College student's summer practice report on social practice of steel enterprises

Shexian County is located in the south of Taihang Mountain and is 96 kilometers west of Handan City. Historically, Shexian County was once a glorious old revolutionary district. It was the seat of the 129 Division Command, the Political Department, and Xinhua Radio. Liu Bocheng and Deng Xiaoping, the older generation of proletarian revolutionaries, lived and fought here for six years. In the summer of 2003, the squad of our School of Economics actively echoed the call of the Hebei University Youth League Committee and selected state-owned enterprises as the goal of this social practice in accordance with the spirit of the report of the 16th Party Congress. Our group of 9 people came to Shexian County with great excitement, came to the revolutionary old district, and reached the destination of our social practice - Chongli Steel Co., Ltd.
Chongli Steel Co., Ltd. is a growing company located on the side of National Highway 309, 10 kilometers away from the county. It is a Sino-foreign joint venture and a tax of over 10 million yuan. Its predecessor was the She County Steelmaking Plant, which was founded in 1991. In 1993, under the care and support of Mrs. Deng Xiaoping and Mrs. Zhu Lin of Huang Town, the factory and Hong Kong Yugao Trading Co., Ltd. jointly established Chongli Steel Co., Ltd. In 1999, it reorganized its assets with Tiantie Group, and the company achieved leapfrog development.
The company has 1,760 employees, assets of 550 million yuan, and annual production capacity of 600,000 tons. The main products are: ordinary carbon steel, HRB335, HRB400 and high-quality carbon steel. The specifications are: 120×120mm, 150×150mm, 160×240mm, and various lengths of continuous casting billet within 6 meters. The products are sold well in Beijing, Tianjin and Shanghai. In Hebei, Henan, Shanxi, Hubei, Zhejiang, Jiangsu, Jiangxi, Fujian, Guangdong and other places, the products have been processed into the Three Gorges Project and the international market after processing by users, creating profits and taxes of more than 20 million yuan.
For more than a decade, enterprises have grown from small to large, from weak to strong, and have gone through extraordinary roads. As a representative of the steelmaking industry, Chonggang has many aspects in reform and development that are worth learning and learning from the industry. Especially after the asset restructuring, the company established a modern enterprise system and implemented a comprehensive budget management model. A series of fundamental changes and innovations have been made to the wage distribution system and the labor employment system. At the same time, production equipment has been improved, technological innovation has been strengthened, and corporate profits have increased year by year. The company has now become the “Little Giant Enterprise” in Handan City, “Hebei Province Key Metallurgical Enterprise”, the “Star Enterprise” of Hebei Province's local metallurgical industry and taxpayer, the country's largest 500 foreign-invested enterprises, the national large-scale second-tier enterprise, and continuous In the past five years, it has become a major taxpayer in the old district. Below we will talk about the experience of Chonggang from the three aspects of enterprise system reform, management reform and technological reform and innovation. As our practical achievements, we report as follows:
First, the implementation of the shareholding system reform for the development of the road to the transformation of the shareholding system - the imperative of the county steel mill as a start-up state-owned small business, in the process of its growth can be described as difficult, thorns and wild. The power of the enterprise has aroused the original fighting spirit and unique enthusiasm of Chonggang people. They worked hard to make their own brand. On July 16, 1993, it entered into a joint venture with Hong Kong Yugao Company and became a Sino-foreign joint venture, freed from the deadly dilemma that funds are difficult to transfer.
Since the production of Chonggang Co., Ltd., after several years of development, although the production technology has been continuously improved and the equipment support has been further improved, the enterprise still faces great difficulties. From the inside: the shortage of funds, the lack of funds turnover, the equipment can not be updated in time, the wages are not issued, the purchase of molten iron is difficult, the production is difficult to maintain, and the scale is more difficult to expand. Lack of talent. The company is small in scale and is in a remote mountainous area. Professional talents are at a disadvantage. Of the nearly 1,400 employees, there are only over 20 undergraduates. Technology is backward. It is only to absorb some of the experience of others, and to explore it alone in the dark, without independent technological innovation and use mechanism. Thoughts are conservative and old, and they dare not let go of their hands and feet and make drastic changes. The management methods are backward, the responsibility is unclear, the waste is serious, and the cost is high. More prominent is the financial management confusion. From the outside: the market downturn in 1997 and 1998, especially the depression in the steel market, the oversupply of products. After the Tianjin Iron Works itself new steelmaking plant, it has a certain impact on the company's hot metal supply. These are undoubtedly making the company worse. By the end of 1998, the company had defaulted on the 1.4 million yuan of iron water in the Tiantie Group, and the wages of employees were arrears for four months. The company was once again in trouble.
