Wanhua Chemical Group Co., Ltd. (referred to as "Wanhua Chemical") was originally known as Yantai Wanhua Polyurethane Co., Ltd. and was established on December 20, 1998. The company was listed on January 5, 2001 (stock code: 600309). Wanhua Chemical (Ningbo) Co., Ltd. (referred to as "Wanhua Ningbo") was founded on February 27, 2006, with its predecessor being Ningbo Wanhua Polyurethane Co., Ltd. It was officially renamed Wanhua Chemical (Ningbo) Co., Ltd. in August 2013. Wanhua Ningbo is the core enterprise of Wanhua Industrial Park (Ningbo) and is a subsidiary of Wanhua Chemical Group Co., Ltd.
Wanhua is the only company in China that possesses mature MDI (Methylene Diphenyl Diisocyanate) manufacturing technology and independent intellectual property. The production technology was developed by Wanhua Chemical after years of dedicated research, making China the fourth country in the world (following Germany, the US, and Japan) to have this technology. In 2007, the large-scale MDI production technology, with an annual production capacity of 200,000 tons, was awarded the "National Science and Technology Progress First Prize."
While Wanhua Ningbo is experiencing rapid growth, it faces many challenges:
Difficulties in cross-departmental process coordination.
Bottlenecks in management efficiency.
Low equipment efficiency caused by insufficient preventive and predictive maintenance.
Unclear responsibilities between equipment management departments and operational units, leading to finger-pointing.
Insufficient technical support from the technology development and management departments for operational units.
Lack of experience in matrix management for large-scale shifts.
Ineffective emergency management systems.
Coordination difficulties with associated companies in the park.
If these issues are not addressed, they could significantly harm operational efficiency, hinder the implementation of multi-site and international strategies, and affect Wanhua Ningbo's competitive position in the market. The company has been facing a situation where it has been addressing individual issues without a holistic solution, resulting in a “treating the symptom but not the root cause” situation. This project primarily aims to optimize and streamline processes in the production operations and equipment management areas.
The Realscheme project team, over a span of five months, worked closely with Wanhua Chemical's team to analyze and optimize the company's processes. The main activities included:
Establishing a Clear Value Chain and Business Architecture: Clarified the company's overall structure and resource allocation to create a transparent process chain.
Building an Integrated Company Process: Eliminated departmental silos, improved cross-departmental process interfaces, and focused on end-to-end processes, particularly for production operations and equipment-based workflows.
Optimizing Business Processes: Enhanced management efficiency by embedding authorization, internal control, and risk management into key process nodes, thereby maximizing overall efficiency.
Establishing a Performance System for Process Management: Developed a set of measurable performance standards for processes, enabling effective assessment and positioning the company as an industry benchmark.
Creating a Self-Driving Continuous Improvement System: Introduced tools and methods for evaluating business development status and identifying areas for improvement.
Sustaining Process Management: Implemented a sustainable process management mechanism, benchmarking against cross-industry best practices and establishing leading process technologies, standards, and methodologies within the industry.
Reduced Departmental Silos: Improved organizational efficiency by breaking down silos between departments.
Initial Process Performance System: Developed an initial framework for process performance management.
Established Process Ownership Mechanism: Created a "blood-generating" mechanism for processes, training a group of process experts.
Increased Customer Awareness: Successfully began building a process-focused organizational culture.
QHSE Integration: Achieved seamless integration of multiple quality, health, safety, and environmental (QHSE) systems.
13% Increase in Per Capita Efficiency: Significant improvement in operational efficiency on a per-employee basis.
7.8% Increase in Equipment Efficiency: Enhanced overall equipment performance through better maintenance and management.
1-Week Reduction in Major Maintenance Time: Reduced downtime during major equipment repairs.
13.2% Improvement in Plan Accuracy: Increased accuracy in production and operations planning.
12.3% Improvement in On-Time Delivery Rate: Enhanced delivery performance and customer satisfaction.
Developed 20+ Process Experts: Built a strong internal team of process specialists to sustain improvements.
These outcomes significantly improved Wanhua Ningbo’s operational efficiency, organizational capability, and overall competitiveness, positioning the company for continued growth and success.
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