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HAGG Successfully Held the "Lean Full Value Chain Management – Cost Simulation Workshop" Event

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2022.06.20

On June 17, 2022, the "Lean Full Value Chain Management – Cost Simulation Workshop," organized by the Corporate Management Department, was successfully held in the Group Company's Multi-functional Hall. Forty-two mid-to-high level managers from the company were invited to participate in this event. The workshop was led by Ms. Yue Wang, Vice President and Senior Consultant at Aibore Consulting, and featured an immersive production simulation exercise. Combining theoretical instruction with hands-on practice, the training provided a comprehensive introduction to the principles and methodologies of lean manufacturing.

At 8:50 a.m., Yang Shuiyu, Chairman of the company, delivered an opening speech to kick off the training program. First, he emphasized the importance of firmly embracing Hangchi’s lean journey, ensuring that lean principles and philosophies are deeply embedded across the entire organization, with the ultimate goal of transforming Hangchi into a world-class lean enterprise. Second, he encouraged participants to diligently study the rich内涵 of lean full-value-chain management, applying lean thinking, systems, and methodologies to all aspects of the company’s business operations. This approach will not only foster continuous self-improvement in every process but also strengthen collaborative management among departments. Lastly, he highlighted the critical role of leveraging lean methods and tools to reduce production and operational costs—actions that are essential for enhancing profitability and ensuring the long-term sustainability of the business. Following his remarks, the special training session officially began as Chairman Yang led everyone in reciting "The Ten Principles of Improvement." Meanwhile, Instructor Wang provided a clear and insightful explanation of lean manufacturing concepts and their core essence, drawing from Toyota’s practices to illustrate key areas such as lean R&D, lean supply chain management, lean production, lean marketing, and lean talent development. He also underscored the significance of implementing lean full-value-chain management, showcasing compelling success stories from several renowned domestic manufacturing enterprises to demonstrate the tangible benefits of adopting this approach.

In the afternoon, the participants were divided into two groups for a sand-table simulation. Each group took on different roles involved in the production process. Through three rounds of product-manufacturing simulations—covering everything from customer order placement to production, final inspection and warehousing, all the way to order delivery—they explored both push-based and pull-based production methods. Over the course of these three simulations, the team adopted lean pull-production principles, implementing takt-time production to effectively manage inventory levels, streamline the production cycle, minimize waste in manpower, and reduce defect rates. After each round of improvement, they analyzed and compared the resulting financial metrics. As a result, their performance evolved dramatically: starting with a significant loss in the first round, the second round saw a marked reduction in losses, and by the third round, the team achieved profitability. This hands-on experience allowed participants to deeply appreciate how the pull-based production model can significantly enhance a company’s operational efficiency and bottom line.

Through a full day of learning and hands-on experience, the student representatives shared their individual insights, gaining a deep understanding of various forms of waste in the production process and the shortcomings of push-based production systems. They also experienced firsthand the transformative benefits of lean manufacturing, cultivated an improvement mindset, strengthened their commitment to continuous enhancement, and honed their skills in driving meaningful change.

Finally, Zhou Huanhui, the company’s general manager, shared his insights from participating in this intensive training session, emphasizing that all employees and cadres should overcome resistance and stay focused as they advance lean initiatives. He urged them to unleash vitality, strengthen motivation, and foster a spirit of understanding, execution, and collaboration—applying the lean principles they’ve learned to production management and business operations. This approach, he stressed, will help continuously reduce operational costs, enhance product competitiveness in the market, and steadily boost the company’s profitability.