Pudding and Chopsticks

I just read a new piece online about a jet that crashed in China. Oh great.

Here is the link to the story. HERE

Basically it looks like Henan Airlines Jet, which was/is a Brazilian-made Embraer E-190 made jet broke apart just before landing at Lindu airport.

Nice news to wake up to. I don’t fly a lot. Maybe every two to three months. But still. Dang. This would suck.

Anyway, so, if taking care of airplanes is anything like the way they take are of care then there is reasons to be concerned. But I doubt that’s the case. At least I hope so.

My throat is killing me. Well, not really killing me more like swollen and not the most awesome thing. The reason, well, I can only speculate because of what I ate yesterday. I went to a pizza place (Pizza Hut knock off) to eat and scope out a girl that I got the hots for. I ordered my Super Ached pizza and asked for hot sauce / peppers. The guy left and came back with, um, not Tabasco but a little dish full of peppers and oil. This is not uncommon, so I was like yeah awesome. I started eating the hotness. It was hot and it was good. Although when I finished the heaping table spoon I noticed something. That something was swollen. My mouth, and my throat started to get scratchy. Not good. This usually happens when I eat nuts. Yes, I am allergic to nuts. Darn. It wasn’t that bad and I had only eaten  little. I also wasn’t that worried because my Chinese is good enough to get me to the hospital. Haha. Well, that’s kinda true. So I held out and it started to go away. But this morning. Oh boy. It felt like my throat was the Gobi desert and needed water. It’s swollen and not feeling good. But anyway.

So I am sitting here at Starbucks again. More like a mobile office. All the power outlets are taken. I got here a little late from my usual time. So I decided to sit upstairs in the thick of it all. Where I can  hear everyone. Love me some eaves dropping. It reminded me of something that most foreigners that have never been to China don’t know. Everyone in China speaks two languages. Most anyway that where born after the proclamation of the current government in 1949.

China is basically a bunch of different places that are put together. Because it is hard to travel from place to place back in the day, and probably a bunch of other reasons. Every city and town mostly have their own language. But the current gov which started in 1949 the gov mandated that a standard Mandarin Chinese be taught in all schools. So kids learn Mandarin at school and their hometown language from their parents. I got reminded of this because there are a few lovely ladies have a massive conversation in the local dialect. Which I don’t understand at all. A few words will get through that I recognize. But for the most part, hell, they could be talking about how handsome I am and I can’t do anything about that.

This is also a good point to bring up because of business. Even if you speak Chinese your vendor, partner, whomever you are doing business with, can switch to their local language so long as who they are talking to speaks it. Shady, I know. That’s why you never let anyone know you can speak Chinese. Shady on my part, maybe, but you don’t thing they are doing something shady either. Please.

Anyway. This whole dialect thing is pretty similar to Texas. I mean really who the hell understands them.

Well, an old women just did something that you can’t do in the States, which got me thinking about things you can do here but chant do in the States.

I’m sitting down stairs in a Starbucks enjoying the air conditioning during a 100+ day when an old women rolls in and mounts up to a table near me. She opens a bag a busts out her lunch. Take out Chinese I am thinking, by the looks of the styrofoam anyway. So now shes sitting alone opening small coffee creamers and pouring sugar into them, I can’t say I know what she is going to do next. Ok a little stir action, and more sugar. I suppose you could make icecrea if it got cold enough. Ok she is drinking coffee creamer in a Starbucks. Slightly odd. But nevertheless, I’ve seen worse. Oh.. man she has a milk stash. My day is now complete.

Ok to the real point of this. Things you can’t do in the States that you can do here.

Drink beer where ever you are. Sidewalk, in public, etc.

Order food from one place and take it into another or have it delievered to another restaurant to eat it there.

Bringing you own drinks into a restaurant.

Bring food into another restaurant.

Spit, littler, throw whatever you want out the window of a car.

Yell in a restaurant, everyone else is.

Not clean up after yourselves at a fast food place.

Drive on the wrong side of the road.

Speed, weave in and out, run red lights, turn on red, etc. Really there are no driving rules unless there is a Policeman present and or a camera for red light runners.

Haggle over price for most everything.

….

This is what I got on the top of my head for now. If I can think of more I’ll post them too.

I was asked a question today. It involves something I had written in Feb.  You can read the initial post here.

