Jiangsu Kunwei Langsheng Equipment Technology Co., Ltd , https://www.kunweilanxess.com
Shanghai GM How to Guarantee the Quality of Expansion
In April 2003, Shanghai GM Dongyue Automobile Co., Ltd. was officially established, marking a significant step in the expansion of General Motors' operations in China. Just a few months later, in August, Shanghai General Motors reorganized Jinbei General Motors and founded Shanghai General Motors Beisheng Motor Corporation. Within a year, the company completed the construction of two major production bases in Yantai's Dongyue and Shenyang's Beisheng. Combined with the Jinqiao base in Shanghai, this created a three-pronged production structure spanning from south to north.
This rapid growth brought numerous challenges, ranging from management coordination to quality control. To maintain consistency and ensure product excellence across all locations, Shanghai GM focused on replicating and extending its core manufacturing and management systems. According to Chen Hong, Vice President of SAIC Motor Group and General Manager of Shanghai General Motors, the company’s sustainable competitiveness lies in its system capabilities. By transplanting lean production concepts into daily operations, Shanghai GM aimed to scale up efficiently while maintaining high standards.
Based on GM’s global manufacturing framework, Shanghai General Motors developed its own lean production system called SGM-GMS (Shanghai General Motors Standard Manufacturing System), tailored to local conditions and operational needs. This system was fully replicated and extended in both the Dongyue and Beisheng production bases. The goal was not just to build factories, but to create a robust foundation for consistent quality and efficient operations.
To support this, Shanghai GM sent over 30 personnel to Shenyang to oversee the preparation of the Beisheng base. These teams covered all aspects of automotive manufacturing, including procurement, logistics, production, and information systems. In terms of hardware, the company invested 288 million yuan in upgrading equipment and refining processes to meet Shanghai GM’s strict production requirements.
On the software side, process documentation and management systems were adapted to fit Beisheng’s needs. Additionally, the company leveraged existing GL8 suppliers to ensure material quality. An investment of over 40 million yuan was made to develop a comprehensive IT system at Beisheng, covering everything from order processing to sales, ensuring seamless data flow across departments.
The manufacturing site management system in Shenyang was integrated with the large-scale flexible manufacturing system in Jinqiao, allowing real-time synchronization of production data. This ensured that both bases operated under the same standardized system, with consistent instructions and control.
A key part of the talent development strategy was the "planned on-duty probation" program, initially introduced during the construction of the Dongyue base. This training initiative was also implemented in Shenyang, where 704 employees received over 200,000 hours of technical and managerial training within four months. Front-line workers were trained in batches at the Jinqiao and Dongyue bases, ensuring they met the high standards of SGM-GMS.
SGM-GMS emphasizes leveraging existing mature systems and managing them effectively. One of its key features is the four quality valves: Tryout, Pre-production, Pilot Production, and Formal Production. These stages are overseen by the Jinqiao Quality Control Headquarters, ensuring that each new vehicle meets rigorous quality standards. The final approval of quality standards is decided collectively by top management, reinforcing the idea that quality control is a systemic process, not dependent on individual decisions.
Every time a new car's quality valve is opened, it becomes a major event within the company. At Shenyang Beisheng, the quality system followed exactly the same procedures as in other Shanghai GM sites. When the first GL8 quality valve was opened, senior executives traveled to Shenyang to review and make decisions on-site. Throughout the construction phase, the quality system was developed in parallel with the project itself, ensuring that both system controls and employee understanding of quality were deeply embedded in the process. This approach ensured that product quality remained consistent and reliable across all production bases.