Improving management system at Future Company Limited: Ensuring delivery schedule

With the support of consultants, Future Company Limited has changed the way of management and production improvement. As a result, the company’s labor productivity has increased by 20%; total efficiency of machinery and equipment (OEE) increased by 19%; the completion rate of production orders increases by 12-13%. In particular, the delivery schedule has been ensured, improving the reputation and competitiveness of businesses (DN).

As one of the first 9 industrial production enterprises (specializing in manufacturing rubber and engineering plastics) participating in the overall productivity improvement program of the Ministry of Industry and Trade assigned Vietnam Productivity Institute (VNPI) to implement. Future Company Limited has implemented from January to October 2019. Through the survey process, the consultant team asked the company to improve its management system to increase efficiency of equipment, workshops and workshops; Strengthen marketing to find new customers. At the same time, adding 30% more labor to match the invested equipment; improving production planning and forecasting; Increase input quality control.

Accordingly, the company has adjusted the planning work closely to actual production, solving the problem of material slowdown through improving raw material trucks, adding personnel as well as controlling the input process and having Bonus policy for diligent workers. In order to reduce mold replacement time, the company has classified and normed each type of code with different difficulty, and trained workers. After 4 months of applying these options, the average OEE in 3 workshops increased by 28%; of which, the main focus in two rubber pressing factories helped OEE increase by 30%. Currently, OEE in these two factories is at 80 – 81%, quite high compared to Vietnamese enterprises.

Along with that, the company has researched to invest in molds and auxiliary fixtures to take many products at once; extrusion format, reduce the time for workers to cut glue with 2 or more machines; ask suppliers to format according to specifications and packaging to preserve raw materials; replacing manual cutting with cutting machines, etc, increasing productivity by 20 times.

After 10 months of implementation, through the change in management practices and production improvement, the company’s overall labor productivity increased by 20%, OEE for the whole company increased by 19%, customer complaints fell below 1. cases / month instead of 1-2 complaints / month as before. Product quality has improved well; production order completion rate increased from 85 – 86% to 98%; ensure timely delivery to customers. Particularly in the rubber workshop, 1 worker operates 3 machines instead of 1 machine as before, output / labor increased 3 times. Through innovative solutions, the company has learned from experience to be effective and maintained in the coming time, that is: Training and coaching must be done regularly; forming a culture of cooperation to solve emerging problems; have mechanisms to encourage improvement activities for employees.

Mr. Truong Quoc Cuong – Director of Future Company Limited:

The company has built a relatively different management system and corporate culture, helping to confidently expand the market and approach major manufacturers. The overall improvement model has given the company a comprehensive approach to productivity – quality improvement, helping the company see more clearly the path to perfection.

Productivity and Quality Office