Director of Colchester Lathes and 600 Lathes. He was a
member (the ‘UK expert’) of the European committee that
developed the CE Standard for lathes, and is currently
involved in developing ISO standards for machine tools.
The team first had to ensure that the specifications were
suitable for Western markets. The lathes now benefit from
the rotational accuracies provided by Gamet precision
bearings. Designs were modified to match Western
expectations, as were electrical and electronic components,
and finish was also enhanced. The team then set out to
ensure that the appropriate quality and health and safety
standards could be met. For example the materials in the
vision panels for example had to be changed to meet
Western standards; and headstock noise had to be addressed
- previously gears had not been crowned because the
Chinese market was unconcerned by noise emissions. The
machines were then adapted for convenience of use and
automation - such as developing a barfeed interface. ‘The
whole concept of automation came as a shock to them’ says
LeBeau. ‘60% of all the lathes we manufacture and sell will
have bar feeders or some sort of loading system; the
equivalent proportion in China is zero!’
This anti-automation culture springs from the low cost
and high availability of labour. But can this kind of East-
West relationship be catalyst for positive change? 600
Group’s experience suggests this could be so. ‘Look at the
progress they have made in terms of working conditions’
says Dick. ‘I wasn’t in the machine tool industry, but I knew
China ten years ago - and conditions were pretty
unpleasant. But I think now that 99% of Western people
would be delighted to work in the Dalian factory.’
Over his two years as CEO Andrew Dick has returned
march 2008
“I have a very good
relationship with the
senior management of
our partner companies
but you have to build
relationships in
parallel all the way
down through the
organisation”
DMTG’s factory is based in
the modern coastal city of
Dalian in Northern China.
The DD Port area in Dalian
province is dedicated to
industrialisation and is
receiving substantial
government funding.
international reports
regularly to China, and taken every opportunity to meet
with the Chinese senior management when they visit
Europe. He believes that underpinning all the technology
you need a network of relationships across the two
companies: ‘You need to work on it long term. I have a very
good relationship with the senior management of our
partner companies but you have to build relationships in
parallel all the way down through the organisation; we
have had continuity with people like Peter Cook. The total
team is about twelve at the moment, expats and local people
whom we employ. The number is growing as we increase
our logistics and our technical support.
‘It’s something you have to work on constantly; you have
to go back again and again, to make certain, to keep
probing, to keep checking, to keep making sure that what
you perceive is right is also right as far as your partner is
concerned.’
Which partner endured the greatest culture shock?
Probably the Chinese, suggests Dick. ‘The Chinese want to
become world class, to improve and develop to meet the
standards of the West. Nobody likes to be told what to do,
but they accept - from senior management downwards -
that working with us will allow them to get there more
quickly and more effectively. If we can explain what isn’t
right and what they need to do, that’s going to feed back
into their overall manufacturing capability - they
recognise that we are raising the standards for the whole of
their business.’
Alongside relationships ‘the other element is mutual
respect,’ says LeBeau. ‘They respect us for the management,
technical and marketing elements. We respect them for the
enormous changes they’ve made and the enthusiasm,
energy and capability they’ve got.’
‘There’s a recognition that what we have is very
complementary’ says Dick. ‘They have this massive factory
capability, and a strong and massive home market; but they
recognise that they don’t understand how to market in the
west and therefore need partners. We’d be the last to say
that everything in the garden is rosy; but even in the two
years that I’ve been here the progress that’s been made has
been absolutely staggering.’
As to the future, Andrew Dick forsees an enduring
relationship, with Dalian learning how to work in a
quality-focused Western manufacturing market place.
‘You can’t go into something like this hoping it’s going to
work just because you happen to see complementary
opportunities,’ he says. The key to mutual prosperity,
he believes, is to accept that this is ‘not a one-off
opportunity to make some money. With that approach
you’ll be dead in the water. It has got to be a long term
thing, taken step by step.’
www.600group.com
MWP
17
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