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2016. A1 T Time No. 30 3 - 4 Publisher : Yen Jui-Hsiung Chief editor : Lynn Yen Tongtai Monthly Website : www.tongtai.com.tw Headline Tongtai Monthly “The Wall Street Journal” predict a big success for Huawei on US market, British “The Guardian” is positive that Huawei’s new flagship smartphone P9 Plus is challenging Apple and Samsung. How a latecomer unlisted company, established in the past 30 years, became the most successful Chinese international company that is able to undermine Apple’s position on Western markets? Establishing its presence on the international telecommunication market in the past 20 years, Huawei also conducted structure reorganization, implementing new management logic of Huawei’s founder Ren Zhengfei: “Let those who smelled gunpowder to make the decisions”. In this 170,000 personnel organization power is massively delegated to the lower levels and organizational structure resemble those of US Military Special Forces in a battle mode. In contrast to traditional battle mode structure, during Afghanistan campaign US Military Forces changed the structure to 3 persons is a 1 team, including one information analyst, one weapons specialist and one military specialist. Battle mode is determined by an information analyst basing on the enemy’s position, after that weapons special- ist decides how many resources is necessary for the battle, and in the end it’s up to a military specialist to destroy the enemy. Behind there was a huge logistics supporting corps, so that the team won’t have to worry about the rear security. In comparison with a previous Huawei’s central- ized system, after the training the style of battle on 150 countries markets was completely different. Universal personnel training Opening myriad lessons, free for newbies and mid-level personnel As the company grew, its structure became more and more complex, and bureaucracy along with slow decision making started to appear. This common problem of all of the big companies was a warning signal for Ren Zhengfei. In the previous 10 years he not only learned from IBM, but also was greatly inspired by US ex-Secretary of Defense Donald Henry Rumsfeld, who at this time was leading new military reform: Let the front end of the company become strong in every area. Before front-line commander was unable to command artillery and needed to report to the division headquarters to get the confirmation, division headquarter gives an order, and only after that weapons can start to fire. But now with the special soldier who sends e-mails, artillery just comes to play. Thus the actions become more flexible. This reform allowed the company to create famous “Iron Triangle” structure, letting the first-line workers to stand in front, looking for an opportunity, and, as they see it, take and hold it without reporting to the headquarter and asking for their support. However, letting those who smelled gunpo- wder to make a decision cost Huawei investment into universal special forces. Same with what government of other countries was doing: reducing regular army and changing to increase the amount of Special Forces, in order to raise versatile front-line personnel. Every company has to invest in its personnel in order to make this “special forces” stronger. Huawei Every year opened thousands of courses that were free for all employees. What’s interesting is that all staff ranked above seventeen not only has to pay for the courses, but also have to take a vacation for that. Build an arsenal $270 billions spent on R&D every year, Huawei tops global list of patent applications. Another price Huawei had to pay was using more money, then Apple, to create its own world biggest arsenal. The Afghanistan war was more like an informational war. After Iron Triangle determined the target, information had to be quickly transferred to the back from where the weapons would fire to finish the target. Currently 75,000 of personnel works on inventing “weapons” for a company, and that makes 45% of all staff. Huawei’s R&D fees surpassed Apple’s, last year $9.2 billion USD was spent on R&D, which equal $276 billion New Taiwanese Dollars. Approximately equal Taiwan Semiconductor Manufacturing Company (TSMC) investments into R&D: TSMC invested one third of last year’s income. Huawei is now having the highest number of patent applications in the world. Delegating power to the lower levels Senior workers must be re-employed to prevent possible bureaucracy. Third price Huawei had to pay was the most difficult: “even out people”, to give the power to the lower levels. When company structure was centralized and all the power was given to the higher authorities, which raised a state of valiant managers. And with such mechanism, it was necessary to make people to let go of their power. In 2007 all people who worked in Huawei for more than 8 years were requested to temporarily leave the office, to go through the company’s evaluation process and then to be re-employed again. That all started from Rui Zhangfei himself, because company ruled by a long term manager is a fertile ground for a bureaucracy. After that 7,000 workers signed collective resignations from their posts, but it was the only way to let lower level workers know that they also have a chance to be promoted to a higher position. It can increase their motivation to work harder. There is one thing we can be sure about: the scariest enemy is not the most powerful one, but the one who possesses the ability to foresee and prevent the crisis. A wish to survive not only let Huawei with its 170,000 staff to avoid bureaucracy crisis, but also let it to enter Western markets. “The Economist” called Huawei “disaster for Western transnational companies”. But Huawei’s stress test for Western companies is only just beginning. Above article is based on Business Weekly 1483 issue. X M I E X M I E Two significant exhibitions in China Two significant exhibitions in China Tongtai focused on auto and aerospace industry The 9 th China CNC machine tool fair 2016. For the CCMT 2016 exhibition Tongtai along with the others Group members Honor Seiki and APEC selected the most efficient, high precision machine tools, also providing appropriate technological service to the clients in order to help them increase processing efficiency. This makes “One stop solution” service a leader of the whole service industry. For this exhibition Tongtai’s booth is going to be 252 m 2 big, presenting 6 models of machine tools, including VP-8 Vertical Machining Center, SH-4000P Horizontal Machining Center, TD-2000YB Milling Machining Center, CT-350 5-axis Vertical Machining Center, TNL-100AL Horizontal Lathe, plus VL-46A High Speed Vertical Lathe of Honor Seiki. Though APEC will not be exhibiting any machines, they’re going to present some large post-processed parts, proving their professionalism in the area of 5-axis gantry type high speed machining centers, that will be perfect for aerospace and auto industry. In continuation of the topic, started during Tongtai Open House exhibition that took place in March, Tongtai is aiming on the auto industryand aerospace industry, offering various types of solutions, reflect- ing Tongtai’s achievements in the intelligent manu- facturing field, including in house designed Tongtai IntelligentManufacturing System (TIMS). It provides intelligent manufacturing functions and highly efficient operating environment, and also automates the processing of data neces- sary for manufacturing. During CCMT it was possible to feel that Chinese economy is warm- ing up again, especially auto and aerospace industry is in high demand. On site were sold several models, some more orders are still under negotiation. Besides, on the first day of exhibition (April, 11) Tongtai was invited by TAITRA to attend Taiwan machine tool intelligent manufacturing press-conference, local media were invited as well, and Tongtai’s spokesperson Yen Lu gave a speech about Tongtai’s focus on intelligent manufacturing and intelligent machine tools and company’s achievements in this field, raising participant’s interest. 2016 Xiamen Machine Industry Exposition XMIE 2016 took place on April 12-15 at Xiamen International Conference & Exhibition Center. This year’s exhibition area was 100, 000 m 2 , placing 4300 international standard booths, the number of participants sets a new historical record. At Tongtai’s booth A3029 were exhibit- ed VP-8 Vertical Machining Center, VC-610 Vertical Machining Center for High Speed Precision Contouring, SH-4000P Horizontal Machining Center, TCS-2500L CNC Lathe and other excellent models, exhibiting comprehen- sive machining solutions and industrial strength. Presented machines were sold out; we’ve received a high response, along with the other Taiwanese manufacturers, who presented their products in such areas as industrial robotics, production automation, molds, etc., displaying Taiwan’s leading role in related technologies. Organized by Bureau of Foreign Trade and TAITRA, the 24th Taiwan Excellence Award winners were announced in April, 22. Tongtai was awarded for its “PFB additive manufacturing equipment AM250”, taking home the Silver Award 2016. The best record during these years. “Intelligent addition/ subtraction five-axis machin- ing center iGT-800AM”, “Gantry-type production model machining center FV-236” and “Horizontal machining center SH-4000P” also wins the Taiwan Excellence Award. In total four products received the Taiwan Excellence Award, creating another important milestone in Tongtai’s history.At the award ceremony, Chen Xinbao, manager of the Advanced Technology Department, responsi- ble for AM250, accepted the Silver Award on behalf of Tongtai, and Wang Zhicheng, manager of the Machine R&D Department, accepted Excellence Award. Chen Xinbao emphasized that AM250 is Tongtai’s response to an “Industrial Innovation Upgrade” started by the government and also a successful case of entering into the circle of laser additive equipment manufacturers. Tongtai is the first domestic company which completed the whole cycle of laser metal printing equipment creation, starting from R&D, design and to the final model production. AM250 can be used for medical treatment, auto production, molds, aerospace industry, energetics and even for art objects creation; can perform customized processing, following current unpretentious market demand. Currently the machine is under comprehensive verification, and in cooperation with academic world we’re moving toward the mass production. In the future we’ll continue to create cutting-edge models in hopes of receiving the honor of winning a Gold Award. Tongtai is able to help the customers to create a value added in the most efficient way. By developing intelligent machine tools and by creating an application technology service Tongtai can help the clients to increase machining efficiency, taking manufactur- ing industry to the service level of the machine tool industry leaders. AM250 wins Taiwan Excellence Award AM250 wins Taiwan Excellence Award CEO pays attention on employers’ feedback! Huawei beats Apple © 2016 Tongtai Machine & Tool Co., Ltd. All Rights Reserved. ▼Manger Wang and Deputy Manger Chen of Tongtai attended the Taiwan Excellence Awards 2016 ceremony and accepted the prizes. ▲Lu Yen, the assistant of chairman of Tongtai was invited and attended the press conference for CCMT 2016.