First I want to say, no, I wasn’t the one this actually happened to. It was from a blog that I read called Silk Road International. Silk Road International (SRI) is a U.S.-owned and managed international procurement agency based in China. They basically help people who want to make things in China. They find them the right factories, make sure everything goes well, yada, yada.

The question that was asked by one of my thousands of faithful readers was this:

I read on your blog where you helped a factory manufacture a hat or something in a new manner, which was different than the way they  normally do things.
It sounded like you had ‘shown them the light’ and everything had worked out, I am assuming.

BUT in my experience, if you ask a Chinese factory to make something differently than how they normally would, while they MAY be able to do it, they then say that it will cost more, or that it will produce more defects which lead them to say they need to raise the price of the item…blah blah…. and some other BS.

So I was wondering if you encounter this quite often, like every chance they get, they will try to raise the price.
Its just quote frustrating to me, and I need to learn how to negotiate better with them. Any insight?

To answer this, first, I wasn’t the one who manufactured the hat. No worries because I can still answer this a couple of different way.

Insight. Yes. The first lesson you learn is this:

The white man lesson. Which boils down to a few things. One: The white guy has the money. Two: From an Asian’s perspective It’s ok to swindle that money out of said white man. Three: Business.

Ok before I get bombarded with emails about this let me explain.

One: China has only been really involved with the global economy for the last 30 yrs. Shenzhen this year is celebrating their 30th anniversary. Shenzhen is massive, I mean massive. So many factories, apartments, etc. Just thirty years ago there was nothing. I mean nothing but mostly farms. So the Chinese didn’t really have money till now. So the white man, westerners that came to China for the cheap labor and places to manufacture had money. Hell even a teacher here that teaches English make more than 6 times the minimum wage. So the white man (foreigner has money).

Two: It’s ok to take that money. Let me explain this the best I can with what I understand. No I am not an East Asian Culture Major nor have I spent thirty years here, but I’ve read a good amount on China and this topic. I understand it as this. And it also comes from “The Art of War” by Sun Tzu. You can read about it here. If you are a dumb person, I can then take your money by what means I can. In the Western world I may be called a cheater but in Asia I would be a smart businessmen. So, for the dumb foreigner that rolls in to try to make money and China then gets shafted, well, you’ve been Shanghai’d son. I’ve read stories about people coming to invest in a business, actually see an office, people working, etc, and then leave, send a bunch of money and bam, not hear anything back. Because it was all a scam. All actors hired to work for a day in an office space. Pays to be smart I guess.

Three: Good business. The yuan is rising, labor is rising, everything is rising. The factories have money now. They can afford to hold out for a better price. They have more power then ever.

So how does all this relate to the question. Well, since most likely the person asking the question is a white guy, you have money, control the money or something like that. A factory is going to try to squeeze as much as they can out of you with whatever tactic they can. You change a process or the way they do something. It may or may not actually matter but, it give the factory a reason to ask for more money. You can A: stand your ground and tell them that you still have a specific NG amount and it’s not your problem if they do it a different way. B: You an give and give them more money. C: You can meet them half way. Give them face by giving a little. They want power and money, you want good products. Raise the NG rate. If there is a no good rate of say 2-3%, then maybe raise it a bit to allot for the change in processes. It would depend of what you can deal with. But giving them more money. I don’t see how that would help or compensate for the new process. But raising the NG rate would probably soften the factories fear about you rejecting a bunch of products because they just started a new way of doing something. I would for sure QC in the beginning of the production cycle to see what the NG rate is. Just to get an overall picture. If you need to make a million things and out of 10,000 there are 100 bad ones, your looking at a estimated NG rate of 1%. That’s not bad. Well, really it depends on the industry and what not. If the change in process gets you a rate of 2%, but saves you time and money to offset burning twice as much bad product, then hey, that’s awesome. Just have to ease the factories fears. They don’t want to lose money by you rejecting product. You don’t want to pay them more money up front. Raise the NG rate to something realistic, come to an agreement and then QC. Or something like that.

