Reduce waste and increase the competitiveness of enterprises by applying lean improvement methods

Businesses assessed that the application of lean management model (Lean) has contributed to reducing waste, improving productivity and competitiveness of enterprises and raising awareness of improvement in production activities business and productivity enhancement in the business. More practical sense, after applying Lean model, many businesses have significantly reduced inventory value, improved service quality and brought positive financial efficiency.

Lean is a systematic, continuous improvement method that enables improved productivity and quality for product creation by reducing errors and wastes. At the same time, this model helps improve the efficiency of the use of input resources, including increasing labor productivity, efficiency of the product creation process through reducing wastes: waiting (between people) – people; between people – machines), reduce movement, reduce unnecessary operations during work / operation, in-line inventory, inappropriate processes and waste of defective goods.

Through the application of lean management model, the enterprise can completely identify the important points in each production process, from which to determine the appropriate solution, including risk assessment risks to reduce unnecessary resources for non-key activities and do not create value for customers.

In recent years, management systems and improvement tools such as lean, overall productivity improvement model (TPM), Performance Performance Index (KPI) have been successfully applied in pilot enterprises be selected from projects within the framework of Program 712 (Decision No. 712/2010 / QD-TTg on improving productivity and quality of products and goods of Vietnamese enterprises to 2020).

Specifically, in the project, the number of businesses supported is 180 enterprises, of which 150 enterprises are supported to apply Lean, lean production methods (20% of small enterprises, 20% of large enterprises and 60% of large-sized enterprises fit).

Assessing the effectiveness brought after lean model, businesses said that the application of lean has contributed to reducing waste, improving productivity and competitiveness of enterprises and raising awareness of improvement in business activities and productivity improvement in enterprises.

Evidence of Dau Tieng Rubber One Member Company Limited has successfully implemented the lean model and brought many positive effects. Accordingly, the Lean model was deployed at Dau Tieng Rubber Company over a period of 3 months with 6 improvement projects applied at the Company. In particular, the shortest project is only implemented in about a week, but all achieve specific results measured and evaluated when scaling up and applying lean lean management.

For example: Results of the implementation of the project “Improving the management process of finished latex warehouse at Ben Suc Factory” of the Dau Tieng Rubber Company has helped reduce 28.6% of the time searching for goods in stock from 105 minutes to 75 minutes; saving 11 million dong oil / year; improvement costs 0 dong.

Or as a result of the implementation of the project “Improving the process of collecting latex at the orchard at the Agricultural Technology Department” has helped reduce the time of latex harvesting in the garden of workers from 384 minutes to 320 minutes.

Another typical example is the application of Lean model, Bac Giang Garment Corporation. Accordingly, thanks to the application of the lean model, this enterprise has no longer had a situation of overproduction, insufficient production, no congestion, no production where goods were packed there. In order to ensure the economical and efficient production process, Bac Giang Garment Corporation has sent many managers and employees to learn Lean method, thanks to this time, they have operated the model. Lean is relatively good. In particular, this model has changed the mindsets of workers, ensuring quality, progress, lean and maximizing productivity.

From the above evidences, the application of quality productivity improvement tools is the solutions that help businesses improve the quality of products and goods to meet customer needs, enhance their position.

Offering solutions to improve productivity, Mr. Nguyen Anh Tuan – Director of Vietnam Productivity Institute said that Vietnam needs to focus on investing in 3 factors: Capital, science and technology and people. At the same time, promoting the capacity of workers, the enterprise itself needs to focus on building a working environment for employees to actively improve productivity, gradually improve labor productivity of enterprises through Every year.

Through the application of streamlined management model, the enterprise fully identifies the important points in each production process, thereby determining the appropriate solution, including risk assessment to reduce unnecessary resources for these activities is not critical and does not create value for the customer brings.

Productivity and Quality Office