|ASIMCO Camshaft—Building New Quality Management Capabilities Through the Implementation of the Integration of Informatization and Industrialization Management System

1 Basic Information about the Enterprise and the Overall Construction of the Integration of Informatization and Industrialization Management System 1.1 Company Profile ASIMCO Camshaft (Yizheng) Co., Ltd. (hereinafter referred to as “ASIMCO Camshaft”) is a joint venture established by Yizheng Piston Ring Factory of Jiangsu Province and ASIMCO Industrial Technology (Beijing) Co., Ltd., with a registered capital of RMB 118 million. The company covers an area of 60,000 square meters, with a building area of 35,000 square meters. It is located in the Automotive Industrial Park of Yizheng City, Jiangsu Province, on the north bank of the Yangtze River, adjacent to the historic and cultural city of Yangzhou to the east and the ancient capital of Nanjing from the Six Dynasties period to the west, enjoying extremely convenient transportation. The company has over 20 years of experience in the research, development, and production of camshafts, with extensive expertise in the R&D, manufacturing, and application of camshafts made from chilled alloy cast iron, chilled ductile iron, high-strength ductile iron, steel materials, and composite camshafts. It possesses the technology and capability to machine complex cam profiles and collaborates closely with internationally renowned engine R&D centers, successfully designing and developing multiple high-end engine camshafts. Currently, the company operates more than ten advanced production lines for camshaft blanks and machining, with an annual production capacity of 1.4 million camshaft blanks and 1 million finished camshafts. Among these, the technologies for producing chilled ductile iron and hollow-chilled castings are at an internationally advanced level. Its products—camshafts made from chilled alloy cast iron, chilled ductile iron, high-strength ductile iron, and steel—for use in engines have earned recognition from leading international and domestic automotive manufacturers, including CUMMINS (global), IVECO (global), Foton Cummins, Dongfeng Cummins, SAIC Fiat Hongyan, FAW Xichai, Nanjing Iveco, and Shanghai Diesel Engine, among others, and the company has become a strategic or key partner for these firms in supplying camshaft components. 1.2 Status of the Implementation of the Standard for the Integration of Informatization and Industrialization The company has established a Leading Group for the Integration of Informatization and Industrialization, headed by the General Manager and with the Management Representative as deputy head, along with members from all departments; it has also set up an Implementation Team for the Standard, led by the Management Representative and composed of specific personnel from each department. The company conscientiously implements the standard GB/T 23001-2017 “Management System for the Integration of Informatization and Industrialization—Requirements,” actively promotes the work of the integration management system, clarifies responsibilities and authorities, defines the new capability sets to be developed within the company’s information environment, and comprehensively advances the construction of the integration management system throughout the organization. In addition, the company has engaged external experts and conducted internal training on standards and specifications, integrating standards such as “Requirements for the Integration of Informatization and Industrialization” and “Evaluation Specifications for the Integration of Informatization and Industrialization in Industrial Enterprises” into the company’s strategy, operations, and management systems through systematic planning, and has prepared the company’s documentation for the integration management system. 1.3 Analysis of the Enterprise’s Needs for Deepening the Integration of Informatization and Industrialization Corporate Vision: To become the preferred supplier in the global engine camshaft industry. Corporate Mission: To drive automotive innovation and build a better life. Core Values: Teamwork, customer orientation; pursuit of excellence, respect, and responsibility. In order to gain a differentiated, sustainable competitive advantage that aligns with the company’s development strategy, the company starts from its corporate strategy and, through competitor analysis, gap analysis, and SWOT analysis, conducts a comprehensive assessment of its strengths and weaknesses, identifying the need for a differentiated, sustainable competitive advantage in the information environment that is consistent with the company’s development strategy: the need for superior quality control capabilities, R&D innovation capabilities, lean production capabilities, refined cost control capabilities, and capabilities for expanding into high-end markets. 2 Practices and Results of Building New Capabilities in the Enterprise 2.1 Identification and Determination of the Need for Building New Capabilities in the Information Environment Starting from the strategy, the company identifies the needs for sustainable competitive advantages that are aligned with the strategy. By further refining these needs, it pinpoints the corresponding sets of new capability requirements and produces the “Strategic, Sustainable Competitive Advantage, and New Capability Analysis Report.” The General Manager presides over meetings of the Implementation Team to discuss and determine the new capabilities, taking full account during the identification process of the alignment between the new capabilities and the sustainable competitive advantages, while also drawing on the “Key Directions for Various New Capabilities” provided by the Ministry of Industry and Information Technology and the successful experiences of demonstration units for the integration of informatization and industrialization, combined with the company’s own industry characteristics, to determine the sets of new capability systems and targets that the company needs to build in the coming years. The capability for zero-defect quality control of camshaft products (being built this time) will be followed by the development of collaborative R&D control capabilities, as well as production control capabilities, refined cost control capabilities, and marketing control capabilities, among others. 