Coal supplies the virtual zero inventory movement


Jixi Mining Group of tons of coal material cost was as high as 47 yuan, ranking first in the coal industry; implementation of information after the cost down to 22.27 yuan straight. Information not only blocked Paomaodilou, and optimize business processes and management practices, from virtual inventory, to the large material lease management, to accurate budget management, which are in the business process management concepts of the design process continuously innovation and improvement.

2005 Spring Festival Eve, Heilongjiang provincial government and the main leaders of Heilongjiang Dragon Coal Group have received a letter from the masses, claiming Jixi Mining Group Material Supply Company Manager Tian Liancheng cover the use of information turned into fame, made up of information benefits all fraud Honor. Really true?

"Top leaders" can not have selfish motives

Jixi Mining Group is located in the northeast border of the Dragon Coal Group subsidiary, material supply company is a subordinate unit of the Jixi Mining Group, is responsible for 12 Jixi Coal Mining Group and two processing enterprises of material procurement and supply. During the Spring Festival, Dragon Coal Group and Heilongjiang Province, an investigation team went to the relevant departments to immediately investigate the facts Jixi. Investigation team found that the letter is not the prosecution said, the company supplies information not only through the creation of a stunning economic benefits, but management innovation reshaped by Jixi Mining Group for nearly 60 years of material management model, many practices in the national coal industry course ought to first.

Jixi Mining Group, founded in 1948, is a large state-owned coal mine with annual output 12 million tons of coal, 6.5 million employees. After 1998 years ago, to material supply company "Center" appeared in hundreds of business Jixi Coal supplies the "Company", "dealers" and so on, through all kinds of "relationship" and means the number of approved materials Zhicijiagao "force" sent to warehouse, the cost of materials pulled tons of coal to 47 yuan, ranking first in the coal industry; inventory reserves are "new high", reaching 280 million yuan, material availability of 30%. Jixi Mining Group has become the coal industry, "first the poor", miners frequently petition. Jixi Mining Group Material Supply Company deputy party secretary of Shanghai Drainage King said: "At the time, material procurement and supply of complete disarray, through relationships 'sent' to the material, whether or not pay the bill with the warehouse; the mine to the number of , give much, what with the limbo, where no one pulled control. "

In order to curb unhealthy practices in the supply of material procurement, material supply company has developed various systems, such as "wiping account system" and "material warehouse management system", "materials procurement and management," the "accounting of specific provisions". System more perfect, but more and more loopholes in management. Confusion among the Jixi Mining Group Material Supply Company Manager Tian Liancheng thought of information. Tianlian Cheng said: "The system should be adopted and then the perfect person to perform, and people's feelings is the most unreliable. How to get people's feelings? Only the system and the computer together!"

In 2002, material supply companies tighten their belts to promote information technology, implemented by installment UF U8 ERP, basically the end of the Jixi Mining Group headquarters over the past 50 years, heavy, complicated, manual history, so that materials supply management methods have undergone substantial changes. First, price controls, the database set the price ceiling, above the price ceiling of the computer refused to deal with business; the second is inventory management, set up reserves, higher than the maximum amount of material can not reserve storage credited; Third, in payment business, higher than the accounts payable in cash, accounts can not wipe the implementation of various human factors in software before the resort. More importantly, material supply companies set up their own website, not only to publish the tender notice to the nation, but also a lot of search for price information, price ratio to achieve an online purchase.

Surprisingly small software produced large benefits. At that time, Jixi Mining Group tons of coal material costs from 47 per peak dropped to 22.27 yuan, more than 5,000 yuan Achieving Benefits directly. Tianlian Cheng said: "The information is not only blocked the Paomaodilou, improve enterprise efficiency, and the prevention of corruption, protection of a number of cadres. Informatization benefits is not the root cause of the technology itself, but rather to bring the information transparency of information. "

Paomaodilou phenomenon of state-owned enterprises, there are three scenarios: First, the use of information opacity of individual buyers, businesses and individual clients collusion harmed; two individual power sector suppliers and even use of "relationship" cozy, corrupt cadres to implement the "Strong Sell "; 3 is due to backward management, the majority of people is beyond its capability. For example, the Jixi Mining Group has requested the contract must be reviewed by the Audit Section, the buyer can only purchase storage; but the procurement of materials supply company with more than 13,000 kinds of goods, produce thousands of contracts a year, minimum contract amount of only a few dozen Yuan, Audit Division could not individually reviewed.

