Company Awards for Key Improvement Projects in 2016

This month, the company summarized the completion status of its key improvement projects for 2016 and, in accordance with the company’s relevant procedural documents and based on the benefits achieved by each project, awarded corresponding incentives. A total of 13 improvement projects were recognized, including two related to equipment upgrades, two to automation upgrades, three to production-line efficiency improvements, and six to product-quality enhancements, with total rewards amounting to nearly RMB 100,000. In 2016, the company launched a series of key improvement initiatives centered on cost reduction and efficiency enhancement, actively tapping into the enthusiasm, initiative, and creativity of its employees. Cost reduction and efficiency gains were integrated throughout the company’s entire production, operations, and management processes. The improvement proposals submitted covered multiple areas, including processes, equipment, technology, and management, demonstrating strong operability and practicality. The projects that have been successfully implemented have delivered significant benefits in production and operations. The only constant in business is continuous improvement. Over several years of ongoing refinement and innovation, the company has achieved steady reductions in annual cost expenditures. As evidenced by the projects rewarded this time, simple managerial measures alone can no longer yield substantial gains; achieving cost reduction and efficiency enhancement now requires process optimization, automation upgrades, and improvements in product quality. With one quarter of 2017 already behind us, we will continue to align our efforts with our specific circumstances, pursue reform and innovation, and vigorously tap internal corporate potential. By intensifying energy conservation and consumption reduction, strengthening cost control, advancing technological innovation, and accelerating automation upgrades, we will comprehensively enhance the company’s overall competitiveness, further strengthen employees’ awareness of innovation, sense of responsibility, and execution capabilities, and ensure that the 2017 initiatives for cost reduction and efficiency enhancement are effectively implemented.

Cummins Expert Group Visits ASIMCO Camshaft

On February 15, 2017, a five-member expert team from Cummins headquarters—including Procurement Manager Niladri Sakar, Project Manager Kenny Lynch, Six Sigma Black Belt Chris Stevens, ABO Procurement Manager Bradley Xu, and Supervisor Shawn Tu—visited ASIMCO Camshaft to conduct comprehensive discussions on the company’s production capacity, the ZDM project, and the Manaus project. ASIMCO Camshaft General Manager Chen Aiguo, along with representatives from sales, engineering, and quality, hosted the Cummins delegation, and the two sides engaged in friendly exchanges on issues of mutual concern. The expert team toured ASIMCO Camshaft’s production facilities and commended the company’s site environment, logistics, and poka-yoke design. In line with world-class manufacturing standards, the experts also set forth new expectations and requirements for ASIMCO’s on-site management. The team heard a briefing from the Camshaft team on the progress of the ZDM project, covering the planning and schedule for testing equipment, the ZDM shop-floor layout, quality information flow, and poka-yoke design, and expressed satisfaction with the current work. Regarding grinding burn inspection, the experts introduced the most advanced control methods currently available internationally and recommended that these methods be applied to implement grinding-burn detection and control for the Manaus camshafts. Niladri also briefed the attendees on Cummins’ CPL (Preferred Supplier List), first launched in 2016. The CPL recognizes suppliers’ performance in delivery, cost, quality, and technical capability, identifying those who excel in core component supply. Out of more than 5,000 global suppliers, only a few dozen are selected for inclusion. Going forward, whenever Cummins—whether through wholly owned or joint-venture operations—develops new products, it will prioritize CPL-listed suppliers to undertake the development of corresponding components. At the same time, the CPL is dynamic: other suppliers can replace existing CPL members by demonstrating improvements. Entering the CPL is therefore a highly coveted goal for suppliers, leading to intense competitive pressure. He extended warm congratulations to ASIMCO Camshaft on its inclusion in the Cummins CPL. General Manager Chen expressed heartfelt gratitude for the guidance provided by the Cummins expert team and deep appreciation for Cummins’ trust, pledging that the ASIMCO Camshaft team will continue to strive for excellence and, as always, deliver high-quality products and services to Cummins, a world-class powertrain manufacturer. On February 15, 2017, a five-member expert team from Cummins headquarters—including Procurement Manager Niladri Sakar, Project Manager Kenny Lynch, Six Sigma Black Belt Chris Stevens, ABO Procurement Manager Bradley Xu, and Supervisor Shawn Tu—visited ASIMCO Camshaft to conduct comprehensive discussions on the company’s production capacity, the ZDM project, and the Manaus project. ASIMCO Camshaft General Manager Chen Aiguo, along with representatives from sales, engineering, and quality, hosted the Cummins delegation, and the two sides engaged in friendly exchanges on issues of mutual concern. The expert team toured ASIMCO Camshaft’s production facilities and commended the company’s site environment, logistics, and poka-yoke design. In line with world-class manufacturing standards, the experts also set forth new expectations and requirements for ASIMCO’s on-site management. The team heard a briefing from the Camshaft team on the progress of the ZDM project, covering the planning and schedule for testing equipment, the ZDM shop-floor layout, quality information flow, and poka-yoke design, and expressed satisfaction with the current work. Regarding grinding burn inspection, the experts introduced the most advanced control methods currently available internationally and recommended that these methods be applied to implement grinding-burn detection and control for the Manaus camshafts. Niladri also briefed the attendees on Cummins’ CPL (Preferred Supplier List), first launched in 2016. The CPL recognizes suppliers’ performance in delivery, cost, quality, and technical capability, identifying those who excel in core component supply. Out of more than 5,000 global suppliers, only a few dozen are selected for inclusion. Going forward, whenever Cummins—whether through wholly owned or joint-venture operations—develops new products, it will prioritize CPL-listed suppliers to undertake the development of corresponding components. At the same time, the CPL is dynamic: other suppliers can replace existing CPL members by demonstrating improvements. Entering the CPL is therefore a highly coveted goal for suppliers, leading to intense competitive pressure. He extended warm congratulations to ASIMCO Camshaft on its inclusion in the Cummins CPL. General Manager Chen expressed heartfelt gratitude for the guidance provided by the Cummins expert team and deep appreciation for Cummins’ trust, pledging that the ASIMCO Camshaft team will continue to strive for excellence and, as always, deliver high-quality products and services to Cummins, a world-class powertrain manufacturer.

