<strong>China: Provincial Corporation Holds On-the-spot Meeting on Management</strong>

Source from:  TobaccoChina Online  10/30/2014

China Tobacco Yunnan Industrial Co., Ltd. in southwest China's tobacco-producing Yunnan Province held in Qujing City of the province on October 16 an on-the-spot meeting to exchange experience in the management of enterprises, with the focus on planning for the work of promoting lean management at enterprises affiliated to it.

In an address delivered at the meeting, China Tobacco Yunnan Industrial Co., Ltd. Communist Party group Secretary and General Manager Zhu Shaoming emphasized that in-depth promotion of lean management should be taken as a major basis for systematically promoting management by China Tobacco Yunnan Industrial Co., Ltd. to higher levels, and should seek efficiency improvement, methodology and progress from management enhancement, in order to better meet the requirement of reform leading to "two unifications and two integrated" launched by China Tobacco Yunnan Industrial Co., Ltd., and more rapidly promote a shift from strategic management and control of enterprises onto operational management and control.

"Two unifications" refer to unification of management by China Tobacco Yunnan Industrial Co., Ltd. over the businesses of marketing on the part of its affiliated Hongta Group and HongyunHonghe Tobacco Group and unification of new products research and development by the two groups. Meanwhile, "two integrations" refer to integration of the existing cigarette brands and integration of the existing enterprises engaged in business diversification under Hongta Group and HongyunHonghe Tobacco Group. The "two unifications and two integrations" both are intended to further optimize the distribution of resources in the interest of realizing sustainable, healthy and steady development of the tobacco manufacturing enterprises in Yunnan.

Zhu Shaoming also delivered a summary speech while China Tobacco Yunnan Industrial Co., Ltd. Deputy General Manager Yao Qingyan gave a work report on the management of enterprises.

In his summary speech, Zhu Shaoming put forward a three-point requirement for the work of enterprise management:

Firstly, there should be preparation for danger in times of safety, and the situation should be clearly understood in giving priority to management improvement. Along with changes of the current macroeconomic environment, shift of the mode of development and restructuring have become a theme of economic work for the present time and in a future period of time. In future, competition among enterprises will become competition of management systems, competition of operational mechanisms and competition of management efficiencies.

Secondly, long-term perspective should be adopted and there should be strategic planning in strengthening management. All cigarette-making enterprise groups, affiliated units and cigarette factories should further strengthen analysis, study and judgment of the situation, should focus their attention on sustainable development of the tobacco industry of Yunnan, promote a shift of the mode of development from the pattern of profits of scale onto the pattern of profits of structure, further discharge bonuses from reform, arouse vigor and vitality for economic growth, and promote sustainable development of the tobacco industry of Yunnan.

And thirdly, energy should be focused on the principal business, and there should be reform and innovation in strengthening management. Efforts should be made to do a good job of basic management, with structural improvement and reduction of costs as the core, and do a good job of construction of management systems, in accordance with a shift of the model of management and control.

In accordance with the leading line of strategies, targets, processes, performance and innovation, efforts should also be made to systematically develop the management system of China Tobacco Yunnan Industrial Co., Ltd., strive to realize organic integration of management by objectives, process management and performance management with the management models of China Tobacco Yunnan Industrial Co., Ltd., establish a system of objectives with the brands development strategy at the core and with all-round coverage, check and optimize business processes on a full scale, establish and perfect performance management, innovate systems supporting management of mechanisms, etc, and promote basic management to higher levels.

In his work report, Yao Qingyan emphasized that China Tobacco Yunnan Industrial Co., Ltd. should, in accordance with the guideline of "making management precise, reducing costs, promoting regulation and increasing efficiency," promote the "three works" in an in-depth way, and keep lowering costs and expenditures.

Firstly, in keeping with reform leading to "two unifications and two integrations", efforts should be made to promote construction of management systems in an in-depth way, and further improve corporate management and control models, systems of management by objectives, systems of performance management and mechanisms for innovation management.

Secondly, in keeping with "elimination of waste and sustainable improvement", efforts should be made to promote lean management in an in-depth way, establish and perfect consumption regulation systems and resource consumption management systems, and continue strengthening control over costs and expenditures.

And thirdly, in keeping with "innovation of guidelines and promotion to higher levels", efforts should be made to practically do a good job of basic management, extend the depth of index analysis, and promote application of the landmark cost method, in striving to promote basic management to higher levels.

Since 2013, all units affiliated to China Tobacco Yunnan Industrial Co., Ltd., closely in accordance with the various requirement of lean management, have kept establishing and perfecting their corporate management systems, and have well managed the basic work of "implementing standards, benchmarking and striving for excellence", etc, further promoting the level of their corporate management. Enditem