Nam Ha Garment Joint Stock Company: Succeeded by applying the overall productivity improvement model

Labor productivity increased by 23%; revenue increased by 17%; The rate of defective products decreased by 12% compared to 2018 are outstanding results in 2019 of Nam Ha Garment Joint Stock Company when applying the overall productivity improvement model with the support from the Ministry of Industry and Trade and Vietnam Productivity Institute (VNPI).

As one of the leading enterprises of Vietnam textile and garment industry, May Nam Ha has applied models and tools to improve productivity and quality such as ISO 9001, 5S, TPM, Lean, KPI, Lean 6 Sigma, Kaizen. Realizing that improving productivity and quality is a continuous activity, in 2018-2019, with the support from the Ministry of Industry and Trade and VNPI, the company continues to build a model to improve overall quality productivity.

According to Ms. Nguyen Thi Le Hoa – Head of Productivity Research Department, as well as many other quality productivity improvement models, May Nam Ha’s overall productivity improvement model was implemented based on the PDCA cycle approach. The company has chosen solutions such as: Improving the efficiency of machines; improve the production process; training to raise employees’ awareness, etc. As a result, the overall productivity of businesses has increased by 23%.

Specifically, the company has changed the responsibility of spreading the line, investing in production management software, using it to design the optimal production line. As a result, code conversion time has been reduced from 2 – 3 hours ago to 30 – 60 minutes from simple to complex codes, the total conversion time reduced from 8 hours to 4 hours.

At the intelligent suspension system, experts have re-trained workers, arranged equipment in the form of flow. 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 systematized the end-line errors, in the line, introduced anti-fault measures by Kaizen to limit the error of repetition and limit rework. (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 products to 630 products/day (up 25%) with the number of employees is only 18…

In addition, the company also collaborates with a specialized software design unit 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%.

According to Mr. Doan Tien Dung – Director of Nam Ha Garment Joint Stock Company, the company uses all the productivity improvement tools that have been applied and corrected and improved in all parts, stages, production. 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 checked down reduced by 13% Compared to 2018, etc. The most impact in increasing labor productivity is the combination of technological innovation and improvement of governance system. For garment enterprises that use a lot of labor, human factors are considered the most important.

Mr. Doan Tien Dung – Director of Nam Ha Garment Joint Stock Company shared: Creating motivation for improvement is a continuous and persistent process. That’s what we learned during the 10-year journey of continuous improvement starting from ISO 9001 to a platform tool like 5S or TPM. Each model and tool has contributed a part to the company’s success at a certain stage of development.

Productivity and Quality Office