Excess Production Capacity? Evergrande Packaging's Intelligent Factory Counterattacks, With A One-Time Pass Rate Of 98%

Against the backdrop of severe homogenization and sustained overcapacity in the paper packaging industry, how can enterprises break through? On December 4, 2024, the annual production of 250 million square meters of high-strength corrugated cardboard (boxes) and colored premium packaging expansion project, built by Hubei Evergrande Packaging Co., Ltd. (hereinafter referred to as Evergrande Packaging) with a total investment of nearly 400 million yuan, was officially launched in Hanchuan City, Hubei Province. Lin Zhijian, Chairman of Evergrande Packaging, said, "Severe overcapacity, rising costs, and declining prices are common challenges for all corrugated packaging companies. However, danger and opportunity coexist, and whoever can persevere can be reborn

From a 6-acre workshop to a modern factory, Evergrande Packaging has always adhered to the principles of technology and strong management. After 2016, Evergrande Packaging began to develop rapidly and has been recognized as a national high-tech enterprise, a specialized and innovative "little giant", a national green factory, an excellent scene factory for intelligent manufacturing, a demonstration enterprise for green design of industrial products, and a typical case enterprise for the application of "digital three products".
At the same time, Evergrande Packaging has achieved significant results in intelligent manufacturing, integrated innovation, and green development, and has been awarded multiple honorary titles such as National Integration Management System Standard Enterprise, Intelligent Environmental Protection Packaging Material R&D Center, Hubei Province Informationization and Industrialization Integration Pilot Demonstration Enterprise, Intelligent Manufacturing Demonstration Enterprise, Service oriented Manufacturing Demonstration Enterprise, Manufacturing Single Champion Enterprise, Green Supply Chain Management Demonstration Enterprise, Enterprise Technology Center, and Advanced Assistance for the Disabled.
At present, Evergrande Packaging covers an area of 310 acres, with workshops, warehouses, and living spaces exceeding 110000 square meters. The total asset value is 700 million yuan, and the debt ratio is controlled at 30%. The annual production capacity exceeds 550 million square meters of corrugated cardboard boxes (boards), making it one of the largest single corrugated packaging factories in Central China.

Introducing Lean Management and Reshaping the Management System
The development of Evergrande Packaging began with family style small workshops, which relied on family and friendship to drive operations in the early days. However, the "rule of man" management model has always constrained the long-term development of the enterprise. In 2018, Evergrande Packaging introduced a professional management consulting team and systematically introduced "lean management" to promote the transformation of management concepts from experiential to data-driven.
Focusing on the five dimensions of "safety, quality, efficiency, cost, and organizational development", Evergrande Packaging has comprehensively implemented the PDCA cycle continuous improvement mechanism, established standardized processes and performance evaluation systems, and forced the improvement of organizational capabilities. After 7 years of polishing, Evergrande Packaging has achieved full implementation of responsibilities, full coverage of systems, full closed-loop processes, significantly improved management efficiency, and steadily improved product and service levels.

Evergrande Packaging SPC System

Building intelligent factories to achieve full process collaboration in production
Under the new wave of digitalization in the manufacturing industry, Evergrande Packaging actively promotes the construction of intelligent factories, building a full process collaborative system of "5G+APS production planning and scheduling+production optimization+intelligent logistics", and connecting key links such as scheduling, production, warehousing, and distribution.
The company integrates technologies such as 5G, APS, IoT, MES, etc. into production scheduling and logistics scheduling, creating an intelligent management chain covering order reception to delivery. Among them, APS (Advanced Planning and Scheduling) can complete intelligent production planning and scheduling tasks, improve production efficiency and flexibility through information exchange and collaboration between the production management system and various subsystems;
IoT (Internet of Things) enables real-time monitoring and tracking of materials (semi-finished products) and goods through sensors and RFID devices; MES (Manufacturing Execution System) integrates control software for production machines to achieve automatic data collection and push; By combining intelligent logistics distribution systems and real-time traffic data, we have further optimized transportation routes, improved distribution efficiency, and achieved information interconnectivity in production, warehousing, logistics, and other links. Reduce labor costs by 6% and increase labor efficiency by over 8%.

Evergrande Packaging Workshop

Empowering with 'numbers' to enhance product stability
While promoting intelligent production, Evergrande Packaging will deeply extend "digitalization" into the field of quality management, build a data centered full process quality control system, and enhance product stability and customer satisfaction.
In response to the current situation of scattered quality control information and lagging management in traditional enterprises, Evergrande Packaging is customer-oriented and transforms it into quantifiable and executable quality standards. Through online monitoring and verification of each process, it ensures compliance with production process quality indicators and achieves precise delivery.
In specific implementation, Evergrande Packaging obtains correct, authentic, compliant with enterprise quality management standards, complete, and traceable data through real-time collection. When the data automatically collected by the detection instrument exceeds a certain range of tolerance limits, the data detection system will prompt the inspector to retest through specific visual means to ensure that the data provided for subsequent quality analysis and control is true and traceable, achieving digital management of the quality control process.
At the same time, Evergrande Packaging uses technologies such as QR codes and RFID to input and read data from the entire process of raw material procurement, work orders, warehousing, production lines, equipment, and teams, breaking through the "digital island" and achieving full traceability of products from the source to the factory. Thanks to this series of measures, the one-time qualification rate of Evergrande packaging products has reached 98%, and customer satisfaction has reached 99%.
Nowadays, facing the background of overcapacity, intensified homogeneous competition, and accelerated green and low-carbon transformation in the industry, Evergrande Packaging focuses on key paths such as lean management, digital transformation, and quality traceability. Through the dual drive of intelligent manufacturing and green development, it has initially embarked on a differentiated competitive development path.
The exploration of Evergrande Packaging in process management, technology application, system integration and other aspects not only enhances the enterprise's own risk resistance ability, but also provides practical samples for the transformation and upgrading of traditional packaging enterprises in the region. In the future, optimizing management models, continuously promoting digitization and intelligence, and deepening industrial chain collaboration will be the key to achieving high-quality development in the paper packaging industry.

Interface of Evergrande Packaging Digital System