The State Council Information Office of the Deputy Director, Yang Xue-shan said some people are "smart", able to skillfully "around" the legal constraints, the number of illegal activities would be lawful, also known as the "hidden rules"; "Hidden Rules "behind, often naked corruption, and" hidden rules "exist is precisely the source of the information opaque. Materials supply company purchases through the online bidding price ratio, the buyers and business leaders to solve the asymmetric information problem between, thus avoiding the salesmen and suppliers, the phenomenon of collusion hurt business. After bidding, all tender contract all input computer, Audit Section control, business division in the absence of tender contract, any business operations are impossible. Not only blocked the disclosure of individual buyer's "black box operation", and gave the cadres a "Ding Men bar", withstood a variety of "family relationship" and "strong sell" phenomenon. Of course, the software also gives the owner a fine management tool.

Tianlian Cheng said, whether public or the meticulous management of information, the most important is the number one can not have selfish motives. "The implementation of information technology, leadership, in particular top leaders, not only have the determination, ideas, and can not have a little selfishness, to put it on their own 'golden handcuffs'; otherwise, there is no selfishness at the information, even if the the information will not promote the ongoing management of innovation. "more difficult for state-owned enterprises than private enterprises to promote information technology, the challenge is there is selfishness in individual leadership, because of information first," deprived "of arbitrary business leaders to do things right, to force transferring a portion of the right to business leaders to the system, transferring to the information system.

Virtual zero inventory management

The initial victory inspired materials supply company's information technology staff enthusiasm, but also to have confidence in the management of the Jixi Mining Group. By revitalizing the northeast old industrial base of the policy opportunities and materials supply company in 2003 and also completed 12 of mine materials science networking, forming a Jixi Mining Group Material Supply System's local area network, to achieve the material supply business data sharing. Jixi Mining Group is known as "Barry mining", the farthest away from the Jixi Coal Mine in three 40 km, past the Sesame big thing, but also a trip to Jixi, LAN completed a large number of statements, in-line transfer application form , much miners welcome. In 2004, material supply company has implemented the second phase of information technology, according to price search, procurement, contracting, auditing, storage, quality control, payment, out of tanks, and other logistics information platform path design process and, based on workflow series and decomposition, to a chain; achieve material procurement, storage, supply, management of modern logistics in the way supervision, change "bought a used" to "try and buy," and completely changed the traditional management of coal supplies mode.

Tianlian Cheng said: "In the business process design, we make full use of the advantage of a buyer's market, established a virtual zero inventory management concept, the implementation of material consumption and then clearing and realized that with the purchase." In the past, acquired in a variety of channels materials, whether it be mine, as long as losses are paid on the goods warehousing Finance; if mine do not want to use, it becomes a backlog of inventory. "A mouse bad for a pot of soup, 40 if there are two or three buyers in the mischief, and very troublesome!"

Sara Lee Bakery Group, the former U.S. CEO Balibeila retirement check has been in his desk stood a sign on a summary of his personal and corporate philosophy: "We only believe in God, other people, please take the data come. "Today, the company supplies procurement management as well. Materials supply company hold an annual online open bidding for contracts to be entered for all the tender Audit Section of the database; did not tender a contract can not handle the arrival, the contract input computer, the salesman can not adjust the price and quantity of storage. Procurement of goods storage register, the supplier still can not get money, because this is a temporary vendor supplies company in the temporary storage materials; when the mine is proposed to cargo demand, and after approval by the Operations Section, material supply company warehouse formation Chu Kudan, the coal delivery; the same time, form of payment information, Finance losses are paid. This process revolutionized the Jixi Mining Group for nearly 60 years of material procurement model, also is the first in the domestic coal industry. Materials supply company party secretary Zheng Tong Ran said: "Jixi Mining Group, the largest stock funds, when 2.8 billion, is now less than 80 million yuan; if the net 50 million yuan to wait for scrap materials, the actual capital stock is only 3,000 million. Name is saved liquidity, in fact a large backlog of retirement savings. "

Because of the scale, quantitative tight control, in recent years Jixi Mining Group of tons of coal material costs remained low. Tons of coal in 2004 for the cost of materials 17.31 yuan, the highest level of the coal industry, the lowest for the group ride out the storm made outstanding contributions to the development. But Tian Liancheng know "sponge in the water after all limited", material supply companies not only from the material procurement of "throttling", but also from the material supply of "open source" to open up the supply of materials management innovation of "Blue Ocean."

