1987: Sleepless Tonight
Chapter 116 You Think Too Simple
"Difficult." Su Xingmin nodded, "The benefits have dropped drastically."
Lu Hao asked again, "I heard that Hongyuan Beverage Factory is implementing a contract system?"
Hongyuan Beverage Factory is the name of the beverage factory where Su Xingmin works. Just by hearing the name, you can tell that he was not born in the main family. Behind it is the Municipal Planning Commission again!
The backing of Hongyuan Beverage Factory is not strong enough, and naturally the support it receives is not enough.
Enterprise Contracting System.
Collective or private, can contract the entire enterprise, or contract a certain production department, production line, sales, canteen, etc. of the enterprise.
In the past few years, many enterprises have been implementing this method, and the result of this method is likely to be the transformation of state-owned units into private assets.
It's kind of like a vegetable market.
The vegetable market is leased, while the beverage factory is contracted.
In fact, there is not much difference in rough calculations.
"There is such a thing." Su Xingmin sighed, "The efficiency of the factory has not been good, the profit has been declining year after year, and the products have even been unsalable. This is the method adopted, and this is also encouraged by the above."
He didn't ask Lu Hao how he knew about it, because it was no secret, and everyone in the factory knew it. He often said at home that Su Jin must have heard about it, and he thought it was Su Jin who mentioned it to Lu Hao by accident.
He has worked in the beverage factory for many years and has deep feelings, but now the situation in the factory is getting worse and worse, and he is also very anxious.
"The last time I came here, I talked to Lao Su about this matter." Mentioning this matter, Liu Changping was also very touched, "In the early years, all the profits of the beverage factory were handed over, and the workers were not very motivated. It doesn’t matter how much you do or how little you do. Anyway, you are paid a dead wage, and you don’t get a cent of your income. The leaders in the factory don’t have much enthusiasm, because the power is very small, let alone the right to fire workers. Even the rights to flat toilets cannot be fulfilled, and they have to be reported layer by layer.”
"Workers' wages, the introduction of equipment, and other rights are even less powerful."
The leaders and workers of state-owned units, regardless of the iron rice bowl, were actually a bit miserable in the early days. They had no power at all in production and sales, and they had to follow the plan. What is not determined by the market, but by the upper leadership.
A good marionette.
Even if a product is very popular, there is a big gap, and the profit is huge, but the factory leader cannot decide to produce this product, and can only produce products within the planned range.
"In this case, from the leaders to the employees, the enthusiasm for production is not high, resulting in a lot of waste, and the passive slowdown is even more normal. The situation has only improved in recent years. The beverage factory implements the factory manager system and gives the factory manager a certain amount. Power, in addition to completing the tasks in the plan, the company can decide what products to produce, and can take part of the profits as bonuses to increase the enthusiasm of employees, or reinvest to expand production." Liu Changping took a few sips of wine, just happened It was also his heartache.
"More than that, I have also obtained a certain promotion authority in terms of personnel, and I can recruit some talents from the outside."
Lu Hao nodded.
This is the case for beverage factories, and it is also the case for many other state-owned units. The independent power is getting bigger and bigger, and the shackles tied to the unit are getting less and less. The difference is that the strength and intensity of reforms in each unit are different.
It's just that it doesn't necessarily mean that it will be effective if it is changed. Most enterprises die on the road during the reform process.
Both Hongyuan Beverage Factory and Xingsheng Garment Factory, where I worked before, have carried out the reform of the factory manager system, but they have not gone far.
"Is anyone contracting?" Lu Hao asked.
"No." Liu Changping shook his head, "The competition is too fierce, we can't see the benefits, and no one dares to contract. In the early years, there was only one beverage factory in the city, but now there are more than 100 beverage factories in the city. The companies that produce soft drinks alone There are forty or fifty companies, and there are more than ten or twenty companies that produce purified water."
"Statistics and sales are slowly being liberalized. All enterprises are placed on the market to compete. Without protection and loss of support, many factories are struggling."
Letting go of statistics and marketing, and shifting from a planned economy to a market economy, is tantamount to pulling these enterprises out, and the true shape of the mule or horse will be revealed at once.
Su Xingmin also nodded, "Jiangcheng produces 12 tons of soft drinks a year, and the total output ranks second in the country. The volume is so large, and the market is only so small. It's too difficult. Among so many beverage factories, our factory can only Ranked in the middle and lower reaches, above the No. [-] Beverage Factory, No. [-] Beverage Factory, Glucose Beverage Factory, Haigong Beverage Factory, etc., many factories have introduced a batch of advanced production equipment from abroad, and the annual production capacity and hygienic quality have been improved. products are very popular.”
