Lately, Beijing Benz issued a letter of notice on the results of supplier performance examination of 2016. Shougang MA was rated as “excellent supplier of 2016”. It’s only the second year after the launch of mass production in Shougang MA when this honor was won.

Incorporated in the form of joint venture by Shougang Group’s metal company and the world-renowned auto parts supplier MA (Italy) in 2012 in Beijing, Shougang MA is engaged in producing and selling car bodies, cold-stamped parts of chassis, rolled parts and their assemblies, and aims to develop the professional business of metal forming on a large scale. Thanks to high-quality products and service, Shougang MA was selected by Beijing Benz as a supplier for important parts soon after it launched mass production in October 2015. By the end of 2016, it has supplied more than 102,000 sets of door sills and back beams for GLC cars of Beijing Benz without being challenged or complained in term of quality. By this, it has won high trust of Beijing Benz.

“Shougang MA, being the bellwether of Shougang Group in the auto parts industry, assumes a glorious mission and heavy responsibility. We always adhere to the tenet ‘oriented to the high end, serve the high end, win on the high end’. The cooperation with Benz has not only increased the supply volume, but also improved the management throughout the flow of auto sheet production. In the process, we have accumulated a great deal of precious experience, which is immeasurable in money, said Li Yanhui, general manager of MA.

Relieve bottlenecks with focus on high end

In recent years, Shougang Group has made forward-looking arrangements for marching into the auto parts industry and upgrading the auto sheet industry chain. In the context, Shougang MA emerged as the times require. The interval between the incorporation and the launch of mass production is only 3 years. The interval between the launch of mass production and the start of profit making is as short as 9 months. Such “Shougang speed” sets a record in the production line of the industry. To achieve this, Shougang MA’s operation team suffered all kinds of torments. Faced with numerous difficulties, the site technicians set up a special problem-tackling group under the principles of ingenious innovation and breakthrough-making, so as to solve technical problems one by one. Upon a few months of efforts, 122 technical problems were solved to improve the operating rate of the rolling line to above 70% and lower the rejection rate to 2% minus.

Give top priority to quality

Shougang MA keeps abreast with Benz in both the work standard and its concept. As of its founding, Shougang MA has given top priority to quality. Its staff has visited Benz’s factories more than once for exchange and experience acquisition. Always adhering to the world’s highest standard, Shougang MA continuously improves the quality consciousness if the whole company, and vigorously promotes the Total Quality Management (TOM).

Shougang MA’s quality manager Qiu Pengfei told the reporter: “‘Zero defect’ is Benz’s quality management concept. Customers are the best teachers. We bear heavy pressure during the cooperation with Benz. However, the advanced management methods and modes we contact provide a best way for learning and improvement. We make sure our products meet the most rigorous standard by allocating optimal resources. This increases our control capability and brand influence.”

The concept “quality first” has been gradually put into practice during the perfection of quality system and the enhancement of basic management. Shougang MA applies the standards of Beijing Benz’s VDA6.3 quality system in all the links of purchase, logistics, production, testing and sales. Based on level-by-level quality control during production, after production line and before delivery, it was awarded “quality stability certificate” for the GLC model by Beijing Benz 3 months after the launch of mass production, and won high praise and trust from the customer in term of product quality.

Deepen the win-win cooperation through considerate service

While quality products are the basis of a company, in the increasingly competitive steel market, service is the most effective tool for differentiation, value creation and customer acquisition. Based on the overall arrangements made by the shareholders, Shougang MA actively joins Shougang Group’s auto sheet production-sales-research-application integrated operation system to improve the service for Beijing Benz in terms of quality, logistics, purchase and R & D. In order to assure the assembly quality for Beijing Benz, it set up a special site service team to track how products are delivered and used around the clock, and understand buyers’ demands and solve the problems of buyers without any delay. In the end of 2016, by overcoming numerous difficulties, Shougang MA fulfilled the promise of increasing the output by 40%, and managed to satisfy the demands of sharp increase in production by Beijing Benz.

In addition, to upgrade the production line in synchronization with Beijing Benz’s technological transformation, Shougang MA deepens its exploration in the customer’s demands, and involves itself in the new model design in Beijing Benz. In the meantime, by seizing the opportunity, it enhances the adjustment of product structure and control of auto sheet quality, and actively replaces imported high-end auto sheets with its own products, with focus on the customer’s demands. In May 2016, the replacement with DP780 hot-dip galvanized sheet was formally launched. The trial-manufacture and review of sample parts are underway in good order. In particular, the sheet has passed the certification test organized by Daimler. Next, preparations will be made for the certification test of CP1000 galvanized high-strength auto sheet. In the future, most of the auto parts supplied to Beijing Benz will be manufactured with the auto sheets produced by Shougang MA.

In all the links of production line certification, material certification, parts certification, small-lot trial manufacture, supply in batches, technical problem tackling, product shipment, process tracking and after-sales service, Shougang MA carefully implements the spirits of Shougang Group’s “two meetings”, and supplies high-quality, differentiated service to Beijing Benz by giving full play to the brand advantage in strict accordance with the guideline “adjust structures, assure quality, pursue high end, increase benefits, create brands”. By this, it creates value for and wins the trust of the customer.