Beijing, Sept. 14 (People’s Daily Online) -- One of China’s top universities and the best practitioner in providing corporate strategy have joined hands to help China’s manufacturers keep on top as pressing challenges lie ahead.
China Center for Operations Excellence (CCOE), co-run by McKinsey & Company and China’s Tsinghua University, made the official debut Wednesday in Beijing, which is the eighth model factory McKinsey set globally to build capabilities needed to revive the manufacturing.
"Chinese manufacturers have to learn how to use world–class operation skills to maintain the low-cost advantage and increase profitability,” said Arthur Wang, partner of McKinsey, “That’s the reason why McKinsey and Tsinghua University work together to create CCOE.”
Apart from the negative impact brought by weak external demand, Chinese manufacturers are facing multiple difficulties at home, such as the rising labor cost and growing energy stress. For example, Chinese factories have to spend more than five times in labor cost as their counterparts do in Vietnam. What is worse that the rising trend will not reverse in the next five years.
The training style in CCOE will follow the philosophy of “learning by doing”. Students will learn the core concepts and methods of lean operation through targeted classroom training and practice in the model factory.
"Tsinghua knows how to teach and McKinsey knows how to use theory into practice. We are complementary, ” said Zheng Li, director of Department of Industrial Engineering of Tsinghua University, “Chinese companies, no matter from what industry and at what development phase, will find the way here to realize excellent operations.”