Vimico: Actively innovate to achieve success

After 4 years of equitization, Thai Nguyen Nonferrous Metal Joint Stock Company (VIMICO) has constantly applied solutions to improve productivity, improve corporate governance and reorganize production, thereby labor productivity has increased markedly.

Actively innovate

Although being a traditional company with nearly 40 years in the field of non-ferrous metal production, however, before equitization, VIMICO faced many difficulties due to fluctuations in market prices, so the revenue achieved was quite low and beneficial. Lack of profit, the lives of workers are very difficult. Therefore, right after officially operating under the CPH model since July 2014, VIMICO’s leadership team was aware that: Improving the productivity of enterprises after equitization is very important and a prerequisite to sustainable development. With the modern equipment technology foundation, the technical team is basically trained in domestic and foreign schools with high expertise. The company’s leadership has embarked on restructuring the labor restructuring, launching the movement to promote technical innovations.

Accordingly, VIMICO has implemented many solutions such as: reorganizing the management apparatus, cutting down the labor force, reducing working time; implement cost management contract, ensure production costs, etc. In which, the solution of cost management is an important change in the management method. Contribution of costs contributes to creating a sense of savings, attaching cost effectiveness to income of workers.

In addition, human resource management is also fundamentally changed, focusing on streamlining the apparatus, attaching the responsibilities and benefits of employees to the overall efficiency of the company. At the same time mobilize technical innovations, promote the intellectual potential of workers to create higher productivity. In 2017, the company had 40 initiatives, rewarded 488,500 VND, benefited the company 19 billion VND. The company has set up a council, bringing technical innovations to benefit emulation titles, recognizing and rewarding useful initiatives in time.

Positive signals

By offering the right solutions and drastically implementing solutions at all levels of the company, the results of production and business activities have changed dramatically. Accordingly, the product quality has been gradually improved with no impurities in the product, thus, the selling price is higher and revenue has increased 2 times compared to the previous period. Before equitization, the productivity was only below 10,000 tons of zinc ingots/year, nowadays, it has reached over 10,000 tons/year. The company gradually made profit, profitability of 85%, in 2017, revenue reached 802 billion, average income of employees reached 8.4 million VND/person/month.

Prior to the initial successes, the Board of Directors of VIMICO determined that in order to improve the competitiveness in the market, innovation in both production management, business and technology must always go hand in hand. This solution not only helps the company optimize production and business costs, but also improves productivity and product quality.

In order to achieve that in 2018 and the following years, VIMICO determined to focus on implementing KPI program, good 5S practice to improve labor productivity, quality, and increase working efficiency from management and administration stages to the stages of production organization. The experience that the Board of Directors of VIMICO draws after 4 years of equitization is: Improving productivity is a journey that requires constant efforts. Thus, the new VIMICO brand has positioned itself firmly in the market and enhanced its competitiveness in the context of increasing international integration.

Productivity and Quality Office