Special
Haohua Chemical takes steps to improve management
Source: ChemChina Date: 2012-11-28

To make sure that the company reaches its goal for the year, the China Haohua Chemical (Group) Co has been improving operations since the beginning of the fourth quarter, and increasing logistics reforms, quality, safety, and facility supervision to improve performance and increase efficiency.

All subsidiaries have responded well to the group’s call to “start with each person for continuous improvements” and have found ways to improve operations and profits, with specific ways to control costs and have new benefits, with WCM/CI concepts in mind for more effective, scientific management, reduced costs, and greater efficiency.

Through a group of Six Sigma projects, these enterprises have seen more profits and better efficiency and, to date, the WCM/CI activities have helped Haohua get nearly 100 million yuan in profits. Five alkali companies under the alkali department made 80 million yuan from 1,670 projects, and closing 1, 095. Haohua Honghe Chemical set their task and added other management methods, such as Six Sigma, lean production, 5s, TPM, and visual management to improve management. The Chemical Industry Zhonghao Chenguang Research Institute did some TRIZ innovations and all five TRIZ activities passed the evaluation process and 6 patents have been approved and it expects an additional 4 million yuan in profits. Heilongjiang Haohua Chemical improved the use of coke coal and new types of artificial gas, so that the cost of coal blending has gone from 1,340 yuan to 1,160 yuan per ton, while artificial gas has gone from 331 yuan to 232 yuan, and urea is down by 190 yuan.

Haohua has cut costs and increased efficiency by improving production, operations, and use of equipment. All subsidiaries have looked for ways to ensure a steady energy supply for stable production. Haohua used its ample water, power, and gas supplies during the fourth quarter for higher production in areas such as soda, and produced 71,500 tons more soda during the second half of the year than in the first half, hitting its goal of 16.5 million yuan in profits.
Haohua also improved consumption controls with constant monitoring of all production indices such as fluctuations in the key process. Energy saving and reduced-consumption have been enough to ensure 5 million yuan in savings in the fourth quarter. The Dezhou Shihua Chemical Co, for example, has been optimizing production through better planning based on market trends and the sale margin of each product. The Haohua Junhua Group Co introduced better, comprehensive lean management practices for continued improvements and for all equipment to reduce equipment failures.

The companies also improved equipment checks and overhauls to ensure consistency and cut equipment maintenance costs, thereby lowering minor maintenance costs by 6 million yuan. The Hebei Xinji Chemical Co made specific management changes with an evaluation system and stronger management measures so the equipment operates at 100 percent rate and there is safe, stable, satisfactory, high-quality economic growth. The Chemical Industry Liming Research Institute improved the use of its instruments by consolidating production processes to ensure safe, stable operations.

For these companies, safety means efficiency and all of them have given priority to safe production to use their full potential and increase efficiency. The Haohua Junhua Co held a safe production competition to increase safety awareness, accountability, and a sense of responsibility among its leaders. They want to standardize safe production, duties, and professionalism. To deal with major accidents and emergencies there have been drills and tighter controls in hazardous areas. There have been safety training courses based on Dupont Co methods, to deal with blind spots, territorial management, and line responsibility for safer production and full responsibility for each worker. There has been increased training and certification for some special workers. There are constant pressure vessel and pipeline checks, and a crack-down on sloppy practices to nip any dangers in the bud and ensure safe, stable, satisfactory, high-quality operations. The Hebei Xinji Chemical Co has enforced safety and made it a priority with increased spending. There are safety fees, workplace insurance, a risk mortgage system, and the distribution of protective gear and supplies and special gear for special workers.

The Chemical Industry Liming Research Institute established an inventory work team to increase inventory controls and found ways to check on, reduce, and put a limit on stock. It also made dynamic management changes through fee charging above the quota. The Chemical Industry Zhonghao Chenguang Research Institute inventoried their stock and got rid of 200,000-yuan worth of old stock. Meanwhile, the Hualing Coating Co reduced its amount of stock and began monitoring the cost of imports and the exchange rate and a reasonable amount of stock. This ensured sales, cut costs and capital expenditures, and avoided stock depreciation. The Xingtai Hengyuan Chemical Co got rid of old stock and increased cash in circulation, while the Haohua North Chemical Co monitored supply purchases and the amount of stock.

The Hunan Xiangwei Co cooperated with the local railway and managed to increase its use of rail transportation of PVA by more than 40 percent, and used large vehicles and a more competitive transport mechanism. This cut logistics and transport costs by 360,000 yuan. The Hunan Haohua Chemical Co also cooperated with the local railway and calmed the railway company’s fears of liquid pesticide transport to ensure lower long-distance transport costs. It also carefully checked the charges of various road transport companies to ensure a savings of 260,000 yuan in logistics in the fourth quarter.

The Haohua Junhua Co set up a supervisory mechanism to do random checks of its products to look for problems and combine quality management with work quality. The Haohua North Chemical Co increased product and process testing to ensure quality, while the Dezhou Shihua Chemical Co did spot checks on PVC resin packages and liquid chlorine and announced the results on its OA system. In this way, these companies increased the sense of responsibility of all workers, reduced customer complaints about the reduced size of goods and reduced property losses caused by overweight.

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