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26 June 2018

Address of the General Director of "Ural Spring Plant" LLC

Dear colleagues, who work with us at the same market, particularly, in the area of production of helical suspension springs for the railway rolling stock. I would like to begin my address to you with a quotation of Deming: "A chain reaction: quality - production - cost saving - pinning at the market" The aim of this address is to highlight that there is a stable system of problems appearance at industrial enterprises and to explain why having the stable system this is a management team which is responsible for quality improvement. Of course, you know that there are a lot of enteprises worldwide that operate in one and the same industry. Each of them is unique and effective in its own way. For example, GAZ, AvtoVAZ - in Russia; BMW, Toyota and Mercedes - abroad. These companies have many in common. But, as it turns out, some of them manufacture their products with lower cost and simultaneously with high quality parameters, and as a result they have a profit much higher than their competitors. What differentiates them from the others? Each of them creates its own production, the only difference between us is the way our business processes are arranged. By investigating our business processes, improving them, getting rid of problems across the processes we can have worthy profit, pay taxes, dividends to shareholders, provide workplaces. For instance, Toyota-company invites all the competitors and partners to visit its production shops at any time and anywhere in the world, thus demonstrating its production arrangement and allowing them to learn. I don't know such examples of a successful system construction, this case is unique and it's a bright example of a sound, fair competition that differs from what we are usually faced with in the existing reality. For example, some compaines do not shun such means of a competitive struggle as faked collective addresses, various complaints on behalf of third parties to supervisory bodies, attempts to bribe personnel, creation of an adverse image of a competitor, lie and slander - all of these we call unfair business practices. Let's ponder how much correct and reasonable it is to compete using unfair anf illegal means and what it may lead to as a result. Dear friends, colleagues, I am appealing to you to read this address attentively, to think it over. Come to our enterprise, we will be glad to show you how our business processes are arranged, how we operate with losses, arrange the work on continuous impovement of all the aspects of our company. Regardless of the way you are used to lead the competitive struggle, we really respect you and we are grateful to you for the fact that you pay attention to our possible mistakes, thanks to it we have a possibility to correct them in time and, therefore, we become stronger, because the competitive struggle enables our clients to get quality products at a lower cost. Best regards, Denis Lukmanov
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