Under this circumstance, Tianjin Iron Works conducted a comprehensive investigation on Chonggang for the revitalization of RMB 140 million. It is believed that Chonggang's hardware is good, but there is a problem in management. If asset restructuring is carried out, it will not only strengthen the strength of Tiantie, but also revitalize bad assets, and no need to add new investment.
Thus, on January 12, 1999, Tiantie Group and Chongli Steel Co., Ltd. carried out asset restructuring. Tianjin Iron Works replaced 51% of the shares of the Shexian Steelmaking Plant with a debt of 46.92 million yuan. The 46.92 million yuan of the Shexian Steelmaking Plant is a bank loan, which is now converted into a loan from the new joint venture company. The interest paid by the new joint venture company is equivalent to the new company loan of 46.92 million yuan returned to the county steel mill. The Hong Kong side accounts for 25% of the shares, and the other side of the Hong Kong side is 3 million yuan per year as a loss subsidy. After such reorganization, the equity ratios of Tiantie, Yugao and Shexian Steel Plants were 51%, 25%, and 24%, respectively, which were controlled by Tiantie and jointly operated by the three parties. After the asset reorganization is completed, establish a sound organization. The chairman of the company is led by Tiantie. Tiantie sent 4 people to Chonggang to participate in the management team, namely a general manager, two deputy general managers and a chief economist.
After the asset reorganization, a virtuous cycle of funds was realized. 1. Capital operation and financial management:
High interest liabilities are one of the main burdens before the company's restructuring. The company's triangular debt is heavy, the capital turnover is weak, the external debt is as high as 45 million yuan, and the annual interest expense is 12 million yuan. After the reorganization of assets, Chonggang seized the opportunity of lowering the interest rate of the bank, coupled with the good business reputation of Tiantie, and timely cleared up the high interest debt of more than 30 million yuan in the way of low loan and high loan, and saved interest expenses annually. 2.08 million yuan, and returned some of the loans with the acceptance of the draft, and achieved indirect benefits of more than 1 million yuan. Through the clearing of warehouses, conversion of loans, early return of Tianjin, Jiangsu and other high-interest loans, annual interest savings of 1.75 million yuan, and 10 million yuan high-interest loans for interest rate negotiations, saving 250,000 yuan annually.
In order to revitalize the stock of funds, the procurement department further reduced the department's inventory, so that the increase in production and inventory did not increase, and strive to achieve "zero inventory", further reducing the company's financial pressure. The production department speeds up the production process, improves production technology, and reduces capital occupation. The sales department and the external departments strengthened the clearing of debts and accelerated the withdrawal of money. In the past 99 years, the company has recovered more than 29.6 million yuan from the old methods of recovery, legal proceedings, and redemption. The financial department adopted debt restructuring and enhanced accounting, and obtained non-operating income of RMB 7.2 million, reduced discounted expenses of RMB 290,000, and two benefits of RMB 1.01 million. Through the operation of funds, the financial expenses were directly reduced by more than 600 million yuan, which enabled the company's funds to achieve a virtuous circle.
2. Cost control:
In view of the high cost before asset restructuring, the company firmly grasps all aspects of production, supply and marketing, and tries to reduce costs and improve efficiency.
In the procurement process, the company changed its procurement costs in the original procurement process, and implemented the bidding, negotiation and benchmarking procurement system. The bidding and procurement of bulk products will be carried out, and the procurement of goods with high value and quantity will be benchmarked, and the items with low value and small quantity will be subject to negotiation. As a result, the procurement cost has dropped significantly, and the quality of raw and auxiliary materials and spare parts has been significantly improved.
