Factories supplying the domestic market were included alongside those focusing on exports, and a wider range of product sectors were brought on board, not just garment manufacturers, but also printers and makers of motorcycle parts, electrical components and medical supplies.
As a first step, a group of experts visited Chien Than and working with a joint worker/management team recommended several possible areas for improvement.
These included adjustments to the production plan, the introduction of time-lines in the production process, better communication between departments so that work was not held up by shortages of any one component, the merging of two production lines and an hour-by-hour system for monitoring production.
A bonus system was also introduced. Workers were grouped into smaller production teams and team leaders were given more authority, including responsibility for quality control.
The results were swift and impressive. Workflows became faster and defects dropped by 37 per cent. The benefits were seen not just by the company's managers and customers but by the workers themselves. In one workshop where productivity increased 35 per cent, salaries went up 32 per cent.
“The focus on strengthening communications and collaboration, for the benefit of both productivity and working conditions, is a central element of the FIP design.
It is through collaboration between workers and managers that FIP attempts to create the virtuous cycle that supports long-term, sustainable change”, said Charles Bodwell, FIP Chief Technical Advisor.
The results of Vietnam's pilot FIP programme have also been well received by buyers of multinationals. Plans are now underway to introduce the programme in India.
International Labour Organization
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