2.2 Planning for Building New Capabilities in the Information Environment ASIMCO Camshaft plans its implementation scheme for the integration of informatization and industrialization around the capability of zero-defect quality control for camshaft products. Based on key indicators and targets, it analyzes the company’s internal and external environment, business needs, supporting conditions, and resources, examines the current state of the company’s data, technology, business processes, and organizational structure, and, in light of the company’s stage of development and direction, identifies and determines all the requirements necessary to achieve the new capability goals. In terms of business process optimization, it has streamlined the automatic binding process of QR codes and order numbers, the automatic equipment alarm process, the process of linking product and processing equipment information, the process of linking product and processing personnel information, the process of identifying and isolating defective products, as well as statistical analysis and production progress analysis. In terms of organizational structure optimization, it has adjusted and improved the responsibilities of on-site engineers in metalworking, the responsibilities of improvement engineers in the Quality Control Department, the duties of quality inspectors, and the responsibilities of production staff. In terms of technological implementation, through research and by outsourcing development and purchasing, it has developed and applied the ZDM system, integrated the ERP system with the ZDM system, developed and applied the MES system, and integrated it with existing systems. It is also constructing the third phase of the metalworking project, planning to build seven new automated production lines and create smart workshops. In terms of data development and utilization, it has enabled data to be used to provide decision support for senior management, such as monitoring the manufacturing status of each product, specific quality inspection results, and related quantity, cause, process, and equipment information. 2.3 Specific Implementation of Building New Capabilities in the Current Information Environment Business Process and Organizational Structure Optimization: Under the leadership of the Management Representative, the Implementation Team is responsible for establishing a control mechanism for the implementation and execution of the optimization plan, clearly defining the responsibilities of each person involved. Through extensive consultation with employees, needs interviews, on-site surveys, and meetings, it collects opinions and suggestions, deciding to optimize processes such as the automatic binding of QR codes and order numbers, the automatic equipment alarm process, the linking of product and processing equipment information, the linking of product and processing personnel information, the identification and isolation of defective products, statistical analysis, production progress analysis, and the timely entry of defect information. In the development and application of the ZDM system and the integration of the ERP system with the ZDM system, the responsibilities of on-site engineers in metalworking, the responsibilities of improvement engineers in the Quality Control Department, the duties of quality inspectors, and the responsibilities of production staff have been adjusted. Technological Implementation: By implementing the ZDM system, adopting a C/S+SQL system architecture, and using PDAs to link workshop production equipment, inspection equipment, process flows, processing personnel, products, and orders, it achieves fine-grained control over the production process. For key processes, PDAs are used to scan, identify, and control, while the system records information on equipment, personnel, and quality inspection results, facilitating traceability. Through the integration of the ZDM system with the ERP system, effective product traceability is achieved: based on the product’s QR code, one can trace back to the metalworking order number, process, equipment, processing personnel, batch of raw materials used, results of raw material inspections, or batch number of the supplier. In line with the company’s requirements for high-quality manufacturing and operation, efforts are focused on reducing the causes of defects, such as monitoring and controlling the normal lifespan of molds and cutting tools, analyzing data on abnormal situations, and ensuring consistency between process document parameters and PLC control parameters of processing equipment, so as to better achieve zero-defect product quality. Data Development and Utilization: Through the development and application of the ZDM system, the integration of the ERP system with the ZDM system, and the automatic collection, analysis, and application of data, data models are established to provide decision support for managers to optimize resource allocation in a timely manner. Matching and Standardization: Multiple training sessions have been conducted for operators and technicians, both on-site and in centralized meetings, to ensure the effective integration of the production line’s ZDM system with business management, providing a basis for enterprise management and performance evaluation, and guaranteeing that business tasks are completed on time, with guaranteed quality and quantity. To guide and ensure correct operation and use by users, documents such as the “ASIMCO Camshaft ZDM System Backend Data Management User Manual,” the “ASIMCO Camshaft ZDM System Handheld Terminal Management System User Manual,” the “ASIMCO Camshaft Process-Specific ZDM System Operation Guide,” and the “ASIMCO Camshaft ZDM System Maintenance Manual” have been revised and published. Operational Control: After the system goes live, the IT Information Department and the Quality Control Department organize all relevant business departments to continuously track the effectiveness of business process modifications and make ongoing improvements, thereby forming a truly company-specific, complete, and effective set of systems and standards that lay the foundation for realizing the benefits of new capabilities and enhancing overall capabilities. 2.4 Main Achievements of the Enterprise in Building New Capabilities in the Information Environment Through the development and application of the ZDM system, the integration of the ERP system with the ZDM system, the development and application of the MES system, and the integration with existing systems; as well as the construction of the third phase of the metalworking project, the number of customer quality complaints has decreased from six per year to two per year, the rework rate of defective products has dropped from 27.1% to 15.6%, the number of nonconforming finished products per 10,000 (PPM) has fallen from 116 to 55, and the cost of poor quality (COPQ) has decreased from 5.82 to 4.26. As the capability for zero-defect quality control of camshaft products continues to improve, product quality will steadily increase, leading to higher customer satisfaction. 3. Analysis of the Implementation of the Standard for the Integration of Informatization and Industrialization Through the implementation of the integration of informatization and industrialization, ASIMCO Camshaft uses modern information technologies to manage the entire process from raw materials to finished products, leveraging information integration, sharing, and mutual fusion to consolidate project construction management data, analyze project management, provide decision-making guidance, build an information traceability system for camshaft product management, and, by continuously developing new capabilities, achieve the integration of personnel, business, and management, ultimately realizing the goal of building the company into a world-class camshaft R&D and production base, becoming the preferred supplier in the global engine camshaft industry, and effectively enhancing the company’s core competitiveness.

