Instituting an Intrafactory Economic Contract System is a Good Device to Strengthen Business Management

The Shanghai No. 1 Printing and Dyeing Mill has five workshops for bleaching and dyeing, engraving, printing, finishing and packing, and machinery. Manned by more than 2,000 employees, it is one of the largest of its kind in Shanghai. It was also one of the "hardest hit" by the destructive forces of Lin Biao and the "Gang of Four" during the Cultural Revolution. Through consolidation and intensified managerial efforts, the factory has undergone great changes over the last three years. Since the fourth quarter of last year, in particular, it has implemented on a trial basis the system of economic contract within the enterprise, thus making a giant step forward in both production and management. Compared with the same period last year, output from January to August this year grew by 8.55 percent, gross output value by 19 percent, and profit by 13.28 percent. Its product quality has registered "four surpasses" (namely, surpassed the planned target, surpassed the same period of last year, surpassed the peak level in history, and surpassed the standard set by the Textile Ministry).