Rebirth 99 to become a car giant
Chapter 207 Ice and Fire, BYD's Dilemma
Cash flow refers to the net amount of cash income and expenditure generated by operating, investing and financing activities during the actual operation of an enterprise.
Compared with the income statement and balance sheet, cash flow is more important to the enterprise, because it reflects the actual cash position of the enterprise, that is, whether the enterprise has enough cash to meet the needs of business operations and debt repayment.
Dong Shengnan's objection to increasing inventory shows that she is fully aware of the importance of cash flow.
In recent years, the reason why the JIT model developed by Toyota Motor is so popular is that it has been learned by many companies around the world.
It is because the JIT model can make the cash flow of the enterprise more sufficient.
The core idea of the JIT model is to reduce inventory as much as possible during the production process, and realize real-time adjustment and optimization of production plans through order-driven methods.
In the production line, each production step is carried out for a specific order, and the products on the production line are only produced in the quantity required by the order, and are delivered to the customer immediately after the production is completed.
This model can effectively reduce inventory costs and logistics costs, thereby making cash flow more sufficient.
Cao Yang naturally understood this truth.
But he couldn't explain his considerations to Dong Shengnan in detail.
"Dong Bu, what you said is very reasonable. Under normal circumstances, it is true that there should be no increase in inventory."
"However, you also know that 70% of our current turnover is contributed by exports. Once parts cannot be delivered to customers such as Ford Motor and General Motors on time, they will immediately consider using products from other companies to replace us. "
"Even if we find a way to recover it later, it will be difficult to get back the lost share."
"Even it would destroy the good relationship we've had with GM, Ford."
"Of course, I completely understand your concerns."
"We will use half a year as the deadline, and before July 2003, we will prepare the inventory according to the standard I just mentioned."
"Whether it will continue after July, we will discuss it then?"
Cao Yang did not directly give orders bluntly.
That would chill the hearts of those below.
Although the company is its own, it also belongs to everyone to a certain extent.
It's like this year's year-end bonus, because all the goals have been achieved, Cao Yang will give everyone an extra month as promised, and the basic salary will also be raised.
If the goal for 2003 cannot be achieved due to Cao Yang's reckless behavior, the bonuses of all employees will be affected by then.
"That……"
"Then let's implement it for half a year for the time being."
Although Dong Shengnan has a bad relationship with various departments, it does not mean that her EQ is low.
On the contrary, it shows that she can understand clearly.
Having already expressed her opinion in front of Cao Yang, she will naturally not continue to insist on her own opinion so bluntly.
"All departments have submitted their budgets for next year to the finance department, and I will hand them over to you to track and implement them."
Seeing that Dong Shengnan compromised, Cao Yang expressed his respect for her in a timely manner.
The finance department has already offended all departments of the company. If they don't feel the support and trust of the boss, they will definitely feel cold.
At that time, people chose to compromise, and said hello to each department, hello everyone, Cao Yang will be in trouble.
"no problem!"
"The finance department of each project will organize a monthly report, and I will personally follow up when the time comes."
Dong Shengnan breathed a sigh of relief.
It seems that my boss is also a smart man.
...
When Nanshan was busy summarizing internally, BYD was also doing similar things.
However, the atmosphere is a little different.
"Mr. Wang, the current engine prototype has been made, but the data in all aspects are not ideal."
"First of all, the vibration and noise are much higher than the original 2.4L inline four-cylinder naturally aspirated engine on the Honda Accord."
"Then the fuel economy is very poor, far from the level of the original version, and there are even oil leaks."
"In addition, the efficiency of the engine is low, the combustion is not complete, it produces a lot of pollutants, and the emission is also problematic."
"The most troublesome part is the frequent failure of parts, which has not yet reached the level where it can be loaded into mass production."
"Obviously the size of each part is similar to the original one, but after installing it, various problems will appear."
"Especially when doing durability tests, problems will occur after running on the bench for a few days."
"I think this engine, let alone catch up with mass production in the middle of this year, may not be able to catch up by the end of the year."
Liang Chuanqing is the person in charge of research and development of BYD F6 carriages.
Now the progress of other parts except the engine is relatively smooth, and the whole company is counting on the car project to officially enter mass production in the middle of 2003.
In order to avoid only input and no output all the time, it will drag down the battery business.
"The threshold for this engine seems really high. Can we consider directly producing electric vehicles, or producing plug-in hybrid vehicles?"
"In this way, the engine can be eliminated, or the requirements for the engine are greatly reduced?"
Wang Fu did not lose his temper directly.
He also knows that the research and development of automobile engines is not so easy.
With so many domestic car companies, after many years of research, they have not come up with any decent passenger car engines.
It is not surprising that BYD has no basis for making cars, and it cannot be done in a short time.
"There is no market for electric vehicles at all, and with our current battery technology, the cruising range of electric vehicles produced is estimated to be only 200 kilometers."
"This is still without turning on the air conditioner and driving in low temperature places."
"Besides, even if it is to produce electric vehicles, it also involves the research and development of various parts such as motors and electronic controls. Our accumulation in this area is also very weak."
"Mr. Wang, at present, most of the engines of domestic cars, whether it is Great Wall, Chery or Geely, are purchased from outsiders."
"Why don't we also consider outsourcing? Dong'an Power has contacted us before, and Aerospace Mitsubishi also expressed its willingness to supply us."
"In particular, the 4G6 series engines imported by Aerospace Mitsubishi from Dongying Mitsubishi are still very compatible with our F6 models, with both 2.0L and 2.4L displacements."
"This engine has the characteristics of leading technology, low noise, low vibration and low fuel consumption, and it can completely catch up with our schedule."
Liang Chuanqing knew that he couldn't fix the engine in a short time, but he couldn't even come up with a solution, right?
However, it was clear that Wang Fu was not satisfied with his plan.
"Is there no other way?"
Of course, Wang Fu is clear about Aerospace Mitsubishi's products.
But he is also very clear that that is Mitsubishi's engine technology more than ten years ago.
Their latest engine already has variable valve timing and lift technology. If they sell this model, they can still consider it.
"or……"
"Or let's communicate with Nanshan and see if they have any suggestions?"
"So far, the parts they have given us for research have not had a single problem in the engine experiment."
"On the contrary, it is our own research and development, as well as outsourced parts, and problems occur frequently."
"This shows that their technical accumulation in engine parts is much deeper than we imagined!"
Liang Chuanqing also proposed a very novel idea.
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