Haier OEC management method

The "OEC" management mode put forward by Haier Group, that is, the working principle of "doing things well every day, getting better every day", embodies the characteristics of continuous progress and continuous improvement of enterprises. "OEC" management mode is the cornerstone of Haier Group's management system, the basic mode of its external merger and expansion and the implementation of unified management, and the main content for national enterprises to learn advanced management experience from Haier Group. It is through this continuous improvement that Haier Group has developed from a loss-making enterprise in 1984 to a large multinational enterprise group with the fourth largest white goods manufacturer in the world and the most valuable brand in China. In 2007, Haier Group achieved a global turnover of11800 million yuan.

First, the framework of "OEC" management method OEC is the abbreviation of every control and removal of the whole, which means to control and clean everything that everyone does every day in an all-round way, so as to achieve "one day is over, one day is clear, and one day is high". Specifically, everything in the enterprise is managed every day and everyone is controlled; Everyone has the content of management and control, and it is carried out according to work standards and designated plans. Daily control of every process or thing, daily control of everything, comparison, summary and rectification of the implementation results with the planned indicators to ensure the realization of the predetermined goals. The essence of Nissin-Ri-Gao management law is: management does not miss items, everyone is responsible for everything, management is based on results, and management is based on assessment. Simply put,

OEC means that today's work must be completed today; Today's achievements must be better than yesterday; The goal of tomorrow must be higher than today. The theoretical basis of Haier's OEC management model is "Haier's Law" (slope sphere theory): that is, an enterprise, like a ball climbing a slope, is under the pressure of market competition and internal employee inertia. If there is no stopping power, it will decline. This stopping power is the basic management and continuous improvement of enterprises.

"OEC" management method consists of three basic frameworks, namely, target system, Nissin control system and effective incentive mechanism.

(1) "OEC" target system The enterprise target system refers to the direction of enterprise development and the purpose to be achieved. When Haier implements enterprise target management, it decomposes the overall goal of the enterprise into the goals of various departments, and each department refines its own goals into the specific goals of everyone. Target refinement is both concrete and quantitative, which affects everyone. Specifically, the OEC target system decomposes all things and things, emphasizing "three ones", that is, it decomposes and quantifies everyone, every day, every job, from machinery and equipment to every piece of glass, clearly shows the responsible person and supervisor, has detailed assessment standards for the work content, forms an interlocking responsibility chain, and makes rewards and punishments reasonable and well-founded, while pursuing zero defects in all work. For example, there are 2964 pieces of glass in the refrigerator workshop, office and material warehouse. Who is responsible for cleaning each piece of glass? In addition, Haier also divides refrigerator production into 156 processes and 545 processes. Work standards and actions, personal responsibilities and rewards and punishments are clearly defined in the quality and value manual. In Haier, from managers to employees, everyone knows in advance what to do every day, what standards to implement, how far to go and what to get paid.

(2) "OEC" Nissin Control System Haier has established a set of "Nissin" control system in practice, and everyone has to clean and check everything he does every day. It includes two aspects: one is "things to do every day". That is to say, for all kinds of problems (abnormal phenomena) that happened that day, we should find out the reasons, distinguish the responsibilities, and take timely measures to deal with them, so as to prevent the accumulation of problems and ensure the realization of the goals. For example, the "3E" card used by workers, that is, the record card of everyone, everything and every day, is used to record the liquidation process and results of everyone every day. The second is "the sky is high and the clouds are light." That is, constantly improve and perfect the weak links in the work. Employees are required to improve 1% every day, and their working level can be doubled in 70 days. There are two ways to control "Nissin" in specific operations: one is the self-Nissin of all employees; Second, functional management departments (personnel) regularly (or irregularly) conduct on-site inspections of their management functions and management objects according to the prescribed management procedures, which is also an on-site review of employees' self-liquidation. Nissin control of organizational system can be divided into two main lines: Nissin control of production site (workshop) and functional management department. The combination of the two forms a vertical and horizontal Nissin control network system. No matter whether an institution or an individual liquidates itself, it must be cleaned up according to the daily liquidation management procedure and daily liquidation table, and the cleaning results should be recorded in the daily liquidation management account. Summary of key links in Nissin system. Without review, it is impossible to form a closed loop and achieve the expected results only by arranging the work without inspection, so it is necessary to focus on the first-level review of management in Nissin. If problems are found in the review, correct them at any time. Set up a "daily cleaning column" at the site, requiring managers to patrol every two hours, and fill in the problems found and the treatment measures on the "daily cleaning column". If you can't find the problem continuously, you must raise the target value. In the specific application of Nissin control management mode, Haier has "three management principles" and "nine control elements". The so-called three management principles, its main contents are:

(1) "closed-loop principle". Everything should start well and end well, with PDCA cycle, so that the management level will spiral up.

(2) The principle of comparative analysis. Compare your own past vertically and the international advanced level of the same industry horizontally. Without comparison, there will be no development.

(3) The principle of continuous optimization. According to the barrel theory, find out the weak items, make timely rectification and improve the system level. The nine control elements can be summarized as 5W3Hls. What is 5 w (what happened in what work), where (where the problem happened), when (when the problem happened), who (the person responsible for solving the problem) and why (why the problem happened); 3H refers to how many (how many similar problems), how much cost (how many losses are caused) and how to solve them; It means safe.

(3) "OEC" incentive mechanism An effective incentive mechanism is the guarantee condition for the normal operation of Nissin control system. Haier adheres to the principles of incentive policy: first, openness, fairness and justice. Through the "3E" card, employees' personal income is announced every day, which makes employees feel relatively fair psychologically. Second, there should be a reasonable calculation basis, such as the hourly wage implemented by Haier. Each post should be assessed from 12 for more than half a year, and it should be constantly adjusted according to changes in technical conditions. The so-called "calculation of wages" means that the wages 100% of front-line workers are tied together with bonuses and distributed according to points. On this basis, further quantitative assessment of each post in the first, second and third lines will be carried out, so that labor and remuneration are directly linked, and remuneration is directly linked to quality, so that more work is more rewarding. The forms of effective incentive mechanism are: companies recruit and compete for posts, find talents and promote the flow of talents; Implement the policy of "three positions coexist and change dynamically" ("three positions" refers to excellent employees, qualified employees and probationary employees). In terms of incentives, Haier adopts more timely incentives, such as using quality responsibility value vouchers in quality management. Employees have a quality and value voucher manual, which sorts out and summarizes all the problems in the past production process of the enterprise, and clearly stipulates the responsibility values of the three links of self-inspection, mutual inspection and special inspection, and the deduction points for each defect. After the quality inspector finds the defect, he will tear up the value certificate on the spot and sign it by the responsible person. After the defects found by the operators in mutual inspection are confirmed by the quality inspector, they will be rewarded on the spot, and the operators and quality inspectors who missed the inspection will be fined. There are two kinds of quality and value coupons: bonus and yellow coupon. Red coupons are used for rewards and yellow coupons are used for negative incentives. When managers patrol the production line, they use value coupons for real-time management. The red coupon and the yellow coupon of the value coupon are in duplicate, one for the motivated employees and one for the labor department. By the end of the month, the Labor Department will summarize the quality management value certificates of employees and submit them to the Finance Department. The Finance Department calculates the salary according to each employee's 3E card and quality management value certificate and sends it to each employee. Each employee checks his/her monthly salary according to 3E card and quality management value certificate.

Second, the effect of Haier "OEC" management

From the practice of Haier Group's subsidiaries, the "OEC" effect is reflected in four aspects:

First, the degree of management refinement has improved. The management contents of different enterprises are basically the same, but the degree of refinement and the overall level of management are very different. The goal of "OEC" method is to pursue zero defects and high sensitivity, control and solve management problems in the shortest time and in the smallest scope, minimize economic losses, and gradually realize fine management. It eliminates all dead ends of enterprise management and turns monthly result management into daily inspection and analysis. By controlling the instantaneous state, people, things, time, space, materials and other factors are continuously optimized and improved, which provides high-quality guarantee for production, greatly reduces the defective rate and material consumption, and achieves a timely, comprehensive and effective management.