The second part of the question or implied part. Factories are having to raise costs. Labor is going up, materials are going up, the yuan is raising. Foxconn is going to almost double the wage it pays. That’s going to have to for sure come from somewhere. Mainly the clients. Apple, Sony, etc. There are a million reasons that a factory would want to raise it’s prices. Millions. Hell, it got hotter, I have to use ac, how to I find money to run it, well, the next customer get a bump in price of 3 cents to offset my air usage. You think that’s funny. Ha, I hear stories like that. No one here, NO one here wants to pay for anything. At all. Period. They will use any method to get their money back. For example. Factory A gets some material in, accept it and then find out that it had some slight defects. They cannot return it back to the vendor, they have accepted it. So what do they do, well, Factory B need some material. They sell it to factory b and package it really good. Factory B looks at it, good stuff. They accept it but didn’t notice that the material has a slight defect. However they have accepted it. They cannot return it to factory a. They got shafted and or cheated depending on your perspective. Or, factory a was daft, skillful and clever with their tactic. Yes this is a true story. So Factory b has to pawn it off again, or eat the cost. But they won’t eat the cost. The customers at the factory will get a slightly damaged product or a price increase. One way or another factory b will make they money back to offset the cost of that bad material, believe me.

There is no real way to combat this but to know your industry inside and out. Know all the prices for everything. Say you are making a snowboard binding. You have to know the material costs, plastic, eva, mold costs, hardware costs, everything. Know everything. Then when you get a price increase that’s not reasonable. Price increases are going to happen, it’s just a matter of controlling them. You can cite facts that the materials haven’t gone up, etc. You don’t want to embarrass you Chinese counterpart. Hell, maybe they just want to show power over you and raise the cost to see what you will do. Give them some face, some power, but only with what’s acceptable to you bottom line.

I was just thinking about this also. They may give you a higher price because they haven’t worked with you before. They are taking a risk taking you in. You could be over demanding, etc, etc. They want to make sure they you mean business, and so on. Maybe counter this be giving then more money, but wirte the contract so that it’s rear end loaded. They want an extra 5,000, fine, but they get that 5,000 after the products ship. They get the money, and you get peace of mind that they just don’t want an extra 5,000 of easy money out of you. If it’s in the rear end they have to actually produce to get it.

I’m no export in this. I just call it like I see and read it. You have to do your research, know you industry, and negotiate the best you can. Hell, you may even save them money by making the product line move faster. Will they tell you that, no. Just be smart. Read all that you can.

Some good blogs that are most defianently better they this one are:

http://silkroadintl.net/blog

http://www.chinalawblog.com/

http://www.allroadsleadtochina.com/

Do you homework, due diligence, etc. Don’t be dumb. I know that’s easy to say but be ready to walk away, don’t put all your manufacturing in one place, have back up plans, and don’t be naive. Someone before you was, and they probably think you are too.

Hope that answers your question. I’m not an expert. I don’t pretend to be. I just like to make things, design, write, photograph, and eat Oreo cookies when I can.

Peace.

Ok so here a story about quality here in China.

Factory A gets contacted to make a new product that they have never made, but basically it’s just a small version of what they have been making for years. Their quality is not good. They have been getting better but it’s still not even close to American quality or the top-level factories making the same product. They have fixed certain issues with tolerances and materials. Improving everyday.

New client sends a sample from another factory, factory B. This factory is worse than factory A. So Factory A sees the sample product and now gets it in their head that actually they are a really good manufacturer because they are better than factory B. But what they don’t realize is that they both suck and factory B just sucks more. The sample contains the same issues that factory A has been fixing. Now factory A starts to question why they have been fixing these issues, why they have been working harder, and striving to do better, when factory B doesn’t have to. They also start to think that they are the best manufacturer ever because their product is superior to factory B.

This all leads to a feeling of content and laziness. The quality starts to go down hill because they think that they have finally made it and don’t have to fix any more issues because there are people who are worse off then they are. They don’t feel the need to innovate and now buckle in for a period of doing nothing and coasting along. Quality goes back down, eventually is just as bad or worse as factory B and the cycle starts again. Factory B becomes A and A becomes B.

The above happens too with product samples from the best factories. Products that are the best come into a factory and get torn apart. Why do we have to fix this issue and spend so much time on it if the best company in the world sells products that have the same problems or worse. Well, think of it like this. Ford gets an Audi to check out, they buy it and bring it into their factory. Ford’s engineers take it apart. They start to question why they have been putting so much time into specific aspects of design or manufacturing. Why do we have to make the car quieter inside? The boss (Ford) wants a db level of 70 but the Audi has a measurement of 80. Audi is more expensive than Ford, and supposed to be a better car. Why then are their cars louder and more specifically why do I have to work harder to achieve 70 when the Audi is 80. That’s the thinking.

