Shanghai SuoGuang Electronics Co., Ltd., founded in Sept. 1993 and located in Jiangchun Road, Minhang District, is a joint venture invested by SVA Information Industry Co., Ltd. and Sony Corporation of Japan; the registered capital is US$12.5 million. Under the full support of the related department of Shanghai municipality, SSGE was put into production in Feb.1994, after a speedy construction for four months. In the past eleven years, being directly concerned by Shanghai Municipal Government and Shanghai Foreign Investment Commission, SSGE has become a first-rate industry corporation of mainly producing the sophisticated electronic products, such as optical pickup head, movement and other completed sets with 8mm video, DV, DC, Hi-Fi set, DVD, and PS2 video game player.

In fierce competition of the world market, SSGE has oriented for “becoming the best one in China and the top-grade one in the world”. Setting up the management principle of “improvement and improvement again”, constructing the management system integrated with the world, enhancing the competitive power both at home and abroad, and fetching out the nicer tendency,  SSGE edged itself into Forbes 500; and its total account of earning foreign exchange through exports is in the front rank lasting for nine consecutive years. Being approved by ISO9001, ISO14001, OSHMS, it has also won the honorary titles: “National Model Enterprise”, “National Model  Enterprise for Exporting”, “National Double-model Unit”, “Enterprise of Practicing the Customs  AA Management”, “Shanghai Civilized Unit”, “Shanghai High-tech Enterprise”, “Shanghai Advanced Technology Enterprise Invested by Foreign Businessmen”, “Shanghai Major Double-high Enterprise for Exporting”, “Shanghai Reliable Enterprise by Foreign Exchange Authority”, “Shanghai A-Type Reliable Enterprise by Tax Bureau” and “Shanghai Best Image in Industrial Enterprise”. SSGE has taken a steady step toward the first-rate corporation. However, each accomplishment is considered as a new start of “improvement / creation” by SSGE.

I. To Make the Corporation Connect with the World, and To Better the Management Quality

Nowadays, the world has gradually headed into the economic integration and the market globalization; in order to strengthen the competition ability in the market both at home and abroad, SSGE, commencing from creation and management and striving to take another step forward every year, has made itself connect with the world and bettered the management comprehensive quality; and as a result, the sales amount has been increased year by year. See the following chart:

1994----2004  General Chart of the Real Achievement in Sales Amount (unit: million RMB)

The corp. makes the quality, environment, safe hygiene management system connect with the world. After gaining certificates of both quality management system and environment management system, SSGE began to push forward OSHMS certification in July 2000, and concluded it in 6 months, becoming the first certificated corporation in Shanghai; and at the same time, SSGE is a few of certificated corporations in China, which are approved by ISO9000, ISO14000, and OSHMS. All these shaped the management image of the corporation in the world market and among customers from other countries, and upgrading the competitive ability in the world market.

To Introduce the International Advanced Management

In the 21st century, the world economy will develop quickly; it is important for adapting development to keep pace with rhythm of change; something you thought as the good yesterday are by no means of the best today. From the angle of “improvement and improvement again”, SSGE has learned and drawn on good experiences of overseas management, and continuously made the corporation management connect with the world. The corporation has successively imported the information processing system from USA and the system of “four weeks” from production to marketing from Sony.  SSGE branched out into PPM Activity in full scale in 1999, regarding ISO9000 as its value, exerting six sigma management, constituting quality, and amending activity and CS activity. The corporation, through the scientific method, measured and analyzed the improvement of management, and then set up the system of improving the unhealthy market and quality cost continuously. In 2000, the corporation pushed forward SSS (Sony Six Sigma), applying not only in production, but in management, thus fundamentally changing each work link of the corporation, perishing all the warps, increasing the whole business quality, and meeting with the request of the customers. At the same time, the corporation launched SCM (Supply Chain Management) and executed “door to door” management gradually. In 2000, products made by SSGE were increased by 40% in the American market, strengthening the competition power of joint ventures in the world market. In 2002, the corporation practiced the method of “flying horse IQ-PJ”, aiming at improving the quality of management and cutting down the fixed cost; by two systems (the system of analyzing recurrent ill memory drum and the system of be forehead confirming recurrent production in the early stage), the corporation has reached the target of improving video camera memory drum crossover rate and reducing the gross recurrent rat of the HiFi/DVD. In 2003, the corporation branched out into Five Stars VOC (Voice of Customer) activity, which means to hear the highest VOC, mainly aiming at improving the quality of SSGE products in the Chinese market. The activity has obtained the distinctive effect through shortening the time for preparing to return goods and establishing the corporation established the “Network” (the market fixes the intelligence report sharing the network).

II. Pushing forward the Upgrading of Products, Strengthen the Competitive Power in the World Market.

In 1999, the world competition in the electronic product market is gradually vigorous; in order to meet with the need of changes between market and customer on time, adapt to changes and try to change, SSGE introduced latest high-tech of Sony, extended enterprise product frame, imported new product energetically, strove to meet the demand of the world market, and quickened the step of making products be up to the high grade. After introducing 18 types of new machines in 1999, the corporation imported 32 types of new machines again in 2000. The situation of development is excited. Its main characteristics are as follows:

1.      Tracking the international advanced technique to expand the product construction.

On the base of manufacturing video camera, SVCD and DVD, SSGE started to develop and manufacture DC and Hi-fi set, extending types of products.