Second, the process control ability is enhanced. Mainly in three aspects:

First, the ability of self-control has generally improved. With the goal of pursuing zero defects in work, the lowest economic loss and the highest income level, all employees practice their basic skills and improve their technical skills. While trying to eliminate the defective products, they should check themselves and never let the defective products flow into the next process.

Second, the mutual control ability has been generally improved. That is, through the implementation of quality reward and punishment vouchers, the quality mutual inspection between each working procedure is strengthened. Third, the special control ability has been strengthened. In each production link, the inspectors of various functional departments regularly inspect and rectify immediately, so that each link is always under effective control. Through the "OEC" management method, Haier's management work is changed from post-control to whole-process control.

Third, the enterprise incentive mechanism is more perfect. The implementation of "OEC" management method has made Haier form an incentive mechanism, which has an incentive effect on different levels and aspects. In the distribution, the implementation is the full integral salary with points in place and performance salary; In terms of employment, "excellent employees, qualified employees and probationary employees coexist and change dynamically", and the use of personnel is all open recruitment, open competition and merit-based recruitment. Under this mechanism, many young people with ideals and achievements stand out in Haier, and directors and factory directors in their twenties can be seen everywhere. In the assessment, employees are assessed by seven items on a daily basis, cadres are linked by responsibilities, and units are honored by the year. In terms of awards, there are Haier Awards (Gold, Silver and Bronze Awards), Hope Awards (First Prize, Second Prize and Third Prize) and Personal Rationalization Suggestions Awards; There is a collective honor award for qualified team, trustworthy team, inspection-free team and self-management team. This greatly mobilized the enthusiasm of all employees to make progress and pursue Excellence. Fourthly, cultivating a high-quality team is the greatest effect of Haier's "OEC" management law, and it is also the basis for fully implementing the "Nissin" work. "OEC" management mode, through daily sorting, rectification, cleaning and cleaning, enables all employees to develop good work habits and work styles, and a high-quality team grows rapidly. Thirdly, the inspiration of Haier's "OEC" management model to improve the management level of enterprises in China.

"OEC" management contains the idea of continuous improvement management, and enterprises should implement it persistently and persist for a long time to achieve results. "OEC" management emphasizes not short-term assault, not vigorous enterprise reengineering and management revolution, but doing a solid job every day, striving to improve every day and persisting for a long time. As early as 1993, Zhang Ruimin asked himself every day from the company leader to every employee: "Is my daily work improved 1%?" This is the hope and pursuit that Haier people should set up, and it is also a compulsory course for everyone to think every day. Zhang Ruimin pointed out: If you insist on increasing L% every day, you can double your work level in 70 days. Everyone here.

By doing so, enterprises will have great motivation.

Second, set work goals for employees. Because goal setting is an important factor to motivate employees' behavior, goals will make people's behavior directional, and employees pursue goals to satisfy their emotions and wishes. Therefore, in practice, we should not only set reasonable work goals for employees at different levels around the realization of the overall goal of the enterprise, but also create a good internal environment to motivate employees, formulate a set of effective assessment and reward measures, especially create a positive corporate culture atmosphere and adhere to the people-oriented management thought, so as to achieve the purpose of motivating employees.

Third, strict implementation is the key to successfully implement the "OEC" management model. OEC model requirements: rigorous, meticulous, practical and constant. Strict, that is, strict requirements, "Nissin" work method requires all systems and all employees to clean up in strict accordance with the prescribed content, time and standards, and strictly reward and punish achievements and defects in their work. Fine and practical means fine division of labor and practical responsibility. The Daily Work Law emphasizes three "ones" in the decomposition of all things and things, that is, it decomposes and quantifies every person, every day and every job, from machinery and equipment to a piece of glass, clearly indicates the responsible person and supervisor, has detailed work contents and assessment standards, and forms an interlocking responsibility chain, so that the rewards are reasonable and the punishments are well-founded. Constant means perseverance. Haier believes that an enterprise and an employee can do it well in one day, and it is difficult to do it well every day. "Nissin work method" is to do a good job in every day of the enterprise and realize the ideal goal of being good every day through daily cleaning and summary.

References:

Ivory tower business classic, a real business question and answer community.