Siheyuan: My wife is Xu Huizhen

When He Yuzhu heard this word coming out of Huang Zhirou's mouth, his face was full of surprise.

You should know that the machine tools currently used in China are almost all manual lathes, and advanced equipment such as CNC lathes are simply a fantasy for China!

Before this, He Yuzhu knew nothing about this kind of high-tech products.

However, when he heard that CNC lathes had actually appeared, he instantly became very interested.

"Okay, please invite him to the office first."

He Yuzhu quickly washed his hands and walked quickly towards the office.

The moment he stepped into the room, he saw a blond, blue-eyed Westerner in a suit sitting on the sofa.

Huang Zhirou saw this and hurried forward to introduce He Yuzhu:

"Boss, this is Mr. Milo Moreno from Moreno Company."

Mr. Milo Moreno stood up very politely, and took the lead in extending his right hand to He Yuzhu, smiling and saying:

"Hello, Mr. He."

Although the other party spoke Mandarin a little poorly, in an international metropolis like Hong Kong, many foreigners can speak a few words of not very standard Chinese, so He Yuzhu was not surprised.

He responded by shaking Milo Moreno’s hand with equal enthusiasm:

"Hello, Mr. Moreno."

After the two exchanged greetings, they sat down separately. He Yuzhu couldn't wait to ask:

“Can your company really produce CNC lathes?”

His eyes were fixed on the foreign businessman in front of him, his eyes full of anticipation and curiosity.

He Yuzhu suppressed his inner impatience and patiently listened to the other party's endless explanation.

In fact, talking about CNC machine tools is not something strange to him, because it is more or less something within the scope of common sense.

Although he had been working in the field of mechanics, he had never really understood it in depth before.

What he didn't expect was that in this era, CNC lathes have actually begun to be mass-produced!

As for himself, he always operated the traditional manual lathe and never thought of getting in touch with a CNC lathe.

"You've said so much, but do you have any actual products?"

He Yuzhu finally couldn't help but interrupt.

"Of course we have it. It's in our store!" the man responded quickly.

"Okay, let's go and take a look. Just hearing what you say won't do. I have to see it with my own eyes to believe it."

He Yuzhu thought to himself that he was an expert in lathe production and had no time to listen to this man chattering on and on about empty theories.

So, without saying a word, he started the car and drove towards Milo Moreno's business with Huang Zhiru.

When we got there, we found that the store's facade wasn't that big, but as we walked inside, we discovered that there was a fairly large warehouse hidden in the back.

I saw dozens of brand new lathes neatly arranged in the warehouse.

At this time, Milo Moreno once again demonstrated his eloquence and eloquently introduced to He Yuzhu the development history of these lathes, as well as their respective characteristics and advantages.

According to him, all the old-style lathes produced by He Yuzhu before were classified as mechanical lathes.

In that era when electronic devices were not yet popular, all production processes relied entirely on manual operations.

The first generation of CNC lathes was born in 1952, and all the components used at that time were vacuum tubes!

He Yuzhu was actually not unfamiliar with things like vacuum tubes, because even the radio he often listened to still used vacuum tube parts.

The year came to 1959. With the start of transistor production, transistors and printed circuit boards were widely used in some CNC systems, and the second generation of CNC lathes came into being.

After Milo Moreno explained the background knowledge to He Yuzhu in detail, he pointed to a cabinet next to the lathe and said:

"Look, this is the CNC center of the lathe."

Hearing this, He Yuzhu couldn't help but ask curiously:

“So how do we use it to produce parts?”

Milo Moreno replied slowly:

"First, we need to make a punched tape."

He Yuzhu was stunned when he heard this. Although he understood the meaning of each of these four words individually, when they were combined together, he was completely confused and had no idea what this thing was.

Milo Moreno gently pressed the button, and the panel of the CNC center slowly popped open. He carefully pointed at the paper roll inside, and said with confidence and professionalism in his eyes:

"Look here, this paper roll is not simple! It has densely packed holes in different arrangements. These holes are not randomly punched, they represent different meanings. Through these holes, we can accurately control the tool movement of the lathe to achieve the processing effect we want."

He Yuzhu, who was standing aside, stared at the scroll intently, frowning slightly, as if trying to understand the mystery contained in it.

After some thought, he finally realized and nodded, indicating that he had figured it out roughly.

It turns out that if you want to use a CNC lathe to produce a part, you first have to carefully write a complete set of programs according to specific rules.

The era was still quite backward at that time, and there were no advanced storage devices such as hard disks, floppy disks or flash memory. Therefore, we could only rely on this ancient and practical perforated paper tape to record all the key information and let the lathe obediently perform the corresponding operating steps according to the instructions conveyed by the holes on the paper tape.

It is really a great blessing for manufacturers because of such a magical CNC lathe!

They no longer have to spend a lot of time and energy to train those highly skilled and experienced senior lathe workers. They only need to recruit some ordinary workers with relatively low skill levels to easily operate these high-tech giants to complete complex processing operations.

However, everything has its pros and cons. Although CNC lathes have brought many conveniences, there is also a small trouble that is quite a headache - every time a new part with different specifications needs to be produced, a completely new set of programs must be written separately and made into special punched paper tape before it can be put into use.

Moreover, this job requires a very deep knowledge of mechanical principles and superb programming skills to be competent!

Thinking of this, He Yuzhu couldn't help but ask curiously:

"So for some common universal connectors, have you prepared the corresponding punched paper tapes in advance?"

"Of course we do! Not only that, we can also provide professional training services, including how to let workers operate these equipment skillfully. We can even teach the relatively complex process of making punched paper tapes clearly!"

