On November 10-11, 2016, the 16th National Conference on Quest for Performance Excellence, sponsored by China Association for Quality, was convened at the Great Hall of the People and Jingxi Hotel in Beijing. This conference is based on the theme of “Innovation-driven: Enter the Age of Quality”. Among the attendees at this conference were Gu Xiulian, vice chairman of the Standing Committee of the National People’s Congress, Chen Shineng, a member of the Standing Committee of the National People’s Congress and former chairman of China National Light Industry Council, Luan Enjie, an academician of the Chinese Academy of Engineering (CAE), Lu Yansun, vice-minister of the former Ministry of Machinery Industry, Yan Xiaofeng, secretary general of the State-owned Assets Supervision and Administration Commission (SASAC) under the State Council, Leon Toussaint, CEO of European Foundation for Quality Management(EFQM), Jia Fuxing, chairman of China Association for Quality, etc.
 

The selection of the 16th China Quality Award was officially launched in March 2016. Through qualification examination, data review, on-site assessment, online announcement, and deliberation by the Review Committee of China Quality Award, based on the principle of "high standard, smaller quantity, better quality, and benchmark", the review leading group of this award decided to grant seven organizations including Shandong Lingong Construction Machinery Co., Ltd.(SDLG)"China Quality Award", and four projects "China Quality Project Excellence Prize" and two organizations" China Quality Management Characteristic Award". Furthermore, the review group issued the "China Quality Nominee Award" and the "China Quality Encouragement Award" to such four organizations and 18 ones as adopt the performance excellence model respectively.

As a gala in the field of China quality, the annual "National Conference on Quest for Performance Excellence" aims to commend those excellent organizations or enterprises, which succeed in implementing the performance excellence model, and to set up an in-depth exchange platform for organizations in search of excellence. Through the platform, such organizations can discuss the latest trend of enterprise operation and management together, share best practices of successful enterprises in quest for excellence. It can also assist enterprises in better practicing such model, making improvement and innovation and raising the capacity of sustainable development. 

SDLG, which won China Quality Award this time, is committed to pursuit of excellence all along. Facing the overall situation of the depressed construction machinery industry, based on the market condition this company builds its brand with quality and promotes development through innovation. It has become an industry leader, and won the "China Quality Award", which is called Oscar of China Quality.

SDLG started to introduce the performance excellence model in 2006. Since then this company has focused on "3 plus 1" (loaders, excavators, pavement construction machinery and core components and parts) product line, established the production and manufacturing strategy for continuously promoting lean production and building an efficient, advanced intelligent plant, and constructed the leading production and manufacturing system in the construction machinery industry. In 2009, it implemented the lean production model across the board and created the LPS system. Thus, it can apply the LPS to the processes of production and manufacturing through LPS appraisal, intelligence improvement, quality improvement, enhancement of production and operation, setup of LBU management platform, etc. According to the "Procedures on the Administration of LPS" formulated by this organization, SDLG can measure and assess the production system sub-processes, such as orders, plan, manufacturing technology, material management, production management and quality assurance. Meanwhile, business divisions can link the performance indicators of production and manufacturing to corresponding LPS modules, break down and work out the implementation plan for 22 modules, apply the SOP, leveling production, value flow and other instruments to boost the effective operation of production and manufacturing. To guarantee leveling production, SDLG also carries out the order reception and forecast, the monthly leveling production plan, the daily scroll lock plan, etc. Under the model of order delivery and module delivery, SDLG generally applies the pull production of mixed line continuous flow, achieves the quick mold change, lean logistics, the statistical process control (SPC) of key characteristics, conducts the cell layout for optimizing the technological procedure, etc. As a result, the company stabilizes its production process, raises production efficiency, produces and delivers products on schedule. As it were, for SDLG the effective use of LPS greatly accelerates the quality improvement and operation efficiency.   

The unswerving implementation of "Innovation-driven, quality first" contributes to SDLG's winning of China Quality Award Wang Zhizhong, chairman of this company, indicated, "Innovation is the source of power and the foundation for an enterprise." He noted, "In pursuing excellence, an enterprise must highlight the position in the enterprise operation and management, improve the institutional climate conducive to innovation, and strongly advance all-involvement innovation by setting up the mechanism and platform and creating the atmosphere."

Wen Degang, general manager of SDLG, said, "The innovation-driven strategy not only helps us achieve excellent performance, but also propels our transformation and upgrading. He added, "Through execution of this strategy, we have established the fruitful innovative management model, which is featured with all-involvement innovation, management innovation and technological innovation, and a combination of frontline workers, technical personnel and managerial staff. This model is based on the core of innovation, which is accompanied by improvement in excellence performance management. In the new normal of economy, instead of simply relying on government investment and policy, the construction machinery industry should adjust its strategy, and transform its growth from epitaxial model to internal model. Just as "mass entrepreneurship and innovation" is taken as a new engine of China economy, the innovative management model of SDLG should become another engine of this company in the innovation-driven strategy.

In the "13th Five-Year Plan" period, to respond to global market changes, SDLG will implement the global brand strategy and build a known construction machinery brand. Maybe, this can explain why this company can obtain this honor.