The Route Of New Low-cost Operating Mode And Estimation Of Its Outcome

Since 1980s,Chinese manufacturing industry mainly developed labor intensive manufacturing industries to undertake global manufacturing transfer.However,the profitability of manufacturers deteriorates in 21st century due to rise of labor costs and resource costs.and traditional low-cost operating mode is unsustainable.But some manufacturing companies managed to gain an obvious promotion in profitability through a new low-cost operating mode since 2011.As a typical labor-intensive industry,automobile glass industry is facing the same problem.It is important to study and summarize the key elements and common practices of the new low-cost operating mode of the automobile glass industry,study the new low-cost method of leading companies within the industry,analyze the effect of the model,and reveal the path and feasibility of low-cost operating model.The research process of this paper is based on the research ideas of 'literature collation-Data Collection-Case Analysis-summary and reflection' flow.The main characteristics of the value chain in auto-glass industries and typical companies with the industry are analyzed and the key elements as well as way-choosing of auto-glass companies are pointed out.The study then inspects the outcome of Fuyao's 'three-in-one' low-cost model from financial effect and non-financial effect.reliably evaluating the reasonability and feasibility of the Fuyao Glass model.This thesis draws a conclusion that the 'three-in-one' new low-cost model of Fuyao Glass is perfect in framework and has good effect.It is worth fully or partly copied by enterprises in auto-glass industry.Fuyao Glass promotes product added value through innovation driven and high profit margin products.realizes the production process saving through advanced management model including flexible manufacturing and JIT,and realizes low factor cost through the construction of plants in Russia and the United States.The three methods cooperate with each other,forming a relatively complete low-cost operating model when the industry tends to be saturated.From the effect evaluation of the financial and non-financial indicators,the enterprise operation ability is greatly enhanced,the financial potential is obviously improved,the valuation of the company is improved obviously,the speed of the innovations are greatly accelerated,the value-added of the products are increased,and the efficiency of operation is improved.Thus,the'three-in-one' low-cost model of Fuyao Glass has obvious positive effect towards the daily operation.For other automobile glass manufacturing enterprises,the ' three-in-one'low-cost model of Fuyao Glass can be used for reference.For small and medium enterprises,the management innovation of the whole company should be actively practiced.For large and medium-sized enterprises,idler funds should be used to innovate products,develop production lines,and have conditions for enterprises.'Going-out' can also be listed as one of the strategies for enterprise development.The contribution and value of this thesis is to evaluate the method of Fuyao 's new low-cost model in a way of case study,summarizing the 'three-in-one' low-cost model of the company,giving an typical example in the transformation of other enterprises in the industry,reliably evaluating the reasonability and feasibility of the Fuyao's model based on financial and non-financial data,from financial effect and non-financial effect,giving an typical example of the transformation of other companies within the industry.