---- An interview with Zuo Jingsong, General Manage of Guangdong Yueming Laser Group
In March in the South, flowers are in full blossom in the beautiful spring. Sino-corrugated Exhibition was held in Shanghai New International Expo Center in March 28th. Entering the exhibition hall, the first person the reporter met was Zuo Jingsong, General Manage of Guangdong Yueming Laser Group (hereinafter referred to as “Yueming”. The reporter remembered that on the reed exhibition two years ago, it was Zuo Jingsong who first had an interview with him. As he is doing a brisk business, Zuo Jingsong’s face is full of smiles when meeting the old friend.
Brisk Business
According to Zuo Jingsong, before 2005, Yueming developed steadily. From 2006, Yueming has expanded fast.
Firstly, Yueming has expanded its business into the application of laser products to procure new business opportunities for laser technology. Secondly, Yueming has expanded its laser products. Yueming started from manufacture of engraving machines, then it succeeded in developing cutting machines and marking machines.
In the past, our product could only process rubber plates. But now, die cutting plates can be processed. At the end of this year, Yueming will launch laser welder, laser heat-treatment machine, etc. and try to make them systematized in short time. In the past, Yueming could only produce laser equipment with nominated power of no more than 100W and the weight of about 200kg. Recently, Yueming has made major adjustment to the product structure. Now, it can produce laser equipment with the maximum power of 2500 W and the weight of more than 5 tons.
Yueming has been advancing with the times. The Pearl River Delta is located in the forward position of reform and opening-up. At the beginning of this century, Yueming began its business and expanded in Dongguan, Guangdong. Then it established Shanghai Dinghong Laser Equipment Co., Ltd and Shanghai Huming Laser Technology Co., Ltd in the Yangtze River Delta. Now Jiangsu Dinghong Laser Share Co., Ltd has been set up in Xuzhou as Bohai Sea Economic Zone and Northeastern China Zone are flourishing.
User First
Recently, an appropriate layout of outlets for after-sale service (hereinafter referred to as “outlet”) has been achieved. Now, there are 5 outlets respectively in Guangdong, Zhejiang and Jiangsu. And there is one respectively in Shenyang, Tianjin and Qingdao.
In the past, it took a long way to provide after-sale service. Once the warranty expires, the user has to pay for the service fee. Now, with more outlets, it’s more convenient and cheaper for users to obtain service. For example, in the past, a user in Shenyang had to pay 600-700 RMB for repairing a machine; now, it only takes 100-200 yuan.
Also, Yueming has tried to reduce the prices of components as much as possible. For example, in the past, it provided a laser diode at the price of 2000 yuan per piece; last year, the price was cut to 1500 yuan per piece; this year, the price is only 1000 yuan per piece, equivalent to the result of cost plus 10% of attrition.
Though many imported components are used, the prices of Yueming equipment are competitive in the domestic market. This is due to mass production. The output of Yueming in 2006 was 300 sets per month. This year, the figure has increased to 500 sets per month.
Additionally, Yueming can get components at low prices by bulk purchase. This is one of the important reasons why Yueming can cut cost and maintain the competitive advantage.
Making Friends
In the past, many components of Yueming laser equipment were developed by the Company. They have contributed a lot to the development of the Company. However, there is certain gaps between China and the developed countries in terms of technology level. Therefore, recently, Yueming has actively carried out cooperation with similar companies in Italy and Japan, so as to introduce advanced technology and management philosophy to make big progress in product quality.
Foreign experts take affairs seriously. Sometimes, they are even described as “stiff”. They will stick to principles without any change. We should learn this from them.
Language problems caused difficulties even misunderstanding in communication. It was easier to communicate with experts from Italy, as they knew English. It was very difficult to communicate with experts from Japan. Two parts could only have simple communication through Chinese characters. So, the Company employed two Japanese interpreters. At the beginning, foreign merchants were worried that the Company will not abide by “Game Rules”. However, “it takes time to know a person”. After contact for a period of time, mutual trust was finally established. Over the five years, the Company has had good cooperation with the foreigners and made deep friendship with them.
In face of globalization, Zuo Jingsong is planning to employ some foreign managers who are good at management, so as to build Yueming as an outer-oriented enterprise.
