What should schools do next? Cao said that Fuyao University of Science and Technology will adhere to the high-level, professional and international school-running philosophy; Explore a new model of university governance composed of four committees: Council, academic Committee, advisory Committee and education Committee; Planning and constructing a discipline system with large engineering group as the core, economic management as the auxiliary and other humanities and social sciences as the support; Initially set up six colleges: materials science and engineering, electronic information and engineering, environmental science and engineering, instrument science and engineering, science college, economy and management; Cultivate high-quality applied research-oriented talents with international vision, innovative spirit and management ability, and feelings of home and country; It is planned to set up Fuyao Scholarship Fund to exempt tuition fees and provide scholarship support for poor students.
Based on the development of Fuyao Group and the original intention of donating money to build a university, the special experts of Entrepreneur magazine made an exclusive interview with Cao at the first time.
0 1 "Respect heaven and love others, stop at perfection" is the foundation of starting a business.
Su Yong: Fuyao Glass has gradually developed from a little-known small enterprise into a leading automobile glass enterprise in China, with a global market share of more than 1/4. What do you think is the most important factor along the way?
Cao: The most important factor is the sense of social responsibility. Fuyao has always been adhering to a belief: "Respect heaven and love others, stop at perfection". This is the foundation of Fuyao's entrepreneurship and the most fundamental reason for Fuyao's growth.
Su Yong: Please give us some examples. How does Fuyao put this concept into the daily operation and management of enterprises?
Cao: Fuyao was founded in 1987, and Fujian Province asked me to issue shares in 199 1. At that time, it was 1.5 yuan/share, which was net worth (more than 60 million net assets were converted into 40 million shares). After the issue, many people demanded to return their shares because they could not go public. I was forced to buy back millions of shares myself. However, every dark cloud has a glimmer of hope, and it rose to more than 40 yuan per share when it went public.
Su Yong: Fuyao had two anti-dumping lawsuits, and both of them won. What is the reason?
Cao: Fuyao standardized accounting management from 1999, using Oracle system. After the working group moved to Fuyao, whatever information they wanted, we could print it out immediately, and all the data were very clear and accurate. We also told him: what is the serial number of this wooden box, how many nails are used, and what is the length and weight of the nails. All the information is clear at a glance. They don't believe it, go to the scene to verify. As a result, the information provided by Fuyao is true and effective, and they are convinced. This is the behavior of "respecting heaven and loving others", and everything should be done responsibly and well.
Therefore, the state awarded me the title of "model taxpayer", and shareholders believed in me, and banks also believed in me.
Goodness is the foundation. Without goodness, everything is zero.
Su Yong: Many people have seen the documentary "American Factory" (2020 | American Factory Keywords, link to Oriental Wisdom). This documentary focuses on the process of opening a factory in the United States, and the cultural collision and game between China and the United States in this process. China enterprises will encounter similar problems when they go to the center of the world stage. What can we learn from them?
Cao: Fuyao follows the principle of "respecting heaven and loving others". Where the enterprise goes, your "sky" is there. When in Rome, do as the Romans do, and you must abide by the rules. This is a very objective question.
Fuyao invited local lawyers and consultants to help with the planning. So all the rules are in line with the laws of the United States, and doing things is also in line with the habits of local people. The governor trusts me very much. He said he had an idea that this factory used to make cars. He recorded the story of the last car off the assembly line with the lens. It is a tragedy that the workers cried bitterly because of unemployment. I want to make the first documentary on the glass this time, and I want to make it into a comedy. But the director said that the documentary can't be edited, and whatever is filmed will be broadcast. I said, as long as you don't play tricks, you can shoot anything I do and broadcast anything you shoot. China people do things aboveboard.
So the photographer has been following him all the time, no matter his daily work or business trip, attending meetings and negotiations. He photographed factories and venues from the airport and China from the United States for four years, which made me forget that he was around.
Diligence, hard work and serious responsibility are advantages.
Su Yong: What advantages do you think Fuyao has developed so far? Is it science and technology, cost control, or management originality?
Cao: Fuyao people are hardworking, which is the competitive advantage of Fuyao and our country.
When Illinois sold me the PPG glass factory, it had been fighting the union for five years. PPG said: I will sell the factory to you, but the trade union issue will be taken out separately. During the handover, I said to the workers, "I'm sorry, according to the law of China, I should greet the trade union and ask for its advice before the acquisition. I can only sign the contract if I am satisfied. However, PPG told me that according to federal law, it is not necessary to perform this procedure. " After buying it, the lawsuit between PPG and the trade union continued, and I sat down to discuss with the trade union how to cooperate next.
