Ladies and gentlemen, ladies and gentlemen,
Hello, everyone. First, on behalf of China Building Materials Group, I warmly congratulate the 40th anniversary China Quality Association. China Quality Association has been committed to disseminating advanced quality concepts and quality technology and methods over the years. It has been effective in promoting total quality management, helping enterprises to improve their quality management level and personnel quality, and thus improving their performance.
Today, I am particularly grateful to the China Quality Association for awarding me the title of "total quality management to promote 40th anniversary outstanding entrepreneurs", and also to give me the award of "National Quality Award" of the new building material of Bei Xin. I am also very excited today, because the China Quality Association awarded me the "outstanding Chinese quality person" in 2014. In 2015, the China Quality Association recommended me to be the winner of the "Ishikawa Xin hunting wild prize" awarded by the Asian Quality Association, and I am very grateful to the China Quality Association.
The topic of my speech today is "establishing a correct quality view", which is divided into three paragraphs.
Quality is the symbol of the development level of the country.
We often talk about the quality of Germany and the quality of Japan. The whole world thinks their quality is very good. In fact, in the late nineteenth Century, the quality of Germany was very poor. "Made in Germany" was a symbol of backwardness. At that time, the British government told Germany that all the German made products destined for the United Kingdom must be made in Germany, indicating that Germany produced inferior goods to distinguish the quality level made by it and the United Kingdom and other countries. Germany entered into a sense of shame before it was made in Germany. Japan, too, was very poor in the 50s of last century. At that time, TOYOTA entered the US market. The cartoons in American newspapers depicted the TOYOTA car being broken down, and several people tagged "Made in Japan" under the carts of the rear of the car. Japanese made products were once synonymous with low quality. Japan later pushed ahead with Japan's quality change through efforts such as Deming, Ishikawa Kaoru and Shou ye, and made the quality of Japan's products improve rapidly. After that, Japan's quality was rated as world-class. Akio Morita, chairman of the Japanese Sony Corp, wrote a book, which used the phrase "Made In Japan", which was translated by American sarcasm in China. It was translated as "Japan first" in China. Actually, it did not mean to say that Japan was the first, but because it was a shame before the snow.
I first went to the United States in the 80s of last century. At that time, I wanted to see the products of Made in China in American supermarkets, but I could not find them. Afterwards, the waitress said that Chinese products could not be put on shelves, and they were all in the big basket on the ground. As far as I can see, the products are Made in China. This is only 30 years away from today. But today, China's products have been sold all over the world, and products are on the shelves of supermarkets all over the world. It is not only the daily necessities, but also our industrial products, which are 65% of the world's cement and glass equipment. Around the world, I wonder if any other company can have such a market share. Why does our cement and glass equipment share 65% of the world? That's because our cost performance is good, quality is good, and value is good. "Thirty years Hedong, thirty years Hexi", 30 years ago, China's cement equipment and glass equipment were bought by multinational companies, and today, multinational companies will buy Chinese building materials. But the journey that has been going through these thirty years is not easy. It is the Chinese people who have risen in quality and technology. Although there are protectionism and Populism in the world today, consumers are most concerned about the price performance and quality of products. We are not afraid of trade wars, because we have the bottom line. Our products are in a leading position in terms of quality, technology and cost performance.
Quality is the symbol of a country. The rise of Germany and Japan in the past is also due to the importance of quality. The United States also had a detour in the 80s of last century. They attached importance to reducing costs and neglecting quality, resulting in the decline of American industry. In the initial stage of China's reform and opening up or planned economy period, we also appeared to pay attention only to the cost situation, and also walked this way. Later, we began to attach importance to quality and promote total quality management. After the establishment of the China Quality Society and the guidance of the quality development of enterprises across the country, we have achieved today's achievements in quality management. Quality level is a symbol of a country. This year is the 40th anniversary China Association for quality assurance. 40 years ago, it was hard for us to imagine that today's products of Made in China can be sold all over the world. Those trade protectionists are afraid of China's products, technology and quality. From the early stage of reform and opening up to today, we firmly believe that quality is the foundation of our country, quality and power are the foundation of our country.
Two, quality is the life of an enterprise.
What is the survival of enterprises? Rely on quality, the core of the enterprise is quality. Today, in August 28th, it was the 40th anniversary anniversary of the establishment of the China Quality society. It was also the 40 anniversary of the new building materials under the building materials of China. It was also the 40 year of my graduation from the University and three "40 years". It was very interesting. Today, the Association awarded me the award of "outstanding entrepreneur". I was also overwhelmed with emotion when I was sitting on the stage. I recalled my first job as a factory worker. At that time, an imported production line was being built in North China, and I worked as a laboratory director in the rock wool workshop. The main task was to carry out quality control. In May 1980, I went to Europe to study, mainly about quality control, learning tolerance and measuring weight. After that, I grew from a quality worker to a leader of the central enterprises. At that time, it was very difficult to buy a book about quality control. Only a few bookstores had some photocopies, such as causal fishbone diagram and Gauss curve.
