Centralization will bring about cost reduction, one is the further concentration of production capacity, and the other is the further concentration of production factors.

By increasing output to reduce unit production costs, fixed costs such as raw materials and energy costs are certain, but non-fixed costs such as labor and rent can be reduced by increasing production capacity.

Capitalists will expand production (increase production equipment to expand production capacity or establish new production bases to expand production capacity) and encourage overtime work (promote people's labor enthusiasm or increase people's working hours to increase production capacity by promotion or financial incentives). The production of an enterprise can only control its own employees, and employees can't control the increase or decrease of the downstream market, nor can they control the price increase or decrease of the upstream products.

Capitalist society always has periodic overcapacity, because expanding production can really reduce costs and profits.

Therefore, centralization can reduce production costs and improve labor efficiency.

This theory can not only let people know the future trend, but also provide logical support for policies.

The cost reduction effect brought by the concentration of cement production capacity is the low cost of conch. I remember that the cement production cost of a cement factory in Conch has been running for 78 years, which is almost the same as building a new cement production line. After the cement production capacity is concentrated, the production cost is so low that it is scary.

The cost reduction effect of cement production materials concentration is the cost difference between the two cement plants I have stayed in. One is because there are no coal mines nearby, and the other is because there are coal mines and mines nearby. The clinker cost difference between the two plants is about 30 yuan.

Especially the coal resources are regional, so the production cost of clinker will also show regional differences.

Some people say that you can make a lot of money without concentration. For example, an enterprise with a total production capacity of 15000 tons has two options. One is to concentrate on the construction in one place, so the unit production cost is very low, and it has the advantages of product price floor and cost. The other is to build a production line with a daily output of 5000 tons in three places.

The production cost of the former is much lower than that of the latter, and the latter creates more personnel posts (administrative logistics personnel) than the former.

But the advantage is that the product coverage of the latter is greater than that of the former.

In the period of incremental economy that pursues market occupation speed, scattered factories have more advantages.

In the stock economy or shrinking economy where the market is saturated or declining, the concentration of production capacity is more advantageous.

To evaluate the correctness of a strategy, environment and period are also important factors.

Therefore, when the cement market in Guizhou Province is saturated, the further concentration of production capacity is the development trend of the industry.

People have the dual attributes of producer and consumer. By further concentrating the labor force, the labor productivity is further improved, the GDP continues to rise, and the exchange rate rises.

Changing consumers from dispersion to aggregation will reduce the time and distance of product deployment and reduce the transportation cost of products.

This is the reason why experts in "Big Country and Big City" suggested further urbanization.

Great country and great city

2. What does specialization mean?

Industrialization is a continuous process of professional cooperation and division of labor. Because of the professional division of labor, the production efficiency has been greatly improved. With the professional division of labor, the demand for management technology will be higher and higher.

Globalization is based on the advantages of different countries in certain industries. So let's work together to further improve production efficiency. Some countries have benefited from it (low inflation in the United States, capital influx in China, and a large number of jobs). The rise of American stock market also benefited from the improvement of labor efficiency brought about by the global economic globalization.

It's hard to say whether the improvement of production efficiency will increase or decrease jobs. The automation and modernization of equipment may mean the disappearance of some jobs, and the upgrading of technology will also lead to the unemployment of some people.

But the improvement of productivity or production efficiency will make the society raise more people, and these people will generate new demands.

Now that the classification of science is so clear and the division of labor is so detailed, the importance of a single scientific breakthrough is declining. The current scientific progress is no longer the outstanding achievement of one or two heroes, but a breakthrough of systematic and comprehensive achievements.

I use an example of kiln grinding separation. Clinker and cement not only have different production factors, but also have different impacts on the environment.

Clinker production needs siliceous materials, limestone and coal, while cement production needs clinker and mixed materials.

Clinker is best concentrated in places rich in coal resources, while cement production is not so constrained.

The impact on the environment is also different. Kiln system (clinker production system) needs chemical reaction at high temperature, so garbage incineration and sludge treatment are the contributions of clinker production enterprises to environmental protection.

There is no fly ash problem in garbage incineration in cement plant, because fly ash becomes clinker, and at the same time, garbage incineration also produces calorific value, which reduces coal consumption. The disadvantage is that compared with clinker production enterprises that do not incinerate garbage, garbage incineration enterprises will produce a very small amount of dioxins.

Sludge treatment will produce stench and affect people's health.

Because the grinding system does not need high-temperature chemical reaction, it can't treat garbage and sludge naturally, but it treats other main production wastes.

Guizhou province is a cheap desulfurization gypsum, which is a by-product of flue gas desulfurization in coal and petroleum industries. Guizhou is also a major coal and energy province. Can desulfurized gypsum be cheap?

Northwest China has two characteristics. First, the proportion of group enterprises is high, in which Qilian Mountain Cement under China Building Materials accounts for more than 40% of the cement production capacity in Ningxia.

