Potential to improve productivity in Vietnamese companies

In the two years of 2018 and 2019, more than 70 manufacturing enterprises in Vietnam has implemented tools to improve productivity and quality, under the guidance of experts in the project “Organizing the improvement of quality production for manufacturing and processing enterprises, supporting industry enterprises of Vietnam “. These enterprises have assessed their production efficiency, and have been advised to improve their productivity and quality in the following years.

Among the enterprises that have been consulted for improvement (about 70 to 86 enterprises) in the North, Central and South regions of Vietnam, there is considerable potential for improvement:

• The improved results help companies improve productivity by 10-30%, reduce stage waste, improve quality of product. Most of the companies conducting improvement consultancy achieved significant improvement results, over 90% of the improvement projects were implemented effectively right during the implementation of the improvement activity.
• Only the total consultancy time is 12 weeks (02 weeks of evaluation the situation of the company, 10 weeks of improvement consultancy). Rang Dong Plastic Joint Stock Company – Long An branch has proposed and implemented 62 improvement topics, especially reducing the replacement time for rolling mill from 105 minutes to 48 minutes; reducing the packaging and cutting stage from 165 m / shift to 50 m / shift. And SAMETEL Joint Stock Company made 86 improvement topics, thereby increasing production capacity from 62% to 95%; reducing wasteful operations thanks to the relocation of supplies, averaging from 42 seconds / product to 13.5 seconds / product. Kem Nghia Joint Stock company reduces 20% of the cycle time of milling; 30% product on factory lines …
• After more than 2 months of “hands-on” by Korean consultants and experts, a representative of a plastic material company said that in September 2019, the company had reduced up to 2 billion VND in inventory costs in warehouse. The rate of defective products and returns also dropped by more than half. More important is the standardization of re-arranging areas in the factory to reduce unnecessary costs at each stage of production.

According to experts, the biggest difficulty in advising innovation for manaufacturing enterprises is how to change the inherent production thinking, especially for small and medium-sized enterprises. Therefore, consulting groups will have to help improve from small stages to see the business effectively, so that the process can be renewed.

Although the improvement process will appear difficult, above results are evidence that Vietnamese manufacturing enterprises need to apply management systems and management tools such as 5S, Kaizen, TPM, ISO9001 … in order to improve productivity and quality.

Productivity and Quality Office