Qianxi Chemical focuses on cost management and production, achieving revenue increases and cost savings of over 100 million yuan

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Qianxi Chemical focused on cost management in its operations and production, resulting in revenue increases and cost savings of over 100 million yuan. Author/Source: Charm Qianxi Chemical. Date: 2022-01-09. Clicks: 24. In 2021, Qianxi Chemical adhered to cost-based approaches in its business and production activities; by strengthening cost control and implementing refined management practices, it achieved maximum economic benefits, saving over 100 million yuan in various expenses throughout the year. Master the skills of “meticulous management” to tap into internal potential while ensuring stable production. Focusing on safe production management, benchmarking against leading units, and strengthening process control to achieve stable operation over long periods, the polyester grade of the products remains at 100%. By conducting regular inspections of the external power supply lines and the circuits in the equipment area, as well as identifying potential hazards, the normal operation of the power supply system’s equipment is ensured, which reduces economic losses. ““Coal blending management” helps reduce costs. Strengthen coal blending management, make significant efforts to reduce the cost of fuel coal, broaden approaches to coal blending, and actively seek the optimal mixing pattern of \"high-quality coal + low-quality coal\" for use as fuel. From January to October, 313,400 tons of low-quality fuel coal were blended with fuel coal, while a total of 81,559.45 tons of fuel coal and low-calorific coal were blended with raw coal. In total, this resulted in cost savings of 15.3355 million yuan. “\"Inspection-based maintenance\" eliminates waste in repairs. The technical staff from the mechanical maintenance company went to the site to carry out regular inspections, repairs, and maintenance of the equipment. By identifying, analyzing, resolving, and summarizing issues, they significantly improved the efficiency and quality of these inspections, simplified the inspection process, and reduced maintenance costs, saving the company 300,000 yuan throughout the year. “Keep a close eye on the market to ensure proper procurement of coal from external sources. To address the supply shortage, the \"Qianxi Chemical Coal Procurement Management Measures (Trial)\\" were established. A dedicated team for coal procurement was formed to actively explore ways to reduce procurement costs and identify new sourcing channels. The existing management model for internal coal supply was reformed, and a comprehensive strategy was adopted to retain both existing and new customers. New coal suppliers were continuously sought out, and various methods such as internal supply, coordinated supply guarantees, and limited purchases from the market were used to expand procurement channels, ensuring that coal could be obtained at low prices. According to statistics, from January to October, a total of 789,400 tons of coal was purchased. Of this amount, 227,700 tons of raw coal was procured from external sources. This resulted in cost savings of 60.106 million yuan compared to the average procurement price of peers during the same period ； A total of 95,401.57 tons of fuel coal were procured externally. This resulted in savings of 20.123 million yuan compared to the average procurement price of peers during the same period, with overall savings amounting to 80.229 million yuan. Master the art of running a household frugally and \"make money\" from waste piles. By establishing systems such as budget management for equipment and materials as well as team-based accounting, and by promoting the concept of making use of existing resources, the principle of \"using what can be used and repairing what can be repaired\" is adhered to in order to increase the rate of recycling and reusing waste materials, ensuring that everything is put to good use. A total value of 2 million yuan worth of used materials was recycled throughout the year. Throughout the year, the mechanical maintenance company repaired and replaced over 20 pump shaft components, saving nearly 500,000 yuan in costs. \"Make money\" at one’s job. An internal market-based management mechanism was established, including an internal market operation management system and a settlement center. Employees carry out internal market-based settlements; managers are responsible for financial management and business operations, while employees are responsible for production. Various targets are broken down on a monthly and daily basis for each work team, and a performance evaluation system based on business objectives is implemented. Consumption levels are linked to the market-based salaries of various factories, thereby helping employees better understand the concept of internal market-based management, which emphasizes that more work leads to more rewards and less work results in fewer rewards. “After implementing an internal market-based settlement system for the bagging and stacking of sulfuric acid, the number of workers required per shift was reduced from 5 to 3. This has effectively boosted employees’ motivation while also cutting costs. ”Qian Qingkui, the director of the steam power plant, said. Master the skills of “creating efficiency both internally and externally”; by-products can then be brought to the market. Technical upgrades were carried out on the existing equipment to produce liquid argon; since trial operations began in August, a total of 2,354 tons have been produced, generating an additional profit of 10.5035 million yuan for the enterprise. By optimizing the desulfurization process, it not only reduces the negative effects of high sulfur content in coal on the products and improves the quality of by-products, but also increases the revenue generated from these by-products, resulting in an additional income of 4.6 million yuan per month. Make good use of policies to create benefits. Stay constantly informed about **policy developments, understand them thoroughly, and establish contact with the relevant **departments as soon as possible. This enables timely application for various policy-based financial subsidies and related benefits; as a result, 11.8264 million yuan in such subsidies and reductions were received throughout the year. External training helps increase income. By employing multiple strategies to maximize overall benefits, the company took advantage of its ability to maintain stable production over the long term as well as its reputation in the industry to actively negotiate training partnerships with external chemical companies. Throughout the year, it arranged for companies such as Shaanxi Yulin Chemical and Ningxia Kunpeng to conduct training at its facility, generating revenue of 4.2 million yuan in total.