100 billion US transformation management and control upgrade to return to product and quality

In 2010, Midea Group broke through the sales revenue of 100 billion yuan. However, in the post-100 billion era facing the continued severe economic situation, the US chose to bid farewell to the past model of focusing on scale growth and the product as the core of enterprise transformation. Since the strategic transformation and upgrading in 2011, the gross profit margin of products has been positively improved. The transformation has seen initial results. At the end of October, Midea Electric Co., Ltd. released its third quarterly report. From January to September this year, the gross profit margin was 22%, up 4.2% year-on-year.

Strategic Transformation

Return to product and quality

The three listed companies under the Midea Group have 16 operating units and a very rich product line. As an aircraft carrier enterprise with a sales scale of over 100 billion and comprehensive coverage of white goods, Midea has paid great attention to the introduction of quality-related management systems from the beginning, such as ISO system certification, including ISO9001 quality management system certification, ISO14001 environmental management system certification, OHSAS18000 Occupational Health and Safety Management System Certification, and also continuously expand and introduce relevant certification systems for overseas markets.

As early as 1999, Midea Air Conditioning won the "European Quality Gold Award", which is judged by the highest performance standards. In fact, the high performance model has been hailed as one of the most advanced quality management systems. According to Liu Xin, Quality Department of the Municipal Quality Supervision Bureau, even now, the number of enterprises that have actually introduced the system in the city is not over 100. After the first step of the United States, in 2009, it became one of the four companies in the first government quality award in Guangdong Province, and the only company that won two “National Quality Awards”.

The development of Midea Group is accompanied by the introduction of various quality systems, which translates into an enterprise quality assurance system with stricter internal standards and higher standards. Always take "quality improvement, create quality quality" as the core work, and build a three-level quality assurance system of the group, business department and product company from the organization to realize the integrated management of quality system. Focusing on products, paying attention to quality, and paying attention to the interests of consumers, this year, Midea has clearly and emphasized the core position and strategic guiding significance of product quality in all aspects of the Group's strategic transformation.

Control upgrade

Adhere to rigid quality and strengthen quality prevention

Quality is the life of the enterprise, and the quality management model is further upgraded. While insisting on the rigid implementation of the quality basic management system, it is proposed to prevent quality from the source.

In addition to the organizational structure, the formation of quality management systematization, the control of product quality, the material source is the first concern. Xiao Zhongxiao, deputy director of Midea Group's Technology and Quality Management Department, said that Midea's suppliers of every material must be ranked in the top three in the industry, and in the selection process of suppliers' products, quality is also the main weight of the selection. “We will also directly influence the proportion of supply according to the quality of the supplier's products.”

Since it can go further than others, even if it is traceable to the source, it will be “traceful” ahead of others. Before the product is “born”, it will start to grasp the product quality from the design source. For example, designing a refrigerator, Midea will first collect the market performance of the various refrigerator products that the company has previously introduced. “Put out the quality problems of these products in the market and focus on these quality issues as the focus of new product development.” That is, to find problems from the market and set them at the design source.

“The United States has a very complete after-sales service.” According to the person in charge of the quality management of Midea Group, Midea established a very perfect consumer after-sales service system as early as 1999. This after-sales service system, while helping the United States to communicate with market consumers, also provides valuable quality improvement quality information to the R&D source.

"As long as you buy a beautiful product and have a sales record, we will implement a 100% return visit." The person in charge said that this return visit is not only an understanding of the installer's work service, but also a channel for knowing the performance of the product market. “After the product is repaired, we will also conduct a return visit.” These return visits will be sent back to the relevant business department. At present, on the basis of continuous improvement of the after-sales service system, Midea has introduced the RAS system in the domestic appliance industry, and is ahead of the after-sales service of home appliances.

More than 200 expert quality escorts

"What the United States has to do is to always insist on quality control." The person in charge of the quality management of Midea Group revealed that in order to continuously accelerate the quality of the company's products, Midea has spared no effort in attracting multinational quality experts.

In January of this year, Midea invited Toshiba's quality team to the United States for quality communication and diagnosis. It has carried out five quality exchanges, including one expert in the United States, and even set up a Toshiba quality expert library to conduct regular exchanges and study.

This year, Midea Group and its various business units have also recruited a number of quality management masters from multinational companies to enrich the quality team. At present, there are more than 200 foreign experts in charge of science and technology and quality throughout the group.

In addition, the number of product models directly reflects the degree of precision analysis of a company's market demand. It is understood that in order to improve the quality of products and release scientific research vitality, the products of Midea have reduced the model by at least half in the past year.

President's point of view

Quality Control

There is nothing in the earth-shattering story

In the special issue of Science and Technology Month published by the US newspaper on October 26, Cai Qiwu, senior vice president of Midea Group, issued two articles, "Focus, Refocus" and "Focus on Talent", pointing out that "the core of all competition is still the product." The improvement of quality is just like the transformation of society. The core of the current strategic transformation of Midea Group is the attention to products and the upgrading of quality.

During the period of deepening strategic transformation of Midea Group, does Midea have a big plan for technology and quality management? Cai Qiwu, senior vice president of Midea Group, believes that technology and quality do not change much at any time in the enterprise. These are tasks that require pragmatism and long-term persistence. There is no big concept. A good company is not going to shout slogans every day. It is doing its work in a down-to-earth manner. Many technical quality work is going on every day, maybe not much great innovation. There is no earth-shattering story to tell, but it is expensive. Persistence is to systematically make things that are boring and boring, to be the best, to be the best.

From research and development to manufacturing, we must focus on quality strategy from start to finish. Every product should be designed with good standards and guidelines. These need to accumulate over time and make this knowledge a useful resource through good collaboration mechanisms.

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