After hearing this, He Yuzhu couldn't help but ask curiously:

"Then may I ask, are these lathes products that you sell as agents, or do you have your own independent production factory?"

The other party smiled and replied:

"To be honest, my family runs a large-scale lathe manufacturing company in faraway Los Angeles! Equipment like these lathes and CNC machine tools all use parts that are carefully produced in our own factory and then go through a strict assembly process before they can be put into production."

Hearing this, He Yuzhu's eyes suddenly lit up, and he quickly asked:

"Then are these key transistor components also made by you? You know, this thing is a rare thing!"

In fact, He Yuzhu had long coveted the opportunity to obtain transistor production technology, but unfortunately he had never been able to do so.

After all, in the current market environment, there are very few manufacturers that can have such production capabilities, and He Yuzhu himself lacks enough channels and resources to contact and cooperate with those manufacturers. However, what he never expected was that Mr. Milo Moreno, who took the initiative to come to his door to sell products today, actually revealed such important information to him - it turns out that the company behind Moreno Company actually has advanced transistor production technology!

Therefore, He Yuzhu could not hold back his excitement and said quickly:

"In principle, if all conditions are suitable, I would like to order a batch of such lathes. How about we sit down and discuss the relevant matters?"

Seeing this, Milo Moreno was naturally overjoyed and readily agreed:

"That's great! We have all kinds of lathes of different models and specifications, and some of them have not been displayed here. But it doesn't matter, we have a detailed and accurate product model catalog for your reference and selection."

There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!

The three of them walked slowly into the office. He Yuzhu's eyes were sharp as a torch, quickly scanning the various lathes neatly arranged in the room.

He walked to each lathe, sometimes stopping to carefully examine its appearance; sometimes reaching out to touch it gently to feel the texture of the metal surface.

After careful selection, he finally chose twenty lathes and nodded with satisfaction.

Then, He Yuzhu raised his head, looked at the person opposite him with a firm gaze and said:

"I need a total of 100 lathes this time, but I have only selected these 20. So I would like to ask if your company can accept us to process and produce the remaining 80?"

In fact, He Yuzhu knew very well that it was almost impossible to get the other party to transfer the transistor production technology easily. After all, they had just met today and lacked sufficient understanding and trust between each other.

When Milo Moreno heard He Yuzhu mention the word "OEM", he couldn't help but show a surprised expression and asked in confusion:

"OEM? What does that mean?"

He Yuzhu smiled slightly and explained patiently:

"You might as well compare the wage levels of workers in Los Angeles and Hong Kong. It's not hard to find that the labor cost here is much lower than in Los Angeles!"

Milo Moreno nodded thoughtfully and responded with deep emotion:

"That's true! In Los Angeles, the average weekly wage of workers is about 500 US dollars, but here, it's only more than 200 Hong Kong dollars a month. But... I still don't quite understand what you mean by 'OEM'?"

He Yuzhu smiled and continued to explain:

"So-called OEM is actually quite simple. We have the ability to produce ordinary machine tools. If we add the key components such as transistors you provide, we can completely manufacture high-quality CNC machine tools for you according to your requirements!"

Milo Moreno's eyes widened, his mouth slightly open, and he seemed to be frozen in place. He was stunned for a long while before he came to his senses and stammered:

"You... you mean, you will be responsible for the production work for us?"

The other party smiled and nodded, and answered affirmatively:

"Yes, that's right. This way, you can enjoy the huge advantages brought by lower production costs! Not only that, you no longer have to deal with those difficult unions. We will produce products for your company, and you only need to focus on research and development and sales. How about that, isn't it great?"

Hearing this, Milo Moreno showed an expression of disbelief on his face, and murmured to himself:

“Is there a way to operate this way?”

At this time, He Yuzhu slowly began to introduce in detail the various specific benefits of the OEM model.

From improving efficiency to reducing risks, to saving manpower and material resources, it can be said to be comprehensive and there is nothing wrong with it.

More importantly, these benefits are all real advantages, and there are no obvious flaws or shortcomings at all.

Milo Moreno became more and more excited as he listened, and he started to think quickly in his mind.

Not long after, he was pleasantly surprised to find that if he adopted this OEM model, he could save tens of thousands of dollars each year in employee salaries alone!

This is not just a simple increase in profits, but a huge difference in wage levels between the United States and Hong Kong! Thinking of this, Milo Moreno couldn't help but be delighted and danced with excitement.

He rushed to the cupboard in two steps, opened the door impatiently, and took out a bottle of top-quality red wine that he had collected for a long time.

Then, he skillfully pulled out the cork and slowly poured the ruby-red wine into three crystal clear goblets.

Finally, he held a glass of red wine in each hand, raised it high, and said loudly with a smile on his face:

"Come on, let's toast to this brilliant and perfect idea!"

Huang Zhiru on the side was already stunned. She never expected that her boss, who seemed ordinary in daily life, could come up with such a brilliant idea.

At this moment, she looked at her boss's high-spirited appearance and secretly sighed in her heart:

"My boss is an absolute business genius! How come I have never heard of such a magical business strategy as 'OEM' before?"

They all build their own factories, produce products, and then sell them to various places.

The boss actually came up with the OEM method, utilizing Hong Kong's cheap local labor to produce products and earn a small processing fee.

No matter the raw material technology or the market, we are only responsible for production.

Milo Moreno talked to He Yuzhu for a long time, discussing many specific details, and suddenly remembered to ask:

"But in this case, how can you ensure that the technology will not be spread?"