Countermeasures To Create A Modern Cigarette Manufacturing Plant

Nowadays, China tobacco industry faces the unprecedented challenge from foreign tobacco multinationals and the competitive market, after China entering the WTO and the WHO's Framework Convention on Tobacco Control coming into force. It is a historic mission for China tobacco industry to develop several Chinese tobacco enterprises and Chinese tobacco brands as soon as possible, enhancing the comprehensive competitiveness of this industry on the whole.In recent years, domestic tobacco industry mechanism reform has been continuously pushed forward. Provincial industries form the new corporate entities and conduct the function of enterprise to achieve the resources integration, after the separation of tobacco industrial and commercial companies and the inter-provincial annexation and reorganization. Since the corporation title of the cigarette factory was abolished, it has been transferred from production mode to industrial mode subjected to provinces.Besides, the main function of those processing units has turned from marketing management to manufacturing management.In October, 2008, State Tobacco Monopoly Administration put forward to establish "Modern Cigarette factory" in order to accelerate its paces on the road of new-patterned industrialization development, and endeavor to make the cigarette factories of higher level by realizing economy, clean and safe production. The activities of establishing "Modern Cigarette factory" further clarify the position and function of the cigarette factory. There are both opportunities and challenges for provincial industrial corporations and cigarette factories. The function positioning of Shanghai Cigarette Factory during this transitional period is studied in this paper.Shanghai Cigarette Factory has a long history of more than eighty years, and occupies a very important position in Chinese tobacco industry. During the process of industry reform, it faces new opportunities and challenges. The paper analyzes the existing problems occurred in Shanghai Cigarette Factory from the higher viewpoint of development object mainly in the aspects of internal deficiencies, market threats and system defects. It also provides the basis for necessity of establishing "Modern Cigarette Factory" from the new requirement of State Tobacco Monopoly Administration to Shanghai Cigarette Factory under the new pattern of domestic and overseas tobacco industry and its own development position. From the viewpoint of establishing "Modern Cigarette Factory", the author considers that Shanghai Cigarette Factory must adhere to use the technical and management tools like SPC,6σ,QFD etc to enhance quality control of products. Meanwhile, they should make efforts to meet constantly changing market demand by learning from Just in Time model of lean production by Toyota, and further promote the ability of product cost control by Standard Cost Management. Besides, the author explains the viewpoint of the organizational change, the culture of team building and the social responsibility during the functional transformation of Shanghai Cigarette Factory.