Xin De Kai DuanTM & Harmonious DownsizingTM for Heavy Manufacturing SOE in China
A Fortune 500 company entered into a joint venture with a very conservative State Owned Enterprise (SOE) and had taken over management responsibility for a run-down smelting and rolling facility in a remote area of China.
Requirements:
Salzer Consulting was engaged to arrange the organisational restructure (downsizing) and Behaviour Modification Program – Xin De Kai DuanTM working in conjunction with the technical refurbishment of the facility.
Process:
Work practices were substandard, in addition to being dangerous, lazy and dirty, resulting in low quality output. The historic authoritarian management punished initiative and avoided maintenance unless there was a breakdown. The workforce had been with the company for many years and had experienced no other work environment.
Salzer Consulting ran the Behaviour Change Program resulting in significant changes in attitude:
1. Significant increases in safety practices and a subsequent drop in accidents
2. Workers taking full responsibility for their areas and work
3. Significant improvement in productivity and quality
4. Clean working environments
5. Less workers doing more work, retention of talented younger engineers
6. Transparency and information flow was much improved
7. The facility was downsized by over 30% with no adverse issues
Outcome:
The initial Scoping Study revealed the extent of the internal problems and the workers who were excess to requirements. The restructure ensured a better, more efficient facility and accompanied by the behavioural change program, resulted in improved incentive schemes, new certification processes, upgraded reporting systems, an accountable and responsible workforce, and the removal of corruption and nepotism.
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