Lifecycle-Oriented Solution Providers

From the conversion of instrument product suppliers to total solution providers, Beijing Far East Instrument Co., Ltd. is undergoing a strategic transformation journey.

Cui Jian, Chairman of Far East Instrument Group, clearly stated at the company's 2010 annual user meeting that the establishment of a competitive solution provider has become the strategic goal of Far East Instruments. At a specific tactical level, Far East Instruments will rely on system integration to provide value-added services for the entire life cycle.

Lifecycle Service

Far East Instrument has been focusing on petrochemicals, electricity, metallurgy and other process industries and urban management. Taking the petrochemical industry as an example, large-scale, intensification, and integration have become the future development trend of engineering projects, and this change in demand is the basic foothold for the implementation of strategic transformation of Far East Instruments.

Taking the petrochemical industry as an example, the estimated total investment of the 1 million-ton ethylene project in China will reach 18 billion to 23 billion yuan, of which instrumentation equipment investment will be 1 billion to 1.2 billion yuan, accounting for about 5% to 6% of the total investment; In the process industrial project investment, the total investment in the automation system equipment also occupies a large proportion, and the investment proportion directly reflects the project automation level.

Huang Buyu, deputy chief engineer of Sinopec Engineering Construction Company, stated at the annual meeting that in order to ensure the stability, safety, and full-load operation of petrochemical plants, Sinopec strictly maintains its life cycle (about 12-15 years) for system maintenance and the annual investment for control system reform. It reached 200 million to 300 million yuan.

“Automation systems must fully incorporate the concept of the life cycle into the entire process of design, production, and manufacturing.” Huang Buyu said, therefore, the selection of a good partner, the main instrument manufacturer (MIV), is particularly critical, and brands, services, and The overall operating procedure is the three essential elements that MIV needs to have. Even after ten years, the engineering spare parts must be provided by the instrument supplier.

Process automation, system support and asset optimization are the three major directions for China's main instrument suppliers to provide value-added services.

Improve solutions with system integration

“It is based on forward-thinking thinking about market changes, customer needs and industry trends that the company has established its strategic goal of transforming from a product supplier to an overall solution provider.” Qin Haibo, General Manager of Far East Instrument, frankly stated that he continues to consolidate system integration. At the same time as Rosemount's full line of products, on-site instrumentation and precision manufacturing of the four traditional businesses, the Internet of Things may become an important growth engine for the company in the next phase.

As mentioned above, providing a total solution is the only way for Far East Instruments to achieve sustainable development. However, how this transformational road should go, Qin Haibo also has its own overall considerations.

In his view, the implementation path of the company's strategic transformation must rely on product support, human resources, industry experts, comprehensive services, and system integration. These five elements are indispensable.

Among them, product support expands its product chain mainly by means of partners, independent research and development and acquisition plans.

“In terms of system integration, becoming a total solution provider is the future vision of Far East Instruments.” Qin Haibo stated that in order to achieve this goal, the company plans to take three steps. The first step is to pursue capacity building, and the second step is to pursue growth. Quality, the third step focuses on pursuing business benefits.

Zhang Hongyu, deputy general manager of Far East Instruments, who specializes in system integration services, said that the company will rely mainly on system integration to take the path of a solution provider.

At the end of 2008, the company set up a system integration division, and the department's engineering and technical personnel had reached 80. In the future, we plan to continue to rapidly increase our engineering and technical team and service capabilities.

In Zhang Hongyu's opinion, according to the strategic positioning of the overall solution provider with service as its core and throughout the company's life cycle, the Far East Instrument Integration Division will follow the industry's division of labor and strive to achieve professionalism, industry depth, and comprehensive strength. . At the same time, the service cycle will be basically synchronized with the project life cycle. Throughout consulting, feasibility design, preliminary design, detailed design, system integration, and service handover, a full range of services including pre-project, EPC cooperation, driving guidance, and maintenance and transportation will be provided. .

Far East Company is making solid progress in accordance with its strategic goals and continuously enriching the functions of its various business segments. It is believed that the Far East will definitely be better tomorrow.