MFCA: Solution to improve competitiveness for Vietnamese enterprises (Part 1)

Economic integration in the current trend of globalization poses a great challenge for Vietnamese enterprises. The price of raw materials, input energy, etc is constantly increasing while the products of the enterprise are subject to very high competition, and must ensure the environmental impact in production and business.

So to what extent are Vietnamese businesses calculating, controlling costs and optimizing the cost of input materials for production? In other words: How has MFCA been implemented in Vietnamese businesses?

MFCA is not restricted to a particular business or the size of the business, ensuring it applies to any type of business or scale. Types that can be applied: manufacturing enterprises, service-providing enterprises, supply chains, etc. However, within the framework of the project “Promoting productivity and quality activities” under the National Program ” Improving productivity and product quality of Vietnamese businesses by 2020”, the task of “Replicating the application of Material Cost Costs (MFCA) tools for enterprises in the manufacturing and processing industry. food; production of beverages; Production of wood products’ implemented from 2016, will focus on researching environmentally friendly solutions such as reducing source, recycling and improving productivity and product quality for 40 enterprises. in manufacturing, food processing, beverage production and wood products manufacturing. These solutions not only help businesses reduce waste but also help businesses reduce their environmental impact in the most positive way.

The mission highlighted the waste of food production and processing industry; production of beverages; produce wood products as well as causes and improvement solutions, specifically:

1. For food production and processing industry

Problems and causes

• Waste raw materials and finished products due to damaged materials in the course of transportation and storage; non-closed conveyor causing material spillage; Finished product sizes are not uniform; manipulation of workers; old equipment, products made out of technique, etc.
• Waste of water due to inappropriate washing of raw materials, workshops and equipment; pipe leak, etc.
• Waste of energy due to improper use of machines; use old and outdated technologies; unreasonable pipeline system; The coal size used for incineration is uneven; steam leaks in a furnace or heat pipe; machines are scaled, reducing equipment performance; the machine is idling, etc.
• Waste of time by manipulating workers; unreasonably arranged tools, placement of workshops and warehouses unreasonably.

Improved solution

• Check and classify materials before putting them into production; installation of trays, sputtering material spillage; revise the process of transporting raw materials, avoiding damage and loss during transportation; periodic inspection, cleaning machines, etc.
• Manage steam distribution system and make full use of condensate; quantify the amount of water used in the washing process, etc.
• Reduce heat losses in the boiler gap; reduce the frequency of door opening and only open when necessary, the shorter the opening time the better; periodically test the concentration of O2/CO2/CO in the exhaust smoke and adjust the excess air at the optimal level; Adjust the load to match the capacity of the furnace, etc.
• Training, standardizing methods and manipulations for workers; rearranging tool position; relocating the workshop’s location; arranging material carriers; classify warehouses by region, etc.

Productivity and Quality Office