In the production process, the company introduces advanced equipment, optimizes management, improves the utilization rate of human resources, reduces production costs, and makes the company's products more competitive. Production equipment and process technology innovation. The company invested in the construction of a chemical iron furnace, which can produce 700 tons of molten iron per day, which makes up for the shortage of iron and steel supply of the company and is of great significance to the sustainable development of the company. The investment has newly built an 80-ton truck scale, which has been enhanced and improved. The metering work of the company; the rotor of the oxygen-making air compressor was modified to increase the oxygen production, and the annual oxygen cost for purchased oxygen was more than 1 million yuan; the continuous casting protection casting and the new technology of nitrogen blowing at the bottom of the ladle were implemented to reduce cracks. Waste and molten steel slag have played a huge role and improved the product qualification rate. The implementation of the slag splashing protection process has increased the age of the furnace and reduced the consumption. The implementation of the wastewater recycling project has saved the water resources company to hold “technical competitions” on a regular basis, and a large number of outstanding technical backbones have emerged. They are experienced and well-versed in the company. They are the company's production technology experts and a model for each position. They have made outstanding contributions to the company. The company often conducts safety education for employees and raises employees' awareness of safe production. The production planning department often inspects the post operation of the workers, and the workshops and teams strictly follow the production process to carry out standardized operations and establish a post responsibility system. It has played a significant role in improving product quality and reducing production costs.
In the sales process. Based on the current situation of oversupply of the company's products, the company focuses on direct sales, reducing agency fees, reducing circulation, reducing inventory, thereby reducing capital possession and reducing sales costs.
Comrade *** once pointed out: "The establishment of a modern enterprise system is the direction of state-owned enterprise reform." The report of the 15th National Congress of the Communist Party of China reaffirmed: Standardize the enterprise according to the requirements of "clear property rights, clear rights and responsibilities, separation of government and enterprise, and management science". Company transformation. Grasping the big and letting go, and strategically reorganizing enterprises is the basic policy that the country has consistently adhered to. Chonggang strictly follows the state's deployment, combines the actual situation of the enterprise, adjusts the operation and management mode in a timely manner, and establishes a modern enterprise system. Business operations have turned around. In 1999, Chongsteel produced 380,000 tons of steel, which was 100,000 tons higher than the highest historical output, and the quality index reached 99.2%. In 2000, the company achieved profits and taxes of more than 25 million yuan, a profit of 8.19 million yuan, an average annual growth of 28% in two years, a record high. The company's various technical indicators have also set a new record for two consecutive years. The company's economic benefits have increased substantially, and its strength has been significantly enhanced, truly realizing a turnaround.
The various reforms of Chonggang began this prelude. . . . . .
Second, the implementation of comprehensive budget management to establish a scientific management system asset restructuring, Chong Steel also faces a severe form:
1. The market is sluggish and prices are sluggish. The price of tons of steel fell by more than 100 yuan on the basis of 98 years, directly reducing the profit by more than 30 million, plus the financial expenses of bank loans and related agreements, and the expenses that should be amortized in the previous year and transferred to this year. A few totals have reduced the company's revenue by more than 39 million yuan.
2, internal management work is very weak, there is no systematic management mode, various cost indicators remain high, production accidents occur frequently, the department's responsibility is unclear, and the phenomenon of pushing and smashing is serious. In 1998-99, the company's operations were once again in trouble. Based on this, the new leadership team with Li Shanbin as the general manager reviewed the situation and, after careful research and decision, put forward the reform idea of ​​“taking financial management as the center and promoting comprehensive budget management as an opportunity to drive the overall management work to be comprehensively improved”. The company has thus revived its vitality.
Comprehensive budget management, as the name suggests, is to make a detailed plan for the use of funds when making any decision, and then scientifically demonstrate the plan. If it is feasible, it will be strictly in accordance with it; if not, it will be rejected. Comprehensive budget management can be divided into four systems:
1. Indicator decomposition system. The company will formulate an overall indicator at the beginning of each year, including production cost management costs, financial expenses, and sales expenses. For example, the cost index of tons of steel is set at 1,300 yuan according to the production status and experience over the years, and the office fee is set at 12,000 yuan. Then the company divides the indicators into the workshops, and then each workshop divides the cost indicators into the teams, and each team is decomposed into each position, so that a cost indicator decision is passed from top to bottom to each employee. This is the three-level cost budget. During the investigation, Minister Li of the Production Planning Department compared its image to "a heavy burden for everyone, and there are indicators on everyone's head."
2. Indicator accounting system. It refers to the daily accounting mechanism of each room, workshop and team after the index is decomposed. For example, if you count the amount of materials used today, whether it exceeds the standard, do a good job in the management of materials and materials. If it is calculated and exceeds the cost indicator, what should I do? This is the next system.
3. Measures guarantee system. The establishment of this system is mainly to encourage the workers in the workshops and teams to use their intelligence and intelligence to make up for the loss of exceeding the standard as much as possible. If the cost indicators exceed the standard this month, they will find a way to check the process along with one process, improve the process, streamline office equipment, reduce daily expenses, and ensure the completion of the annual indicators. Therefore, it has played an important role in stimulating and supervising.
