Shandong Heavy Industry Weichai Group has completed a cost reduction index of 440 million yuan in the engine segment in the first six months of the year, completing 55% of the annual cost reduction task.

According to the cost-down work breakdown plan formulated at the beginning of the year, Shandong Heavy Industry's Weichai Group's engine segment is mainly responsible for cost reduction in terms of procurement costs, maintenance service fees, design and process improvements, business hospitality and office expenses, and will reduce costs. The completion status is an important indicator of the annual performance appraisal of each department. The various departments of the Group took the cost reduction work as an opportunity to form effective control over various cost items and streamline existing work processes. The first is the centralized administration of functional departments for special expenses, the use of economies of scale to reduce costs and expenses, such as procurement costs and office expenses; second is to improve the work flow and clarify the responsibilities for cost control, such as decomposing maintenance costs into various sales companies and assessing them. The cost control points move forward; the third is the innovative business model, such as improving the call center function, and streamlining the after-sales service system; fourth is to play a role in reducing the cost of design and process, and to move forward the cost control work.

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