The Richest Man Yang Fei

"The boss is back." Hu Zhibiao came and was waiting for Yang Fei in the living room. When he saw Yang Fei come in, he stood up and smiled.

"Old Hu!" Yang Fei smiled, "You came just in time. Let's have a drink together tonight."

"Okay, boss." Hu Zhibiao said, "I have two things to report to you."

"Go ahead."

"Regarding the product failure rate, I wrote a self-criticism. Please take a look at it, boss." Hu Zhibiao said, and really took out a document and handed it to Yang Fei.

Yang Fei was surprised and said, "You don't have to be so serious, right?"

"Yes, yes." Hu Zhibiao said, "Who told me that I didn't manage the company well! Such a big thing happened. Although the boss didn't punish me, I still know it in my heart. This self-criticism must be written. Boss, please make it public within the group to enforce strict discipline."

Yang Fei took it, took a look, and smiled, "It's okay to write it, but it doesn't have to be made public. Is there anything else?"

Hu Zhibiao said, "We acquired an electronic processing factory in the first half of the year. It's been almost half a year, and it's still losing money."

"Oh?" Yang Fei got excited and asked, "Before the acquisition, was this company in a loss-making state?"

"Yes, otherwise they wouldn't have sold it to us."

"Half a year, haven't you found the crux of the problem?"

"The cost is high, but we have been controlling the cost, but it's still high."

"Which factory? ”

“It’s a joint venture factory left by the British. The Chinese investors were losing money and couldn’t continue, so they withdrew and we took over.”

“I see. The current management is still from the British side, right?”

“Yes, they are actually quite rigorous in their work, but I don’t know why the factory is losing money.”

Yang Fei said, “Did you bring the report? Let me see.”

“I brought all the financial reports for the past six months. Please take a look, boss.”

“I remember that this factory is controlled by us, right? The British side only holds 36% of the shares.”

“Yes. The boss has a good memory.”

You know, Yang Fei is the manager of the entire group. He has countless companies, factories, and branches under his umbrella. He also has to acquire or sell countless branches and factories every year. It is indeed difficult for him to remember the specific situation of each factory.

Yang Fei looked at the report and asked, "Is cost control so difficult?"

"Each indicator item must exceed the cost by 5% to 15%. It is originally a low-profit industry. If the cost exceeds so much, how can there be any money to be made?"

Yang Fei pondered and said, "It is not clear from this point of view. It is better to go to the factory to have a look. It is still early, let's go!"

"Okay, boss. I will go with you." Hu Zhibiao stood up.

Yang Fei said to Chen Mo, "Prepare dinner at home first, invite Mr. Jiang to come and eat, and have a small gathering in the evening and open two bottles of good wine."

Chen Mo responded.

Yang Fei had just returned home and did not even have time to finish a cup of tea before he went out again.

"After the acquisition, we thought the British management staff should be good, so we didn't change them." Hu Zhibiao said, "We have been assessed and their scores are very high." Yang Fei said, "If there is no problem with the management staff, then what is the problem?" "The British management staff all use computers to control the raw materials. All procedures, including the purchase of factory ingredients, are strictly calculated by computers. How many vegetables to buy and how many meals to cook every day are very accurate." "Really?" Yang Fei smiled, "In this case, corruption should be very difficult." "All income and expenditure are transparent, and it is difficult for anyone to embezzle. And we also have management staff to supervise every expenditure." "Since it is so strict, why can't the cost be reduced? We are not the only ones making this kind of product. Since others can make money from it, can't we?" "The knowledge of management is too profound. So not everyone who runs a business can do it. I lost money before. I made a lot of money, but I still lost money in the end." Yang Fei said, "That's right. Management methods are very important." Upon arriving at the factory, Yang Fei immediately had an in-depth and detailed understanding of the entire management system. It is true as Hu Zhibiao said, the British managers of this factory worship computers very much, and everything is precisely controlled by computers.

In the computer, all income and expenditure are clear at a glance, and the report is printed without any flaws.

But in the end, it is still a loss.

In the impression of the world, the management level of developed countries such as the United States, Japan, and the United Kingdom is naturally world-class, and in terms of corporate management, these countries also regard themselves as the boss.

Yang Fei looked at the data in the computer and found no problems.

If there were problems in the computer, it would have been discovered long ago.

Yang Fei called the heads of the main departments of the factory, such as personnel, finance, and production managers, and asked some actual situations.

Between questions and answers, Yang Fei quickly found the problem.

"How many employees are there? Say it again."

"Eight hundred and seventeen."

"Do we need so many people?" Yang Fei asked, "How many shifts do we have now? How long is each shift?"

"Three shifts. Eight hours each."

"Can you complete the production tasks?"

"Easily."

"The more you complete, the more you lose?"

"..."

Yang Fei said, "Too many people! Reduce the number to two hundred!"

"Two hundred?" The HR manager was surprised.

Yang Fei said: "Two hundred people are enough for such a small factory. Many positions can be held concurrently. Foreigners like meticulous management and divide all work into details. Abroad, they can do this, but in our case It doesn’t work in China!”

"Why? Boss?"

"Because foreign products are expensive! And our products are often sold at only one-fifth of theirs, so our costs must be controlled at about one-fifth of theirs in order to be profitable. The biggest cost is The item is labor expenditure, so you must reduce the number of workers, two hundred is enough!”

The HR manager said: "I'm just afraid there won't be enough manpower."

"Afraid? I'm not afraid. What are you afraid of? I tell you to do it, just do it!"

"Yes, boss. Then the workers' work intensity must be increased. What if they don't want to stay?"

"There are more than 800 people, and only a quarter of them are left. I think there are always people who are willing to stay, right? Whoever wants to stay will get an additional 10% of their basic salary. If they don't want to, they can leave. We are about to lay off employees! "

"Okay, boss." The HR manager didn't dare to talk back anymore.

The basic salary is not high, even if it is increased by 10%, it is not much, but it can give employees a motivation. After all, the salary has been increased, and the increase is quite considerable!

Yang Fei said to the production manager: "I took a look and found that the waste rate of raw materials in several departments remains high! I don't care what method you use, you must control the waste rate of raw materials below 3%! More than 100 Three out of three points means you are unqualified!”

"Boss," the production manager said, "the raw materials are all controlled by the British through computers..."

Yang Fei waved his hand and said in a deep voice: "Don't mention computers to me! If computers are omnipotent, what else would I ask you human brains to do? Specific things must be analyzed in detail! Computers are intelligent, but they are also dead things. ! The people working below are also human beings! Computers can calculate, but they are not human! Therefore, you must take appropriate measures and control the cost! The waste rate cannot exceed 3%. This is my bottom line!

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