Following the quality productivity movement initiated in 1950, many models for improving productivity and quality have been proposed and widely disseminated in the world.
These models are being applied singly or integrated in businesses. On that basis, many countries have come up with a comprehensive model for productivity improvement and quality management activities in enterprises such as “Production Management System (PMS) of Korea”, ” Business Excellence Model – Business Excellence ”by Singrapore. These overall models are aimed at applying comprehensive and systematic solutions to improve the business operations of the enterprise, focusing on the main activities affecting the production and business efficiency of the business.
In order to bring about an overall and significant change in productivity and quality in enterprises, in 2018 – 2019, the Ministry of Industry and Trade has assigned the Vietnam Productivity Institute to research and support. pilot building a comprehensive model for productivity improvement and quality management activities for 09 enterprises in Textile, Plastics, and Chemical industries. Following the research methodological foundations of this model, 2019-2020 will continue to apply this model to enterprises in the footwear, steel, energy and electronics, telecommunications and information technology industries.
R.C.’s productivity and efficiency model Monga (Productivity Specialist of Asia Productivity Organization – APO) makes sense of productivity improvement and productivity improvement based on 4 pillars: Customer-oriented organization development; Continuous improvement and technological innovation; Organization of effective production management; Reduce waste in the production process and service delivery. In particular, the center of these four pillars is the people. This is a suggestion in building a model to improve overall quality productivity.
Developing customer-oriented organization
The first important factor is that businesses need to identify strategies and goals to suit the current business environment. The key factor in business today is customer satisfaction.
To get high productivity, businesses must identify their advantages to make the most of that advantage, while minimizing the drawbacks with appropriate business strategies. In a market economy, most goods are in a state of supply greater than demand, leading businesses to compete with each other by having to satisfy the needs of the buyers.
So, in a productivity strategy, you have to start with knowing who your customers are, what they need, why they need them, how they use it, and at what price. They are willing to pay to buy the product. Customers’ needs and desires must be considered when producing products and services. The entire system or production process of the business needs to be linked to this strategic goal.
The next important issue is to create an understanding and exchange of information with existing customers to build long-term relationships. According to R. C. Monga (2000), the cost to attract a new customer is usually six times the cost of maintaining an old customer. The costs to attract customers include understanding their views on the product, describing and translating the information learned into specific improvements to create a competitive edge. Organizations need to develop the system in formal and informal ways in order to interact regularly with customers, identify their changing needs, and their experiences.
Businesses need to create awareness for all members about understanding customers and building customer prospects, exchanging information with customers, training and providing guidance to employees how to deal with customers, stating the top management’s point of view on customer orientation.
Personnel in direct contact with customers should have communication skills, problem-solving skills and full knowledge of product use and other related issues. In order to maintain customer-focused orientation over the long term, businesses also need to change their management structures and performance evaluation criteria. Specific goals should be set up for handling errors, reducing the time it takes to respond to customer complaints and the cost of repairing defective products, all supporting workers who are directly geared towards satisfaction. customer satisfaction.
After-sales services, customer guidance in using the product, getting customer feedback as well as answering customer questions in a timely manner are important ways to build trust with customer besides building goodwill and corporate image.
Continuous improvement and technological innovation
Technology and innovation are also two factors that contribute significantly to improving productivity. Recent developments and significant effects of information technology on business operations and human progress are a testament to what technology can do.
Investment in research and development is necessary but not sufficient to gain competitiveness in the market. Many businesses, especially small and medium-sized businesses, often do not have the resources to spend on research and development. They acquired new technology through joint ventures, associates, foreign direct investment, patent agreements, strategic alliances, and technology transfer became an important factor in the filling productivity gap between companies.
It should be emphasized that the use and management of technology is also very important, by using and managing the technology well, its potential benefits are revealed. It is necessary to analyze the impact of new technologies and structures, systems and skills and make changes across the organization. Before applying, businesses bring new technology to adapt to local conditions, learn from technical manuals, train, hire technology experts and observe operations at the workshop. The effectiveness of technology should be studied to develop a standard method. New technology is fully utilized only when combined with product development.
Workers should be involved in identifying new elements, new skills, and retraining and restructuring plans. Assessing the choice and use of new technology not only based on economic indicators but also considering the impact of technology on the environment and working conditions.
Environmental issues are also an important factor in today’s business. It may be the cause of increasing international and social pressure on business activities to take environmental aspects into account. Therefore, an enterprise productivity improvement program must be sustainable, with a focus on protecting the environment and even ensuring the integrity of the environment.
Effective production management organization
When the current structure of an organization based on functional functioning produces unexpected results, the organization needs to think about reengineering the process. According to a functional-based system structure, a process consists of a collection of tasks or activities segmented in a functional structure, then each department will pay attention to complete the tasks within limits. function of that department without paying attention to the whole process. Such a function-oriented thinking will lead to the prioritization of sub-goals without achieving major results.
The basic goal of process management is to create a holistic view of the process and to link the entire chain of activities in the process to produce the desired results (e.g. customer satisfaction). ) in quickest way. Process management will create a collaborative platform that transcends functional barriers, aiming at the highest adaptation to customer needs, ensuring that the chain of inter-functional activities is managed and improved. based on customer prospects and maintain alignment between departments.
“Workflow” is an important element in business process management, it is the sequence of activities in a process, the way to arrange, allocate, schedule these activities along with human factors. resources, technology, equipment and means of production. Managing the business process must ensure that the workflow overcomes the barriers of the functions in the organizational structure. The workflow must be linked together to ensure no loss of information when they are processed in departments or individuals in a certain process.
If the method of managing the business process is implemented well, it will bring great benefits to the business. The efforts will help speed up market access, increase sales and reduce costs, and increase competitive advantage.
Reduce waste in the manufacturing process and service delivery
When it comes to “waste”, we often think of time, money or materials. In fact, waste can be in a much wider range, for example poor quality products, redundant activities or not creating added value, etc.
In lean production systems, production activities can be divided into three groups:
Activities that do not create added value are considered wasteful. Including: Waste of time due to waiting or delay; Waste from fault production; Waste on transportation or transportation; Waste due to inventory or unfinished semi-finished products in the process; Produce extra; Waste excess processing; Waste due to redundant movements; Waste of talent.
In short, businesses need a plan and management of productivity to achieve desired levels of operational efficiency and ensure market success. The strategy needs to create a link between the different functions and divisions of the business in order to create value for customers and society. Factors that need to be linked with each other are technology, management methods, human resources, production processes and customer requirements.
From identifying the factors that affect productivity, businesses need to put productivity in an overall strategy to create value through creating and applying knowledge to satisfy customer needs and Stakeholders. Recognizing human thinking is the basis of improvement, it is necessary to emphasize building a mindset that seeks continuous improvement and responds positively to change. Managers determine the capacity of the business to achieve higher productivity.
Source: VNPI
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