4. Indicator evaluation system. The index decomposition is from top to bottom, and the indicator is calculated from bottom to top. All teams and workshops shall set up full-time or part-time accountants to conduct daily accounting for the completion of various expenses, and analyze them in a timely manner, summarize them in monthly, and report them in stages. According to the assessment results, wage distribution is carried out. The implementation of the three-level target assessment, that is, the assessment target, the goal of increasing production, and the goal of struggle. The assessment target is the basic goal and the minimum goal, which must be completed. If the unit does not complete this goal, it will veto the full bonus of the unit. The goal of increasing production and the goal of struggle are the rewarding goals, that is, to achieve the goal of increasing production and gaining bonuses, and to achieve the goal of struggle, and to win the struggle, thus stimulating the enthusiasm of the majority of cadres and workers to participate in cost management, and establish a sense of cost per employee.
The four systems promote each other and restrict each other, thus forming an organic management network of the system. Scientific management has brought great returns. In 1999, the manufacturing cost of the company's steel per ton was 86 yuan lower than that of 1998, and the total cost was reduced by more than 31 million yuan. This enabled the rapid development of “three months to see results, half a year, and seven months to turn losses into profits”. Since the implementation of budget management, the annual average steel output has increased by 89,700 tons, and the scale benefit has reached more than 3 million yuan. The comprehensive qualification rate of products has increased from 97.83% in 1998 to over 99.9% in 2002, and it has achieved the best management in history. Performance.
Third, strengthen the human resources management to play the role of the union of the union is the foundation of the enterprise. A company, if it maintains all the bonds of its relationship with employees is money, then it must not succeed. A single spiritual incentive is a foolish policy, and a single material incentive is a policy of harm to the people. A promising developing enterprise, how to correctly position talent management to become a cohesive and creative enterprise, whether there is a set of effective management system is an important part of the reform of state-owned enterprises. As a large national second-tier enterprise with 1,760 employees, the country's largest 500 foreign-invested enterprises, key local metallurgical enterprises in Hebei Province, Chonggang human resources management reform is also actively and effectively promoted. Based on the reform tenet of “big reform, small vibration, heat problem, cold treatment”, Chonggang’s current personnel management is stable, taking into account not only the overall economic interests of the company, but also the interests of the employees in the first place. However, this kind of consideration is not simply to issue subsidies and subsidies, but also to adopt a comprehensive incentive mechanism, from the employees entering the factory to the promotion of cadres, accompanied by a series of measures such as the award of benefits, greatly improving the enthusiasm of the whole plant.
Labor and employment system enterprises must compete, and there must be talent flow, but they must be carried out in a stable environment. Chonggang started from actively attracting external talents and strengthening the management of internal talents, and increased the cultivation and introduction of talents. The company has recently introduced a employment policy for high-quality talents. That is, the undergraduate graduates have been engaged in administrative work, the monthly average income is not less than 1,000 yuan, and they are engaged in workshop work, and the monthly average income is not less than 1,300 yuan; the college graduates are engaged in administrative work, and the monthly average income is not less than 800 yuan. Work in the workshop, the monthly average income is not less than 1,100 yuan. Once employees enter the company, they must undergo strict cultural examinations and practical operations. The test is preferred and the trial period is six months. First, participate in vocational skills training and safety production education, and then go to the grassroots level, learn skills from the old staff in the first line, and improve the technical level and comprehensive quality of the new employees. At the same time, the company encourages employees to study and further study, focus on technical training for technical workers, exchange management experience among managers and different departments of different enterprises, and organize management personnel to observe and learn from other enterprises. There are also many employees in the company who are taking part in self-study and studying at the TV University.
Cadre Appointment System In the promotion and assessment of cadres, the company began to trial the employment system of “competition, post-elimination, and waiting for training”. Some young and talented young people have been promoted and reused. The annual evaluation of the incumbent, that is, in the same position, according to the operating procedures, safety system, labor discipline, on-site health and other content to develop a 100-point system assessment, using the results of the assessment to determine the release of bonuses, greatly improving their enthusiasm for work. Chonggang was laid off without any one in the process of reform. This is the result of the specific analysis of the specific issues of the leadership team taking into account the specific circumstances of the enterprise. Comprehensive consideration of the geographical location of Chonggang and the situation of employees (the majority of employees)