EEF 2019: key findings and quotes on labor productivity and lean manufacturing
Participants in sessions on productivity and lean manufacturing at WEF 2021. Photo: Productivity.rf
At the beginning of September, as part of the business program of the V Eastern Economic Forum, two panel sessions were held “How to reduce losses and increase business efficiency. Current trends in lean manufacturing" and "Performance Leaders: the quintessence of Asian and European experience to promote regional development" , which brought together the world's leading experts in the field of process optimization. We present key quotes and some expert speeches.
Session: How to reduce losses and increase business efficiency. Current trends in lean manufacturing
Participants of the WEF 2021 session: How to reduce losses and increase business efficiency. Current trends in lean manufacturing. Photo: Anna Gorban, roscongress.org
Spoiler The concept of lean manufacturing has proven its effectiveness around the world. Lean tries to do more with less: more production with less inventory, less money, less space, fewer employees. This is the spirit of lean manufacturing. Russia is implementing lean ideas, creating nationwide projects, for example, “Lean Clinic”, “Lean Region”. However, modern trends in the development of industry, technology and society require changes. In Japan, the country that invented kaizen, the Work Style Reform Implementation Plan has been developed as a new tool for increasing productivity, which is aimed at implementing a strategy to revitalize the Japanese economy. This experience may well become a useful innovation for Russia. What new ideas and principles for increasing productivity are there in the world? Why does lean manufacturing not always and everywhere work? How to build a continuous improvement process and create a lean learning system? How to implement new equipment using kaizen? What is Lean Startup and Minimum Working Product? How to change your mindset and become a lean leader?
Moderator: Maxim Protasov - Head, ANO "Russian Quality System" (Roskachestvo)
Speakers: Mikhail Akim - Vice President, ABB Ltd Jorge Javier Roman Garate - Leading consultant for business process improvement and benchmarking, Dubai Police of the United Arab Emirates Nikolai Solomon - General Director, ANO "Federal Competence Center in the Sphere of Labor Productivity" (FCC) Isaac Sheps - Chairman, Central Committee for Standardization of Management Systems, Israel Standards Institute
Head of the Russian Quality System (Roskachestvo) Maxim Protasov on frugality and quality certification in Russia.
Chairman of the Central Committee for Standardization of Management Systems of the Israel Standards Institute Isaac Sheps on the development of lean manufacturing in the world.
General Director of the Federal Competence Center in the Field of Labor Productivity (FCC) Nikolai Solomon about what changes await our country in the near future as part of the development of labor productivity and lean production.
“The fact that today a decision has been made at the state level to support the spread of a lean production culture in Russian organizations speaks of the systematic and serious nature of the approach,” noted Nikolai Solomon. – Lean production technologies will allow Russian companies to obtain a much more tangible and lasting economic effect than state support in the form of cash. We impart specific techniques and skills to people. Every day new enterprises come to us who trust us and with whom we achieve concrete results in increasing production efficiency.”
Session. Productivity Leaders: A distillation of Asian and European experiences to drive regional development
Participants of the WEF 2021 session: Productivity leaders: the quintessence of Asian and European experience to promote regional development. Photo: Sergey Grachev, roscongress.org
Spoiler For the Russian Federation to become one of the five largest economies in the world, to ensure economic growth rates above the world while maintaining macroeconomic stability, it is necessary to create a highly productive export-oriented sector in the manufacturing industry and agro-industrial complex, and at the same time, the successful integration of Russia into the world economy, which is only possible if its participation in global production chains, which, in turn, inevitably requires a systematic approach to improving the efficiency and quality of labor, developing on the basis of modern technologies. During the session, partners from Europe and the Asia-Pacific region will exchange views on methods for ensuring continuous growth in labor productivity to increase the competitiveness of the economy, share the results of introducing a culture of lean production, robotization and digitalization, using tools to stimulate the business climate and develop export potential, and reducing administrative burden , improving the efficiency of human resource management and developing the employment system. Whose experience - Eastern or Western - is especially in demand to achieve the goals, taking into account national characteristics? What are the main aspects and trends to look for to find the best combination? How to identify and outline joint projects to disseminate knowledge and reference solutions to the basic non-resource sectors of the Far Eastern circuit? What resources need to be used for this? Moderator: Alexander Ivlev - Managing Partner for the CIS countries, Deputy Head of Client Relations for Central, Eastern, South-Eastern Europe and Central Asia, EY
Speakers: Alexander Liberov - President, Siemens in Russia Katsutoshi Nishimoto - Senior Vice President, Toyota Motor Europe Maxim Oreshkin - Minister of Economic Development of the Russian Federation Koh Poh Kun - Senior State Minister of Trade and Industry of the Republic of Singapore He Zhenwei - Secretary General, China Association development of enterprises abroad
Discussion participants: Pavel Kadochnikov - Vice-Rector for Research, All-Russian Academy of Foreign Trade of the Ministry of Economic Development of the Russian Federation Mark Karena - General Director, McDonald's in Russia Sergei Kolesnikov - President, TechnoNIKOL Corporation Vadim Khromov - Deputy Chairman of the Government of the Moscow Region
Minister of Economic Development of the Russian Federation Maskim Oreshkin : how to get into the top 10 countries in the world in terms of labor productivity and competitiveness.
