Applying PMS helps to increase productivity by 20% and improve customer satisfaction

Although many activities have been carried out, but only when participating in the PMS project of the Ministry of Industry and Trade, Future Company Limited really changed.

“The company has been engaged in many quality and productivity activision for a long time and got some results. However, only when participating in the overall productivity project of the Ministry of Industry and Trade, the change will be really clear and bring positive results ”.

That is the sharing of Mr. Truong Quoc Cuong – General Director of Future Co., Ltd. on the process of efforts to reduce costs and improve the Company’s competitiveness.

Did but not effective

As a company specializing in manufacturing rubber and technical plastic products for the automotive, motorcycle, food and medical industries of all factories in all provinces and cities of Vietnam, the products Future has quite strict requirements on technical specifications and quality. In addition to serving domestic demand, the Company also has a large number of customers located in FDI export processing zones in Vietnam such as Japan, Korea, Taiwan, Malaysia, China, Germany, etc, and exporting products to many countries such as the United States (GE Group), England, Australia, Laos and Cambodia.

Therefore, Future Co., Ltd. has access to quality management systems since its establishment in 2012. First is the quality management system according to ISO 9001 and then ISO 14001. Tools innovations such as 5S or Kaizen were also applied by the Company right from the early stage of establishment. However, according to Mr. Cuong, “he will return to his old self sometimes”.

The wind of real change came when the Company participated in the Ministry of Industry and Trade’s 2018 Overall Productivity Project, hosted by the Vietnam Institute of Productivity. Through the process of surveying and researching the production status of the Company, the consultants realized that the Company focused on investing in new technologies and equipment innovation but currently exploited 60-70% equipment, due to lack of output, coordination of production is not good and much waste.

Not to mention, some stages have to be outsourced, but due to the Company’s lack of initiative in raw materials (rubber), calculating the unqualified order quantity, it is often lacking and waiting, leading to the delivery schedule. achieved as expected. Therefore, if not changed, it is difficult for enterprises to compete because they do not control the progress and product quality.

From this result, the Company’s leaders also realized that the change must be right from the mind of the key staff. Leaders must follow employees closely, be determined to change employees’ perceptions, force them to understand that business owners are very concerned, not to do the type of coping, giving them the habit of cleaning up every day. and regularly maintained, to achieve the highest efficiency.

On the basis of quality management systems, individual improvement tools, basically, the Company’s staff has trained many programs, so the encouragement of the private team The advice and close supervision of the Company’s leadership, staff and employees are determined to change once again.

From the consultant’s surveys, meetings are conducted to find the best solution for the business. Each of the proposed solutions is followed by a careful calculation of the application roadmap that is suitable to both the production schedule and the financial level to be invested. “But we have seen the difference every day when applying overall productivity, so even with an expensive but clearly effective investment, we have accepted it and so far, there has been no solution. financial strength of the Company, so we still follow all the proposed consulting solutions “- Mr. Cuong shared.

The only thing that the Company finds difficult is the application of an overall productivity program that requires statistics and data recording to be very precise and meticulous, so the Company must invest more human resources to meet standards of that position. However, with many training courses since 2012, the Company has overcome this difficulty to pursue its goal of “comprehensive change” so that it can become a typical business for change in adopting an overall productivity improvement model.

Increasing productivity by 20%, the potential for enormous changes

Preliminary figures after 10 months of applying the solutions of overall productivity improvement, as shown by quick survey with 10 large, close customers of the Company. General Director Truong Quoc Cuong was very excited, when customers’ complaints about the delivery progress were greatly reduced. He said that not only the Company’s overall labor productivity increased by 20%, but the rubber workshop alone, the output increased 3 times/labor. Especially, before, every month, the Company had up to 1-2 cases of customers complaining about the delivery schedule, about the wrong product code, but now a new case occurred a few months. Product quality is improved much better through positive reviews from customers.

“With the same machinerys, same labors still the productivity increases by 20%, This is enough to prove the potential for change is huge. There are some codes we invest in replacing the mold, the productivity increases to 50, even 100%. For example, before using a small mold maker, once producing 49 products, now investing in a large machine, producing 144 products/one die, the productivity increased by 300%.”

But our greatest success has been the end of customer complaints about delivering wrong codes. Can you imagine, we have thousands of item codes. Previously to pile up in the warehouse, wrong delivery code is inevitable. Now, with the addition of price shelves, nameplates and clear instructions, the Company did not allow wrong delivery of codes. That’s what we find very happy and very positive customer reviews.” – Mr. Cuong could not hide his happiness.

Also according to a report from the Company, the order completion rate has increased from 85-86% to 98%. Making deliveries on time for customers to reach 100%. Labor productivity of all parts increased. Customer satisfaction surveys all respond very positively, customers appreciate progress in delivery deadlines, process customer requests faster, with shorter response times.

Through improvement projects, improvement groups gained more knowledge and experience on enterprise productivity improvement activities. But more importantly, it is to build an improved culture for continuous improvement and innovation activities. This needs the drastic leadership, as well as the spirit and enthusiasm of the employees in the Company.

In order to mobilize the participation of employees in improvement activities, the Company has built an incentive mechanism for improvement. The evaluation of improvements, incentives with money, incentives with rewards has also been put into a clear regulation and agreed by the staff.

Mr. Cuong added, the Company is currently a bright candidate, awaiting appraisal to become a supplier of rubber products, rubber washer in Samsung washing machines and refrigerators. The construction of a relatively different management system and corporate culture has helped the Company confidently expand the market, approach large manufacturers, and strive to perfect itself for sustainable development in the future.

Source: VNPI