Human Waves Replace Automated Lines
Books Teaching This Pattern
Evidence

China's New Richest Man - Wang Chuanfu
叶青 · 2 highlights
“Fourth, cost-saving is the key to victory. At the onset of BYD's venture to cut costs, Wang Chuanfu broke down the battery production process and independently developed some key equipment, completing production through a combination of semi-automatic and manual labor. This approach reduced battery production costs by 40% compared to Japanese manufacturers. Through disassembling, learning, transforming, and innovating, Wang Chuanfu eventually became known as China's "Battery King." After entering the automotive industry in 2003, Wang Chuanfu, who had never been involved in this field, still relied on BYD's "semi-automated plus manual" production model. From battery production lines to subsequent car molds, Wang Chuanfu could be said to have utilized human resources to the utmost. Additionally, many of BYD's production facilities are self-sufficient. For example, the BYD F3 now sells over 20,000 units a month; it is said that Toyota once purchased it to study and was at one point surprised at how closely BYD could mimic their car, yet offer it at a much cheaper price than the Corolla.”
“Fifth, BYD achieved the peak of "Shanzhai prowess." The "Shanzhai path" can be said to have been taken by every domestic car brand, but BYD traveled it most successfully. The popular BYD F3, upon its release, faced criticism for its "obvious Shanzhai traces." BYD F3's parts could even be used interchangeably with those of the Toyota Corolla, to the extent that someone could remove BYD’s logo and replace it with a Corolla’s logo. Regarding this, Wang Chuanfu did not shy away, but rather described such imitation as "standing on the shoulders of giants." He stated, "We indeed referred to some excellent foreign brands, using their non-patented technologies and excluded the patented ones. The F3 sells so well because it is well-designed." Wang Chuanfu applied his "human wave tactic" and "Shanzhai tactic" from battery production to car manufacturing, which, using China's plentiful and cheap labor resources, greatly reduced production costs and thus strengthened his market competitiveness. From batteries to mobile phones to automobiles, Wang Chuanfu has always faced pressure. Nevertheless, he "persistently went his own way," even the electric car project, which came under criticism from top global investment banks, was pushed forward by his confidence and passion. His personality and experience have made him a dominant figure within the company. He once said, "I believe in this company, and I can't leave; I must be the one to manage it... Our company has only one voice." But even as a dominant figure, Wang Chuanfu is known for recognizing and utilizing talents. Many individuals, like Wang Chuanfu, refused to settle for the status quo and were recruited under his command, becoming key pillars in BYD's development, and Wang Chuanfu has generously rewarded them.”