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New factories, better processes, smarter people – the SDLG difference

 Date: 2014-02-10

SDLG is a Chinese manufacturer with a difference. The company’s customer-oriented production philosophy delivers the highest quality construction equipment at a lower cost in a shorter time. The company does this by using advanced technology and lean manufacturing processes. Newer, better, smarter – in short, that’s what makes SDLG’s manufacturing different.

Leading Chinese construction equipment manufacturer Shandong Lingong Machinery Co., Ltd. (SDLG) developed its Lingong Production System (LPS) to eliminate waste, improve efficiency – and, most importantly, to maximize quality. Five years after the philosophy was first implemented into production facilities worldwide, SDLG can demonstrate tangible results, in the form of shorter lead times, lower prices and upgraded quality. LPS philosophies have been applied to the production of its full range of wheel loaders, excavators, backhoe loaders and road machinery.

But it’s not only a change in process that’s allowing SDLG to further improve its products. There have also been significant investments. For example in August 2013 SDLG opened a US$10 million assembly hall within the Volvo Group facility in Pederneiras, in the state of Sao Paulo, Brazil. To begin there will be four SDLG crawler excavator models produced here, ranging from 13.8 t to 24.3 t. Other investments include a new cabin production facility, paint shop and frame fabrication factory in the company’s hometown of Linyi, in the Shandong Province of China.

A continuous journey to success

The Lingong Production System incorporates the most advanced manufacturing processes with Kaizen as its central point of focus. The Kaizen philosophy clearly defines both human and mechanical processes to deliver the highest quality in the most efficient and cost-effective manner every time a machine rolls off the production line. SDLG’s factories in Linyi and Pederneiras have been rigorously benchmarked against the best factories in the world – and the company’s association with the Volvo Group has allowed the both parties to share best practices.

Head of Operations at SDLG’s flagship factory in Linyi, Wen Degang, explains that manufacturing process improvement is an ongoing journey that involves commitment from every employee – from the factory floor to senior management.

"There’s been a huge change in the way our employees think since the implementation of LPS – they are much more focused on working efficiently and they understand the value of what they’re doing. This has motivated everyone to do even better for our customers,” Degang states.

This is what the concept of Continuous Improvement (CI) is. CI not only relates to manufacturing processes but also to people development.

Agile and responsive

LPS also incorporates Just In Time manufacturing concepts that allow production facilities to quickly and cost-effectively respond to natural peaks and troughs in demand by keeping stock inventory to a minimum. “As SDLG’s export sales continue to grow, managing volumes, optimizing lead times and ensuring quality becomes ever more important,” explains Degang. ”With Just In Time components are not only delivered when we need them, but where we need them. Direct to the point of use on the factory floor. This simplifies the workers’ tasks at each stage of production and reduces the capacity for error.”

In preparation for achieving its goal of becoming the largest Chinese construction equipment manufacturer globally, SDLG has invested a great deal of time and money into its production facilities and people. The company’s senior management team is made up of highly-qualified industry professionals – all educated to the very highest levels and with experience from some of the world’s top companies, including Price Waterhouse Cooper and global electronics suppliers.

 “Our young and ambitious team understands the importance of being different in this market. Our new factories, advanced production system and knowledgeable people are what makes SDLG different,” says Degang.
 

Ends.

For further information, please contact:

Guo Shaohua                                         Ben Shaw
Strategic Planning Department          SE10
SDLG                                                       London 
Tel: +86 539 8785578                          Tel: +44 207 107 2002   
Email: shaohua.guo@sdlg.com.cn   Email: shaw@se10.com

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