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194. Turnaround

Lao Cheng dared to take over the vacuum pump factory without consulting anyone, also for the sake of the livelihood of the three thousand employees of the factory.

More importantly, he felt that he had found his organization again.

The government did not let Lao Cheng bear all the responsibility alone, but took the initiative to assume 40% of the shares and waived past debts.

In this way, although the management rights are in Lao Cheng's hands, the factory is still considered part of the public company, and the government will not ignore him.

In the past, he ran a passenger transport company and had little to do with the government. Although he ran a good business, he never felt at ease.

Now that he is better, he is tied to the government again, and he has a superior, so he feels at ease.

People of their generation, especially those who have been in the army, have feelings for the government that the younger generation simply cannot understand.

Zhao Shihao was also shocked when he heard that Lao Cheng had taken over the entire Linshui Vacuum Pump Factory.

A large factory with more than 3,000 employees and covering an area of ​​hundreds of acres!

In the past, Linshui Vacuum Pump Factory had more than 8,000 employees and assets of over 100 million when it was most prosperous!

Those assets were over 100 million, not the current 100 million, but now tens of billions!

After the reform, the factory could not adapt to the market economy and gradually declined. To this day, the equipment is outdated and outdated, many workshops are dilapidated and no longer have production capacity, and the number of employees has gradually dropped to more than 3,000 people.

But there are more than 3,000 people, and they have to pay for eating, drinking, and eating every day, and they can’t even make ends meet with even a small amount of money!

This is completely different from his original idea.

Lao Cheng has already made a promise to the public. This is not a private conversation. It doesn’t count and no one can do anything about him. If you make a promise, you have to do it.

Zhao Shihao only worked in a subordinate unit of this factory and served as the deputy technical section chief for two years, relying on the relationship entrusted by his father. He also has no experience in managing such a large factory. Can he manage such a large factory and turn this into a successful company?

He had no confidence in managing more than 3,000 people.

Seeing his face turning pale with nervousness, Lao Cheng became even more flustered. He thought about discussing this matter with Zhou Dalin. After all, his son-in-law was a big boss and owned several dairy companies.

As for thousands of people, maybe he can do something about it?

However, Zhao Shihao stopped him.

"You've already done everything, so what's the use of going to him to discuss it now? If you let him know, he might even blame you for making your own decisions. Don't worry, let me think about it. If I can

After we come up with a solution, let's work on it for a while and see how it goes. If we really can't get it right, it's not too late to tell him."

Lao Cheng thought about it and realized that what he did was indeed a bit out of tune. The more he played, the bigger it became, and it was difficult to get off the tiger. Now if Zhou Dalin knew about it, he might really be able to fight him. Now, even Wu Ying

I dare not tell anymore.

He asked Zhao Shihao: "Do you think we can fix this factory?"

Zhao Shihao grinned bitterly and said: "I have to think about it carefully first, and then I will tell you when I have an idea. If I can't think of a good idea, you can either go to Brother Zhou to discuss it, or go to your superiors to discuss this matter.

My son is back."

Lao Cheng could only wait until he thought about it before talking.

Zhao Shihao thought about it for a week, but suddenly became excited.

"This is a once-in-a-lifetime opportunity!" He said excitedly to Lao Cheng, "We can definitely run the factory! Not only can we run it well, maybe you can save the vacuum pump factory and these three thousand employees, and you can become a

An outstanding entrepreneur will have greater achievements in the future than Brother Zhou!"

Lao Cheng stared at him and asked, "Tell me, what can you do?"

Before Zhao Shihao said this, Lao Cheng couldn't even figure out how to overcome this obstacle, let alone an outstanding entrepreneur.

Next, Zhao Shihao analyzed the reasons why he could do it well.

In fact, the vacuum pump market is still huge, and vacuum pump factories also have many opportunities to become stronger and bigger.

In the past few years, the vacuum pump factory has not been in good condition. The main reason is that the management is chaotic, which breeds various unhealthy tendencies, job crimes and omissions. A large amount of factory funds have been misappropriated, squeezed and misappropriated. The factory lacks capable cadres to lead

, low efficiency and high cost. In the year when Zhao Shihao resigned, the vacuum pump factory had reached the point where one worker had to support one manager.

"Think about it, with so many freeloaders and poachers, how much benefit can the workers create before they can squander it? They are adding more money at every level and taking advantage of everything. A pump sold for 800 yuan a piece outside will lose money even if they sell it for 8,000 yuan each.

How can we do this?" He analyzed it for Lao Cheng and said, "After we take over, we will first remove these idle people from their management positions and put them all to work in the workshop. We just cleaned up these pests and the factory

This big tree can feed itself!"

Lao Cheng didn't understand factories, but after listening to what Zhao Shihao said, he still thought it made sense.

Next, Zhao Shihao told him step by step all the methods he thought of to turn losses into profits.

First of all, it is to reduce the scale of production, sell off old, unprofitable and energy-consuming equipment, and merge production workshops with similar functions.

