Pho Yen Mechanical Joint Stock Company (FOMECO): 3 factors to increase labor productivity

“In order to improve competitiveness, the enterprise (DN) must solve the problem: product quality, delivery schedule and product cost. These are also considered three factors determining labor productivity of enterprises.” – Mr. Ha The Dung – Director of FOMECO, one of the typical supporting industry enterprises in Thai Nguyen province – shared.

Do not stop improve

FOMECO specializes in manufacturing components, spare parts and components for automotive, motorbikes, and bearings, mechanical products, etc. The company’s products provide for both domestic and export markets. Many of FOMECO’s customers are global companies from developed countries such as Japan, Korea and the United States.

Only in the last 5 years, FOMECO’s sales have an average growth rate of 14% / year, a rather high increase for a unit with relatively large sales in the supporting industry. Achieving this result is thanks to the company continuously maintaining its competitiveness with 3 decisive factors: Quality, delivery schedule and price. “In order to reduce costs and meet delivery schedules, the company constantly invests in improving and improving automation. More than 80% of technology equipment, production lines, inspection and packaging has been automated, mostly by the company invented and created. To have stable quality, regardless of human subjective factors, automation has a decisive role” – Mr. Ha The Dung said.

5S and kaizen activities are known to be very popular among Japanese enterprises and bring great effect to manufacturing enterprises. At FOMECO, these activities are deployed widely and in depth. With 5S, all employees have an active role in organizing a tidy and clean workplace, minimizing wasted time and ensuring occupational safety. With kaizen, everyone is encouraged to be creative. In 2015, the whole company only implemented 253 kaizen; By 2019, the number of kaizen per year has reached thousands, benefiting the company tens of billions of dong. The employees are also encouraged with a one kaizen bonus, sometimes up to tens of millions of dong.

Make believe

Sharing about the process of building trust and reputation with customers, Mr. Ha The Dung also said: The company always puts itself in the position of customers to find ways to respond. Related departments and workshops are required to participate in goal setting and goal realization. Benefits are always shared harmoniously between manufacturers and customers.

With FOMECO’s view of accompanying customers and ensuring fair competition, more and more customers want to cooperate. There are partners looking to support the equipment and technology necessary for the company to achieve its goal of competing with other manufacturers. The long-term companionship of the partners in these cases helps the company not have to invest large capital or risk investment.

In order to build trust with customers, the first fundamental factor is the employee’s confidence in the enterprise. FOMECO’s corporate culture has appreciated and believed in the contribution of each individual to the success of the enterprise. Enterprise values ​​are obtained through the contribution of each individual and the corporate brand raises the dignity of each individual – those who stick with the enterprise.

Mr. Ngo Van Tuyen – Acting General Director of VEAM said:

FOMECO is a typical successful unit in the supporting industry thanks to its outstanding capacity in management and focus on human resources. From the beginning with 7 quality management tools, applying 5S at work 20 years ago, up to now, the company has applied most of the management tools such as ISO 9001, ISO 14001 , ISO 50001, IATF 16949, TQM, TPM, Kaizen.

Productivity and Quality Office