"The market is so big, their products are popular, and the sales of our factory's products have naturally declined. It is for this reason that the factory is now implementing a contract system. It is the same as the joint production contract in the countryside. It wants to improve employees through this method. Enthusiasm to increase corporate profits, but few people have the guts to contract.”
Lu Hao understood that such fierce competition must have frightened the old man.
The last time Liu Changping came here, he was probably discussing this matter with his father-in-law. He probably wanted to contract a certain production line or a certain link of the beverage factory with him, but neither of them had any idea and dared not try it.
If it fails, it may be bankrupt.
"The main issue is product quality." Zhang Yongqiang immediately expressed his opinion, "Dad, Uncle Liu, I think your beverage factory can improve product quality. Learn from other beverage factories and introduce advanced production equipment from abroad. Recruit some talents, improve the taste and quality of beverages, so that we can turn losses into profits."
He was full of confidence.
Lu Hao shook his head, "You think too simply."
"Why do I think so simple? Isn't the method I proposed wrong?" Zhang Yongqiang felt insulted, "Could it be possible that you can come up with a better suggestion?"
"Of course what you said is correct, but it's just a bunch of useful nonsense." Lu Hao took a sip of his wine. He actually holds a good amount of alcohol.
People have no money, you say to earn it, everyone knows to earn it, but how to earn money to become rich?This is the crux of the matter.
"You said that you imported advanced production equipment from abroad, but do you know that these all require foreign exchange? Without foreign exchange, how can you introduce advanced production equipment?" Lu Hao said.
"If you don't have money, you can get a loan. It's easy to get a loan now." Zhang Yongqiang said, "You can also get a loan in foreign exchange."
"Of course there is no problem with the loan." Lu Hao affirmed, but pointed out the serious problem inside, "If there are only a dozen beverage factories in the city, the loan may be easy, or if the Hongyuan Beverage Factory can rank in the industry In the forefront, loans will be very easy, but the problem now is that Hongyuan Beverage Factory is only a middle-to-bottom group in the industry. There are also Beverage Factory No. [-] and Beverage Factory No. [-] above. It is easy for them to get loans. It would be good not to be eliminated, but in the next few years, measures will be stepped up to limit the scale of the beverage factory."
Lu Hao asked again, "I heard that Hongyuan Beverage Factory is implementing a contract system?"
Hongyuan Beverage Factory is the name of the beverage factory where Su Xingmin works. Just by hearing the name, you can tell that he was not born in the main family. Behind it is the Municipal Planning Commission again!
The backing of Hongyuan Beverage Factory is not strong enough, and naturally the support it receives is not enough.
Enterprise Contracting System.
Collective or private, can contract the entire enterprise, or contract a certain production department, production line, sales, canteen, etc. of the enterprise.
In the past few years, many enterprises have been implementing this method, and the result of this method is likely to be the transformation of state-owned units into private assets.
It's kind of like a vegetable market.
The vegetable market is leased, while the beverage factory is contracted.
In fact, there is not much difference in rough calculations.
"There is such a thing." Su Xingmin sighed, "The efficiency of the factory has not been good, the profit has been declining year after year, and the products have even been unsalable. This is the method adopted, and this is also encouraged by the above."
He didn't ask Lu Hao how he knew about it, because it was no secret, and everyone in the factory knew it. He often said at home that Su Jin must have heard about it, and he thought it was Su Jin who mentioned it to Lu Hao by accident.
He has worked in the beverage factory for many years and has deep feelings, but now the situation in the factory is getting worse and worse, and he is also very anxious.
"The last time I came here, I talked to Lao Su about this matter." Mentioning this matter, Liu Changping was also very touched, "In the early years, all the profits of the beverage factory were handed over, and the workers were not very motivated. It doesn’t matter how much you do or how little you do. Anyway, you are paid a dead wage, and you don’t get a cent of your income. The leaders in the factory don’t have much enthusiasm, because the power is very small, let alone the right to fire workers. Even the rights to flat toilets cannot be fulfilled, and they have to be reported layer by layer.”
"Workers' wages, the introduction of equipment, and other rights are even less powerful."
The leaders and workers of state-owned units, regardless of the iron rice bowl, were actually a bit miserable in the early days. They had no power at all in production and sales, and they had to follow the plan. What is not determined by the market, but by the upper leadership.
A good marionette.
Even if a product is very popular, there is a big gap, and the profit is huge, but the factory leader cannot decide to produce this product, and can only produce products within the planned range.
