Managing the Unmanageable
No individuals can control how the coronavirus pandemic develops, but the team at GF Machining Solutions Beijing is doing everything they can to ensure the safety of the facility, allowing production to continue amid uncertainty.
In January 2020, when news broke that a coronavirus was spreading in the city of Wuhan (China), managers at GF Machining Solutions Beijing immediately started to refer to the SARS outbreak in 2003. Seventeen years ago, the capital was paralyzed by being the hardest hit city in that crisis, even though the first cases were reported in the faraway province of Guangdong. Therefore, the management team reacted in no time at all, according to Wang Ruoyang, System Engineer for Quality Management as well as Environment, Health and Safety at the facility. The site supplies customers with Milling, EDM, and Laser texturing solutions. “Wuhan was locked down on 23 January 2020, Chinese New Year was on 25 January – and by 26 January we had an emergency plan drafted.” The plan, which covered special work schedules, logistics, and health protection measures in detail, proved critical in allowing the business to successfully reopen weeks later, laying a great foundation for the subsequent ramp-up in production.
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© Shawn Koh
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© Shawn Koh
Facing the challenge
The priority of the plan was to create a safe work environment for employees – the very basis of operating in this pandemic and also mandated by local government, Wang says. That included stocking sufficient personal protection equipment (PPE), such as face masks, plastic gloves, and goggles, as well as setting up emergency quarantine zones, and frequently monitoring employees’ body temperature. In addition, strict social distancing measures were implemented, such as taking lunch breaks separately in smaller groups.
© Shawn Koh
To do this, five small teams, each consisting of a handful of employees, were established to divide up the work; Wang himself oversaw three of them. Local government agencies were on site for inspections on as many as six occasions to make sure that all measures were in place before employees could return to work after the holiday.
“We had great support in obtaining PPE when there was a general shortage on the market,” Wang says. “The government introduced us to manufacturers directly, and we were able to buy the products at fair prices. Our colleagues in Switzerland also sent us masks. All through the pandemic we have had enough disinfectant to do the required cleaning every two hours throughout the day.”
© Shawn Koh
Opening the site was only the first step. After 10 February, very few orders were coming in due to supply chain disruptions and demand shocks. To help save jobs and conserve production capacity for the future, some 25% of employees in the facility had to be put on furlough during February and March. To minimize the financial impact for employees, the company granted seven days of paid leave to those affected; it also waived rent for those who stay in the company’s dormitory.
Local government chipped in too, paying out cash to those furloughed so they still had minimum income. The government took other measures to support the company financially, including social security payment remission, property rental relief, and special subsidies to fight the pandemic, according to Wang. “We always maintain good communications with the government, but I was still a bit surprised by how supportive they were during the pandemic,” he adds.
As the virus came gradually under control, all employees had returned to their posts by early May, Wang says. And by mid-June, production in GF Machining Solutions Beijing had almost returned to normal levels. But many things are still different than usual – employees need to wear masks at work and maintain social distance and are frequently being monitored for their health condition. While some aspects of work have returned to normal, these measures are there to stay for the foreseeable future.
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© Shawn Koh
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© Shawn Koh
Doubling down in the local market
With some 230 employees, the Beijing facility supplies a wide range of clients in the automotive, consumer electronics, and industrial instruments sector. Normally, about half of all sales are exports, which have been taking a hit from the spread of the virus around the world. But as the Chinese economy gradually recovers, the hope is that the local market may help pick up the slack. In April and May, China’s national industrial added value increased year-on-year by 5.4% and 5.0% respectively, while retail sales of consumer goods grew 7.2% and 8.6%. Product prices remained very fragile, edging up only 0.9% and 0.6% in those two months, according to official statistics.
© Shawn Koh
Wang says he is proud of the Beijing leadership team’s speed and effectiveness in managing the crisis, and the precaution system they put in place was able to keep the company running, helping to meet its goals. The virus, mostly under control, could still surprise businesses and cause harm. On 21 June, a number of new COVID-19 cases were reported at a major beverage producer's factory in Beijing – the site had to be shut down and its products were pulled off shelves overnight due to contamination concerns.
These cases were part of a new outbreak that had put millions in Beijing on their toes again. The city was reporting about a dozen new cases every day by the end of June. At GF Machining Solutions, the preventive system continued to function as it is designed to, according to Wang. “We immediately identified employees that might have exposure to the high-risk area of the city and asked them to work from home, so production remained unaffected,” he says.
Looking to the future, Wang hopes that the world can leave this pandemic behind and believes that growth will resume for the company as the virus comes under control. “The experience we have gained in this battle is going to be a precious treasure for all of us.”