In the past, coal, how many, give the number, then the end reconciliations, inventory. Sometimes, members of mine material pulled from the warehouse, shipping supplies, the semi-secretly unloaded part of the way, is also unknown. Now, material supply companies to achieve a fine basic budget management. The beginning of the year the coal mining plans submitted, after approval by the Jixi Mining Group, and then broken down into annual plans on the planned targets, to declare the end of the web roll. Suppose a planned coal mine in May 2006 mining 100,000 tons, tons of coal materials in accordance with 24 yuan, the mine stores in the Group Treasury of 240 million "virtual money" for "procurement" of material goods and materials supply company . If the mine in May material purchases more than 2.4 million yuan, the company will no longer be shipping supplies. In the material supply, the coal material with subjects with the need to buy.

April 10, Heng Fa Chuen reporters Jixi Coal Mining Group experienced a "shopping." Apricot's first coal material Division issued a "buy" for a single cable 500 meters; 30 minutes later, when reporters rushed to the materials supply company warehouse and found that workers were loading, ready to send mine Apricot cable. Journalists access to online records found carefully, material supply companies Management Division's procurement application for approval to pass the three subjects after a single, three branches expected to open in the Internet and passed to storage, material supply company warehouse manager click the database, apricot Materials Division took mine 500 meters automatically generated cable storage, while supplies financial automatically generate vendor payables. Finally, the unity of picking warehouse supplies coal to the apricot. Drainage Jing Hai said: "Now the supply system that has a data change, a total of 11 business units, 12 coal materials science, 61 coincided with changes in business sectors will greatly saves manpower, financial resources, improve efficiency, and way to eliminate the material loss occurrence. "originally, materials management department once a month to end more than a week to complete the work of reconciliation and the next account, can now be monitored from time to time, as long as the end of the warehouse inventory of all mine once is enough .

Theory comes from practice and guide practice. As tools and instruments, IT in the curing of advanced management thought of the same time, continue to make demands of innovation, and promote management innovation.

Materials supply company for the inspection level of information system applications, and journalists accompanying Guo Yusen mine warehouse in Paradise, codenamed 02,210,201,106 random sample of 35 # the number of mining cable. Guo Yusen Heilongjiang Province, deputy head of Manufacturing Information Group, the number of journalists and Guo Yusen carefully the warehouse 35 # ore the actual number of cable is 100, and then we went to the Paradise coal mine warehouse office inspection, the system displays 35 # mine the number of cable is 100. Guo Yusen thumbs-up to the Tianlian Cheng said: "You are actually in use!"

Visiting the Paradise coal storage and material supply company warehouse, Guo Yusen said with emotion: "materials supply company realize the process management, powers and functions to the back, the process to move forward through the process before and after the inter-monitoring not only improve efficiency but also avoid all forms of corruption. "As everyone knows, a division of counterfeiting easy, two or three departments collusive fraud is not difficult, but 56 government departments on collusive fraud is almost impossible, because the more links the higher cost of more than false, this is the essential meaning of process management. Tianlian Cheng said: "In the past often appears Storekeeper embezzlement or stolen goods and the delivery driver the phenomenon of collaboration, and now nobody dares to do so. As long as the warehouse stock and the number of discrepancies within the system, we will face severe punishment! Warehouse manager all the stock material is also more important than their wallets tight! "

"Two extension" coming soon

At present, material supply companies are on the hardware and software upgrades, procurement firewall products, plans in August this year, the original software integrated into a single portal, standard interface standard, cross-platform, multi-database collaboration; the same time, open up the external network and channel between the LAN, remote login LAN. Tianlian Cheng said: "This year we hope to achieve two extensions: First, the material supply management system for teams to extend the underground mining section, on the implementation of large supplies online lease management; Second, the materials procurement and management systems extending to suppliers."

Coal supplies two kinds: one is the one-time cable and other consumables; the other is the common, non-disposable consumables, such as belt machine, boring machine, shotcrete machine. In the past, miners often belt machine, boring machine and other large materials used in underground throw, or because there is no transport to the ground to be buried in time, and material supply companies unable to find. Because each has a number of coal mining area, mining area is divided into a number for each mining unit, often a coal mining area warehouse away from the belt machine, do not give a second mining area registration, may run out of the second mining area then to the Third District or four mining areas; so few repeated, missing a belt on. According to reports, by a large material management software, material supply companies will have more than 10 kinds of materials commonly used to implement large online lease management, the computer can be seen directly across the company more than 100 kilometers of underground mining face in the dynamic use of large supplies situation, so as to prevent the occurrence of the phenomenon of underground supplies Paomaodilou for enterprises to create greater efficiency. Materials supply company party secretary Zheng Tong Ran said: "Our goal is to achieve from the library, the distribution and use to write off the whole dynamic monitoring of the implementation of large full life cycle management of materials."