Major Events of 2016

Cummins Headquarters Experts Visit ASIMCO Camshaft

From December 6 to 8, 2016, Mr. Pablo, Senior Product Engineer for the M Project at Cummins Headquarters, Mr. Eric, Quality Engineer, and Mr. Tu Xiaodong from ABO SQI in Shanghai—totaling three people—visited ASIMCO Camshaft Co., Ltd. The Alpha prototype for the M Project has successfully passed the most stringent 500-hour overspeed test, with no issues whatsoever on the Camshaft, demonstrating excellent performance. The primary purpose of this visit was to conduct foundational research on future drawing upgrades, while both parties also formulated a detailed implementation plan for continuous improvement regarding product characteristics of mutual concern. The guests toured the production workshop and the precision testing laboratory, gaining an in-depth understanding of the control status and inspection items for each process step, and expressed their approval of the Camshaft’s process quality control. Through this exchange, both sides are fully confident in the project’s success. Since the launch of the M Project, weekly teleconferences and uninterrupted email communications have ensured that any issues arising during project progress are addressed promptly and efficiently, enabling the project to advance in a healthy and steady manner. Mr. Pablo expressed his sincere gratitude to ASIMCO Camshaft Co., Ltd. for its strong support of the M Project, while also commending the Camshaft team’s proactive and open attitude, as well as its ability to communicate effectively with customers and resolve problems.

Customer needs are orders; overcoming difficulties and striving for excellence—A record of the emergency delivery of the H1 Camshaft

In early winter, November brings a bustling scene to the Camshaft Precision Machining Workshop, where all production lines are operating at full capacity to ensure on-time delivery for customers. Just as sales received another urgent request, Weichai’s H1 Camshaft project suddenly placed a bulk order for 600 units, with a requirement to have 1,000 units ready by December. This is a brand-new project that, over the past two years, has only seen a few dozen engines trial-assembled—yet it has now been abruptly launched! To make matters worse, this steel camshaft project is still in the prototype stage; internally, the company doesn’t even have the raw material—steel billets—nor the dedicated production lines or specialized equipment. What’s more, the existing steel camshaft production line is already running at full capacity, leaving us completely unprepared. What do we do when we “want the gun” but don’t have the gun, and “want the bullets” but don’t have the bullets? Customer demand is command—no matter the circumstances, we must find a way to deliver. The Camshaft Production Management Team has always refused to accept defeat. From the general manager down to frontline workers, production, technical, and workshop management personnel worked together to devise solutions, meticulously planning each operation one by one, making full use of any spare time within existing processes, seizing every available opportunity, and even outsourcing certain operations to external contractors when necessary. Since the dedicated drilling machine had not yet arrived, and the original machining center plan would have taken too long to drill the oil holes on the camshaft body, we quickly reorganized the process: using CNC milling machines to drill the oil holes separately. From initial concept to temporary fixture setup and debugging, we completed the adjustment in just one day. After drilling the oil holes, burrs and rolled edges remained on the inner walls, so we manually scraped them one by one using chamfering tools and gun drills. For burrs and metal chips left inside the through-holes of the camshaft body, the existing cleaning machine couldn’t remove them completely. We first used long brushes dipped in kerosene to scrub the holes, then wrapped deep-hole inspection gauges with clean wiping cloths and repeatedly inserted them into the holes to scoop out the remaining debris. Yet tiny metal particles still lingered inside, and several rounds of particle-size inspections failed to meet the standards—while sales was already waiting for shipment. Just when everyone was at their wits’ end, someone suggested, “Why not try flushing the internal bores with a high-pressure water jet?” What a great idea! We immediately moved the camshafts to the cleaning room next to the washing, recycling, and packaging area, prepared the cleaning solution, used the high-pressure water jet to flush the internal bores first, then flushed each oil hole individually, and promptly sent them off for cleanliness testing. The results were合格! Everyone finally breathed a sigh of relief and immediately plunged into special cleaning procedures… It was precisely because the technical and production management teams thought creatively, pooled their wisdom, and took hands-on action that the company successfully completed the first emergency delivery batch of H1 camshafts.