What the factories and factory workers haven’t the slightest clue about is that, better product attracts better clients, attracts more clients, and more money. The top-level companies can sell defect products or slightly sub par products because they are the leader. They can get away with it. But when you are the underdog. You have to work twice as hard to climb the ladder and know one in China understands that. If they do, then they are the top-level companies. Because that’s what it takes.

I’ve read a lot of news lately about China trying to innovate. It’s going to be really hard. Really hard. The above problem compiled with a thousand others that are culturally specific are going to hinder them. Don’t misunderstand me, America is not the best, China is not the best. But one can hardly argue about the difference in education and it’s relationship with innovation and technology.

But one of the biggest problems is employee attitudes here. Boss in America, make it 70, employee, yes sir. You pay me I work. Boss in China, make it 70, employee, can’t do it, too hard, why, you don’t pay me enough, can’t be done, etc etc etc, argue, argue, yell, yell, dinner drinking, ok I’ll make it 70.

Awesome.

I blogged before on the old lady that looked like the walking dead and how every dam morning I get woken up at 6am by screaming, howling, and other weird noises outside my slider (read it here). Well they were at it right on time at 6am again today. It looks like the old lady is doing better and can walk a little bit. They weren’t really helping her as much this time but as a side effect they have gotten louder with they encouraging rants.

July 17th.

July 25th.

Maybe the Chinese are on to something in the area of physical rehabilitation. I just hope that my kids that I will someday rear and father, put through college, give money to, and do all the loving things that fathers do will someday wheel me around so that I can at least gaze upon women 1/4 my age. That’s what a good kid/grand kid is for.

First a photo of something I usually see everyday. A person on a three wheeled motor bike kinda of a thing. Collecting styrofoam and whatnot. I think to get money out of it.

Anyway I went to a new Sichuan restaurant last night. Photos of what followed.

Corn.

Little beans with something seaweedy or green, I’m not 100% sure. Good though.

Ah yes. Meat, fat, peppers, and the hotness.

Chicken, 25% edible awesomeness, 75% teeth breaking bones.

Fish hot pot, Booya.. This little vat of intestine tickling goodness made the tear ducts sweat.

Spices. Not sure what they are. I probably could look it up on the internet. But I’m just that lazy not to.

So that’s it. Overall it was good. The other place maybe a little better. This place was hotter and score awesome points for being on a barge.

This week coming up should be a good one for food. Some people are coming into town and that usually means good food, drinking and generally doing things that would get us arrested in America.

Not don’t get me wrong. I love me a scooter. Jumping scooter, scooter burn outs, racing scooter. I’m all for it. However scooters that go too slow and or drive where I need to drive/go, I don’t like.

In example, this. In the south of China there are a ton of cars so in the major cities you can’t drive scooters. Finally outlawed them and actually enforced it. But here in the middle or there abouts of China, you can. This is both a major problem and a safety issue. As you can see from the above photo the scooters are driving on the side of the road among cars, well, there are cars, but just not in the photo.

What really chaps my ass is this, there is a SCOOTER ROAD just to the right. That’s not a damn sidewalk. It’s for scooters. So how about this, get you slow ass scooter up on that road damn out of my way, either that or transplant you little 40cc scooter engine with a 600 gixxer and start pulling 70mph cat walks. Either way is fine by me.

What this photos can’t show you is this, scooters run red lights, swerve all over, weave in and out of traffic, cut people off, go down the wrong side of the road, go slow, and generally don’t follow any and I mean any traffic laws at all. NONE. Whenever you drive you got to make damn sure that there are no scooters around and in your blind spots. Either that or carry around a bunch of money to pay off all the people you hit on scooters.

Yep, I’ve been here for over a year and haven’t seen a proper explosion. Sad really. But Friday I did. The city I live in celebrated 2500yrs. You read that right. 2500 years of kicking out the Chinese vibes. Ha you thought North America was all big and bad for 518yrs.

Anyway here are the photos to prove to all you skeptics that yes I did see fireworks.

I swear to everything that has an atom in it I will yell out the slider if I see them doing this again. I can’t take it anymore. Every morning at 6am they are out there, from what I can gather, exercising a decrepit old lady and yelling at her simultaneously. Thus waking me up each and every damn morning.

Put her back in the wheel chair and go back to bed. Let the money makers sleep. Aaaahh..