"In this case, from the leaders to the employees, the enthusiasm for production is not high, resulting in a lot of waste, and the passive slowdown is even more normal. The situation has only improved in recent years. The beverage factory implements the factory manager system and gives the factory manager a certain amount. Power, in addition to completing the tasks in the plan, the company can decide what products to produce, and can take part of the profits as bonuses to increase the enthusiasm of employees, or reinvest to expand production." Liu Changping took a few sips of wine, just happened It was also his heartache.
"More than that, I have also obtained a certain promotion authority in terms of personnel, and I can recruit some talents from the outside."
Lu Hao nodded.
This is the case for beverage factories, and it is also the case for many other state-owned units. The independent power is getting bigger and bigger, and the shackles tied to the unit are getting less and less. The difference is that the strength and intensity of reforms in each unit are different.
It's just that it doesn't necessarily mean that it will be effective if it is changed. Most enterprises die on the road during the reform process.
Both Hongyuan Beverage Factory and Xingsheng Garment Factory, where I worked before, have carried out the reform of the factory manager system, but they have not gone far.
"Is anyone contracting?" Lu Hao asked.
"No." Liu Changping shook his head, "The competition is too fierce, we can't see the benefits, and no one dares to contract. In the early years, there was only one beverage factory in the city, but now there are more than 100 beverage factories in the city. The companies that produce soft drinks alone There are forty or fifty companies, and there are more than ten or twenty companies that produce purified water."
"Statistics and sales are slowly being liberalized. All enterprises are placed on the market to compete. Without protection and loss of support, many factories are struggling."
Letting go of statistics and marketing, and shifting from a planned economy to a market economy, is tantamount to pulling these enterprises out, and the true shape of the mule or horse will be revealed at once.
Su Xingmin also nodded, "Jiangcheng produces 12 tons of soft drinks a year, and the total output ranks second in the country. The volume is so large, and the market is only so small. It's too difficult. Among so many beverage factories, our factory can only Ranked in the middle and lower reaches, above the No. [-] Beverage Factory, No. [-] Beverage Factory, Glucose Beverage Factory, Haigong Beverage Factory, etc., many factories have introduced a batch of advanced production equipment from abroad, and the annual production capacity and hygienic quality have been improved. products are very popular.”
"The market is so big, their products are popular, and the sales of our factory's products have naturally declined. It is for this reason that the factory is now implementing a contract system. It is the same as the joint production contract in the countryside. It wants to improve employees through this method. Enthusiasm to increase corporate profits, but few people have the guts to contract.”
Lu Hao understood that such fierce competition must have frightened the old man.
The last time Liu Changping came here, he was probably discussing this matter with his father-in-law. He probably wanted to contract a certain production line or a certain link of the beverage factory with him, but neither of them had any idea and dared not try it.
If it fails, it may be bankrupt.
"The main issue is product quality." Zhang Yongqiang immediately expressed his opinion, "Dad, Uncle Liu, I think your beverage factory can improve product quality. Learn from other beverage factories and introduce advanced production equipment from abroad. Recruit some talents, improve the taste and quality of beverages, so that we can turn losses into profits."
He was full of confidence.
Lu Hao shook his head, "You think too simply."
"Why do I think so simple? Isn't the method I proposed wrong?" Zhang Yongqiang felt insulted, "Could it be possible that you can come up with a better suggestion?"
"Of course what you said is correct, but it's just a bunch of useful nonsense." Lu Hao took a sip of his wine. He actually holds a good amount of alcohol.
People have no money, you say to earn it, everyone knows to earn it, but how to earn money to become rich?This is the crux of the matter.
"You said that you imported advanced production equipment from abroad, but do you know that these all require foreign exchange? Without foreign exchange, how can you introduce advanced production equipment?" Lu Hao said.
"If you don't have money, you can get a loan. It's easy to get a loan now." Zhang Yongqiang said, "You can also get a loan in foreign exchange."
"Of course there is no problem with the loan." Lu Hao affirmed, but pointed out the serious problem inside, "If there are only a dozen beverage factories in the city, the loan may be easy, or if the Hongyuan Beverage Factory can rank in the industry In the forefront, loans will be very easy, but the problem now is that Hongyuan Beverage Factory is only a middle-to-bottom group in the industry. There are also Beverage Factory No. [-] and Beverage Factory No. [-] above. It is easy for them to get loans. It would be good not to be eliminated, but in the next few years, measures will be stepped up to limit the scale of the beverage factory."
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