The Daqing Zhonglan Petrochemical Co wants to control the spending on reagents in a better way this year, by linking it to worker performance evaluations to cut costs at refineries. Last year, it standardized its management of these reagents by watching their inventory and purchases more closely and this helped cut reagent costs by more than 8 million yuan.
The cost reduction plan says that if monthly spending on the reagents at refineries goes above a certain quota, then a financial penalty will be leveled on them, but if the spending is below the quota, the workers will get a reward. This is intended to stimulate worker interest in improved performance and reduced costs, and for maximum efficiency with lean management and optimal operations at refineries.