Carry out Lean Production and Facilitate Digital Transformation

With the advent of new consumption era of NGP, the characteristics of “small batch, customization and personalization” of consumer goods brought by the diversification of consumer value are more remarkable. Coupled with the trend and requirements of digital transformation of enterprise management, it is of profound and great significance for the Company to carry out lean production (LP).

Lean production mode refers to the production technology and management technology which thoroughly pursue the rationality and efficiency of production, and can flexibly produce high-quality products to meet various needs. Its basic principles and varied methods will bring great value to the company’s management and production of products. Lean production is featured by “human-centered”, which can fully mobilize people’s potential and enthusiasm in performing the best work in the best working environment, best conditions and best working attitude, so as to comprehensively pursue perfection in all areas. Generally, it implements multi-machine operation, multi-process management, and organizes employees into task groups, in which the employees should not only complete production tasks, but also participate in business management, engage in various innovative activities, thus improving labor productivity. It pursues zero waste, zero inventory, zero fault, etc., to reduce product cost and ensure product diversification. In terms of management concept, lean production always targets the improvement of the existing production mode and management mode, and constantly pursues the goals of further cost and expense reduction, defect elimination and product diversification.

At present, Huabao’s various strategic initiatives have been implemented profoundly and effectively, and the digital transformation has achieved good results at the beginning. With the further development of digital transformation, it will be closely linked, integrated and promoted with lean production, thus laying a foundation for continuous improvement in operation management and manufacturing process. The practice of lean production management in many enterprises has proved that the successful introduction of lean production mode will help enterprises build the shield of core competitiveness, and at the same time, it can benefit from reduced cost, improved quality, decreased minimum order quantity, shortened production cycle and other aspects.

Subsequently, the Company will work with lean production experts to empower all manufacturing units to facilitate the Company's digital transformation and drive the realization of the Company’s strategic goals.