North new has already embarked on a road of quality management. I was the director of the north new factory in 1993, and the first thing I ever did when I was director was to punish myself for the month's wages. Why? Because a new type of rock wool soundboard was exported to South Korea, the Koreans opened it and found that one of them had a footprint, and they suggested that they had to return it. The cadres of North New Zealand feel that the Koreans are making a mountain out of a molehill. Only one piece of rock wool board has a footprint on a container product. Why do they need to return the goods and think that Koreans are looking for trouble. But I think this is an opportunity for quality education for everyone. At the meeting, I suggested that this is a great event. This footstep is not stepping on the product, but stepping on the gold lettered signboard of the new building material, and stepping on the heart of the operator. I propose to start fines from myself, and punish them step by step. My salary at that time was 500 yuan a month, and I was all punished. I went back to tell my wife, "I have no salary this month." My wife said, "why not?" I said, "because of a footprint." Today, the products of Bei Xin can be the first in the world, starting with that footprint. Just now, there are Haier Zhang Ruimin and everyone smashing fridge and so on in the big screen. Most Chinese enterprises have gone through this process. Without this process, without our reflection on quality, there would be no "Made in China" today. Later, when ISO9000 was introduced into northern New Zealand, many certification companies came to us. I asked the cadres to find the most demanding certification companies. At that time, I found a French certification company. This ISO9000 certification is also a quality marking and education. After that, we have a series of national standards. After 2008, we began to carry out the national standard certification of excellent performance, that is, the current PEM, north new is a relatively early implementation of the standard, today obtained the China Quality Association awarded the "National Quality Award".
Perhaps you will be surprised that China's building materials are in full competition, and it is the background of the central enterprises. Why did song Ju win the prize? The reason is very simple, because China's building materials always put quality in the first place, and strive to make the best products of ordinary products. There is no knack for doing business, that is, the quality is always good and the service is always good. If we can do that, we will be invincible. The building materials of North China are like this, so its gypsum board can be sold to the world first, and its price can be higher than that of multinational corporations. The price of Chinese products is not much higher than that of multinational companies, but the gypsum board of China's building materials is one. Probably many people do not know what plasterboard is, it is the material that makes partition and ceiling, can achieve global sales volume first, achieve the best price in the global market. Now all of China's large-scale projects and famous projects have adopted our Dragon licensing plasterboard. Last year, north new building material tax after the profit of 2 billion 400 million yuan, this is not easy.
In 2002, I transferred from North building materials to Chairman of China building materials, and the most important work was to start with quality. China's building materials industry was originally a small enterprise. When I went there, the sales revenue was only 2 billion, which was 350 billion last year. I talked with Lei Jun just now and talked about the seven years ago when we both won the prize in the water cube. I remember that when I met Lei Jun, millet earned only 7 billion, and this year achieved about 200000000000. After listening, I feel very happy. China's building materials were 2 billion from last year's 350 billion last year, ranking 203rd in the world's top 500. Why can Chinese building materials develop so fast?
I often ask you, "do you like cement?" Everyone burst into laughter. I understand that many people may not like cement so much, but no one can get away from cement. Copper has a history of 4000 years. Iron has a history of 2500, but cement has only 180 years of history. The buildings in Paris and St Petersburg, including China's the Imperial Palace, have no cement, stone, brick and wood. But imagine if there is no cement today, how can we build Shenzhen Special Administrative Region, Pudong New Area, Hong Kong Zhuhai Macao Bridge, Sichuan Tibet railway and so on? None of this is possible. The key is that cement also depends on quality. For example, over 94% of the Sichuan Tibet railway is now built for tunnels and bridges, and special cement is needed. In the past, this kind of special cement needs to be imported from abroad. If it is all imported, the cost of repairing the infrastructure project such as Sichuan Tibet railway will be very high. Now, China's building materials can provide such special cement. And shale gas drilling wells used to be imported in the past, and now they are also supplied by Chinese building materials. In terms of cement, if we can't make special cement, if the quality of cement is not qualified, we need to import, and imports will be sky high. In the past, the top grade cement used in the construction of high speed rail was imported at a price of 2000 yuan per ton. The same is true of glass. The cell phone we use is made up of four pieces of glass, two LCD panels, one touch screen glass, and a scratch proof diamond glass. Four thin pieces of glass, we can not do in the past, now China's building materials can also be supplied, no longer imported from the United States and Japan, and we made this kind of glass quality is very good, all indicators have reached the international leading level.