ASIMCO Camshaft Successfully Passes Cummins Z14 Project PPAP

From August 13 to 15, 2019, a team of three experts—Mr. Huang Xueping and Mr. Gong Yuzhen from DCEC SQIE, along with Mr. Fang Xu, a design engineer for the Z14 project at Cummins East Asia R&D Center—visited our company to conduct a PPAP audit of the Z14 Camshaft. The two sides first reviewed the drawings. The Z14 is a forged Camshaft, a material that Dongfeng Cummins and ASIMCO are developing for the first time. They jointly discussed Cummins’ material standards. Subsequently, the project team conducted an in-depth audit of the product process across all six aspects—people, equipment, materials, methods, environment, and measurement—for each production step, thoroughly examining every detail. They also performed full-size inspections on the finished products and analyzed the capability of key characteristics. Throughout the audit, the experts’ meticulous and rigorous work was truly commendable and worthy of our emulation! They put forward many valuable improvement suggestions regarding certain details in our manufacturing process, while also fully recognizing the efforts and achievements of ASIMCO’s Camshaft R&D team on this project. Ultimately, the Z14 Camshaft project successfully passed Cummins’ PPAP audit and approval.

Students from the University of International Business and Economics Conduct Social Practice Activities at a Company

On July 17, a nine-member summer social practice team from the University of International Business and Economics visited our company for a practical activity. As the backbone of the country’s future development and construction, today’s college students are highly valued by our company, which extended a warm welcome to the team. In response to the students’ research interests, Ren Wenyuan, the company’s CFO, provided a detailed introduction and shared his experience. He thoroughly outlined the company’s development history and its investment and financing situation, capturing the students’ full attention. Subsequently, Mr. Ren led the students on a tour of several workshops and production lines, during which he also discussed the industry’s current state and compared our company’s strengths and weaknesses with those of international firms. He encouraged the students to study diligently while in school, develop into versatile professionals in their fields, and contribute to the nation’s development after graduation. The students pledged to work hard and repay the country in the future. The half-day visit flew by, and the students from the University of International Business and Economics expressed that they had gained a great deal—deepening their understanding and reflection on relevant policies and investment and financing—and sincerely wished ASIMCO Camshaft continued success!