Establishment of New Factories
Jiangsu Dinghong (hereinafter referred to as “Dinghong”) is a joint stock enterprise of Yueming and foreign merchant. It was started in 2005 and put into production in April, 2006. As a hi-tech enterprise, it is one item of the Jiangsu Major Foreign Investment Project.
The new factory covers an area of 120 mu, surrounded by mountain and water, with a beautiful view. The total investment of the project is RMB 120,000,000 yuan, which will be paid off in two phases. In the first phase, RMB 70,000,000 yuan will be invested for acquirement of land, capital construction and procurement of equipment. Presently, the new factory is being constructed. It is estimated that the engineering will be completed in June this year. In order to attract talents, 10 villas for experts, each of which has an area of 250—280 m2, will be set up in a corner of the factory premises.
Zuo Jingsong stated that building a factory in the northern part of
When the reporter asked why the factory covered such a large area, Zuo Jingsong said: “Large area is needed for production.” Industrial laser equipment can be very large and some will have a total length of
Knockout Product
DH-1812 Identical Light Route Laser Cutter for mould cutting in the packaging industry, shown in the exhibition, is the knockout product of Dinghong. It sells well since it was born. The Company has received a lot of orders for this machine for the period from now to the end of June.
This kind of machine is designed for mould cutting processing. Stability of body, flexibility of executive mechanism, and special software for laser cutting affiliate cutting. Its efficiency and quality are much better than traditional cutters. And it can continuously work 24 hours a day.
This kind of machine is designed by the principle of “constant light path”. The cutting efficiency will not be affected by the distance of light path. So the cutting gaps are ensured to be even. And light calibration and maintenance can be convenient. This machine is equipped with high-power laser fast axial CO2 laser of world-famous brand. The output laser beams are processed and transmitted by outer light path, then focused by the cutting head and then blown by cut assist air. In this way, moved by CNC machine, the machine can cut various metal or non metallic plates.
The control software operates with the Windows Operating System, with the functions of CAD/CAM auto programming and optimizing suit cutting layout. It can recognize different CAD drawing files. For the purpose of convenience, users can establish their own database of laser cutting process in the system. So that they can choose an appropriate processing program directly from the database. Essential components such as CNC system, servo motor and its driver, precision linear rolling guideway, ball screw, optical glasses are imported ones. This machine is also equipped with dual-temperature cooling water system. And other auxiliary equipment such as controlled power supply, oil-free air compressor, cooling and drying machine and fume extraction and vacuum device is optional.
Human Based
There are four principles in Yueming’s philosophy on human resource: Firstly, to retain talents by cause, i.e. an enterprise should show the promising prospect to the job applicants; secondly, to retain talents by incentive mechanism, i.e. an enterprise should make career plans for job applicants and provide opportunities for promotion and rise in salary by “option incentive mechanism”; thirdly, to retain talents by affection, i.e. an enterprise should instill employees by reason and implement administration according to regulations; Finally, to retain talents by salary, i.e. the income distribution system in an enterprise should embody the principle of “ distribution according to labor”.
Zuo Jingsong said that the Company was much concerned with the life of employees and its affection for employees was embodied in every particular of the operation of the Company. For example, the fees for travel to and from employees’ hometowns during the Spring Festival will be reimbursed. For employees whose hometowns are very far away, plan ticket fees will be reimbursed. Its employees can also enjoy paid holidays during the Spring Festival.
Expanding Export
According to Zuo Jingsong, presently, in domestic laser equipment industry, competition of low-level products is furiousand disorderly; competition of high-level products is relatively less severe. As the threshold of technology and capital for Dinghong products is high, Dinghong has not met any rival yet.
In order to meet the requirements of the increase in sales and the expanding of sales area, Yueming is making efforts to set up a large and highly skillful marketing team, which comprises personnel from different countries. For example, to carry out marketing in Europe and
For years, the market share of medium and small-sized equipment produced by Yueming ranks high in
Yueming is now a group owning 4 subsidiaries (Yueming, Huming, Shanghai Dinghong and Jiangsu Dinghong) with over 600 staff members. In 2006, the export amount represented 40% of the total turnover. And this figure is estimated to over 50% this year.
According to Zuo Jingsong, Yueming Laser is determined and confident to become the largest enterprise in the domestic industry of laser equipment with the highest technology content.