All the way to do business management, I also have some experience, summed up is "345". "3" refers to the three fine management, that is, organizational refinement, management refinement, business lean. "Intensive and healthy" means that the organizational structure should not be overstaffed. China's building materials are a big organization. These years, they have been constantly downloading. The level of enterprises is from 7 to 4, which is very important for reducing 470 enterprises, slimming up and improving their vitality. "Meticulous management" means improving quality, reducing costs and increasing variety, and the core is quality. "Lean management" is to highlight the benefits. The premise for enterprises is to make money. Only by making money can they innovate and invest. A loss making enterprise is impossible to do well in quality. "4" refers to the transformation of four modernizations. One is high-end. The development of high quality is the development of medium and high end structure. Our building materials industry is already in the high-end level. What we need to do now is to transform to high-end. The two is greening. Building materials products are related to everyone's life. Today we are meeting here, surrounded by building materials. Therefore, the raw materials, production and use of green materials for building materials are very important to us, which is related to the lives, health and safety of ordinary people. The three is intelligence. This can not only save energy, but also make our products more precise, guarantee quality and reduce error. The four is service oriented, that is, production service, manufacturing service and product service. "5" refers to the five superior line, that is, "technology excellence", technology should be excellent, "quality and quality", quality should be excellent, "service excellence", service should be excellent, "price excellence" and price should be good; "profit plus", and the benefits should be good. "345" is my way of doing business. The whole group is implementing from top to bottom, and every sector is pushing forward relevant work.
China building materials participated in the global quality pledge of China's industrial enterprises jointly sponsored by 155 enterprises. We signed the undertaking. China building materials is also a member of the UN Global Compact organization, and has always asked itself for high standards. Now China's building materials have seven business scale in the world, and quality is also at the leading level in the world. For example, every 10 tons of cement in the world, the supply of China's building materials has 1 tons, which is astronomical. In the past, enterprises talked about "yes" in the development process. Now they are talking about "good or bad". In the past, they attached importance to speed and scale, and now they attach importance to quality and efficiency. At present, business income is not the main goal of China's building materials. Our main goal is competitiveness. It is quality, brand and efficiency. This is a big change. Over the past few years, the China Quality Association has given us a lot of encouragement and encouragement, and has also gone deep into our enterprises to help and guide us to do a lot of work.
How does the quality of Japan rise? It was promoted by Mr. Deming. Deming is an American. Why is the Asian Quality Award called the "Ishikawa Kaoru hunting" award? It was Mr. Ishikawa Kaoru who launched the TQM campaign in Japan at that time, bringing new quality to Japan. We too, Mr. Yuan Baohua is the honorary president of our China Association of quality assurance. He managed the eighteen law in the Economic Commission. I still remember it vividly. In the early days of reform and opening up, we learned a lot from Japan in quality control. 20 years ago, I visited TOYOTA, Japan, because the Japanese Toyota Corporation is the best car company in the world, and it is also the most profitable company. Last year, I went to visit Toyota Corporation in Japan, and I visited the production line. To my surprise, after 20 years, they still use the original management principles, or Kanban management and zero inventory. There is an impressive plot. When the car is ready, a worker takes a small hammer, knocking on each screw, bolt, listening to the sound, and see if the twist is moderate. I remember seeing the same scene 20 years ago. It was decades.
Five years ago, I visited the Qingdao vehicle factory in Central car. After reading it, I said to Zhao Xiaogang, chairman of CSR at that time, "I have seen the factory of Kawasaki in Japan. I feel that we will not lose them today. We are very heroic in seeing our own high-speed rail." He said to me, "Song Dynasty, we still have a gap. We are not like the gods. The Japanese are" I want to do ", and we are" ask me to do ". He saw the essential gap. Even though we are going all over the world today, we must see other people's strengths. In March this year, I went to Stuttgart, Germany to see Mercedes Benz. Because cars often mark the quality of industrial management, I just want to see the difference between them. Compare the difference between German and Japanese, and answer some questions in my mind. "Modesty helps one to progress, conceit makes one lag behind". Even if our business is doing well today, we must learn from others and communicate more. Quality is the life of enterprises. Enterprises must put quality first. Good quality is not complicated, it is to stick to the consistent good and do it in the long run. Just like the Japanese knock on small bolts and knock for decades, we must be so solid.
Three, quality is the basic attitude of entrepreneurs.
