How does Midea improve quality?
I’ve always wanted to write an article about how Midea improves quality.Although I have enough data, such as product through-through rate and market maintenance rate, to show that the quality of Midea’s products has indeed improved greatly in the past 10 years.But a lot of times, the outside world will think that this is internal data, not very convincing.But I know that the fundamental changes in midea’s quality management have taken place and are still improving.However, there is a long lag between the change of impression in the mind of users and the improvement of actual quality.So, I’ve been waiting for a convincing proof.Finally, I was waiting!On September 16, Midea Group won the 4th China Quality Award.The China Quality Award is the highest honor in the field of quality in China. It was established in 2012 with the approval of the Central Government and is awarded every two years.The review is the most rigorous in China. It is organized and approved by the State Administration for Market Regulation and submitted to The State Council for decision.This year is the fourth, a total of 696 organizations from all walks of life declared, and finally, Midea Group and 9 organizations such as China Nuclear Power, China Railway Engineering won the China Quality Award.From once being criticized for quality problems, to now winning the highest honor of Quality in China, what kind of road has Midea gone through to improve quality?And how?Looking back on the quality management of Midea, we have gone through three stages: conformity → reliability → intelligence.Let’s share them one by one, hoping they’ll help your business.Before 2010, China’s home appliance market was in the era of “you sing and I come on the stage”.Midea started as a fan company in 1980 and started to enter the field of home appliances. By 2010, midea has made rapid progress for 30 years. Through the diversification mechanism of business division, it has blossomed everywhere in the field of white appliances.The overall scale increased from less than one million in 1980 to over 100 billion in 2010, an increase of hundreds of thousands of times in 30 years.At this stage, the overall quality of beauty is in a relatively stable state, and the earlier the product, the more stable the quality.My fan, which I bought 20 years ago, looks old now, but it never broke, and I’m not willing to throw it away.He Xiangjian, the founder, has always emphasized quality in the process of leading the rapid development of beauty for a long time.As early as 1997, He Xiangjian said, “The Chinese market is large enough to make any kind of product operator profitable.The question is whether the quality of your product meets the needs of consumers.”Quality system construction of beauty, in the early days is relatively complete, new product development from the links of type test and life test, procurement procedures of incoming inspection, supplier’s factory inspection, production site inspection, line finished product inspection, warehousing link the secondary sampling, after-sale maintenance, complaint handling, market return, etc., each division of the control strength will be different,But the whole quality system is complete in each division.Compared with the strict investment review of production line equipment, Midea’s investment in quality instruments and equipment is often approved more quickly, and there is not too much repeated argumentation on data.In 2009, I was in charge of the investment and construction of a quality inspection laboratory, with an amount of nearly 10 million yuan, which was approved in less than a week. Even if additional investment was needed later, it would not be blocked, making the completion progress of the quality inspection laboratory half a month earlier than when the project was set up.This is a phase of rapid development, the scale under the guide of sales oriented diversified expansion, although the status of quality system personnel, at this stage, to be fair does not equal to high sales system status, but if not complete quality system, and quality control for product line, beauty products, so much so fast growth, also hard to walk so far.Due to the strategic orientation of pursuing scale at that time, the bottom line control of quality was based on safety standards or basic needs in accordance with national standards, enterprise standards and other specifications, that is, the product should not have major problems.So this stage of batch quality accidents, accountability is very heavy, but internal selection and use of incoming materials, or some defects of the exception release, or will occur.Then, in 2010, there was a major quality crisis.In 2010, Zisha Clay Pot event became the most important quality crisis event in midea’s history.Regardless of the purple sand industry, the policies and standards at that time, what vague areas exist, from the perspective of The United States, this incident is still a wake-up call for the quality management of The United States.In 2011, Midea started its strategic transformation from pursuing scale to pursuing profit and business quality, and the pursuit of business quality starts with product quality.Because of years of inertia in the pursuit of scale, or to the United States of America’s reputation for quality brought damage.I still clearly remember, hong-bo fang at internal executive meeting, who give us an example of the transformation: he once gave beautiful outside investors do report, there are an investor, on the spot out three beautiful electric kettle, asked: “I bought three consecutive, broken three, if beauty or the product quality, the enterprise is how to do?”Another comment, “I am an employee of Beauty, but I don’t use beauty products,” stung Fang deeply during an extensive consultation with internal employees.Need fierce medicine, troubled times with heavy code.In 2012, Fang Hongbo took charge of The United States and comprehensively promoted major changes. The group officially promoted the “high-quality strategy”, and quality was raised to an unprecedented height and became the highest strategic requirement.Midea quality management, from meeting the basic standards of conformity, to excellence, customer satisfaction of reliability.In order to realize the upgrade of quality management, Midea made significant changes in at least five aspects: organization, assessment, rights and responsibilities, process and standard.● Organizationally, the Group established the Science and Technology and Quality Department, and the quality department of each business unit was upgraded to the first level.At the same time, the quality management function of the group has been fundamentally adjusted from external connection and internal coordination to internal focus sinking, focusing on the exposure and investigation of quality problems of all business units, and the improvement of quality control ability.