Applying the 712 Program helps many businesses increase productivity and reduce inventories

After 10 years of implementing the national program “Improving productivity and quality of products and goods of Vietnamese enterprises to 2020” (Program 712) has helped enterprises increase productivity by 30%, reducing billions Incorrect goods, defective goods, inventory, etc.

In recent years, thanks to the application of Program 712 in the production process, improving product productivity and quality, many businesses across the country have improved quality, product design, especially productivity and quality of the product is significantly improved.

Up to now, after 10 years of implementing the 712 Program, many businesses have approached and applied international quality management systems (ISO 9,000, ISO 14,000) and a system of basic improvement tools (such as 5S, Lean or Lean 6 Sixma, etc)

Notably, after approaching and applying the international quality management system, many businesses have improved productivity, quality, products and shortened production processes, thereby helping to reduce costs for businesses.

Statistics show that, after 10 years of implementing the 712 Program, up to now, about 15,000 enterprises have been instructed to apply new models to improve productivity and quality. The application of advanced management systems and tools to improve productivity and quality and the application of management criteria of the National Quality Award model has helped tens of thousands of enterprises improve their quality product and goods, reducing cost of defects, thereby improving labor productivity and competitiveness.

Specifically, at Rang Dong Thermos and Water Plug Joint Stock Company, after this company applied innovative tools to the LED assembly line, reduce waste, make tools, jigs, design changes  and the automation of some assembly and packaging equipment, the productivity of the point line increased by 59%, the value brought about nearly 1 billions dong/ year.

Or at Nam Duoc Joint Stock Company, applying a tool to maintain the overall equipment efficiency in the pharmaceutical production process, this company has helped this company reduce the breakage rate of pills by 80%, increasing overall equipment performance from 50% to 60%.

Another typical example, at Phuoc Hoa Rubber Joint Stock Company, applies the energy management system ISO 50001: 2011, using biomass biomass to heat radiator oil to dry rubber to replace oil. DO, FO helped this company save more than 1.3 billion dong (in 2015), 803 million dong (in 2016) and more than 1.4 billion dong (in 2017), etc.

From a local perspective, the typical application of the 712 Program is Ba Ria – Vung Tau province. Until now, this province has supported 113 enterprises with a total budget of over 3.9 billion dong. This capital has helped businesses build and apply an international standard management system and register for trademark protection, etc.  More importantly, this program has helped businesses improve productivity and the quality of products and goods, increasing competitiveness, positively contributing to the socio-economic development of this province.

The above evidence shows that, clearly, the effectiveness of the 712 Program application is quite obvious and it is necessary to promote the application of international standard systems in production activities of enterprises to improve productivity and product quality.

According to science and technology experts, the implementation of the 712 Program has closely followed the set objectives, contents and tasks. Ministries, branches and localities have been more interested and proactive in implementing and implementing tasks.

In order for the 712 Program to continue to be effective and spread the effects to businesses, in the coming time, localities should continue to organize training and capacity building for management staff and consultants in the fields of productivity, quality, knowledge training on standards, productivity and quality in universities, colleges and vocational schools. At the same time, to increase consultancy activities, guide and support enterprises to develop and apply technical standards and regulations; applying solutions to improve productivity and quality.

In addition, priority is given to supporting small and medium enterprises to start up, create, develop a full system of national standards for all economic and social fields, in harmony with international standards basis for productivity and quality improvement activities.

Statistics show that, after 10 years of implementing the 712 Program, up to now, about 15,000 enterprises have been instructed to apply new models to improve productivity and quality. According to the evaluation of the 712 Program Executive Board, the application of advanced management systems and tools to improve productivity and quality and apply the management criteria of the National Quality Award model has helped tens of thousands of enterprises improve product and goods quality, reduce cost of mistakes, thereby improving labor productivity and competitiveness.

Productivity and Quality Office