For a time, PPG was surprised. How could Cao make a statement to cooperate with the trade union? The trade unions can't believe it, and the conditions put forward when they actually sit down and negotiate are not so sharp. I accepted all the conditions put forward by the trade union at that time. I said to the workers, "I accept the conditions, but I am not financially strong enough to borrow money to pay my wages." We must unite and set up a factory together. Only when we earn money can we give you a raise. " I only have one condition: the product output should be close to that of China enterprises ".
At that time, the yield of Fuyao's production line in Fujian reached about 85%, while that of Illinois was only about 70%. To prove this, they chose four workers' representatives to visit and study in China.
Su Yong: What do you think this will inspire China enterprises?
Cao: To have a cooperative attitude, we must respect each other. In this case, the trade union is very cooperative with us. Later, we transformed the factory in Illinois into the same as domestic enterprises. Although the output is still lower than that in China, it is much higher than before, and the enterprise benefits are good.
Enthusiastic charity, the heart is bodhi.
Su Yong: The book "Mind is Bodhi (Revised Edition)" says that you not only cooperate with suppliers and collaborators, but also take the initiative to rescue them.
Cao: This is a must! Business owners should not only consider making money by themselves, "everyone should make money if they have money", and the distribution of benefits should be balanced.
When you turn the benefits that others deserve into your own, then the first time he knows you, the second time you won't get those benefits so easily, and the third time he will kick you away.
Benevolence, courtesy, wisdom and faith advocated by Confucianism. The first is "benevolence", that is, respecting others, achieving balance and benefiting the people.
Su Yong: Please share a typical case with us.
Cao: In 2008, the economy changed greatly, and a glass factory was in crisis. The general manager asked me for help. I told him that day: I am a small factory and I won't buy a lot. I only use thousands of tons of glass a month. If it is not too small, you can install it yourself, according to the current domestic market price. He was very moved. After a few months, the glass supply became tight, and he didn't raise my glass price because of this. In fact, to be a business is to be a man. If people do well, there will be no problem in doing things, and many people will help you.
But it is not easy to do such a thing. In the 1950s and 1960s, Japanese companies also sold counterfeit drugs and made false advertisements. It can be said that there are all kinds of scams, but those who can stay and become big consortia are all people who have abided by the rules. Therefore, enterprises that truly "respect heaven and love others" will certainly do well.
Chairman Mao once said, "It is not difficult for a person to do a good deed, but it is difficult to do it all his life." I am 75 years old. Looking back, I'm proud that I didn't do anything that was bad for society.
There is no savior in the world, only on your own.
Su Yong: Is Fuyao worried about business now? Some competitors are also developing well at present. How do you view the challenges faced by enterprises?
Cao: I'm more nervous than anyone. Bill Gates has a saying, "Bankruptcy is always within 18 months." Because once the annual report comes out, once there is a loss, it will attract attention. If it cannot be reversed in time, pressure from all sides will follow, including shareholders, financial institutions and the banking system. There is no savior in the world, only on your own. Of course, it's no use just worrying. We should actually take action to change it. I predicted the economic crisis from 2006 to 2008, which was very accurate. I made preparations in advance, survived the crisis safely and ushered in the economic recovery in 2009, but Fuyao's debt ratio was also very high at that time. We first adjust our liabilities and offset our liabilities with deposits. It took nearly four years to adjust, and finally there was no debt.
The recent crisis is the "broken chain" crisis of supply chain caused by COVID-19 epidemic, and some enterprises have debt crisis. Being in debt is tantamount to destroying the civilization of the whole society. Who can accept it? Therefore, it is useless to worry, we should use knowledge and wisdom to solve it.
Those enterprises that borrowed heavily and blindly expanded are now encountering problems. Fuyao has been steadily moving forward and transforming and upgrading to Industry 4.0.
Integration of Intelligent Manufacturing and Intelligent Management
Su Yong: Fuyao's strategy is "leading technology and intelligent production". How to realize Industry 4.0?
Cao: Unity of knowledge and action. We put forward the concept of "there is no best, only better", and take "transformation and upgrading" as the "aerobics" of enterprises and practice it every day. The transformation and upgrading must be carried out at the time of "good health" and all employees need to participate. For example, ordinary workers in a factory in Chongqing saw that 3M, a consumable used to make glass, was very expensive, a few cents each, and they threw it away at once, which was a huge daily consumption and a waste. He used his lunch break and off-duty time to ride his bike to various shops in the city to look for similar products and let him look for them. After many experiments, the acceptance effect is good and the cost is reduced a lot.
Su Yong: How to truly realize the integration of informationization and intelligence?
Cao: MES (Manufacturing Execution System) on our production line has been used for five years. Intelligent manufacturing and intelligent management should be integrated.
Recently, Fuyao set up a joint R&D team with Tsinghua University Global Innovation Research Institute and Peking University National Engineering Laboratory of Big Data Analysis and Application Technology, focusing on intelligent manufacturing driven by data and simulation, and promoting innovative R&D of intelligent manufacturing of automobile glass through technological advantages in intelligent perception, modern simulation and industrial big data research. Fuyao also established the Advanced Materials Application Research Center in cooperation with China Academy of Sciences.
