Quality productivity – 'measure of business vitality'

According to Dr. Nguyen Tung Lam, Director of the Vietnam Productivity Institute (National Committee for Standards, Metrology and Quality), productivity and quality (NSCL) are core factors that determine operational efficiency, but many businesses do not understand their true nature.

Many units only focus on increasing output while ignoring the actual added value, leading to high productivity in quantity but low efficiency. “The understanding and application of productivity in the direction of increasing value has not been fully determined. Many places consider productivity as just output in a unit of time, forgetting that the ultimate goal is efficiency and value creation,” he said.

According to Mr. Lam, the main reason is that businesses, especially small and micro-sized groups, lack information, skilled human resources and access to modern innovation tools. Although support programs from state management agencies have been deployed, many units have only "tested" and have not been able to maintain and replicate the model.

To overcome the challenge of NSCL, enterprises can apply the Total Productivity Improvement (TPI) model. Unlike individual improvement tools such as ISO, Kaizen, Lean or 5S, TPI is a synchronous improvement system from the strategic level to specific actions, from leaders to each employee. The model provides a comprehensive, systematic and flexible approach, deeply affecting fundamental factors such as strategy, technology, people, processes and management to improve sustainable productivity.

Particularly in industrial production fields that require high quality standards, continuous technological innovation and increasingly stringent customer satisfaction levels, TPI is considered an effective solution. This model helps businesses increase operational efficiency, optimize costs and strengthen their competitiveness domestically and internationally.

Realizing the importance of streamlining production and optimizing performance, since 2019, Tuong Lai Company Limited has embarked on a project to improve overall productivity and quality. With modern management tools such as 5S, Kaizen, TPM, OEE, visual control, waste analysis by 7 types and effective management by KPI, the Company has initially established a lean, transparent and effective operating platform.

After more than a year of implementation, the company achieved many impressive results: labor productivity increased by 20%, overall equipment effectiveness (OEE) increased from 79% to 87%, production order completion rate reached 98%, 100% of orders were delivered on time. Quality indicators also improved significantly: customer complaints decreased to less than one case per month, product defect rate decreased to 1%, and internal errors were only scattered in a few cases.

Another unit - TOMECO Electromechanical Joint Stock Company also participated in the quality productivity improvement project implemented by the Vietnam Productivity Institute. After 12 months, revenue increased by 17%, export value increased by over 100%, labor productivity increased by 15%, customer satisfaction rate was over 90 points. The company optimized costs, improved operational efficiency and improved the factory. TOMECO representative shared: "The important thing is not which technology, but the culture of improvement built in each person and process".

Quality productivity is not only an index, but also a measure of the vitality of an enterprise. Dr. Nguyen Tung Lam emphasized that in order for NSCL to become a sustainable culture, it is necessary to combine support and supervision. Management agencies provide technical and financial support and closely monitor the improvement process. Program 1322 and Program 36 on improving NSCL need to be implemented more deeply, especially for small and medium enterprises. Because, in the context of global competition, only enterprises that dare to change, invest in innovation and digital transformation can stand firm.

Source: https://daibieunhandan.vn/nang-suat-chat-luong-thuoc-do-suc-song-doanh-nghiep-10396351.html