Yunnei Power: Making Innovations to Strengthen Short Boards

From January to May of this year, the production and sales volume of diesel engines in the country dropped by 1.68% and 2.99%, respectively, but the production of Kunming Yunnei Power Co., Ltd. (hereinafter referred to as Yunnei Power) significantly increased by 34.81%, and the sales volume increased by 27.2%. Sales revenue increased by 26.21%, industrial output value and industrial added value increased by 49.46% and 51.2% respectively.

What is the driving force behind the rise in the production and sales volume of Yunnei Diesel Engine? The answer is: structural reform on the supply side. The fundamental growth of Yunnei’s performance in power is to grasp the market externally, grasp the production site, use product innovation and on-site management innovation to make up for shortcomings in the industry, satisfy the market, and lead the demand.

Yunnei Power, established in 1956, has deep research and development strength in diesel engines and R&D experience. Over the years, it has maintained its leading position in the field of multi-cylinder small-bore diesel engines. However, due to the restriction of products to the ability of converting goods, the series of high-tech engines developed by Yunnei Power failed to win market competition, but they have not escaped the destiny of regional brands for a long time and were once pushed into the edge of “survival” by fierce market competition. .

Cloud power Yunnei Engine

In order to continue to survive and seek development, Yunnei Power embarked on a journey of innovation-driven, transformational, and upgrade-based lean management based on the value-added system of the entire value chain to implement product development, marketing, toughening, cost reduction, and management improvement. The five major tough battles for cohesiveness.

The product warfare campaign is to strengthen the leading role of product innovation. With lean R&D to drive the company's transformation and upgrading, it completed the national five-country and six-nation diesel engine and the national three and four non-road diesel engine product plans, accelerating the company's product upgrading and transformation and upgrading. Maintained the leading level of product research and development; marketing tough battle not only effectively resist the depressed market situation, the lean marketing adopted to achieve effective destocking, prompting its product sales record high. “Through the tough marketing campaign, we have formed a close cooperative relationship with the entire vehicle companies across the country. The Yunnei Power brand has also transformed itself from a regional brand to a national brand, thereby gaining the market's initiative.” said Yang Bo, chairman of Yunnei Power. . Through the structural reform on the supply side, Yunnei Dynamics has opened up the sales market for the DEV series, the non-road series of diesel engines and the fine accessories series, which has laid a solid foundation for the company to achieve greater achievements in the 5th Five-Year period. Yunnei Diesel Engine Production has been Rapidly rising from the 7th place in the country to the 3rd place in the country.

It is an “artifact” that the profitability of Yunnei’s power products has risen significantly in the cost reduction campaign known for “relentless cost reduction”. It is a masterpiece that Yunnei’s profitability has increased dramatically. Yunnei Power Chengdu’s turnaround is a masterpiece of ruthless cost reduction. In the battle of management and improvement, Yunnei Power introduced the concept and technology of “Internet+” widely. Through the implementation of full-value-chain lean management, it actively promoted the deep integration of the company’s “twoizations” and made every effort to create an intelligent manufacturing platform; Further strengthen employees' sense of belonging and responsibility, ensure that the turnover rate of employees does not exceed 2%, and continue to consolidate the "first resources" for company development.

The changes brought about by the supply-side structural reforms for cloud internal power are significant: In 2011, Yunnei’s profit was only over 17 million yuan. This figure exceeded 200 million yuan by 2015. In the first half of this year, Yunnei’s power production and sales volume Profits are expected to increase substantially year-on-year, and employee income will increase by more than 10%. Yunnei Power has become a leader in the Chinese internal combustion engine industry, a key enterprise in the hi-tech industrialization base for passenger vehicle diesel engines identified by the Ministry of Science and Technology, a key high-tech enterprise of the National Torch Plan and an international cooperation base for science and technology, and the head of standard-setting for multi-cylinder small-bore diesel engines in China. Units, "Cloud" have also become well-known trademarks in China. The newly formed Yunnan Yunnei Power Group Co., Ltd. will integrate the development of auto parts, energy-saving building materials, new energy vehicles and agricultural machinery and other related industries.

Yunnei Intensively Intensified the Reform, and took the first step of the “Long March of Miles,” and the company will take the structural reform of the supply side as a breakthrough point, turn around the market, follow the market, and use “Made in China 2025” as a guide to accelerate the pace of enterprise innovation. Transform from a traditional manufacturer to a service provider to provide customers with system solutions. At present, Yunnei Power has cooperated with the world's top automotive automatic gearbox manufacturer PPS in France to develop an engine + automatic transmission assembly; relying on four R & D centers in Kunming, Chengdu, Wuxi and Shandong, developed an extension program (plug Electric) new energy powertrain and realize industrialization as soon as possible. Yunnei Power already has a state-level enterprise technology center, and the eastern R&D center, which has invested more than 400 million yuan in the establishment of Wuxi, is accelerating the attraction of talents, from research and design to R&D to calibration, to all research experiments in engines and vehicles.

At present, Yunnei Dynamics has been successfully selected as a model enterprise of intelligent manufacturing standardization in the Ministry of Industry and Information Technology, which will effectively promote the intelligent development of the Yunnei diesel engine from design to sales. In the future, the entire operation of each "Yun Nei" brand diesel engine will be remotely monitored. The high-pressure common rail R&D circuit developed by Yunnei Power on non-road diesel engines will revolutionize the R&D design route of non-road diesel engines and lead the development of this field. More importantly, Yunnei Power has successfully cut into the research and development of key components such as diesel exhaust after-treatment and electronically controlled fuel injection systems, and has mastered relevant core technologies. By 2020, Yunnei Diesel will achieve production and sales of 600,000 units and a revenue of 10 billion yuan. Its overall product performance will be comparable to that of a joint venture. It will form a platform for the development of diesel engines and upstream and downstream industries, and The customer provides the entire engine service chain that includes design, R&D, manufacturing, calibration, exhaust gas after-treatment, and powertrain matching to achieve cluster development of the engine business and promote the transformation and upgrading of the Chinese diesel engine industry.

Short comment on innovation is the key

To promote supply-side structural reforms, we must play the role of innovation as the main engine to drive the development of new technologies, new industries, new products, new formats, and new models.

To make up for the shortcomings in the industry, the key lies in the continuous improvement of the ability of independent innovation of enterprises. Yunnei's innovation through innovation not only keeps its products in the leading position in the industry, but more importantly, innovation promotes the transformation of Yunnei's power from regional brands to national brands, from product manufacturers to industrial chain service providers, and supply. The structural reforms on the one side meet the market, lead the demand, must be dynamic on innovation and development, and must be competitive on the new advantages of a distinctive new industry. Only in this way can the competition win the initiative and gain the upper hand.

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