Successful application of Kaizen: Enterprise get big profit

In Vietnam and around the world, there are many corporations and businesses developing and improving quality productivity by applying Kaizen philosophy.

More than 5 billion VND of added value is the amount that Vietnam Engine and Agricultural Machinery Corporation (VEAM) got in 2018 thanks to Kaizen movement.

Applying Kaizen has brought about fundamental changes for businesses such as Southern Engine and Agricultural Machinery Co., Ltd. (SVEAM), which has invested FMS system of DMG Moriin a total cost of more than VND 50 billion . However, according to the technological process of the supporting industrial ordering company, Juki Company (Japan), it is only possible to produce 900 sets of Juki sewing machine body products per month (production 3 shift). With such output, there will not be enough depreciation to invest in this FMS line.

SVEAM has made continuous improvements to change the processing technology that the company orders. To date, 1,700 sets of Juki sewing machine body per month have been produced on the FMS line to ensure sufficient depreciation and profit. In 2019, SVEAM aims to produce 2,000 sets of Juki sewing machine body per month (3 shifts). This is one of the great effects that Kaizen brings.

Meanwhile,  since August 2018, VEAM foundry Factory has improved in stage of waste treatment, waste reuse, and improved import and export of goods to help bring the newly invested automatic casting line. It operates at full capacity for 3 shifts / day, meeting production requirements for export to Hyosung Company (Korea). The company has applied the regulations on labor safety and environment, and introduced improvements to treat the slag after casting, of which one part is used for making unburnt bricks and the other is being reused. Using as a semi-automatic fresh sand die casting, this year preliminary estimate, Kaizen has benefited billions of dong for VEAM Casting Factory …

At Nghi Son Cement, with 18 years imbued with the Japanese Kaizen spirit, now Nghi Son Cement is one of the prominent brands in the market. Mr. Hideaki Asakura – General Director of Nghi Son Cement Company acknowledged: “With the spirit of Kaizen, Nghi Son produces and provides market-oriented services, taking criteria to meet customer needs as a principle leading and turning in corporate governance. Completely adhering to this principle, Nghi Son focuses on improving and managing the quality of products and services, aiming to the ultimate goal of maximizing customer satisfaction.

He also said that the management in Nghi Son in the spirit of Kaizen has outstanding features such as improving product quality, improving working conditions, promoting the operation of each department, collecting and transmitting communications. Two-way news from leaders to employees.

Or after 6 months of implementing the Kazen improvement project, Nam Ha Garment Joint Stock Company has reduced the rate of defective goods from 8.8% to 8.1%, reduced 25% of inventory on the line, inventory compared to with production capacity falling from an average of 2.37 days to 1.34 days, the average daily output increased from 415 products to 899 products.

Not only in Vietnam, in the world, there are many corporations and businesses that grow thanks to the Kaizen philosophy. A pioneer in applying the Kaizen philosophy is Toyota – Japan automobile manufacturing group was founded in 1937 and today is considered the 13th largest company in the world in terms of Kaizen revenue is an essential part of Toyota and their production systems.

Nestlé S.A. – a Swiss multinational company specializing in food and beverage. It is the world’s largest food company by revenue, and ranked 72nd on the Fortune Global 500 list in 2014. Its products include baby food, health food, and bottled water. bottles, cereals, coffee, tea, confectionery, dairy products, frozen foods, pet foods and snacks.

Waste reduction is a regular and continuous mission of Nestle in all activities, in which the role of lean production and Kaizen is becoming increasingly important. At Nestle, Kaizen ensures that continuous improvement is the duty and responsibility of everyone. According to Kaizen, even the smallest improvements need to be done because later they can make a big effect. For example, to find out where the current factory can improve, Nestlé Waters used many techniques, such as Value Chain Diagrams (VSM) – a technique that shows material flows and flows. necessary information for bringing the finished product to consumers. Such a process helps ensure their operations become increasingly effective.

Lockheed Martin is a US company that specializes in advanced technology, aerospace, defense, and security, operating on a global scale. The company is very supportive of Kaizen. Usually no one applies the lean principle to the production of military aircraft. However, in 1998, Lockheed Martin was ranked in the “Top 10 Manufacturing Factories” by Industry Week magazine. From 1992 to 1997, the company achieved a lot of significant improvements, such as production costs decreased by 38%, inventories fell by 50%, the defect rate was only 3.4 / a plane. , transit time reduced from 42 months to 21.5 months. For the application of Kaizen, in 2000, the company was awarded the Shingo Prize for Excellence in Manufacturing. During this period, a Kaizen project in the field of material management helped the company cut down the time it takes to transport materials to the warehouse from 30 days to 4 hours.

Productivity and Quality Office