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Localising production in China

A strong presence in the world’s largest growth market presupposes consistent localisation of development, procurements, production, and sales. This process requires often extensive modifications to established supply chains and a reevaluation of the business models designed for the Chinese market. This includes, in particular, choosing the appropriate locations, creating an appropriate infrastructure, and networking with local supplier networks.

Another central issue is that companies must weigh the creation of their own structures against the entering into of a local partnership.

Lean Management in China

Read more about implementing Lean Thinking
and the Toyota Priciple in China

Optimizing production in China

Companies that have outsourced production volumes to the Middle Kingdom or set up new production plants there are ever more often coming to realise that the objectives associated with involvement in China are achievable only with difficulty. There are a variety of reasons for this:

  • Inadequate (professional) planning of production structures at the local level in the face of often rapid growth
  • Rapid, often uncoordinated outsourcing 
  • Divergent understanding of standards, e.g. with respect to quality requirements
  • Problematic collaboration between local workers and Western management staff
  • Inadequate training of workers
  • Lack of productivity and cost awareness
  • Rapidly rising wage costs and high fluctuation

In order to deal with this complex problem area, it is often necessary to undertake a fundamental reorganization and realignment of production processes and management structures. In addition to implementing the principles of lean production tailored to the respective location, it is crucially important to have professionally organized personnel management and targets-based personnel development.

With its branch in Beijing, ROI consulting offers comprehensive, holistic support on all strategic and operational issues relating to successful localisation of production in China.

You can find an overview of our entire spectrum of services in this area under Lean Production.

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