Blue Ocean Strategy device management

In this paper, the concept paper REVIEW :: Blue Ocean Strategy, Blue Ocean Strategy proposed device management, through the integrated use of 'culling, increase, decrease and create a' four ways, proposed ways to rebuild the device manager of the new element will help enterprises strengthen and improve overall equipment life management.
Keywords: Blue Ocean Strategy, equipment management, business equipment

In the 'Blue Ocean Strategy', a book, Professor Kim and Professor Mo Bonie the 'competition' into two, creatively put forward the concept of the Red Sea and the blue ocean. The so-called Red Sea refers to compete in the existing market space, inter-enterprise battle into a sea of blood. The Blue Ocean Strategy is to go beyond the existing scope of competition, innovation and open innovation through value market demand, access to new development. Value innovation is to avoid competition, to try to make our customers and the value of the enterprise have emerged leap, thus creating a completely new way of thinking a non-competitive market space.
Device management strategy as an important part of the business development strategy, not only directly affect the company's investment and costs, but its configuration and management of an impact on the core competitiveness of enterprises is an important content. Blue Ocean Strategy device management is to establish the concept of business equipment, through the 'removed, increase, decrease and create a' four ways to re-build a new element device management, to improve the productivity and value of innovative dual effect, so as to provide at the same time the pursuit of 'difference' and 'low cost' aspect solid support.
First, the overall planning of development, excluding an extra element. Capabilities, and eliminate unnecessary investment, take a virtual integration of fixed asset investment. We often say, equipment assets is a valuable resource and material and technical base of enterprises. In fact, from the perspective of business risk perspective, a large fixed assets, depreciation of assets means companies is high, big business risk. Even if only in the manufacturing sector, if the industry supply chain activities in all the activities are done, fixed asset investment often will be great. But if you only choose an activity in the supply chain, it will reduce the number of fixed-asset investment. Therefore, enterprises should be based on actual operating conditions as well as their ability to integrate resources, resolutely overcome the 'large', 'small' asset allocation model, by agreement, commission or lease part of the production plant outside of, not only can reduce a large number of manufacturing costs and funds used, but also take advantage of other elements of corporate investment, reduce their risk.
2. Expansion of impulse control, inappropriate timing determined not to make acquisitions. Usually, buying the company more quickly and easily than established companies. Enterprises in the fast-growing, get a whole lot of equipment assets are often acquired through mergers and acquisitions. Therefore, when the merger must follow Drucker's principles for a successful acquisition, the target company must consider the technical condition and performance of the equipment, and taking into account the subsequent maintenance, rehabilitation and upgrading of input costs. Some people say that the greatest achievement of any General Electric, Jack Welch, president of the period was the acquisition of hundreds of valuable business, but he himself was considered the greatest contribution to the company is rejected at least 1000 looks very worthwhile investment opportunities. Visible, understand trade-offs need great wisdom.
3. The situation and promptly eliminate unnecessary equipment assets. Enterprises not only to equipment assets as a means of production, but also as a business asset. Industry to understand where a company is in a growth phase, stable or recession, the current equipment and technology is at the leading level, the level of the general level or behind. In the tracking device to master cutting-edge technology, to be perspicacious industry at the beginning of the recession, with equipment and technology, should be relatively backward technology equipment will be transferred or sold to less developed regions as a whole, in order to maximize return on investment. Some developed countries to cheap sell used equipment in developing countries is often part of this column.
Second, increase support capacity, the effectiveness of a play to use. Focus on standardization. Follow the series, universal principles, equipment needs to strengthen the standardization work program. To focus on the standardization of the design selection, increase the standard design to reduce non-standard design. Carefully developed and strictly implement equipment procurement specifications, technical specifications and strive to achieve standardization, promotion of standardized design, modular construction, large-scale procurement, standardization focus on standardized construction budget for the promotion of efficient allocation of various resources, sharing basis for interoperability . For example, in order to avoid the formation of powerful confrontation veteran airline, Southwest Airlines deliberately avoided major airports, do not fly remote, all of the company's fuel-saving models are 737, it does not just save the oil money and the company on personnel training, maintenance, spare parts purchases and inventories are executed only one standard, saving training costs, maintenance costs, brings a lot of convenience for equipment scheduling, maintenance, repair, and improve the efficiency and service levels.
2. focus on testing and maintenance. In addition to the traditional post-repair and regular maintenance, the equipment maintenance has developed a state of repair, maintenance adaptability, reliability, maintenance and other repair methods. Different enterprises should be determined according to the actual inspection and maintenance mode, be sure to adhere to all the principles is the best fit. Enterprises must treat equipment, strengthen the management and maintenance of the whole process, to explore cost-effective form of testing, maintenance, and supervision and inspection. For example, Southwest Airlines has the youngest aircraft fleet, with an average age of just eight years. The company always adhere to strict safety testing and maintenance in place and strictly enforce exceed Federal Aviation Authority's flight standards, just so that they have the best safety record. Baosteel implementation based on periodic maintenance to facilities management is based on state-controlled shift maintenance mode to achieve the main preventive maintenance to condition-based maintenance to the main span, not only to ensure the continuous improvement of Baosteel Equipment Management and maintain industry leadership, and achieve optimal overall management costs.
3. Focus on overall efficiency. To play a role in the production of business equipment, it is necessary to find ways to improve the operation rate of the equipment, performance, efficiency and product yield. Southwest Airlines has changed the structure of the system according to the aviation industry hub radiation routes opened up a non-stop service between medium-sized cities, carefully putting the 'speed of the aircraft, traveling by car price - whenever you need it,' the ad language. The company believes that only aircraft in the air in order to make money, one day be able to fly more flights to earn more money, but also can reduce the unit cost more. Because of properly organized, the staff efforts, the company's aircraft from landing to take-off, an average of only 15-20 minutes of time, which a short flight to improve equipment operation rate is critical.
