Analysis China Haohua Chemical Industry Corporation

1.0.1 Create consistency of purpose towards improvement.

Managers are asked to release their focus from the short-term, establishing long-term operation mechanism and become a competitive, can long survive, can sustainable development and can provide job opportunity company.

1.0.2 Adopt the new philosophy

Enterprise must absolutely don't tolerate the poor raw materials, improper operation, defective products and loose service, instead ,it must use could deal with new idea of the competition, and the quality must be enterprise's faith. Deming said: "The cost of survival and the need to spend money to buy goods and services is inversely proportional to the quality, such as: reliable service can reduce costs but delay the service or wrong will increase the cost." Due to the delay of the service and error, goods and service consumption has been terminated, this reduces the significance of their existence. High quality, not a scrap or defective products, the production cost would decline, the production efficiency increase, customers satisfaction and loyalty increase so the profits will increase. If the problem products reach the customers, tangible or intangible loss will be more big, means that it;s will increase the cost. This means, high quality not expensive but low quality. Stop worrying quarterly profit, focus on comprehensive improve quality, began to design products should take the quality in mind.

1.0.3 Cease dependence on inspection

The early American quality management expert Shehart suggests:products' quality is not based on inspection but production, the key point of quality control should focus on manufacturing stage. In fact inspection is means get ready for get inferior-quality products, it already too late when you inspect out, and it increased the cost decreased the profits. And another American quality management expert Philip Crosby further put forward: quality system is used for prevent not inspection. Inspection is pick out the bad from the goods when the process finished, but not promote improvement.

Prevent in the design phase of the process, including communication, plan, verification and eliminate appear do not accord with the opportunity. Through prevention produce quality, request the resource allocation can guarantee work properly done, not to the waste of resources in the question search and recovery above. Deming also have the same opinion with Shehart and Crosby, he said : "To test out the defective things, put them away for the purpose is late, no efficiency and cost too much. Quality is not from inspection but in process improvement." Inspection itself did not improve the quality, also can't fully guarantee quality. Quality good or bad, already exist on product. And in most cases, a large number of inspection was expensive and not reliable, and can't will defect product and product strictly separate, right way is to improve production system process.

1.0.4 Move towards a single supplier for any one item

In order to achieve this key points, the company have to the supplier development ability and potential to a thorough investigation and research, and optimize the choose and buy, ensure the overall cost of the decline. Low purchasing can reduce costs, but that only when the total cost of the product a part, and the right way is to realize the total cost should be minimized. Dr Deming suggest enterprise should establish long-term Suggestions to the loyalty and trust of supply and demand relation as the goal, take a project a supplier in the direction of the transformation. In order to achieve this key points, the company have to go through research to understand the supplier's ability and potential then choose the better one, ensure the overall cost decline.

1.0.5 Improve constantly and forever

This point that the manager have to motivate itself by continuous improve the organisation's product and service system, through improve the quality and production efficiency way to make the total cost decrease.

Most western manager still saw "the higher quality, the higher the cost" for the law. Actually we need to change this thought to make people believe : if we put our focus on quality ,the quality of the products would improve and the cost will dicrease.

With the plastic nickel plating and gold-plated bath tap head as the example, to show that two different plating material the leading difference, obviously the gold one cost much higher than the plastic one. someone will say gold-plated leading grade, and naturaly have a better quality than plastic. and in fact, from practical measure, the function, characteristics and life are no obvious difference between them, and the plastic accessible to the public; Especially in leading existing security problems, so in gold-plated leading on the cost of investment spending itself is a contentious issue.

Other wise ,if there are two companies, they both product these two kinds of taps, only the one which have good product method and scale product more possible decrease the cost and increase the competition. This suggests that need to pass a pick a continuous improvement measures to take, gradually reduce the cost to produce the effect Therefore, the improvement of the quality of and cost reduction depends mainly on enterprise constantly improving production and service system.

1.0.6 Institute training on the job

Put forward by Deming, enterprise training must be planned, and must be established in acceptable standard of work. Must use statistical methods to measure whether the training work, sure that everyone have the skills and knowledge to do the work.

In many companies, often have little or no training, and employees don't know when to complete their work. Eliminate not suitable for training is very difficult. Deming stressed: as long as the work product also is not statistical control, and still can obtain more benefits, training should not be suspended.

1.0.7 Institute leadership

The purpose of the competent set up is to organize and coordinate personnel, equipment and the concept of management effectively, make the job better. Managers should focus on activities of supervision and inspection and timely action on detail as the process of production monitoring to ensure the realization of the expected objectives.

In the process of carry out the management goal, managers played a leading role, do not need do every thing, but is the necessary appropriate support,