies, expands sourcing, negotiates price reductions, actively collaborates with production plants to optimize procurement structure and reduce procurement prices. In terms of scrap steel procurement, expand channels for iron block procurement, purchase shipping iron blocks, and reduce dependence on resources within the province; Optimize the procurement structure of scrap steel, based on the existing material types, and adjust the procurement proportion of each material type according to market conditions; Continue to develop high-quality scrap steel shapes with high cost-effectiveness. In terms of coking coal procurement, we will implement tail off resources, cooperate with the marketing headquarters to carry out price reduction negotiations to increase efficiency, ensure long-term cooperation resources, and optimize the local coal resource structure. In terms of procurement of materials and spare parts, we will expand our sourcing through the Obey platform, conduct price reduction negotiations, and strictly control non essential material expenses.

On the sales side, by analyzing the market, expanding sales channels, and increasing sales revenue. In terms of chemical products, analyze the market, optimize regional resource allocation, adjust prices in a timely manner, and ship at high prices; In terms of sweeping away floating wealth, we will increase the publicity of bidding information, expand customer sourcing, consolidate the collection of production waste materials such as refractory materials, dust removal ash, and iron ditch waste that are periodically produced offline by production units, and achieve immediate production, sales, and cleaning. For precious alloy spare parts such as stainless steel and copper, we will increase the online hanging time to ensure high-quality and competitive prices.

The Public Welfare Department focuses on the goals and tasks assigned by the company, unwavering confidence, facing difficulties, and reducing expenses to the extreme, helping the enterprise win the battle of survival and defense.

Targeted force, precise strategy implementation. Thoroughly analyze cost and expense, integrate and optimize from the source of business, improve the precise control of cost and expense, ensure production and operation, strictly control expense expenditures, and eliminate all unnecessary expenses. Increase efforts to improve work, tap into business potential, formulate detailed benchmarking and fee reduction solutions, and promote continuous cost reduction. Carry out negotiations on cost reduction for BOO/BOT projects and production service businesses, launch the "ultimate cost reduction" campaign, and solve the "bottleneck" problem that restricts cost reduction. With high execution ability and strong sense of responsibility, improve work efficiency and value creation ability, so that every link, every business, and every person can create value, moving towards high efficiency and efficiency.

The horn has sounded, the war drum has been sounded

Everyone is a fighter in this tough battle

Time waits for no one

Get moving and working quickly

Win the turnaround battle in the fourth quarter of the decisive battle