The Way to Realize the Lean Management of Grain and Oil Enterprises

With the gradual deepening of China's grain and oil industry reform and the continuous development of the market, more and more grain and oil companies have discovered the importance of supply chain management. However, in the course of daily operations, there are still problems that need to be resolved.

I. Grain and oil companies to achieve lean management issues Grain and oil companies lean management includes three elements: management philosophy, management mechanisms and management framework.

Each boss has his own management philosophy. The concept is a starting point for a corporate management model, with different concepts, and the final results of management are very different. Operation and management rules under the guidance of the concept form a management mechanism, management concepts and mechanisms run on a track to build a management framework. The fulcrum of the management model, management mechanism, and management framework constitute the management model.

The way to win in business management lies in remolding the management concept of the boss and creating a management model. From the management practices of loss reduction to profit in dozens of companies such as COFCO Pengtai, COFCO Rud, COFCO Haijia, and Hualin Noodle Industry Co., Ltd. From a perspective, the fruitful management model of grain and oil companies was summarized as the “ternary management model” by Zhang Xiaoping, former deputy head of China Grain Industry. It subverts the traditional management mode of production, supply and sales, and divides the company from R&D to sales into 7 small business units: finance, human resources, R&D, procurement, production, logistics, and sales, based on each small business unit in the corporate value chain. Different functions and relationships were reorganized into three major business units: central control, product production, and processing circulation. Because this restructuring is a reengineering of the company's value chain, he fundamentally solved the most troublesome problems for grain and oil companies: Cost!

According to the old sayings of the grain and oil industry, the profits of the enterprises are on the by-products and transportation, and it should be said that grain and oil companies should all be careful masters, but the Tianze line of grain and oil marketing planning team visited hundreds of domestic grain, oil and flour enterprises and discovered grain and oil companies. There are at least two major issues in business management:

1. Focus only on explicit costs and ignore hidden costs. Wheat prices, soybean prices, logistics costs, of course, these explicit costs are not should not pay attention to, but focus on these costs you can not control, are expected to be basically the wrong cost and ignore the hidden costs of eroding your corporate profits. For example, the communication between departments and departments and the communication during the operation are not visible in the financial statements. If the management mode of the enterprise is backward and the regulations for the work of the department are not accurate, it will cause communication barriers among the departments. This kind of obstacle directly consumes the enterprise cost.

2. Focus only on overall costs and ignore process costs. For example, the loss of the shop floor, knowing that the total electricity consumption per tonne of finished products is high, but where is the higher, how to improve, how to share, there is no responsibility without decomposition, no responsibility is not implemented.

Second, the lean management of grain and oil companies is the first system of low-cost management concepts (a) focus on process management, emphasizing the value chain cycle in the system of low cost.

In actual operations, many grain and oil companies only see the cost of the enterprise, and they neglect the low cost of the system. The low cost of the system means the low-cost management that focuses on every aspect of the company. The fact that raw material costs account for more than 70% of the total cost cannot be changed. Under such circumstances, many grain and oil companies do not consider and research the low cost of the system. This results in a lot of unnecessary cost loss within the company. It is precisely because the grain and oil industry is a small profit industry, and the raw material cost accounts for an absolute proportion. Therefore, grain and oil companies should pay more attention to the systematic low-cost management of each link in the value chain cycle. Only in this way can companies make a 10-point effort and get 10 points of harvest. .

(b) Effective decentralization and adequate delegation of authority to unite the team's thinking and strength and ensure effective execution.

When the mechanism of the enterprise is operating, the mechanism is diluted, and it is emphasized that under an effective mechanism, everyone can publicize their own personality. If employees are accustomed to subservience, these are caused by the boss. The business owner should effectively decentralize the power and give full authorization so that the creativity of the employees can be brought into play, and the mechanism can truly reflect the concept of business management. In fact, the idea is to implement Conversion.

Second, the overall budget management mechanism and performance appraisal mechanism is the only way to convert ideas into executive power. The operating mechanism under the three-element management model is an important way for companies to move from loss-making to profitability and from a disorganized team to a positive and innovative team.

Just as a general company has a budget, it is easy to put such budget management on the shelf and do not allow management ideas to be reflected in the mechanism. Most of them just take the form and do not pay attention to the overall budget. Once the problem arises, sales are pushed to quality control, quality control is pushed to production, and production is pushed to procurement. This way, the idea becomes increasingly messy, and the crux of the problem cannot be found. So how does the operating mechanism under the triple management model serve the management philosophy?

(1) Overall budget management mechanism.

Most of the grain and oil companies' budgets are merely on paper or in the form of walking, and they have not turned the comprehensive budget assessment (hundreds of budgets) into the fundamental operating mechanism of grain and oil companies. The cost of 70% of flour is in wheat. If the budget is not included in the formal assessment criteria, it can only make the thought and execution out of line. For example, there should be a detailed budget for the extraction rate, processing, and sales process. If not every node has a budget, it will not guarantee the system's low cost in the value chain. The triple management model requires that each node of the value chain do a budget assessment. It is precisely this value-added value chain that creates the profit of grain and oil companies.

(B) Key performance appraisal, mining employees innovative capabilities.

Each department should set a key performance assessment every year. Under the three-element management model, the assessment of sales personnel, assessment, salary, and reward must be based on marginal contribution as a criterion. Divided into multiple dimensions under this assessment. The assessment is very important to the operation of the company. Only a standardized, systematic and comprehensive assessment mechanism can mobilize the enthusiasm of the employees and tap the creativity of the employees.

Third, efficient structure improvement efficiency Under the triple management model, the central control element, commodity production element, and processing flow element form a framework for the overall business, and the grain and oil company's various departments are divided according to their operational responsibilities in the value chain. A three-unit management framework that is highly centralized but mutually restricts and cooperates. The central control unit consists of finance and personnel, and is mainly responsible for the unified monitoring and centralized management of all business operations within the company. It is the company's mechanism unit. The R&D, procurement, and marketing centered on commodity production units are mainly responsible for the purchase of raw materials, the formation of a profit plan, and the completion of the company's profitability. It is the company's profitability unit. The manufacturing, warehousing, and logistics centers constitute the processing and circulation unit, which is mainly responsible for the manufacture and circulation of profit plans and assumes the responsibility for internal operating efficiency. It is the company's efficiency unit.

The central control element is a "control relationship" to the other two elements. Commodity production and production yuan is a kind of “distribution control” for processing flow transfer element, and processing flow transfer element is a kind of “insurance restriction” for commodity production element. The two units are tangent to each other.

The logical relationship of the architecture under the triple-element management model is the "because, so" relationship. "Because, so" is the relationship between dominance and subordination. The order issued in the previous step is "because" the department, and the next step is the "all" department. All the company's departments are in this cyclic chain, which means that each department is There are two kinds of roles in this chain: for the previous link it is the role of "so" and for the next link it is the "because" role. It is in this cycle of "link-contradiction-adjustment-optimization-through" that our business can be effectively run. What is different from what we are used to knowing is that such links, contradictions, adjustments, optimizations, and connections are not ideas, styles, characters, systems, or regulations, but data. The management and communication under this cyclical chain should be detailed data. Both cost management and mechanism operation should rely on data, and these data must be reflected in the financial management report.