Recently, the 'Yuchai Group "Second Entrepreneurship" and 2014-2018 Strategic Planning Outline' was officially released. A new mission is once again placed before the people of Yuchai——

Enterprise development strategy adjusted in due course

In October 2013, on the banks of the surging Yellow River, in the new planning area of the Baotou Equipment Manufacturing Industrial Park in Inner Mongolia, with the roar of machines, the Beiben Yuchai Engine Co., Ltd. project officially broke ground. This long-debated and highly anticipated project finally landed, attracting widespread attention in the automotive industry.

The marriage between Yuchai and Beiben first surfaced in 2012. In April of that year, Yan Ping, Chairman of the Board of Yuchai Group, met with Zhang Guoqing, General Manager of China North Industries Group Corporation, and they discussed the development of China's automotive and engine industries. As domestic automakers continue to join forces with foreign engine companies to set up factories in China, competition in the domestic commercial vehicle industry, especially the heavy truck industry, has become increasingly fierce. From competition in core components to competition in complete vehicles, competition has penetrated every link of manufacturing and sales, and the entire market is filled with smoke. As domestic complete vehicle and engine manufacturers, Yuchai and Beiben joining hands to cope has become a win-win choice.

After years of development, Yuchai has gradually found an industrial layout model linked by capital and complementary products, from 'setting up factories near complete vehicle plants' to 'setting up factories supporting complete vehicle plants'. This investment model is what Yuchai managers call 'lean investment', and it also represents the transformation direction of Yuchai's external expansion.

This transformation has continuously influenced Yuchai's overall industrial layout. In 2014, Yan Ping said that Yuchai Group would realistically adjust its strategic planning, changing from the six major industry sector pattern of 'two product chains, multiple industry clusters' to a new pattern of 'two industry chains, two major service platforms', repositioning the group's development model, concentrating strength and resources, stretching vertically and horizontally into the engine industry chain and the petrochemical industry chain, vigorously developing the group's logistics service platform and financial service platform, and building the group's value highland.

Among the two industry chains mentioned by Yan Ping, Qinzhou Yuchai Petrochemical Company is a piece Yuchai has placed in the energy and chemical industry, and Yuchai Petronas Advanced Lubricant Company is another point Yuchai has placed in the energy and chemical industry. In the upstream of engine manufacturing, Yuchai has continuously built industrial companies. These industrial companies are like scattered pearls strung together to form a brilliant industry chain.

'Awakening' rapid corporate response

The enterprise development strategy has been adjusted, but how should the enterprise itself adjust? How an elephant turns around still depends on the enterprise's own response speed.

In traditional institutional management, the hierarchical management model based on a pyramid structure cannot meet the needs of a rapidly developing market. At the same time, with the massive application of computer information technology, communication has become more convenient and timely, and we have begun to enter the information age. Enterprises must establish a rapid response mechanism.

December 16, 2013, was a day of major moves for Yuchai. Facing the new situation and meeting new challenges, Yuchai quickly adjusted its departmental structure.

This was a massive institutional adjustment. Yuchai comprehensively standardized the names of organizational structures and cadre positions, solving problems such as inconsistent and confusing names between first-level and second-level organizations. But more importantly, starting from the enterprise's strategic goals, it reorganized various departments, operating effective resources on a unified platform, and gathering all strength to provide support for Yuchai's 'second entrepreneurship'. Among the newly adjusted departments, the Marine and Electrical Division underwent the biggest changes. Yuchai transferred the Marine Electrical R&D Institute from the Engineering Research Institute to the Marine and Electrical Division, and incorporated the marine electrical application development and matching confirmation organizations, merging them into the second-level organization 'Marine Electrical R&D Institute'. It also transferred the marine electrical business section of the Overseas Division to the Marine and Electrical Division, increased the number of overseas regions from 5 to 8, and merged the No. 6 Engine Plant into the management of the Marine and Electrical Division. In this way, the Marine and Electrical Division has a complete set of capabilities from production, R&D and matching to product sales and after-sales service, initially forming the framework of an entire company.

Tang Zuoxing, General Manager of the Marine and Electrical Division, said: 'This institutional adjustment is an innovation in the company's management. The company plans and adjusts the marine electrical sector this way mainly because it is optimistic about the development prospects of the marine electrical market and to lay the foundation for the marine electrical power to sprint toward the annual sales target of 100,000 units in three years. After the institutional adjustment of the Marine and Electrical Division, R&D, technology, production, and sales will all be more professional, making it easier to unify employees' thinking and understanding and easier to coordinate resources.'

Shen Guang, Manager of the Enterprise Management Department, introduced that the main purpose of the company's organizational adjustment is to make the company's market response faster, further flatten the organization, make resource and functional layout more reasonable, and make internal collaboration more efficient. This organizational adjustment is of great significance for enhancing the company's manufacturing capacity, management and control capacity, and comprehensive competitiveness.

High-end talent echelon boosts 'second entrepreneurship'

Over the past 30 years and more, China first experienced wave after wave of 'study abroad fever', and then wave after wave of 'return tide'. Now, China's introduction of overseas talent is no longer limited to returnees; many foreign experts are continuously pouring into China.

The newly appointed Yuchai Manufacturing Director Kazuho Yamada is one of them. This Japanese expert with a gray beard originally worked at Honda in Japan, and his colleagues—Minoru Kawakami and Seiwa Yamada from Toyota—arrived even earlier. In 2013, they began serving Yuchai, helping Yuchai promote lean manufacturing.

The introduction of Japanese experts has clearly improved the production line. Now the heavy machine assembly section of Yuchai's No. 5 Engine Plant is in good order, and the production line layout is more reasonable. Not long ago, the factory was even able to free up a space from the originally crowded workshop to set up an engine assembly training base for training new employees.

Introducing overseas talent is only part of Yuchai's talent strategy. At the 'second entrepreneurship' seminar, Yan Ping said that Yuchai must do a good job in talent reserves for the 'second entrepreneurship'. The human resources reserve of Yuchai Co., Ltd. is divided into two parts. First, externally hired talent; this year, at least three high-end directors (Quality Director, Finance Director, Human Resources Director) must be recruited. These talents should at least be from Fortune 500 companies and among the top in manufacturing. Second, exceptionally promote a group of 'post-80s' reserve talents who have worked at Yuchai for 5 to 10 years, and at the same time innovate talent training and assessment work. Yuchai Group's human resources reserve focuses on breakthroughs in the introduction and training of talent in law, finance, human resources, and management. It must combine with the clear goals proposed by 'second entrepreneurship', boldly promote young cadres, and not select and appoint people according to seniority.

Wang Chunfeng is such a young person who was exceptionally promoted. After years of accumulation in the Manufacturing Technology Department, through competitive selection, Yuchai promoted her to serve as assistant to Kazuho Yamada.

As a result, people often see a pairing of an old man and a young person in the factory. Such a talent echelon is Yuchai's most valuable asset and also Yuchai's hope.