4. Focus on the efficient use. First, enterprises should be adjusted according to the conditions in a timely manner to optimize operating parameters to ensure that the device is running in the high zone, between efforts to achieve power machine and the host, between different devices, the best match between the equipment and processes. Second, enterprises should implement appropriate centralized equipment and professional management, rental use, help arrange and dispatch equipment, to achieve a reasonable match equipment and work tasks. Third, enterprises should carry out the quantitative analysis of economic and technological equipment, equipment vigorously single accounting, equipment management to face the problems, propose solutions timely manner in order to achieve high efficiency and low consumption device operation.
5. Focus on tapping the potential synergies. Blue Ocean Strategy implementation does not necessarily require additional resources, the key is to make efficient use of limited resources place. Note that the optimization of the whole process, from cold spots adjust resources, to reallocate resources to focus. For example, the Maoming Petrochemical Refining Division II joint workshop and three joint workshop exchanges, the use of a turbine pump is idle, which addresses the joint workshop of the three steam turbine required after the buck to use the issue, and saving the union required two workshops to two motor-driven pumps, energy-saving 4500 kwh per day, annual cost savings of more than 100 million.
Third, reduce reactive operations, reduce losses and waste 1. Do the same job should be to minimize the use and consumption of resources. Enterprises must optimize the workload and the organization of production, excluding repeat invalid job, in order to lay the foundation for the proper management and use of limited resources. Under the premise of the completion of certain work tasks, companies should minimize resource use and consumption, thereby to reduce production costs. To maximize equipment performance, enterprises should pay attention to reduce the impact of the device itself pipeline effects: (1) have been ordered but not yet timely delivery of equipment; (2) the device has not yet been put into use yet arrived; (3) due to the production and preparation organizational reasons are not normal equipment used; (4) to be repaired in the repair of equipment; (5) due to the change process and production tasks to disable idle devices. (6) the device for some other reason can not normally be used.
2. Reduce losses and waste. By strengthening the whole process of fine management device, grasp the key link, insisted to speak with data, and effectively reduced: waste (1) caused by accidents and downtime; (2) the maintenance period and the quality of the waste caused; (3) the improper consumption waste (including equipment and technology in poor condition, a large horse-drawn cart, etc.); (4) inventory caused by improper waste; waste poor (5) parts quality caused; (6) waste of other causes.
Fourth, focus on creating change, continuing to enhance a leap. Explore the establishment of facilities in line with the actual business management. TPM is the world's most representative within the range of the device management model, now in many of our businesses have been successfully used. However, it should be noted that any can only learn from the advanced management mode, can not simply be copied. Therefore, when exploring the establishment of enterprise device management, must be combined with the enterprise management system, workflow, process characteristics and cultural traditions, such as the organic quality of personnel, in order to achieve a multiplier effect. For example, after the introduction of Haier TPM, the TPM quickly and Haier original OEC (Nissin management) combined with high efficiency equipment to ensure the response speed of product orders, to see tangible benefits. Maoming Petrochemical in a more professional, more careful, more detailed requirements, promote the use of new technology risk management (RCM + RBI + SIL), the focus of the monitoring of high-risk equipment, reduce maintenance costs, improve equipment utilization and effective level of economic operation.
2. When configuring the device to equipment life cycle cost of the most economical principle, reduce the cost of maintaining equipment. Major, key equipment before purchase must seriously carry out technical, economic feasibility studies, the applicability of the equipment, reliability, maintainability, safety and environmental protection and economic explicit request, insist on quality first, best price-performance, comprehensive cost Minimum purchase of equipment selection principles. Headquartered in Northern Hungary off to discover the life cycle cost of the users concerned about the new situation, by using lightweight fiberglass manufacturing passenger cars, dramatically reducing the cost and rust-proof, maintenance, fuel consumption is concerned. As a result, even though the initial price of the North off the bus than the industry average of prices for the municipal government, the cost of their service period but lower than other bus manufacturers, but also reduce the number of emissions, so that the north-off bus Environmental performance is much higher than the industry average environmental standards. Clearly, the North passenger bus at a low cost overall life cycle, for the buyer to create an outstanding value.
3. Technological innovation, while we must bring value innovation. Blue Ocean's creation is sometimes successful development of new technologies, and more at the right time is through a combination of technology, technology simplifies and utilize old technology innovation. Blue Ocean Strategy does not require a key first master the technology, but must be the first one through technological innovation leap in the value and profitability. Therefore, we must strengthen the management of technological innovation, as soon as the results of scientific research into a marketable product or service, technology innovation that has the vigor and vitality. To track equipment enterprise device management developments at home and abroad, in order to project commissioned jointly develop other forms, with the advantage of related companies and research institutions to complete research and development and technological innovation of new equipment, etc., for enterprises to implement technology breakthroughs and competitiveness make new contributions.
In short, companies must learn to more comprehensive use of various means and methods, not to competitors as a benchmark, the continued implementation of the device management system, innovative models, we can find a suitable device to explore the road of blue ocean strategy of their own development, so that the equipment management to see more significant economic and social benefits.

[01] [Korean] W · Qian Jin, [US] Renee Mauborgne, Blue Ocean Strategy [M], Beijing: Commercial Press, 2008
[02] Kun Mo Shaoping, corporate strategic decisions - how to build a competitive advantage [M], Beijing: Oriental Press, 2007

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