Charitable Donations Bring Warmth, One Drop at a Time

Since joining the company in August 2007, Zhang Zhiyong, an employee of our casting workshop, has consistently demonstrated dedication and diligence. In 2009, Mr. Zhang was diagnosed with chronic hepatitis B but did not pursue further medical evaluation or treatment. In early 2016, he was hospitalized due to abnormal liver function and subsequently diagnosed with decompensated cirrhosis. As a result of his loss of work capacity, he requires active cooperation with treatment and rest; accordingly, the company has initiated the prescribed procedure for him to retire on medical grounds. Despite 11 months of treatment, his condition has continued to deteriorate, and his prognosis remains grim. Following a visit by the trade union, it was learned that Mr. Zhang is currently receiving treatment in Shanghai and is preparing to undergo a liver transplant. His family circumstances are modest: his mother has voluntarily offered to donate part of her liver to save her son’s life; however, the cost of the transplant and subsequent postoperative care will exceed RMB 600,000. After deliberation, Mr. Zhang and his family have decided to sell their property to fund the remaining treatment expenses, after which the entire family plans to live together in a small garage. Our organization has always practiced humane management and made every effort to safeguard the interests of our employees. Upon learning of Mr. Zhang’s current difficult situation, the trade union promptly issued a fundraising appeal, calling on all employees to contribute either through monetary donations or by offering practical assistance. As a result of this campaign, the vast majority of our staff generously stepped forward, raising a total of RMB 21,530. Colleagues sincerely wish Mr. Zhang a speedy recovery, and every act of kindness reflects their most heartfelt hope. This week, the trade union delivered the substantial funds raised to Mr. Zhang, along with warm words of concern and encouragement. Moving forward, we will continue to closely monitor his treatment progress and provide whatever support we can within our means.

Visit by the Procurement Director of Shanghai Fihong

On November 10, 2016, Pasquale Ciao, Purchasing Director of Shanghai FAW-Volkswagen, Yu Chaoxiang, Purchasing Manager, and another colleague visited ASIMCO Camshaft Co., Ltd. The company’s General Manager Chen Aiguo and Sales Director Zhou Quan warmly received the guests. General Manager Chen briefed them on the development history of the Camshaft Company and its current production and operation status, while Manager Yu Chaoxiang from Shanghai FAW-Volkswagen presented the company’s engine installation performance and new product development progress from January to October this year. The two sides then held discussions on issues of mutual concern and reached a consensus. As a strategic supplier of Shanghai FAW-Volkswagen, ASIMCO Camshaft has consistently earned the company’s recognition for its stable quality, timely delivery, and high-quality service. Subsequently, company leaders accompanied the guests on a tour of ASIMCO Camshaft’s casting and machining production lines. During their visit to Shanghai FAW-Volkswagen’s Camshaft production line, the guests gained a detailed understanding of the line’s capacity and gave full affirmation to the company’s on-site management and quality control, thereby strengthening both parties’ confidence in cooperation and laying a solid foundation for further collaboration.

General Manager of Anhui Hualing Automobile Engine Branch Visits Our Company

On November 18, 2016, Wang Xiangzhi, General Manager of Anhui Hualing Automobile Engine Branch, along with Li Fu, Head of the Materials Department, paid a visit to ASIMCO Camshaft. Chen Aiguo, General Manager of the company, and Zhou Quan, Sales Director, extended a warm welcome to the guests and provided an overview of the company’s production and operations. Mr. Wang then briefed them on Hualing’s achievement of producing over 10,000 Hanma engines in 2016 and outlined the engine assembly plan for 2017. Since the beginning of this year, the Camshaft Company has carried out effective internal initiatives—such as process optimization and capacity enhancement—targeted at Hualing products, enabling it to meet the increased demand for Hualing engines. In recognition of these efforts, Mr. Wang expressed his gratitude to the Camshaft Company. Subsequently, accompanied by Mr. Chen, the delegation toured the machining workshop and Hualing’s dedicated Camshaft production line. Mr. Wang, General Manager of Hualing Engines, highly praised our company for the consistent excellence in both product quality and delivery since the inception of their collaboration, while also commending our cutting-edge camshaft technology and our high-end products that are protected by independent intellectual property rights. This visit by senior management from Anhui Hualing Automobile Engine Branch will help ASIMCO Camshaft maintain a strong cooperative relationship with Anhui Hualing, paving the way for further expansion of their respective businesses.