Secondly, unlike the big coal province, the mixture in the northwest is electroslag, while Ningxia has a good geographical position and many cement enterprises, which leads to the low cement price in the province and is a low-priced depression in the northwest.

I know something about the northwest region because I saw an industry analysis video, taking the cement market analysis as an example.

Analysis of cement industry

This video is from 2020, and the data is 20 19. Ningxia is the price depression of cement in northwest China, Shanxi is the price depression of north China, Guizhou is the price depression of south China, and the price in northeast China is generally low.

Energy-rich provinces have two influences on the cement industry. The first point is that coal resources are abundant, coal transportation cost is low, and cement clinker cost is reduced.

The second point is that some by-products of coal processing are raw materials for cement production, which will also reduce the production cost of cement.

The separation of kiln and mill is a further professional division of labor.

The market is not disappearing, but decreasing. It is a pity to give up this county market. If we don't give up, the county market can't support the production capacity of clinker production line.

The original cement production enterprises produced commercial concrete or sand aggregate, which ensured employment and completed the political task of providing jobs. Conch and China National Building Materials, the two largest cement producers, are state-owned enterprises, and China National Building Materials is a central enterprise, which has the political task of ensuring employment.

At the same time, maintain market share and make maximum use of the land resources of the original enterprise.

This is the cost reduction brought by professional division of labor.

When we talk about "engineer bonus", we should also start to advocate the bonus generated by management upgrade. Under the further professional division of labor, the requirements for management level will be higher and higher.

The upgrading of manufacturing industry is not only a single upgrading of workers, engineers, equipment, consumption and financing, but also an upgrading of management, or a whole system formed by upgrading these aspects.

3. What does standardization mean?

Standardization is the standardization of equipment, system and product.

The standardization of equipment increases the general scope of equipment, and the discount rate increases after the enterprise stops production.

Even if a cement factory in Conch closes down, the equipment in this cement factory can be pulled to other factories for spare parts, so the discount rate of fixed assets of Conch is much higher than that of other enterprises.

If an enterprise is in a hurry to produce, but lacks spare parts, if the equipment is of the same specification, other enterprises in a state of maintenance or not so eager to produce can allocate relevant equipment.

The price of customized equipment is not the same as that of mass production equipment, while the standardization of equipment will increase the production of equipment suppliers, thus reducing the production cost and price of equipment.

The standardization of the system, why should big companies ban office romance?

Ke Yang in The Last Romance is a business manager who has a boyfriend and girlfriend relationship with a CFO. After leaving her job, Ke Yang almost took away Jingyan's business backbone, saying that Ye Jinyan was shelved, which was the most feared thing for any organization leader.

Precious time in the past

There are many levels in large companies, and the consumption cost of lower-level message feedback (time cost, higher-level reaction and decision-making cost, lower-level execution cost) is already a lot. You are all closed small groups here, and the cost of news feedback at lower levels is high. This message has been modified by a small group, and its authenticity is still in doubt.

The standardization of the system can prevent small groups from becoming stronger and stronger, and the promotion path is clearer.

Third, the standardization of products, cement is mainly to build roads and houses, cement prefabricated panels.

I remember two years ago, I saw CNBM set up a cement precast slab storage warehouse, and I found that CNBM has a wide range of business.

The benefits of standardization will bring a controllable production environment and accountability for product quality problems. The most important site dust removal is not a matter of one or two days, but the production environment of cement precast panels is better than that of the site. There is something wrong with your cement precast slab, that is, the manufacturing company of cement precast slab bears the main problem.

With more and more cement precast slab enterprises, the market demand for cement precast slab technology will increase, and there will be more professionals in China building materials, so that the corresponding technical standards can be determined first.

Conch's strength lies in high concentration of production capacity, large production capacity of a single enterprise, low production cost, strong bargaining power for raw material suppliers, deep standardization of equipment, high versatility of equipment among groups and high bargaining power for equipment suppliers.

The advantages of China Building Materials are that there are many enterprises, large capacity concentration space, large group companies, many professionals, large business scope and high standardized income.

The future of China building materials can be expected.

Integrating production lines with different capacities into standard production lines with unified capacities can reduce costs and speed up the standardization process.

The production lines affected by different production factors will be professionally transformed or upgraded to train a large number of professionals for the company. In the case of protecting the original market, we will further derive downstream products and protect jobs at the same time. Protecting employment means protecting people's livelihood, and achieving political benefits while obtaining economic benefits.

Turn different equipment into common equipment, reduce inventory, reduce operating costs of enterprises and improve the discount rate of fixed assets of enterprises.

I can only guess the future strategy of China Building Materials: centralization, specialization and standardization. I want to be the standard setter of product ecosystem.

I'm just a bottom-level employee of a cement production enterprise, and the above summary is also the limit of my ability.

But observing the actual operation of an enterprise is still different from what the book says.

Update "Black Ice Drama Review-Power is an Influence" next week.