Every enterprise has its leaders. Dong Mingzhu, Lei Jun and I are all business leaders. What is the view of leaders on quality and the survival and development of enterprises? In the short term, it is possible that a new product, new advertising and new sales promotion can win a temporary market. But in the long run, the survival and development of an enterprise depends on quality. Good quality and good service. Can we do that? I have done 4 years of technology in North new building materials, and I began to be a quality controller, and then worked as a salesman for 10 years. In the past 10 years, the salesperson has been the director of sales for 7 years. He has been a director for 10 years, made 17 years in China's building materials, and has served for 5 years as chairman of the national medicine group. When I arrived at the National Pharmaceutical Group and the National Pharmaceutical Group, I got 250 billion of my income from 36 billion, and last year they did 400 billion. When I left North China, I handed them 12 words: quality, price and service. Quality is that we must have "surplus" quality, must be better than others, not to meet the requirements, we must be better and better, willing to spend some excess quality to ensure quality. You say 10 thousand times is not bad, I want to make it 15 thousand times can not be bad, although the cost is high, but the quality can not be negative. When I worked as a quality worker in the factory, the director of the workshop told me, "Xiao Song, with some negative tolerance, we can produce more products and sell more money." I said, "no tolerance is always tolerable, tolerance is tolerance, and it can not be mastered as a negative tolerance. This concept is wrong. It can only shift to positive tolerance. We need to make better products." In the past, plasterboard multinational companies came in, and finally North Xin won them in the competition because of the quality. What is "middle price"? Quality is cost, not the pursuit of cheap, low price vicious competition, otherwise the kind of enterprise is unable to continue, and finally can not guarantee quality, will hurt consumers. The vicious competition at low price is a double-edged sword, which not only harms consumers, but also leads enterprises to collapse. If we are able to earn so much money and develop so fast today, we should adhere to the basic principle of 12 words. Now, global development will take up the global market. What can we do? We must rely on quality first and quality best to win the market.
To do well in quality, the spirit of craftsmen also needs to be worked out for decades. I often tell young people that it may take 10 to 20 years to complete a business. If you want to achieve the ultimate goal, it may take 30 to 40 years. Someone asked, "Song Zong, how did you figure it out?" I said, "it's not calculated, it's made." The new building material has been built for 40 years, and China's building materials have been doing for 40 years. We must have craftsmanship in quality. Today, we all like to talk about disruptive innovation. I also like to talk about it, but also fear subversion. But continuous innovation, management and quality control are fundamental for us to do well in manufacturing and do a good job in the real economy. We need to combine the spirit of innovation, craftsmen's spirit and enterpriser spirit in doing business, so that the enterprise will never win. Especially the craftsman spirit, today we need high-tech products such as 5G and AI, but we also need daily products such as nail clippers and ball pens. Can a large quantity of daily necessities, such as sanitary wares, flush toilets do well? Well, we don't have to go to Japan to buy the toilet lid. In the past, when we went to Japan, we often bought two kinds of things, the toilet lid and the rice cooker. The Japanese company's service was very good. In order to facilitate the customers, Chinese people also made special boxes and handles for shopping. We are a big country with 1 billion 400 million people. For enterprises, we have 1 billion 400 million people in the market, and at the same time there are large markets abroad. Such a large market supply, we need to do things well, not because the market is big, "radish fast not wash mud." We must learn the craftsmen's spirit and achieve the ultimate goal.
Quality is the foundation of brand. I remember a leader once said, "how can I see advertisements in Japan and Korea when I go abroad?" I said, "now there are advertisements for HUAWEI and GREE." I went to Africa to see the advertisement of GREE, and I came back with pearl Zhu, saying, "I saw your advertisement and felt very cordial." When we measure the quality, we have to go back to the brand. If things do not work well, they will smash the brand. If the quality is good enough, coupled with brand promotion, we will be able to produce many international brands. Switzerland has only 8 million people, and the per capita GDP is 72 thousand dollars. Switzerland has many brands, which surprised me. In January this year, I went to Davos to attend the meeting. I spent two days visiting the Swiss enterprises and asked why their brands could do so well. No one has made it clear. Think of it, think of what they told me, "in Swiss Corporation, brand strategy, brand strategy is the top priority strategy, and the top leaders are in charge of brand names." I also want to share this sentence with you.
Now we are experiencing the stage of China made development to China, and China should transform from a big manufacturing nation to a manufacturing power. We are also changing from "no" to "good or bad", rapid growth to high quality development. But the macro transformation requires micro bottom up, which requires every enterprise to do well. Only every enterprise can do well, and the macroscopic thing can be done well. "The journey of a thousand miles begins with a single step", let us all do well in innovation, quality, management, service and market.