"We have no experience in running large factories, so we will merge similar items, leaving only good equipment that can make money, and turn the big factory into a small factory. It is not that difficult to run a small factory, and we can still have a good time." Zhao Shihao

He said, "Let's do this. The vacated workshops that we can no longer use can be rented out to earn some rent for us."

But after calculating this, the original three thousand employees may not even be able to use one thousand.

"What should we do with the two thousand workers?" Lao Cheng asked.

"Give us a living allowance to support you." Zhao Shihao replied, "We can also contact the labor export department. If there is a shortage of workers, we can lend them to them and let the employer pay them wages, pay insurance, and support them for us.

Keep them. Those who are no longer needed can stay in the factory if they want to, as long as they don't mind the low wages. If they feel the wages are low, if they resign voluntarily, we won't have anything to do with them."

"Aren't you cheating the workers?" Lao Cheng was unhappy.

"Compassion does not command troops!" Zhao Shihao persuaded him earnestly, "If you don't do this, these idle people will directly drag us down! We will collapse, and even the remaining workers will have no food to eat! If we don't support them now, there will be no food for us.

One day we develop, establish a firm foothold, and become rich, and if we buy new equipment and expand production, they will still have a chance to come back. If we don't do this, not only will they be ruined, but everyone will be ruined too!"

Lao Cheng thought about it and found no other good way, so he had to listen to Zhao Shihao.

Then, Zhao Shihao continued.

The remaining workers cannot be paid regardless of whether they work or not like in the past. They must implement piecework without guarantee. They will be paid the same wages for the same work. If they don't work, they will get no money.

In this way, all the processing costs and material costs of a pump are fully amortized, and the piece-rate wages of workers are included, which is the total cost of a pump. Then, on the basis of this total cost, an appropriate floating profit is added, which is the sales

Price makes it easy to calculate the actual profit. After calculation, if there is no profitable product, you can simply not accept it and avoid losses.

In addition, a sales team and a management team are established. The wages of these people must also be linked to profits. If there is no profit or losses are caused to the factory, they will have to bear the corresponding losses.

Zhao Shihao really uses his brain, and he is indeed smart. He can learn many management methods without a teacher. He has used competitive recruitment, quality binding, sales commissions, and many modern management methods.

He reduced the original production scale by two-thirds, leaving less than one-tenth of the management and technical staff, and most of them were sent to the waiting team.

He contacted the job export company, and people from other units came every day to select unemployed people like him to work. These units were also willing to use these people, which was much easier than recruiting regular workers. They could return them at any time when they were no longer needed, saving money.

A lot of trouble.

Only less than one-third of the original production workshop was utilized, and the remaining workshops were rented out to collect rent. Even the abandoned workshops were rented out, and the work was done with money. Including the income from selling old equipment and scrap iron, half a year later

After formal production, the company turned a profit completely in the first month.

He managed to get such a big factory out of nowhere, and he made money in the first month, which made Lao Cheng so happy that he couldn't close his mouth. This Zhao Shihao has really been reborn and become a talented person.

But Zhao Shihao knew in his heart that he was treating the symptoms rather than the root cause.

The scale of production has been reduced so much that many parts for products can no longer be manufactured by ourselves. If there are too many orders, we can't do it ourselves, so we have to buy parts from outside and assemble them.

If we continue like this, there will be no guarantee of quality, the number of customers will decrease day by day, and ultimately it will be a dead end.

In fact, he had no intention of continuing to work like this for a long time, let alone making Lao Cheng a good entrepreneur again. He only had to work until the day Simon Company couldn't stand it anymore and came to him.

That’s it.

Originally, Simon's plan was to wait until the vacuum pump factory couldn't survive and then let them take over. At that time, China begged them to help the vacuum pump factory, and the relationship of priority was reversed, and they took the initiative.

At that time, if China wants something from them, they can take advantage of the opportunity to blackmail them. They don’t need to talk about joint ventures, but directly talk about acquisitions. They can also buy them at the lowest price to maximize profits.

In fact, this is how past history developed.

But they didn't expect that Zhou Dalin's butterfly effect would directly affect them. Now, Cheng Yaojin, the old Cheng, showed up halfway and completely disrupted their wishful thinking.

Unable to acquire a vacuum pump factory, they would have to buy land and build their own factory, which would be very expensive.

If you don’t build a factory, where will your own products come from? You can only import them from foreign companies. After taking into account this tax and that tax, how much does a pump cost? People buy a pump from a vacuum pump factory and spend 5,000 yuan.

A pump of yours costs 50,000 yuan. People can survive with enough food, so they want to buy your pump? The quality is good, but the price difference is so big, right?

Not to mention there is no price advantage, but the products you produce abroad are based on foreign standards. From electrical appliances to machinery, none of them can be connected to domestic standards. If people buy them, how can they use them?

Without the opportunity to acquire a vacuum pump factory, Simon Company, which originally planned to build a production base in Linshui, has now become a construction agency. The gap is too big.

This time, Simon Company was the one sitting on the wax.
Chapter completed!
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