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ITW China Success Stories
Adopting 80/20 to win

80/20When Stone Hu presents on the success of 80/20 as part of the evolution of Tientai – ITW’s largest business unit in China – and its operations, it’s easy to get a sense of why the company has grown dramatically more efficient since joining ITW in 2004. After focusing on developing its core revenue-building product line (in ITW language, its “80”) through product line simplification (PLS), Tientai has grown dramatically.
Before implementing PLS in its facilities, Tientai’s business faced some issues in maximizing efficiency and revenues in its production chain. There was too large of a product range that was confusing and complex with many “20” – or low-value, low-revenue – products to control and long lead times for production. There were also problems with overstocking of products, too many changeovers during production that led to poor efficiencies and lack of proper focus to achieve optimal profitability.
By bringing the 80/20 model to Tientai’s Kunshan facility, overall production efficiency has grown significantly. Tientai has simplified the amount of parts and setups used in its factories, increased outsourcing and reduced lead times, while focusing on selling its primary customers its best, most high-value products.
As part of a concerted effort by Tientai’s leadership, finance, human resources, research and development and engineering departments, Tientai has been able to leverage 80/20 into a method for building the company into a USD 150 million business and one of China’s leaders in the consumable welding business.

Investing in our people, making our future better

Part of operating a global company is transferring expertise and knowhow from headquarters to everywhere the company operates. At Paslode Shanghai, Yan-Ci Tian is proud of the commitment his colleagues from around the world make to bring the company’s best practices to China.
Each year, Paslode leaders come to China to facilitate exchanges on research and development, engineering, production techniques and even business efficiency practices such as the ITW Toolbox Applications. In addition to holding these in-house trainings for staff on the ground in China, Paslode sends its best and brightest staff to the company’s U.S. headquarters to work together with their American colleagues.
As good people are what make Paslode a world leader in the construction products industry, the company makes a point of investing in its people and their career development. Not only does this improve staff retention, but it gives the company the resources to drive innovation and improve products and solutions for customers. 。

Making friends in many places

Instron China & Hong Kong Vice President Solomon Shapiro enjoys telling people he meets how his company “makes machines that break things.” In fact, Instron’s machines – part of ITW’s Test & Measurement category – cover such a wide range of businesses that they end up breaking a whole lot of things.
Entering the China market in 1973, Instron has focused on building up a diverse network of clientele in the manufacturing, biomedical, and even cultural relic preservation institutions such as the Forbidden City in the center of Beijing.
Because of its long history in China and focus on bringing the right products and solutions to their end users, keeping them up and running through a vast service network, Instron – which was acquired by ITW in 2005 – has garnered a relationship as a friend to the Chinese government, winning high recognition from state institutions such as the Analytical Instrument Society of the China Instrumental Society for product excellence.
This strong reputation centered on true adoption of ITW’s decentralization principle continues to translate into business opportunities for the company.

Delivering optimal service through constant innovation

Wilsonart® China General Manager Peter Chou loves to talk about meeting the needs of local customers as an essential component in every market, especially in the dynamic environment such as China.
As China’s market leader in high-quality decorative surfaces, Wilsonart is providing its major customers, including KFC, McDonald’s, China’s major department stores, transport hubs, laboratories and medical care facilities, with products critical to their daily operations.
Recognizing the unique needs of the China market and meeting them through constant product innovation is essential, which is why Wilsonart utilizes a network of experts at its own China R&D center, working closely with the ITW Asia Technology Center in Shanghai and regularly engaging with the ITW Global Technology Center and Wilsonart’s R&D teams in the US, Germany and Thailand to provide Chinese customers with the best products on the market.
Wilsonart believes strongly in conducting innovation in the communities where it operates, which is why the company has established various patents in China for its products developed locally, resulting in various awards from prestigious Chinese research groups such as the 2009 National Higher Educational Equipment Award from the Laboratory Work Research Board of China Colleges and Universities.
Focusing its China business on a few core product lines – High-Pressure Laminate (HPL), Chemsurf® and Solid Phenolic Core (SPC) – Wilsonart has been able to improve on them through this commitment to innovation, as well as optimized sourcing and manufacturing processes in a way tailored specifically to its customer base. These core ITW practices have created many loyal customers and increased sales of Wilsonart’s premium products.

Standing strong in the wind – helping China achieve alternative energy goals

It’s January and -10 degrees centigrade, with wind power 5 levels in the Gobi Desert. China’s leading wind turbine manufacturer is facing a challenge. Their traditional bonds couldn’t cure under such atrocious weather. ITW Plexus – one of ITW’s Performance Polymers & Fluids businesses – had the opportunity to test its product for this application. The Plexus MA310 met the challenge with high adhesive strength at an extremely low temperature. The same product was then tested at a construction site in the extreme cold wind. Plexus cured rapidly and produced exceptionally strong bonds with superior flexibility and fatigue resistance at extreme low temperatures. As a result, Plexus continues to be highly recommended by wind turbine manufacturers doing business in the bitter winds of Inner Mongolia. As China has become the world’s fastest expanding wind power market as part of its aggressive goals to adopt new energy, the role of Plexus will become increasingly critical. This is just an example of how ITW products meet customer challenges each and every day.