Since the second half of this year, the Threading Mill actively promoted the company’s TPS management concept. They kept increasing the strength of management and improving the operation efficiency through technology improvement and personnel optimization. Compared with the first half of this year, the quantity of work of the Threading Mill's production lines continued to increase and the operation efficiency of each operation area continued to improve. The monthly capacity of NU Tubing reached 14,000 tons. It increased 26.7% compared to the budget at the beginning of this year. Additionally, the output of threading had kept consecutive increasing for five months. We completed the annual budget of threaded OCTG products 80 days ahead of schedule.

Through actively importing the concept of lean production to the process of production, on one hand, we improved the capacity to increase the labor operation efficiency, and on the other hand, we simplified the low efficiency post to reduce the waste of human resources by the detailed analysis of each post's quantity of work, the change of operating modes and the improvement of automation equipment. The Processing Mill simplified 7 posts that the actual number of working personnel reduced, which were 61 staffs less than the budget this year. Meanwhile, the per capita labor productivity of Processing Mill consecutively increased for 9 months since February. The labor productivity of threading lines increased 144% than the budget that it made the processing factory a big step on the road of changing to a modern factory.

Quality and cost are the main parts of the production. The Threading Mill’s personnel not only managed the capacity more meticulously, but also kept learning the advanced knowledge of TPS for quality and cost. Treating the production of the pipe with premium connection as the breakthrough point, the Threading Mill began to promote post operation instructions progressively, standardize operation content, carry out the Kanban management and standardization operations. By doing this, we continued to decline the number of nonconforming products and reduce the cost of the post. The processing cost of threaded OCTG products of grade J55 in threading lines decreased, which was nearly reduced 10% of the of budget.

TPS is not only a concept, but also a tool. Under the guide of the company's keeping promoting the lean production management, the Threading Mill will understand and integrate the advanced management concept more deeply in daily works. So we can have a good end of 2010 and lay a good foundation for the production in 2011.