The overall productivity model helps reduce waste

In 2018-2019, the Ministry of Industry and Trade has assigned the Vietnam Productivity Institute (VNPI) to research and support to pilot the overall model of productivity improvement and quality management for 9 enterprises (enterprises) in the field: Textile, plastic, mechanical and chemical. The effectiveness of the pilot models has created a basis and basis for the Ministry of Industry and Trade to continue to deploy in 2020.

Change administrative model

Following the research methodological foundations of the pilot model, from 2019 to 2020, apply this model to enterprises in the sectors of footwear, steel, energy and electronics, telecommunications and information technology. The goal is to build models, promote industrial production enterprises to apply overall solutions to improve productivity and manage product quality.

Ms. Nguyen Thi Le Hoa – VNPI representative – said: The model to improve overall productivity for each enterprise is based on 4 pillars: Developing customer-oriented organization; apply and continually improve technology; process management; Constantly minimize waste. In order to achieve high productivity, all factors in the production and business process must be optimized. Improving productivity – sustainable quality Enterprises need to have two important platforms which are improving human resource management and creating motivation for employees; as such, these two platforms are human-centered.

Enterprises in each economic sector have different characteristics, capabilities and labor productivity. Textile industry is low technology; Meanwhile, the plastic industry has medium technology; mechanical and chemical industry belongs to high technology. For plastics, mechanics, chemicals, production capacity is mostly based on equipment and technology; For textile industry, labor-based production capacity is crucial.

Improve efficiency for businesses

At Nam Ha Garment Joint Stock Company (CP), the company has a basic foundation for productivity improvement activities such as ISO 9001, ISO 14001 and SA 8000, 5S, Lean, KPI standards, Lean 6 Sigma, Kaizen. Therefore, the model to improve productivity and overall quality will start from the standardization steps, improve improvement and maintain improvement activities. The maintenance of improvement activities will focus on building an enterprise improvement culture and developing a core improvement team.

By various efforts, the labor productivity of Nam Ha Garment Joint Stock Company increased by 23% in 2019. The most impact in increasing labor productivity is the combination of technological innovation and system improvement. administration. For garment enterprises, which employ a lot of labor, human factors are considered the most important. Creating motivation for improvement is a continuous, persistent process.

At VINASTAR Engineering Plastic Manufacturing and Trading Co., Ltd., the company needs to start by setting up an improvement system, followed by standardization work, advanced improvements, and construction and maintenance. chemistry improvements. Productivity-quality improvement groups are set up at the company and carry out 5 projects: Improve equipment performance; improve delivery schedule; improve quality and enhance customer satisfaction; identify and reduce waste in the factory; improve working performance through KPI. After 1 year of implementation, overall equipment efficiency has increased by 16%, average quality of goods has increased by 1%, on-time delivery rate has increased by 10%, cost of goods has been reduced by 20%, etc.

The success of enterprises through the application of the overall productivity improvement model should first identify clearly the factors affecting productivity. Businesses need to put productivity in the overall strategy to create value and apply knowledge to meet the needs of customers and stakeholders; emphasize building a mindset that seeks continual improvement and responds positively to change.

Productivity and Quality Office