VEAM: Great profit thanks to Kaizen

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. Reporter of Industry and Trade Newspaper had an interview with Mr. Ho Manh Tuan – Deputy General Director of VEAM – about this issue.

Being an enterprise with the main production and business fields such as: Manufacturing, assembling and trading in automobiles; casting machine details and especially many VEAM member companies operating in supporting industries, the corporation is also a joint venture partner with many multinational companies such as Toyota, Honda, Ford, etc. Therefore, to meet the requirements of product quality, delivery time, product cost of joint venture partners, customers with supporting industrial products, the company must take measures to improve high productivity reduces costs and product quality as well as meeting the delivery schedule.

If previously Kaizen, 5S or TPM, etc were applied individually by VEAM member companies, since 2016, this activity has become a movement throughout the corporation. VEAM has established a Kaizen Board at the corporation and its member businesses, thereby developing specific action plans such as: Organizing training for officials and employees of enterprises on Kaizen and 5S, Lean production management towards Lean 6 Sigma or management methods of Toyota, Honda, etc. Especially, the company took advantage of training programs for Honda suppliers to deploy at the VEAM units provide parts for Honda.

Accordingly, Honda experts have come to train on-site for VEAM member businesses, checking the scene from management methods in production to delivery standards to meet customer demand progress. goods, market. Through the evaluation process of partners with suppliers, etc. VEAM found it necessary to improve the production management system to meet the criteria of partners and large customers, to ensure the improvement criteria. improve labor productivity, reduce costs, etc so that VEAM can improve its competitiveness.

2016 is the first year VEAM has set a target of each employee of at least 1 Kaizen, resulting in the Corporation achieving 6,252 Kaizen/nearly 6,000 employees; In 2017, VEAM achieved 10,500 Kaizen, in many member units, the number of Kaizen was higher than the corporation’s plan: Veam Motor (152%), Co Loa Mechanical (126%), SVEAM (120%), etc. In 2018, the number of Kaizen of VEAM increased to 10,769, reaching 1.85 Kaizen/employee.

As of August 2018, the company has improved waste treatment, waste reuse, and successful import and export to help bring the newly invested automatic casting line to operation. capacity of 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 VND for VEAM Casting factory, etc.

Productivity and Quality Office