Perseverance in LP| Jiangxi H&K comprehensively promoted the implementation of lean production (LP) to facilitate efficient and high-quality production

In the face of complex national and international market environment, Huabao Flavours & Fragrances Co., Ltd. (“Huabao” or “Company”) has been constantly promoting corporate strategy upgrading and business transformation and development to enhance its competitiveness in the fierce market competition. In recent years, all enterprises under Huabao have implemented the LP management concept, constantly improved the LP management system, and improved the level of lean management, thus improving production efficiency and enhancing enterprise competitiveness.

In 2023, Jiangxi H&K Food Technology Development Co., Ltd. (“Jiangxi H&K”), as a benchmarking LP enterprise, carried out LP work scientifically and systematically in a planned, step-by-step, organized and phased manner. It has orderly promoted the lean improvement in such aspects as cutting inventory, proposal improvement, visual management, and process efficiency improvement, to drive the real implementation of lean management, and provide strong support for comprehensively improving the efficient production level of the production lines.

In order to implement LP management, each production workshop of Jiangxi H&K proposed LP improvement plans, established LP organization and management institutions, and specified the responsibilities of each person. In terms of improving production efficiency, it has optimized the management of working time, improved process efficiency and the safety of the working environment. On the other hand, by optimizing the nodes of the production process and reducing the waiting time, it has reduced the production hours per batch, thus increasing the total number of production batches and greatly improving the production efficiency. In terms of production planning and stock control, it would develop a reasonable production plan by conducting analysis of sales situation and new reserve planning, and making monthly analysis of stock and new reserve data, so as to improve stock turnover, revitalize inactive raw materials, and avoid stock waste. In terms of LP proposal improvement, it has implemented the stock storage plan of intermediate products and semi-finished products in the factory, replaced the material of product storage buckets to get longer service life and better stability, improved product quality and saved production costs. In terms of visual management, it has actively promoted the LP concept, and displayed LP-related dashboards in such places as workshops, canteen, and offices, which has effectively improved the employees’ understanding of LP management, and their initiative and consciousness to participate in LP management. The workshops and departments carried out targeted improvement and perfection, to improve the overall production efficiency and production process.

LP is a long-term management process for continuous improvement and perfection. Facing the current national and international market environment, Jiangxi H&K will make full use of LP approaches and tools to enhance the core competitiveness of enterprise, establish LP management assessment standards and incentive systems in a unified way, and constantly pursue improvement and innovation to adapt to market changes and meet customer needs, and facilitate the transformation and upgrade of the Company.

Huabao is actively promoting the strategic upgrading and business internationalization. Implementing LP is an important measure to support the strategic upgrading of the Company’s core competence. Jiangxi H&K, as an important production base for Huabao’s food flavors and ingredients, is a key guarantee for the Company’s production links. Huabao will continue to drive production enterprises to improve efficiency and quality management, reduce waste, make continuous improvement, and achieve high-efficiency and high-quality product output, so as to improve the production competitiveness of enterprises and facilitate sustainable high-quality development.