Xing Gang: Quality Pursuit on the Road to Specialization

“Your company LX72A is used in Shenyang factory and Weihai factory of our company. The packaging and transportation and product quality meet the requirements of our company. After comprehensive evaluation of our company's quality, your company has been listed as a qualified supplier of wire rods for our company.” August of this year, This letter of credit for the “Bercate China Wire Rod Purchase Center” sent an additional internationally renowned large multinational company to the list of high-end customers of Xingtai Iron & Steel Co., Ltd.
Jiang Yi, head of quality control department of Xing Steel, said that LX72A is a special steel used for processing steel cords for tires. It is one of the representative steels that test the R&D capabilities of steel wire products. Bekaert, headquartered in Belgium, is currently the largest steel cord manufacturer in the country. With the rapid growth of auto consumption demand, its raw material procurement is gradually localized. As the country's only professional manufacturer of wire rods, Xing Gang started to sell cord steel to Bekaert in 2008.
In May of this year, Xing Gang dispatched technical personnel to visit Bekaert again. According to the score of the product produced by the other party, it was 840.83 points, and the gap was 925 points between domestic Baosteel, Wuhan Steel and Anshan Iron and Steel Company and 925 points of imported German wire rod. After he came back, he got through quality improvement. In the end, Xing Steel's model product stepped into Bekaert's “threshold” with a result of 867.5 points.
Since 2007, Xing Gang has determined the “high-end wire rod” quality development strategy. For this reason, they not only abandoned other non-wire products, but also gradually eliminated ordinary wire rod products, and promoted technological innovation to optimize the product and process technology structure. Xingtai Steel has achieved strategic transfer from ordinary steel to product steel and special steel, and has become the largest professional manufacturer of high-end wire rods and the only professional manufacturer of wire rods for industrial use.
Technology R&D, quality control, and rapid market response mechanisms are the three major weapons that Xing Steel has been making on the road to professional wire.
Xing Gang has provincial-level technology centers, Beijing science and technology centers, post-doctoral workstations, and internal and external expert technical committees, and other institutions. R & D and product testing equipment are complete, and a strong R & D force constitutes a technical guarantee for them to implement quality strategy.
In addition, in order to ensure the stable and controllable production process, Xing Gang began to explore a set of unique standardized quality management system in 2006. Jiang Yi said that they have integrated six sets of modern management standards with different focuses, including the first in the country to pass the international automotive industry quality certification, combined with their own original management system, integrated into a complete system, specific to each An employee has job instructions for his position that are concise and easy to use. This system has passed the accreditation of the British Standards Institute. The whole process is shared for 17 months.
On this basis, the flexible market mechanism is one of the important tools for Xing Steel's participation in competition. Relying on a complete information system, they have realized the timely sharing of massive information inside and outside the enterprise. Enterprises can accomplish the statistics and analysis of financial statements in the same month. Through various cost comparisons, they can keep abreast of market dynamics and determine the adjustment of raw products next month. To ensure that the company's operations maintain a high profit margin.
At present, more than 600 kinds of Xingtai steel products cover more than 70 steel grades and are used in high-end fasteners, high-speed railways, long-span bridges, aviation, automobiles, home appliances and other fields, of which 62% of wire rod products have been identified With the quality level of similar products in the world, 40.5% of the products have reached the domestic benchmark level.
As the products are mostly concentrated in high value-added high-quality steel series, the total assets return rate of Xingtai Steel in 2008 was 9.6%, which is much higher than the industry average of 3.77%. In this year's financial crisis, the iron and steel industry was generally hit by a major environment, Xing Steel did not stop production for one month or a loss, and the quality improvement effect was significant. As of November, the number of customer complaints decreased by 22% over the same period last year.