Informatization can collect thousands of data in one second through the internet, which is impossible with traditional methods. It is more important to apply the collected data, just like building a house from the foundation. This time I'm going to build a museum in the university I donated, hoping to tell my compatriots through the exhibition of cultural relics that everything should be realistic. If you look at a car and its development history, you will find that different times have different ways of thinking, different design concepts and different technical requirements. ...
Going out, cultural integration is the key.
Su Yong: Fuyao entered the international market in 1990s. How did you think of entering the international market at that time? Do you think it is better to make money abroad?
Cao: Doing business is to make money to support the family. I started my business as a teenager, regardless of the region, and I went wherever it was easy to make money.
However, foreign money is hard to earn and hit a wall. 1995 set up a factory in the United States, and the glass I produced was sold to the wholesaler 30 yuan. American wholesalers doubled when they entered the warehouse and resold, and the store became 100 yuan/piece. So, I decided to open a position in the United States, but from 1995- 1998, I lost money for four consecutive years.
Why do others earn and I lose? I invited Americans to investigate. As a matter of fact, the American knew it for a long time, but he didn't tell me the result until he investigated it for two months: you mixed operations. He said there is a difference between "doing" and "selling". You can only do it, not sell it. Wholesalers selling glass have primary and secondary suppliers in every state. They serve the shops in this area, and the shops serve insurance companies and retail investors. There are 50 states in the United States, and wholesalers have at least 200 warehouses, occupying more than10 billion dollars. It's a little naive for you to compare it with1.200 million dollars. The suggestion given is to stop the warehouse mode and use several salesmen to push it directly from Fuyao to the third-level supplier-the store. Because some small shops can't get the price and goods of the second-tier wholesalers, you can skip the second-tier suppliers and sell them to stores at a median price of more than 40 yuan/piece, so you won't make money. So I took the advice, closed the warehouse in the United States and changed the distribution to direct sales. That year, I turned a profit.
Su Yong: Can you share your experience in starting a business and management in the United States, including other countries, with China enterprises?
Cao: Justice and fairness. Maintain and ensure fairness and fairness by open and transparent means, stand any test and assume the responsibility of an entrepreneur.
Donate money to build a school and insist on running a school in a wrong place.
Su Yong: You are a homesick entrepreneur. Fuyao has donated more than 654.38+06 billion yuan, of which 654.38+00 billion yuan was recently donated to build a university. Why donate money to build a school?
Cao: I donate my money to Heren Charity Foundation, and they will supervise the use of the funds. Heren Charity Foundation is the first and only national non-public offering foundation with financial assets (stocks) approved by the State Council.
Harvard University and Cornell University in the United States are all run by foundations. I want to run a university that the existing universities don't have. From recruiting students to recruiting teachers, they are different from other schools and insist on running schools in the wrong place.
Su Yong: There is a new word called "slow employment". What do you think of this problem?
Cao: Fuyao University should tell students the importance of employment on the first day of school. First talk about the relevant contents and requirements of job hunting and employment, and then teach you to learn knowledge and skills and cultivate high-level employment talents. When it is recommended to the enterprise, it is an engineer contract. The school trains not ordinary workers, but sales engineers, product design engineers, mechanical engineers, electronic engineers and quality engineers. If they are not competent for practical work, the school will solve it.
Today, there is a shortage of people in all walks of life in China, especially those who have skills and are suitable for enterprises. Fuyao school can train talents. The establishment of museums in schools can assist education and conduct immersion training; The most beautiful part of the university is the library where professors, lecturers and students can meet every day. ...
08 *** Common prosperity is a concrete manifestation of social progress.
Su Yong: Now the state has proposed three distributions. What do you think of * * * and prosperity?
Cao: This is a concrete manifestation of national progress and social progress.
Su Yong: I see Fuyao Group has such a slogan. Entrepreneurs have three responsibilities: "the country is strong because of you, the society is progressing because of you, and the people are rich because of you." Can you explain it to me?
Cao: As an entrepreneur, we should do things from the height of the country, society and people. This is not mandarin, nor is it a bluff. If you want to be an entrepreneur and a successful entrepreneur, you must follow these three rules. The investment you are engaged in and the things you want to do must meet the needs of the country, society and people.
Su Yong: Over the years, you have been deeply involved in manufacturing. What advice do you have for entrepreneurs in China?
Cao: Entrepreneurs are the elite of society, and the improvement of their own quality determines the development of enterprises. Entrepreneurs are an important force leading social progress and economic development. The more difficult it is, the more calm it is. They should bravely stand up and take responsibility.
The article is selected from Entrepreneur magazine, 202 1 1 1 26.