Summary Report on the Productivity Improvement Program for the Quality of the CAT VAN LOI Factory, supported by JICA at the International Conference Center - Government Office

20/12/2023

On December 12, 2023, at the International Conference Center - Government Office, the project "Promoting Small and Medium Enterprises for Industrial Development" funded by JICA in the period from October 2020 to October 2023 organized a Closing Ceremony and Results Reporting. The event attracted the participation of many important dignitaries such as the Deputy Minister of Planning and Investment, the Deputy Director of the Enterprise Development Department, representatives of international organizations, and Vietnamese businesses.

I. Introduction:

II. Participation and Media:

The Closing Ceremony attracted widespread participation from various media outlets, being covered on Vietnam Television VTV1 [1] and Digital Television VTC [2]. This not only raised awareness but also placed the project within the community and business's vision.

Vietnam Television VTV1: https://vtv.vn/video/thoi-su-19h-vtv1-14-12-2023-654546.htm
Digital Television VTC: https://youtu.be/3opRO48wlNc?si=d5LGF1CByrkq7qXj

III. Objectives and Achievements:

The project achieved significant milestones during the period 2020-2023, focusing on enhancing capabilities for the Small and Medium Enterprise (SME) support team. Over 1,100 participants joined training programs, with 300 CEOs trained in "Leadership for Innovation." This not only promoted personal development but also created a conducive environment for innovation.

IV. Symposium and Exhibition:

The Symposium with the theme "Supporting SMEs to enhance internal development towards sustainability" and the SME Exhibition opened space for experience sharing and collaboration among businesses. The diverse participation of 35 Vietnamese manufacturing businesses and Japanese partners was a crucial step in expanding business networks and international cooperation.

V. Feedback from Officials and Japanese Ambassador:

Deputy Minister of Planning and Investment, Mr. Tran Duy Dong, expressed expectations for the achieved results, considering it a foundation to continue supporting SMEs and enhancing internal capabilities. Mr. Watanabe Shibe, Deputy Ambassador of Japan to Vietnam, praised the project's achievements and hoped that the collaboration between Vietnamese and Japanese businesses would continue to develop in the future.

VI. Results of Productivity Quality Cost Delivery (PQCD) Improvement:

The G.I Cat Van Loi electrical conduit pipe factory achieved significant improvements in Production, Quality, Cost, and Delivery (PQCD). Clear figures and statistics demonstrated the effectiveness of the implemented improvement measures.

VII. International Business Connections:

Most importantly, the project created opportunities for Vietnamese businesses to connect with Japanese enterprises. Securing export orders and becoming suppliers for international projects were crucial steps, contributing to economic relations between the two countries.

VIII. Significance of the Event:

This event was not only an occasion to summarize an important project but also an opportunity to connect, share experiences, and create new collaboration opportunities. Emphasizing sustainable development and enhancing the internal capabilities of small and medium enterprises is a crucial step in promoting economic growth.

This year marks the 50th anniversary of diplomatic relations between Japan and Vietnam, officially upgraded to a "Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World." The close collaboration between Japan and Vietnam over the decades in promoting economic growth is further evidence of the strategic cooperation between the two nations towards building a better future for their people.

Summary of the "Productivity Quality Cost Delivery (PQCD) Improvement Program on-site" at the G.I Cat Van Loi Electrical Conduit Pipe Factory achieved the following improvements:

Production:

Reduced planning time by 75% and delayed deliveries due to incorrect planning.
Reduced mesh cable tray welding mold change time by 97% and increased labor productivity by 21%, reducing defects in mesh cable tray welding.

Quality:

Established a quality control process, comprehensive management from raw material quality (IQC), production process quality (PQC), to finished product quality (OQC).
Reduced process error rate by 75%.

Cost:

Reduced operation time, saving 29% labor costs and increasing labor productivity by 20%, reducing defects in the production of Pull boxes.
Reduced direct factory labor costs by 5%.

Delivery:

Positioned all products in the warehouse area to facilitate inventory search and export-import operations.
Reduced product picking error rate, easy management of goods.
Saved time in the process of importing and exporting goods. Reduced picking time by 75%.
Easy management, optimized inventory: Establishing min-max levels helps maintain optimal inventory, minimizing waste and excess storage costs. Updating min-max levels, visualizing on inventory cards, FIFO storage principles to limit damage due to long storage.

Basic Site:

Initiated the implementation of 5S awareness and on-site visualization and continuous improvement activities KAIZEN in the Japanese style at the G.I Cat Van Loi Electrical Conduit Pipe Factory for the middle management and on-site workers.
Established a leadership team (3 people) to enhance knowledge, theoretical foundation, methods, capabilities, and thinking in the Japanese manufacturing style Monozukuri at the G.I Cat Van Loi Electrical Conduit Pipe Factory, participating in the "Shindanshi Manufacturing and Improvement Consultant" training course conducted directly by JICA experts from August 2023 to November 2023.

Business Connection with Japanese Enterprises:

Successfully connected and secured export orders for Nippon Denka Company based in Osaka.
Main supplier of electrical supplies (G.I conduit pipes & accessories, support rack systems for MEP systems) for Shinryo subcontractors at the Lego Factory project in Binh Duong.