Improve productivity for industrial production enterprises

After nearly 10 years of implementation, the project “Enhance productivity”, product quality and industrial goods to 2020 (1 in 9 component projects under the National Program to Improve Productivity and Product Quality Vietnam’s businesses by 2020) have nearly 500 pilot models applied in practice, helping many enterprises in the industrial sector to gradually improve productivity, quality, and improve operational efficiency and competitiveness.

On May 25, 2012, the Prime Minister issued Decision No. 604 / QD-TTg on approving the project “Improving productivity and product quality of industry to 2020” of National Program “Improving the productivity of product and goods quality of enterprises till 2020” (Program 712). In the period of 2012-2020, the project has made a significant change in productivity, quality of key products and competitiveness of enterprises, making a positive contribution to socio-economic development.

Effective support for businesses

Immediately after the project was approved, the Ministry of Industry and Trade established a steering committee, an executive and an assisting agency located at the Department of Science and Technology (S&T) to organize and implement the project. Sticking to the assigned content and objectives, the Project Steering Committee and executives prioritize the selection and implementation of appropriate and flexible methods. Accordingly, the Steering Committee has selected the basic tools and systems for corporate governance activities such as ISO 9001: 2015, ISO 14001: 2015, ISO 50001, improvement tools. 5S, Kaizen, etc to support businesses in applying. It will then assist in the implementation of specific management systems that go into each company’s development strategy.

Nam Ha Garment Joint Stock Company (one of the leading enterprises of Vietnam textile and apparel industry) has applied models and tools to improve productivity and quality such as ISO 9000, 5S, TPM, Lean, KPI, Lean 6 Sigma, Kaizen. At the intelligent suspension system, experts have re-trained workers, arranged equipment in the form of flow, etc; Thanks to this, it has increased the pass rate from 40 to 80%. Along with that, the Company also agreed on standards for each product code and codified end-line errors; In the line, Kaizen has taken measures to prevent and eliminate errors in order to limit the error of repetition and limit rework in the pass. As a result, the error rate has decreased from 12 to 7.6%. For the production team, after improving at the 15th pass, the productivity of item code 8202 has increased from 500 to 630 products / day (up 25%) with the number of employees 18 people, etc.

Besides, the Company also coordinate with the supplier of specialized software design to build a process to improve sewing productivity. As a result, actual production has increased from 70 to 85% compared to the original plan, contributing to increase labor productivity to 30%. Realizing that improving productivity and quality is a continuous operation on 2018-2019, with the support from the Ministry of Industry and Trade and the Vietnam Productivity Institute, the Company continues to build an overall quality improvement model based on the PDCA cycle approach. Specifically, the Company has changed the responsibility of spreading the lines, investing in production management software, using it to design the optimal production lines. As a result, the code conversion time has been reduced from 2-3 hours ago to 30-60 minutes (from simple to complex codes), the total conversion time decreased from 8 hours to 4 hours. By many efforts, the Company’s labor productivity in 2019 increased by 23%, production revenue increased by 17%, average income of employees increased by 23%, the proportion of defective products when checking out decreased by 13% compared to with 2018.

At Duc Giang Garment Corporation and its subsidiaries, after applying the improved tools, it has contributed to shortening production preparation time, reducing inventory and increasing equipment productivity. New product code conversion time has been reduced from 8 to 6 hours; For traditional products, the code has been reduced from 6 to 4 hours. The rate of errors on the line decreased from 15 to 10%, a reduction of 20-50% of downtime compared to before making improvements; labor productivity increased by 5-8%, the amount of inventory on the line decreased from Lean 10 to Lean 8. Especially, thanks to the neat and tidy, the fire and explosion safety is also very convenient, the workers are quiet. The mind works in an open, clean and safe environment.

At most units of the Vietnam Chemical Group, they have built and applied a quality management system according to ISO 9001-2008. Many companies are developing an ISO 14001 environmental management system and OHSAS 18000 occupational health and safety management system, etc. The Group’s units have applied quality control and improvement tools. such as: planning product quality (APQP: Advanced Product Quality Planning), production approval process (PPAP: Production Part Approval Process), 5S, Kaizen. The results achieved when applying the solution groups are very clear, contributing to improving the competitiveness of products and overall production and business efficiency. Typically, Van Dien Fused Magnesium Phosphate Joint Stock Company has reduced the consumption norms of coal and electricity at the furnace gate; Thanks to that, the product quality has been improved, consumed widely in the country and exported to many countries around the world such as Japan, Korea, Australia, Malaysia, etc. Currently, the company is focusing on research. using raw materials and fuel to replace part of apatite ore of grade 2, lump coal, additives, etc to further reduce costs, lower production costs and meet market demands. By applying the quality management system according to ISO 14001, Lam Thao Superphosphate and Chemicals Joint Stock Company has been exported to Japan, New Zealand; effective 1517% P2O5 fused granular product, dried, initially exported to Korea, etc.

Survey results of the Ministry of Industry and Trade showed that 99.3% of businesses assessed the application of productivity and quality improvement tools that brought clear results, in which the factor was greatly improved. especially self-improvement capacity of enterprises (98%), 64.7% of enterprises have improved productivity, 56.9% of enterprises have improved product quality, 54.2% of enterprises enterprises have reduced waste of raw materials, 47.1% of enterprises have improved delivery time. At present, 94.8% of the point models continue to maintain after the end of the project, of which, 22.2% of models are expanded.

Leverage to develop

According to experts, domestic enterprises have the opportunity to increase productivity by 15-30% (even up to 40-45%) through process improvement, reorganizing production, reducing waste and wrong errors, improve the efficiency of using machinery, equipment … However, improvement activities, improve productivity and product quality management are self-operation and intrinsic requirements of each business should develop. This activity will be based primarily on the resources of the business. Therefore, improving the productivity and product and goods quality management in businesses in terms of solutions will have a comprehensive approach from reshaping business strategies in a new context; establishing, optimizing and modernizing the management system to research and apply innovation in production technology, training, improving the qualifications of workers and managers; engage and accelerate digital transformation and develop intelligent manufacturing for businesses, creating a leap forward for productivity and quality issues.

To do that, the State needs to encourage, leverage, environment and ecosystems to encourage and support enterprises to implement improvement activities, improve productivity and quality. In addition, it is necessary to motivate self-improvement activities at the business through launching competitions on improvement and improvement of productivity and quality; publicize and honor enterprises for well performing improvement activities; Honoring groups of effective and typical solutions for improvement activities in industries and fields. Develop criteria, processes, mechanisms for evaluation and recognition of improvement activities of enterprises; models of assessment of 5S good practice certification, improvement tools will be gradually standardized, etc. In particular, it is necessary to select investment and in-depth investment support to strengthen the capacity of some applications. specialized research advisors in researching, mastering and applying the technologies of the Fourth Industrial Revolution into production, management and business activities of enterprises in order to improve productivity and quality, the competitiveness of businesses.

Productivity and Quality Office