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"One point, five million" — A proposal for all members to "eliminate waste"

　　In 2010, as the government increased regulation on the real estate industry, the competition environment in the wooden door industry became increasingly severe: market sales shrank, raw material prices rose, the RMB continued to appreciate, and labor costs remained high. Facing these challenges, with the hard work of all Qianchuan employees, the company's sales scale from January to August 2010 steadily grew compared to last year, successfully completing the annual segmented targets.

　　At the same time, we must also recognize that the company's employees have a very weak awareness of cost control. Various departments, especially the production and manufacturing departments, commonly experience multiple types of waste such as material waste, labor waste, efficiency waste, and energy waste, which have even become routine, seriously weakening the company's competitiveness.

　　Assuming our annual production is 500,000 sets of wooden doors, and each set is sold at a minimum price of 1,000 yuan, 500,000 multiplied by 1,000 yuan equals 500 million yuan. In other words, every one percent reduction in production cost saves the company 5 million yuan!

　　Based on this, we appeal to all employees: as members of the Qianchuan family, we must actively engage in eliminating waste and promoting saving activities. Every good suggestion we make to save company expenses, every saving action we implement, puts us one step ahead of our competitors. As long as all Qianchuan people work together, reducing production and manufacturing costs by one percent is an achievable goal. There are always more solutions than difficulties. Therefore, we should:

　　1. Start from the details and achieve the "Five Ones", namely:

　　Save every kilowatt-hour of electricity: turn off lights when not in use, turn off electrical appliances when leaving, set computers to energy-saving mode, turn off printers and water dispensers at night; avoid turning on lights during the day in well-lit offices, meeting rooms, and corridors; save every drop of water by turning off taps promptly after use and reporting any dripping or leaking pipes or tanks for repair.

　　Save every sheet of paper: promote paperless office work, collect copying and official paper as needed, use sparingly, and print or copy double-sided whenever possible.

　　Save every phone call: avoid using company-paid phones for chatting or personal matters, and strictly control call duration.

　　Save every drop of fuel: strengthen management of company vehicles and arrange official vehicle use reasonably.

　　2. Eliminate waste in the production and manufacturing process, including waste of raw materials (especially paint), defective products, inventory, unnecessary handling, redundant processes, and unnecessary searching. After receiving orders from the business department, the production planning, workshops, quality inspection, shipping, and logistics departments must each perform their duties closely connected to avoid waste caused by errors in their own links. At the same time, strictly control the consumption of consumables such as labor protection supplies and adhere to quota-based distribution.

　　3. All meetings, receptions, hospitality, and activities should be as simple and economical as possible. Do not spend money unnecessarily, spend less when possible, avoid unnecessary affairs, and conduct necessary affairs frugally without extravagance.

　　4. Each center and department should strictly control the execution progress based on the annual budget. Be meticulous and thrifty, especially for large expenses, verify their rationality and necessity, and act with clear objectives.

　　Drops of water can form an ocean, and trees can grow into a forest. Let us take positive action, with everyone participating in eliminating waste and promoting saving activities, starting now, starting with ourselves, starting with those around us, and starting from the details, to create a culture of saving and move towards a competitive "saving-oriented" enterprise!

　　Chengdu Qianchuan Wood Industry Co., Ltd.

　　September 27, 2010