Yuchai leaps into the world's leading position in the industry

Heavy Industry Network News: In 2003, Guangxi Yuchai Group achieved sales revenue of more than 7.1 billion yuan, of which Yuchai Diesel Engine Co., Ltd. produced more than 180,000 diesel engines of various types, sold over 170,000 units, and achieved sales revenue of 5.2 billion yuan. 890 million yuan, respectively, increased by 25%, 31%, 31% and 34% compared with 2002. Compared with the separately accounted manufacturing plants, its annual sales volume ranks first in the world for heavy-duty commercial vehicles.

In 2003, Yuchai also made a series of remarkable achievements: On October 27th, the “Wall Street Business Investment Daily” announced the list of top 100 foreign companies’ top performers with the best performance and largest potential listing in the main edition of New York. Chai Gao tops the list and ranks first; on November 28th, the results of the first survey on customer satisfaction with product quality in the Chinese market jointly organized by the China Quality Association and other units were published in the Great Hall of the People. Yuchai Engine Products received “Chinese Diesel Engine Market Customer Satisfaction” "The first brand" was titled; Yuchai exported 161 sets of Japanese marine vessels and achieved zero breakthrough in the engine-exporting developed countries at one stroke, once again refreshing historical records.

Under the severe influence of the SARS epidemic, Yuchai’s efforts to achieve sustained and substantial growth under the restrictions of the country’s termination of auto credit, limited overload, and limited emissions are the key to the implementation of the three major systems.

The active communication of the production system, the effective supply-production-market connection, the formation of benign interaction, and the reversal of passive sales of production orders. Yuchai's innovative production management system uses the MK system to balance parts for mature batch production models. It manages the entire process from prototype orders to car manufacturers and uses information systems for management. The production efficiency has steadily improved. At the same time, it strictly controlled costs, adopted the “separate pricing method for procurement volume” and reduced the prices of more than 2,400 parts and components in different degrees, saving procurement costs of RMB 170 million throughout the year.

The sales system adopts flexible policies and strengthens communication and publicity. Throughout the year, 26 national or regional marketing planning activities are organized to meet challenges, perform uncannyly, and expand the product market. A total of 478 models have been developed to support the formation of batch machines. 105 companies, 56 basic products of the company and 130 factories across the country successfully achieved support; 57 service stations were added throughout the country to provide after-sale tracking services.

With respect to technical quality systems, due to careful organization and extraordinary performance, the new product development cycle has been greatly shortened, from 24 to 36 months in general, to an average of 18 to 24 months, and 26 new product development tasks in 2003. The company had no batch quality accidents throughout the year. In 2003, the total failure rate decreased by 20.8% from the same period of last year. All six series of products passed the automotive certification of China Automobile Certification Center, and product varieties, design levels, and process levels achieved rapid development.

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