Improving productivity: The Intuitive, convincing models

Nearly 300 industrial manufacturing enterprises have access to productivity improvement tools, application of technical advances and management systems to production under Program 712. This is the result achieved by the Ministry of Industry and Trade. During the period of 2019-2020, about 120 enterprises will have access to the program in 2020.

Deploying many improvement tools

Implementing the project “Improving productivity and product quality of industry by 2020”, the Ministry of Industry and Trade has implemented tasks such as propaganda; formulating standards and technical regulations; building and implementing projects to improve productivity and quality of key industrial products and goods such as textiles, steel, plastics, chemicals …; apply management systems, models, tools to improve productivity, quality, apply scientific advances and technological innovation …

After nearly 9 years of implementation, the program has brought great benefits to businesses. Joining the program, businesses have access to quality management systems according to international standards (ISO 9,000, ISO 14,000) and system of basic improvement tools such as 5S, Lean or Lean 6 Sixma … Implementation The project has made an important contribution to raising awareness and capacity of implementing improvement activities, improving productivity and product quality in enterprises. Although the number and deployment models in enterprises are not much, the level of impact and spread from the program in general and the project activities of the Ministry of Industry and Trade in particular are very positive. In 2019 – 2020, the Ministry of Industry and Trade will deploy 278 models / enterprises to be guided to apply productivity improvement tools, invest in converting new management, management and delivery systems. In 2020, it is expected that 100 – 120 enterprises will implement.

Through the process of deploying in enterprises and according to the survey data of technology level conducted in 2017, showing that  there are 3  methods to improve bussiness, include improving production process, improving product quality and producing new products . In particular, the improvement of existing products often accounts for the highest proportion due to not having to make new investments or change as much as when producing new products. The rate of process improvement is often lower than the rate of product improvement, but higher than the rate of introduction of new products.

The business is quite active in taking measures to improve its performance, with more than 60-80% of enterprises of implementing three innovation activities. Firm size is proportional to the frequency of product innovation and diversification activities, of which, more than 80% of large-scale enterprises engage in a product or process innovation activity and are close to 50% expand production and business. Small and medium-sized enterprises, this figure ranges from 50% and 17-18%.

Great effect

The key models deployed in enterprises have brought about clear results, such as at Nam Ha Garment Joint Stock Company, the sample making time has been shortened from 44 hours / item code to 32 hours / item code. Labor productivity at the garment factory increased by 20-30%, the errors in the stage decreased from 10% to 5%.

And at Duc Giang Garment Corporation and 5 member enterprises, after applying Lean, helped businesses to improve average labor productivity by 8 – 10% and reduce the rate of defective goods on the line from 15 – 25% to 10 – 12%. Rang Dong Thermos Bulb Joint Stock Company innovates technology and applies productivity improvement tools on the assembly line as Lean Six Sigma, helping the labor productivity of the point line increase by 59%, bringing value nearly 1 billion / year, this model has been replicated to other lines in the industry, labor productivity increased from 10 – 20% of the whole company.

Productivity and Quality Office