● Assessment, quality indicators over all other assessment indicators, all categories of quality indicators, monthly pull top ranking.At the same time, in order to avoid short-term behavior, the assessment cycle of quality indicators is increased, for example, the current market maintenance rate is adjusted to the accumulated market maintenance rate of three years.● Rights and responsibilities, regardless of business performance, quality has veto power.At that time, the technology and Quality Department of the Group could directly dismiss the quality director of the business division who failed to control quality problems over the general manager of the business division, while the general manager of the business division took joint and several management responsibilities.In fact, it was also because of the real killing of several quality directors that everyone understood that this was serious.● Process, change the original only from the after-sales link, access to the market quality information feedback of the passive approach.At the front end of new product development, it is mandatory to significantly increase new product trial, user experience, household research and other links.New product trial, at least 10 first – and second-tier cities for trial;User experience: Select different groups from inside and outside, and not less than a certain number of people, to use in real scenarios;Household research, research and planning personnel, out of the office building, into the user’s home, listen to the original words, know the truth.● Standards, from procurement to logistics, improve the quality standards of each link.For example, in order to improve the quality of incoming materials, no matter the cost is increased, it is required to cooperate only with suppliers of the top three quality in the industry or listed companies.Before 2010, there were cases of incoming materials selection and use, exceptional product release, and so on. At this stage, even the smallest appearance defect, even if it affects sales and profits, will not be soft.Sales plunged $30 billion in 2012 from 2011, largely because of the elimination of loss-making businesses, but also because of quality rigidity.To correct wrong must be too right.Being too positive is not too much. It is to change everyone’s quality consciousness and change the previous quality thinking of “almost ok” in essence.The transformation of this process, lasting from 2011 to 2015, has completely changed all aspects of quality management in Beauty, not only in terms of strength, but also in terms of mode and consciousness. Whether the old seven methods, new seven methods or tools such as TRIZ are used in QC is still secondary.3 – Intelligent quality management: Comprehensive digital-intelligent high-quality transformation If Midea only achieves reliable quality management, it is not enough to obtain the highest honor of Quality in China.Of course, Midea’s continuous upgrading in quality management is not for winning various awards.From 2011 to 2015, Midea turned inward, introspected and practiced its internal skills, greatly improving its internal product quality and business quality.Since 2016, Midea has made large acquisitions, such as Toshiba White business in Japan, Kuka in Germany, Clivet in Italy, Gaontron in Israel and other international companies.At the same time, midea is accelerating its global layout, with 17 overseas manufacturing bases and 22 global R&D centers. Overseas sales of midea’s own brands are also expanding rapidly.At this stage, midea quality management faces the challenge of not only ensuring product reliability, but also meeting the needs of users around the world.Facing the global and whole value chain, we can no longer rely on the iron-fisted control of the quality department. We must upgrade our strategic thinking and management methods again.In previous articles, I have mentioned many intelligent and digital measures implemented by Midea, such as 632 project, T+3 mode, MBS operation system and “dual-intelligence strategy”, all of which have made great contributions to the high-quality transformation of midea’s comprehensive digitalization.Midea won the “5 all 5 numbers” of China Quality Award this time, which is the intelligent quality management mode formed after the accumulation and upgrading again at this stage.”5 all” is to grasp the different needs of different users in different markets around the world.”5 numbers” is a tool to meet the needs of different markets and users.”5 whole” emphasizes the strategic thought, highlights the global vision and the whole value chain management, to meet the external needs of the global market, including global user co-creation, global platform group development, the whole value chain T+3 operation, global joint management, the whole system 632.”5 Numbers” is a management tool and method to improve the operation quality through digitization and intelligence, including data intelligence planning, data intelligence research and development, data intelligence manufacturing, data intelligence marketing, data intelligence service.It is worth paying attention to that intelligent analysis, intelligent warning, intelligent control, intelligent prediction and intelligent decision of intelligent quality management are the core of this mode, which can be called “five wisdom”.(Midea “5 total 5 number” intelligent quality management mode, photo source: Midea Group official account) More, “5 total” business innovation mode runs through planning, RESEARCH and development, manufacturing, sales, service and other links of the value chain.At the same time, focusing on user demand (To C), enterprise demand (To B), and social demand (To S), we can get through both sides of supply and demand and create intelligent quality management of the whole value chain through the “five number” management innovation mode.So far, the United States boarded the third level of quality management.Last words: a few days ago, a friend of the whole household head enterprise, and I understand the market maintenance rate data of midea kitchen electric products.After comparing, he found that the company was not even at the level of quality that Midea had 10 years ago.There is no quick fix, only continuous progress.After 53 years of development, the quality management of Midea has gone through three stages: ● Conformity: pay attention to basic needs, to achieve usable, usable traditional quality.● Reliability: pay attention to user experience, to achieve durable, easy-to-use overall reliability quality.● Intelligence: focus on global user needs, the whole value chain management, to achieve a comprehensive number of intelligent intelligent quality management.What are the problems facing quality management in your enterprise?Where are we at now?– END — Article transferred from jing Yicheng Liu Xin Excellent operation practice 2021-09-22 20:00