Productivity Strategy in Kazakhstan. How we implement it? Singapore May, 2017
World ranking on Productivity Productivity in Kazakhstan . In average the productivity is $30K–$40K/person. In mechanical engineering of Kazakhstan , the productivity was $10K-$17K
«Productivity 2020» Program in Kazakhstan The Resolution of the Government of Kazakhstan dated March 14, 2011 № 254. Goal: «Enhancing competitiveness of the Industrial enterprises in priority Sectors of the Economy by increasing Productivity» Target indicators: «Annual increase in productivity at least 1.5 times At the enterprises of key industries»
Goal, tasks and criteria of «Productivity 2020» TASKS CRITERIA FOR APPLICANTS Modernization (technical re- 1 equipment) of existing and creation of new Implementing activities in priority sectors productions of the economy at least 1 year (with the exception of leasing financing, including the development of a comprehensive plan): • Mining (services); GOAL • Light and woodworking; • Chemistry and pharmaceutics; Increasing the competitiveness of • Production of building materials; industrial enterprises in priority • Machine building; sectors of the economy by • metallurgy; Service increasing labor productivity 2 • Metal working; Support • Other sectors. CRITERIA FOR CONSULTANTS *, ATTRACTING APPLICANTS Qualification and work experience no less than 3 (three) years in the sphere of Support for the provided services development of 3 cluster initiatives At least one executed project in similar area *
Terms of financing of tools for supporting the "Productivity 2020" Program # State support description Size of State The maximum amount of state support Support 1 Provision of long-term leasing financing Term: up to 10 years; Interest rate: 5%; Participation in cash: at least 15%; The value of the leased asset: at least KZT 150 million (For light industry not less than 75 million tenge). 2 Payment for the development and / or examination of the integrated investment project plan: 2.1 Reimbursement of expenses incur during Investment Project Complex Max 2 mln tenge (appr 7K USD) Plan for applying for Long term leasing financing 50 % № п / п 2.2 Payment of expenses incurred in the development and / or examination Max 15 mln tenge (appr 50K USD) of the feasibility study for Industrialization Map projects 50 % 3 Reimbursement of the enterprises-applicants to improve competence: 3.1 reimbursement of expenses incurred by the enterprises applied to the p No more than max 2 mln tenge per one employee and max rogram in the process of diagnostic and trainings need assessment an for 15 persons a year 15 40 % d professional development of companies personnel, including top man agers 3.2 reimbursement of expenses incurred by the enterprises applied to the p Max 9 mln tenge per 1 expert a year, max 3 experts a year rogram in the process of implementation of the best practices by прои 40 % зведенных предприятием при внедрении лучших производственны х практик by engaging experts
Success Story !
How it began? 2011 – The Enterprise located in former Garage/Shed.
Conditions were like these: q First Floor q Second Floor
Road to the success. How it began? 1) Staff turnover more than 40% 2) Lack of control over the quality and the course of production. 3) Cross-functional disconnection of services
Road to the success. How it began? 4) Orders are not executed on time - out of 10 orders only 2 - 3 are produced on time. 5) The sales department is demotivated: "Production of anything of high quality and in time can not produce. We are ashamed of our customers! " 6) And many other problems
The organization of production – was:
Road to the success. How it began? Created a Team and started Modifications. Owner participated in all activities.
Road to the success. How it began? The modification were made both in the production and in the office.
The year of 2011 - the first successes! All Staff became funs of Kaizen Lead time for orders on the pilot section has changed
Road to the success. How it began? The year of 2011 – the first successes: 1. Productivity on the pilot section increased 2 times! 2.Reduction of the terms of production - 3 times 3.Improving the quality of products « The successes of the project were impressive! We will build a new factory !» (Owner)
And this is the new Plant!
New Rules of work– in the stream!
Now the management is visual!
Results Issue volume , mln tenge Number of employees, persons 1500 150 1000 100 500 50 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Output per employee, million / person 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014
More results: • Culture of production and quality of products a t the level of "Europe" • Execution of orders on time - 100% • The lead times for orders are reduced 4 times - from 1 month to 1 week • Productivity increased 4 times
Successes are noticed and noted! The State Prize of the Republic of Kazakhstan in the field of quality «Altyn Sapa – 2014» President Nazarbaev handed to the head and owner of the enterprise personally!
Partners assessed the potential (Enterprises and products) South Korea Central fans General-purpose fans Russia • Gefest Climat Smoke exhaust fans and fire Recuperator plants for cooling extinguishing valves Data centers
Effective Enterprise – «National Champions» Competitive Business = Effective Sector Effective City = Competitive Country Happy People
Ulken Rakhmet! Thank you! Tel. +79193855394 Anatolii Feskov, www.arusp.ru Director, Partner, feskov@arusp.ru Lead Consultant& Trainer Gulsum Akhtamberdiyeva, agulsum@cmc.kz Chair, CMC Kazakhstan
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