2.      Imitating product turns to digital form and network.

In 2000, the corporation mainly developed and manufactured high-tech digital electronic products, such as DC and DV, which use memory stick as reserve media, enhancing the SSGE’s advantage both in the domestic and world markets.

3.      Promoting the OEM manufacture level.

SSGE transited CKD to high-tech manufacture system. The corporation imported the tip memory drum manufacture technique of video camera in Aug 1999, and also imported advanced DV format and CCD manufacture technique in Aug 2000. In the market, poor products made by SSGE are the same as or less than that by Sony.

4.      The introduction of new products in SSGE has synchronized with that in Sony gradually.

SSGE developed DVD’s cassette technique, breaking the phase that joint venture introduction new product was lagged by Sony at before. The intellectual property right has been gradually perfect. The perfect invest environment in Shanghai and unremitting development of manufacture technique in SSGE, have made Sony Corporation of Japan decide that the DVD’s cassette production in Sony will be taken with that in SSGE synchronously. The corporation will regard this as another point of departure.

III. Developing Products Innovation Activity, Cutting down Cost and Improving Efficient Management

In the fierce competition, joint venture always keeps a principle: under the market economy term, low cost has the most compete advantage; to emphasize the cost management, to tap potentials and to raise work efficiency are vital importance for the corporation at any time.

Through C/D improvement, V/A improvement and innovation, the corporation has completely and deeply cut down the cost and decreased products in stock, and, in half a year, achieved the target of cutting down US$2.04 million; the meeting, together with products salesmen, about cutting down the cost has been convoked periodically; the overseas purchase has been turned into the domestic purchase; the corporation has also pushed forward the technique innovation and looked for substitutes in low cost. The period of keeping four kinds of products in stock has been cut down. They are products in the stock, products on-line, products of raw materials and products on the way. After improvement, the period of keeping products in stock has been cut down from 12 days to 9 days. Relying on the electronic system, as well as decreasing products on the way and adjusting domestic regulation (to increase domestic purchase ratio, and lower the purchase cost), it only takes 2days for custom declaration (originally 4 days).   

A series of activities, such as cutting down the cost, taping potentials and raising work efficiency, have made SSGE profits and retained profit rate of capital be prominently elevated. Seeing the following chart:

1994-2004 General Chart of Business Profit and Retained Profit Rate of Capital

IV Pushing Forward the Cultural Creative Activities of the Corporation and Creating the Image of the First-grade Corporation

As the first joint venture of Sony in China, SSGE has taken the principal of “constructing the best one in China and the first-rate one in the world” as its direction of development, made creative ability become the principle of management, and together established the system of creation between China and Japan, practicing target management and pushing forward creative activity orderly.

Creating the Cultural Atmosphere of an Outstanding Enterprise

 In order to create the cultural atmosphere of making employees be clear of value of life, SSGE has spent more than RMB 2 million yuan for holding “Year-end dinner party” every year, arranged employees to travel, rebuilt employee’s dinning rooms and bathrooms, published the inner newspaper “SONY-SVA Today”, set up the employee’s library, and established “SSGE Leader Fraternity” praised as a new mode in joint ventures and “Staff Double-Love Fraternity”.

Setting up the System of Security and Health Management.

For keeping all employees enjoy a good health and sound mind, the corporation put forward the slogan: “everyone will strive to keep body and mind healthy and form a comfortable working environment”. In all fields of production and management, security and sanitation activities have been developed. The corporation totally invests more than RMB 2.3 million yuan in ameliorating facilities and the working environment and in establishing the documental and systematical method in security health management. All employees are more clearly of the importance of security production as well as the law, and are capable of distinguishing for every post; the whole work environment has been improved, all these hoisting the corporation’s image.

To Be an Enterprise with Style of Study

In order to bring up the first-class staff and productions, SSGE puts stress on improving the quality of staffs, aiming at outdoing themselves constantly and forming a style of study. SSGE has set up some education and training systems, such as position training, technical class exam, multiple ability training, staff training and education abroad etc.

The development of SSGE has been helped and supported by the government, SONY and SVA since its foundation, showing the healthy tendency of development. Facing the 21st Century based on the international market, the investment environment of Shanghai will be better and better. SONY corporation of Japan has increased the total assets from US$12,500,000 to US$ 31,000,000 for SSGE twice (growing rate 148%), and now is planning for the third time. In the future, SSGE has to face many more complex and more difficult problems; the principals of management still will be “improvement and improvement again”; this principal will make SSGE strengthen the competitive power in the world market in order to accept prospective challenges, go forward independently and creatively, gain brilliant achievements together with other enterprises, and become a powerful enterprise in the 21st century.