Chapter 39: Saving 4000 million per year

Yang Hai was speechless. This was the cruel reality. Only when the cost of labor continued to grow and it became difficult to recruit workers, would capitalists find ways to engage in technological research and development, automate production with intelligent CNC equipment, and develop industrial robots to replace manual production.

Now, even in an economically developed place like Linhai City, the monthly salary of employees on an ordinary production line is only more than 1000 yuan, or at most 2000 yuan. Working in two shifts a day, the monthly expenditure for two employees is only more than 4000 yuan but less than 5000 yuan, or only 5 to 6 yuan a year.

Advanced automated production equipment can certainly improve production efficiency and reduce labor costs, but the research and development and production of such advanced automated production equipment also requires costs.

This cost is obviously more than 5 or 6 yuan, and may even be two or three times this number. So how could capitalists be willing to invest this money to research and develop and produce such advanced automated production equipment?

The key is that products like mobile phones are updated too quickly. The advanced automatic production equipment that you have spent a lot of effort to develop and produce may be eliminated in just one or two years.

Therefore, capitalists are even less willing to invest large amounts of money to research, develop and produce such advanced automation equipment.

After entering the dust-free workshop, it is obvious that the number of employees on the production line here is greater than that in the stamping workshop and CNC workshop.

Yang Hai took a quick look and saw that there were as many as thirty or forty employees on one production line. There were people everywhere, and some were extremely busy, working very hard.

But some people have very little time to spare. Even if they try hard to pretend that they are working very hard, they have nothing to do.

Yang Hai stopped and carefully observed the working conditions and operating procedures of these people, and soon discovered that something went wrong.

Everyone was wearing dust-free suits that covered them from head to toe, and masks that left only their eyes exposed. If you didn’t know each other well, it was impossible to tell who was who.

However, ordinary production line workers wear white dust-free suits, while team leaders and material handlers wear sleeves on their arms with the words "Team Leader" and "Material Handler" marked on them.

Managers above the supervisor level wear yellow dust-free suits, including Yang Hai.

The quality inspectors (QC) only wear pink dust-free suits.

"Are you all employees of the production line? And you are all from the QC department, right?" Yang Hai asked the workers who were working on the assembly line.

"Yes! We belong to the production department, and they belong to the quality inspection department." An employee from the production department replied.

"Oh! Then the products produced by your production department need to be randomly inspected by the QC of the Quality Inspection Department. If they are found to be unqualified, this batch of products will have to be reworked, right?"

"Yes! We have a total of four procedures here. After each procedure is completed, our production line will undergo a full inspection, and then QC will conduct random inspections. If unqualified products are found in the random inspection, they will be returned to the production department for full inspection and re-inspection." The team leader of the production line said on the side.

"I see that there are about 60 tablets in this box of products! How many tablets do you usually select for QC inspection?" Yang Hai asked again.

"We will randomly check about 10 to 15 pieces. If more than three pieces are found to be unqualified, they will be returned to the production line for re-inspection," said a QC.

"That is to say, if there are no problems with the 10 to 15 pieces of products sampled, they can be considered qualified products?" Yang Hai asked again.

"Yes, if there is no problem in the random inspection, it will enter the next process." said the team leader of the same production line.

"What if there are 60 tablets in a box and 15 tablets are found to be normal, but the other 45 tablets are substandard? What should we do?"

At this point, no one dared to say anything. No one knew how to answer Yang Hai's question.

"If these products reach customers and they find that there are quality problems, will the quality inspection department be held responsible or the production line?" Yang Hai continued to ask. "I guess the quality inspection department will definitely say that there are quality problems with this product and it must be the production department's fault."

"QC is only responsible for random inspections, not full inspections."

"People in the production department will definitely say that this quality inspection is qualified and has nothing to do with our production department."

"In the end, it has nothing to do with anyone. The customer returns the product and we just have to do the rework."

"For every two full inspections of the production department, there is one QC random inspection. As a result, the people in the production department are exhausted and busy all the time, while the people in your QC department have nothing to do."

"If I'm guessing correctly, the salary of QC should be higher than that of the production line employees, right? Even the performance bonus should be higher."

"Also, you guys sit together for a long time at work, so you should have some camaraderie. The employees on the production line must have certain tasks to complete every day."

"So the production line workers may ask QC to relax a little bit. After all, if they can't complete the task, they still have to work overtime, and it may be free."

"So the QC may relax the quality control of spot checks or even not conduct spot checks at all in order to save face for their co-workers. And that's how it gets away with it."

"Anyway, in the end, no one knows who inspected these products, because your products are not clearly labeled and which QC is responsible for the inspection. So if there is a problem, it is everyone's fault. After all, the law does not hold everyone responsible! There is no evidence to prove that these are the products I sampled."

Yang Hai then looked at Shen Ruobing and said, "If it were me, I would hand over the full inspection of the production line to the quality inspection department, and have QC conduct the full inspection directly, instead of random inspections like now."

"If there are any more substandard products that reach customers, the quality inspection department will be held accountable."

“The QC of each process must put his name tag on the product he is responsible for inspecting, and if there is a problem, it must be traced back to the QC.”

"If you follow the method I mentioned, the product quality will most likely be greatly improved. One production line can reduce the number of workers by ten. I see you have twenty-four production lines here. One production line can reduce the number of workers by twenty in two shifts. Twenty-four production lines can reduce the number of workers by four hundred and eighty."

"There should be more than one workshop like this! If there are fifty production lines in total, we can reduce the number of employees by one thousand."

"Not only that, we have three such workshops, with a total of sixty-eight such production lines." said a workshop supervisor nearby.

Yang Hai nodded and said, "In addition to this dust-free workshop, there must be other workshops with similar situations."

Shen Ruobing obviously attached great importance to the suggestion made by Yang Hai.

Sixty-eight production lines can reduce the number of workers by 1,320. Although the number of people in other workshops and departments is not large, if they are reformed in this way, at least a few hundred more people can be reduced.

Assuming that the number of employees is reduced by 300, the monthly expenditure can be reduced by more than 3600 million, which means 4000 million a year, nearly million. The money saved is pure profit.

So reform is necessary. Is this still something we need to consider?
Shen Ruobing immediately ordered the factory's operations manager to come up with a truly effective reform plan and make improvements according to Yang Haiti's suggestions to see what the results were.

When she returned to the office again, there was finally a smile on Shen Ruobing's face.

"Tell me! What do you want me to do in the United States with you?" Shen Ruobing asked proactively.

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(End of this chapter)