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TriVista XEDA(Xiqing Economic Development Area) Seminar 9/13/2016

img_4334TriVista Hosts “Continuous Improvement for Manufacturing Companies” Seminar in XEDA

TriVista, in collaboration with Tianjin Xiqing Economic Development Area (XEDA), hosted a half day seminar on September 2nd on the topic “Continuous Improvement in Manufacturing Companies.” Companies local to XEDA attended the seminar.

TriVista’s Operations Director, Barry Song discussed current operational situations, challenges and opportunities faced by Manufacturing companies in China. He stated, “[That] With an increase in labor cost, it is vital for enterprises to improve productivity. Automation is not a sustainable solution. On a fundamental level, companies need to change their management strategy and improve from ‘Extensive Management’ to ‘Fine Management’.”

 

Barry brings TriVista more than 20 years of experience in manufacturing, operations, and leadership as well as an extensive background in transforming low performing facilities into successful operations by utilizing his deep knowledge of Lean & Six Sigma Processes.

Barry leads many strategic engagements for TriVista in China including large scale factory startups, M&A operations, due diligence, and operational performance improvement projects.

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How to make you success? Learn More on:

The Essential Guide to: Quality of Operations http://en.trivista.com.cn/the-essential-guide-to-quality-of-operations/

Five Must Reads on Lean http://en.trivista.com.cn/five-must-reads-on-lean/

Click Here (http://www.trivista.com.cn/) for more information about TriVista’s China Consulting Services.

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China Energy: Goals for 2010 10/8/2010

"China Energy" Goals for 2010According to the China Daily Newspaper, China has made great strides to meet the energy consumption goals the Central Government has set for 2010. The mission is to cut energy use per unit of GDP by 20 percent by the end of 2010. The Minister of Industry and Information Technology of China, Li Yizhong said on Friday that they are on track to hit the mark in efforts to become a more green country.

This goal could affect where your company chooses to invest or start a business. Provinces heavy in highly consumptive and pollutant industries like steel, iron and cement production are being affected more than other regions. Areas with more of a balanced landscape of industries are having an easier time reducing overall energy consumption.

Some of the struggling provinces have received orders to shut down certain factories after the government ordered for more than 2,000 closures of inefficient, highly polluting factories nationwide in August.  According to Bloomberg, some specifically challenged cities have faced blackouts affecting businesses, homes, traffic signals and hospitals as the local governments strain to meet the proposed energy goals. The Central Government has been halting these outages as quickly as possible to encourage regions to meet the goal the right way.

China has also reduced its energy consumption and helped improve environmental conditions through the closure of some small thermal power plants and other energy-hogging projects and by slowing the growth of additional highly consumptive and pollutant projects.

Resources:

Guardian: China Electricity Blackouts

China Daily: China Energy Consumption Down

Bloomberg: Energy Intensity Targets

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China’s Canton Fair – October 2010 10/7/2010

Personally I’ve never been to the Canton Fair.  I’ve heard its quite an event and i have always wanted to attend.

Therefore, I’m excited that later this month I am going to attend the 108th Canton Fair  a.k.a. “China Import and Export Fair” in Guangzhou.    I’ll be there during Phase 2 for the Consumer Goods, Gifts, and Home Decorations show.

The Canton Fair takes place twice annually; once in the fall and once in the spring.  The first fair was held in April of 1957 and it has become a major international event over the last 50 years.  With 11 million square feet and more than 55,000 booths, it is China’s largest trade fair.  I’ve heard it’s quite impressive, attracting more than 200,000 overseas buyers every year.  I’ll be sure to provide a trade show review after attending…..stay tuned!

If you are headed to the fair, I thought it might be helpful to list out a few resources that might help with travel to Guangzhou, etc.:

Hope to see you there!

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Understand China Official Launch! 9/29/2010

Today marked the Official Launch of Understand-China.com.  If you are reading this, you have already realized that the site is up and running, but we were excited to make the announcement nonetheless.  After more than nine months of ongoing development, twelve hundred hours of research and over 250 pages of detailed information, Understand-China is the leading authority on doing business in China.

The site is intended to assist business looking at investing in China by providing a one-stop resource for all of the information they need to be successful in China. The Understand China site breaks down pertinent manufacturing and investment information by major investment region. The site includes detailed information on Beijing, Shanghai, Shenzhen, Tianjin, Hong Kong and twenty other provinces, special economic zones and Chinese special administrative regions.

Enjoy!

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6 Steps to a Successful Strategic Sourcing Program 8/25/2010

Here is some help for those who are looking at expanding their sourcing into low cost regions.  While not a comprehensive guide by any means, this post is simply to help ease the process.

Step 1.

Start Slowly!  Try to limit the number of part numbers or SKU’s that you are focusing on in the beginning.  Don’t try to source every product or component you purchase at once.  This is a strategic decision for your company, not something that should be attempted overnight.

Step 2.

Do Your Due Diligence!  Visit the suppliers or have a 3rd party company assess their factories – if you don’t have a robust assessment process, seek help from someone who is an expert.  Check references – ask the potential suppliers to provide references for other customers in your local region.  In addition, conduct extensive testing – we have all heard about companies that have imported goods from overseas that are tainted with chemicals, do not perform as promised, and have caused significant product recalls.  You don’t want your company to be on the front page of every newspaper.

Step 3.

Provide Realistic Forecasting.  Don’t promise large order quantities to suppliers in an attempt to drive down pricing.  Negotiate realistic pricing based on realistic volumes and you will benefit from the mutually beneficial relationship and avoid costly delays and missed cost expectations.  The same thing goes for delivery expectations.  If your lead times are exceptionally tight – make sure to buffer inventory levels or schedule deliveries accordingly.  International Air Freight costs will quickly absorb any cost savings you gained by going overseas in the first place.

Step 4.

Always 2nd Source.  Establishing a second source from day one can help make sure you are keeping your suppliers honest, but more importantly helps your organization limit risks of a supplier keeping you line down.

Step 5.

Partner With Your Suppliers. Find suppliers that share your company’s vision and that can support you long term.  Building a sustainable relationship based on honest pricing, delivery and quality expectations will benefit your company for years to come.

Step 6.

Always Remain Focused on Continuous Improvement. Be sure to work with your supplier partners to continuously enhance process steps and quality procedures.  Partner with them on new product development projects and let them know how much you value your relationship with them.  Building these types of relationships will give you the upper hand on the competition and help you create the most value for your shareholders.

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China RMB Appreciation Affects U.S. Decision Makers 8/5/2010

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In late June, the People’s Bank of China made the decision to allow the Renminbi, or the Yuan, to once again appreciate against the US Dollar, after nearly a two-year freeze period. As world economic conditions slowly begin to improve and pressure from trading partners mount, Beijing is allowing for a more flexible exchange rate.

Beijing’s decision could possibly lead to increases in labor and production costs and has left some US companies uncomfortable with future China investments. Fortunately, historical data and perspectives from industry experts prove otherwise.

China still boasts an extraordinarily large low-wage labor pool, robust infrastructure, extensive investment incentives and preferential tax policies to encourage continued foreign investment. China will remain on the forefront for quite some time.

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