Meticulous management of the other end is extended to suppliers. Drainage Sea King said: "At present, the project's research and development has been completed, is the commissioning process, expected in June on the line." Integrated material supply management network will be connected to the Internet, suppliers can either bid online , also can remotely view the stored goods and materials supply company warehouse in the application materials at any time to control their own usage of materials in order to deliver on time; materials supply company's employees can remotely log on LAN, remote processing approval, is expected to open, payment and other services, to achieve true vendor managed inventory (VMI). Tianlian Cheng joked that after the material supply companies may also implement a mobile office, employees can hand wash clothes at home, cooking, side-line processing for approval, is expected to open, payment and other services.

Parity from the Internet to a virtual zero inventory purchases, and then to "two extension", in just three or four years, material supply companies to rely on information technology have revolutionized the practice of the last century's coal supplies management. Tianlian Cheng said: "In the past, Supplies Department's primary responsibility is the procurement of goods, any material on mine subordinates what, there is no choice; in the future, material supply company's main responsibility will be the logistics supply management, coal mines to what the 'buy' what, the real purchasing power returned to the user supplies. materiel supply company is no longer a function of corporate management, but mine's logistics service providers. "

Comments: crazy for the information
Jixi Mining Group Material Supply Company Manager Tian Liancheng

Tianlian Cheng is a mad obsession with full information. Just the implementation of information technology in 2002, because of a broken individual's "lucrative", all kinds of verbal abuse, threats to cope with their numbers, some even threatening phone calls to your home, material supply companies have to send people to escort Tianlian Cheng's son to school; in internal variety of complaints, accusing the more over-abundance, some people openly strong words, some people write anonymous letters "Notice to the black-like." However, any complaints, threats and suffering Tianlian Cheng failed to block the pursuit of the information.

Last year, the material supply company was the first post in the Paradise coal mine implemented a comprehensive peace plan management system, it was with Tian Liancheng Publicly Challenge, that is impossible to achieve overall budget management. Tian Liancheng side leading to the mine patiently explained the work done, so that it does not recognize that knowledge is not understood by the strong support; side of the front line to send technicians to help entry code, data, day and night Lian Zhouzhuan. Hard work pays off, project management system quickly successful coal mines in Heng Fa Chuen, Heng Fa Chuen Branch mine material from information becomes beating the drums are lurkers.

"My passion for this information system is!" During the interview, Tian Liancheng repeating that, because the system is not only embodied Tianlian Cheng numerous efforts, and inspired his desire for innovation, realized the value of life. 15-year-old when Tianlian Cheng Jixi Mining Group in a warehouse manager in 1985 after graduating from the China University of Mining Jixi he returned, he served Section Chengzihe mine materials, supplies, Deputy Director, Director; Later, after the reform Jixi Mining Bureau, has become the material supply manager. Engaged in coal supplies for decades, Tian Liancheng never dreamed that one day will change the material supply business model will change the business model for coal storage.

"At first, we are no clear information and understanding, but also did not think management innovation, simply to reduce costs, to plug the loopholes and information." In order to continuously reduce costs, to plug all possible loopholes, Tianlian Cheng in "reluctantly" in the Raising the management innovation of sailing. Tianlian Cheng said: "Although the information base is weak, but we thought on the materials supply management is not lagging behind. With in-depth information technology, business practices have given me new demands, in order to solve these new problems, we have thought in the management of on innovation! virtual inventory, bulky goods rental management, accurate budget management philosophy, are not logically inconsistent, but we want to force information out of practice. "

In Tianlian Cheng mouth without a profound economic theory, no complex mathematical model is coal supplies endless supply management jargon. On the material supply companies, software companies is just a programming tool, because all business processes are their own design. Also is in the process of designing business processes, Tian Liancheng in the original management Moshi innovation, because the information in the practice of continuously put forward Xin problem, Ye Lian want to solve many of the past to provide a Dubu dared De Gongju and Shouduan problem.

Xibolahan American psychologist Maslow (A · H · Maslow) 1943 in his "Theory of Human Motivation," a book first proposed hierarchy of human needs, according to the interdependence between its upper and lower summarized into five major categories: physiological needs, security needs, feelings and attribution needs, esteem needs and self-realization needs. Tian Liancheng in the process of promoting the message is the need to find self-fulfillment, through continuous management innovation for enterprises to reduce costs, to the cadres and an anti-corruption "Ding Men bar", reducing the workload of frontline staff , and thus more and more obsessed with information.