When the cost of LED display products continues to increase, companies must seize opportunities from

When the cost of LED display products continues to increase, companies must seize opportunities from factory management|Huaze Optoelectronics

by:XY Screens     2021-09-18
With rising manufacturing costs in China, some experts believe that it is about to catch up with the United States. In the case of our LED display manufacturing industry, land costs, labor costs, operating costs, etc. have also been soaring in the past two years. Transformation and upgrading has become a top priority. We must learn from the experience of other advanced countries in order to achieve a smooth transition in the industry. Today, we will learn from the major differences in factory management between China and the United States, and learn the advanced experience of the United States for manufacturing factory management, so as to optimize the management level of domestic LED display manufacturing factories. A large number of non-core work is outsourced. The proportion of supporting personnel in Chinese factories is very high. Some supporting personnel are used to cope with unexpected needs. There is not much work in normal times, and there are not enough people in emergency. The non-core work in American factories is basically outsourced. Outsourcing companies are actually more professional and more efficient. Therefore, it is difficult to see non-core personnel in American factories. The deployment of non-core personnel in Chinese factories is not only necessary for one factory, but also for many departments in order to facilitate the use.  The division of labor in the industrial chain is stable and the transaction cost is low.   Most of the American factories we have seen have no salespersons, even if there are few, they are part-time or the boss is a salesperson. The industrial chain has a clear division of labor and very stable transactions, most of which are long-term contracts. Everyone focuses on ensuring stable quality.  Chinese workers are basically process operations, and American workers are basically process operations.   In China, a process is a job, a carrot and a pit. The workers are basically stationary, and the production line is moving. The degree of personnel intensity is determined by the process. This is the basic feature of Chinese factory management. In the United States, there is one job for one process, and one worker is responsible for all processes. The production line is on the move, and the workers are on the move. A worker can be responsible for a production line or even a factory.   Even if Chinese factories use machines to replace labor, it is also a simple process replacement. The number of machines has increased, but the dependence on personnel is still great. Because of this, China's manufacturing costs are determined by the number of workers. Although the wages of workers in the United States are high, their proportion of costs is very low. We simply calculated the manufacturing costs of a company of the same size in the United States and China. The United States turned out to be only half of China's.  The difference in equipment between Chinese and American factories is not the core, but the division of labor is the core.  From the perspective of advanced equipment, some factories in the United States may not necessarily have advantages, and some Chinese factories are also highly advanced and automated. However, it is still inferior to the American factory. I think the United States is determined by the difference in the division of labor.   China's professional division of labor is very detailed, even down to the process, the decisive factor becomes proficiency rather than professional level. The division of labor among American workers is the division of labor, and a process must be familiar to all. We see that the literacy level of American workers is not very high.    The factory basically has only one level of management.   Chinese factories have many management levels. Because the management level is determined by the number of people. American factories are basically managed at one level, or the manager is just one person. Therefore, there are many factories in the United States.   On the contrary, Chinese factories have very large numbers of employees, and the division of labor between functional departments is extremely fine, and each department has managers. Therefore, there are a lot of non-production personnel in Chinese factories. The division of labor requires the coordination of management personnel, and as long as coordination is required, management is refined.  Strict process operation is very efficient  The advantage of stable process is that it is orderly, unlike China, where everyone is busy.  Computers are used for factory control and management  There are also very advanced companies in China that use computers to control automated production, but the use of computers in production management and control in the United States has become regular, and data analysis is very important. From this point of view, although the United States did not mention Industry 4.0, it started earlier than us.  Frequent corporate mergers and acquisitions  Chinese factories, many self-built. In the United States, most of the factories we have seen have a history of mergers and acquisitions, and even more of those with a history of hundreds of years.   It can be seen from the above points that the current manufacturing industry in China is now at a critical point, which is the critical point of labor costs and machine replacement. With a good transition at this critical point, the advantage of Chinese manufacturing can be maintained, otherwise, it will really be 'sandwich biscuits'. Not only does it have no competitive advantage compared with the manufacturing industries in Vietnam and India, it also has no competitive advantage compared with the manufacturing industry in the United States.   By 2017, we have more clearly felt that the current transformation of China's manufacturing industry is also underway. Today's real economy manufacturing industry is developing in the direction of smart manufacturing, and our LED display is no exception. At present, in the process of transformation and development of the traditional LED display manufacturing industry, in fact, many LED display companies are actively promoting the industrial layout of the intelligent manufacturing industry, and are starting to upgrade the related management work.  For example, the Ru0026D and manufacturing of our LED display industry and the upgrading of factory management, from the on-demand production order to the final product production, all can be managed in an information-based way. Let information technology and intelligent machines reform the traditional led display manufacturing industry, and let the led display manufacturing industry enter the industrial 'industry 4.0 era'.
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