General Manager of Beijing Foton Cummins Visits ASIMCO Camshaft

Visit by the CUMMINS Team

Women Are No Less Than Men: Showcasing Excellence in Ordinary Roles — Zhou Luling, Team Leader of the Gold-Processing Finished-Products Section

Unite and Strive to Win the Future

I joined the Yizheng Camshaft Factory (the predecessor of ASIMCO Camshaft Company) in 2000, and I was fortunate to witness the camshaft business evolve from a small enterprise serving the mid- to low-end aftermarket into a “young” company whose primary customers are leading domestic and international mid- to high-end engine manufacturers. Here, I’d like to share a brief story that looks back on our team’s journey of hard work and perseverance. On April 7, 2007, thanks to the efforts of the company’s senior management, we received a global project development assignment from Cummins: DEP plant was tasked with developing an AVALON 3.8L engine and sourcing Chinese suppliers, with projected annual sales of 150,000 units by 2015. Prior to this, we had no experience collaborating with international clients on new-product development. The customer required that a sample be shipped from China to the UK plant by June 8, yet as of April 7, the engineering drawings had not yet been finalized—there were more than twenty outstanding issues that needed to be discussed and confirmed by both parties. However, these challenges did not deter us; instead, they ignited an unwavering spirit of determination within the team. First, the project team compiled a comprehensive list of issues identified in the drawings. To stay on schedule, we obtained approval from Cummins’ SQI department and engaged directly with the product designers, thoroughly preparing for the task. We presented the design engineers with two clear options—YES or NO—and over the course of two weeks, we resolved the major outstanding issues through mutual agreement, then moved on to planning the mold design, manufacturing, machining process, tool selection, and procurement—tasks that naturally require considerable time. Second, before commencing production, we identified potential risk points in the manufacturing process and conducted a process FMEA analysis. Engineers used physical models of the product to simulate each operation on the relevant equipment, checking for interference, verifying the suitability of cutting tools and grinding wheels, assessing compatibility with existing tooling, and ensuring that machine travel distances were adequate. Every single risk was meticulously documented, reviewed by the project team, and discussed to develop appropriate solutions. Third, in early May, the mold components arrived, but the chills had not yet been delivered. After deliberation, the team decided to use trial machining to validate whether the previously planned processes, tools, equipment, and tooling were effective. We used 20 raw blanks that had not undergone chill treatment and ran a trial run of the machining process. During this trial, several new issues emerged—for example, the AVALON camshaft features a through-hole in its middle section, which could not be machined using the initially prepared tools; even after switching to carbide tools, the problem persisted. We promptly communicated with the design engineers, explained the current difficulties and proposed follow-up measures, and worked together with the customer to formulate a solution. During product assembly and inspection, we encountered various other challenges as well. By tapping into our internal resources and leveraging our collective expertise, we ultimately resolved all these issues. At the same time, we maintained seamless communication with the design engineers and SQI, while also seeking external support when necessary. Throughout the project, team members worked around the clock, day and night, tirelessly. On June 7, 2007, Cummins’ SQI personnel visited the factory to conduct an on-site quality inspection and approve the release of the first batch of samples, which were successfully delivered. Subsequently, after more than a year of preparation, leveraging existing resources and making only a modest investment, our team established a Cummins AVALON production line that passed the customer’s PPAP audit. In November 2008, the production line entered SOP, and the company officially began supplying finished products to Cummins on a large scale. In 2011, Cummins praised our company, stating: “Using second-hand equipment that would normally be considered obsolete, you have produced world-class products.” Through this project, our company has consecutively won eight years of awards from the customer, including Best Supplier, Best Quality, Best Continuous Improvement, and Best Lean Production, bringing great honor to the company. Moreover, the success of the AVALON project has enabled our team to accumulate valuable experience, laying a solid foundation for the company’s sustained, high-quality development. This story demonstrates our team’s indomitable spirit in the face of adversity, highlighting the boundless potential and entrepreneurial drive of the entire camshaft team—qualities that are truly invaluable assets for our company. As the enterprise continues to grow and thrive, it is precisely this spirit that will ensure our continued success and enable us to eventually become a company respected by both customers and the market.

Delivery of the first batch of Cummins 6C blank samples