Senior Minister of Industry and Trade of the Republic of Singapore Koon Poh Ko on changing management philosophy.
Originally Answered: Is productivity growth always associated with a decline in employment?
Key takeaways from the session
The influx of investment is the main factor in increasing labor productivity in Russia
“Why does the Far East show better results? The investment component is active here. The share of investment in the GDP of the Far East region is higher than the Russian average. We see large projects related to the development of areas of rapid growth. A large number of investors are coming and implementing large projects with very high productivity. They have an effect on the overall volume of the economy,” Maxim Oreshkin , Minister of Economic Development of the Russian Federation.
Alexander Ivlev and Maxim Oreshkin at EEF 2021. Photo: Sergey Grachev, roscongress.org
“Rosstat says that our labor productivity increased by 1.8% based on last year’s results. In the Far East it is 2.4%. In principle, good results <…> The Far East is one of the most interesting territories for foreign investors. If you look at the statistics, in 2011 the share of foreign investment in the total volume in Russia in the Far East [accounted for] about 4%. Now the Far East accounts for 25-30% of foreign investment. Investors are coming here,” Alexander Ivlev , managing partner for the CIS countries, deputy head of client relations for Central, Eastern, South-Eastern Europe and Central Asia at EY.
Labor productivity growth is a key condition for increasing the competitiveness of the economy
Alexander Ivlev at EEF 2021. Photo: Sergey Grachev, roscongress.org
“In Russia, in principle, everything is not so bad, but there is room to move forward. The World Economic Forum conducted a ranking of the competitiveness of various countries. Russia now ranks 43rd out of 140 countries. In principle, not bad, good result. But nevertheless, there is room for growth. And labor productivity is one of the key points that will allow us to move forward,” Alexander Ivlev , managing partner for the CIS countries, deputy head of client relations for Central, Eastern, South-Eastern Europe and Central Asia at EY.
Problems
Insufficient level of managerial and technological competencies of business
“It [the productivity problem] is a combination of factors. And the insufficient level of managerial and technological competencies in many enterprises. For a huge number of years there were no educational programs, and many things collapsed along with the Soviet Union. And there was nowhere to replenish these competencies,” Pyotr Zaselsky , Deputy Minister of Economic Development of the Russian Federation.
Nikolai Solomon at EEF 2021. Photo: Anna Gorban, roscongress.org
“Large corporations may have top-level business goals, but they are very poorly transmitted throughout their entire structure, across subsidiaries, and dependent companies. Today we are implementing a project on labor productivity in Russia, but we work only with private enterprises, and participation is voluntary, and not a single subsidiary or “grandchild” of large corporations comes. Why? Because they are used to waiting for commands from above. They should be told: you must make a new amount of equipment, you must reduce the cost, and then maybe they will go to work. A little different mentality. Everyone is used to working in a planned economy,” Nikolai Solomon , General Director of the Federal Competence Center in the Field of Labor Productivity.
Overregulation
“Of course, working with administrative barriers. First of all, these are industry standards. The Ministry of Economic Development is currently working to transform the business climate. The regulatory guillotine should start working soon,” Petr Zaselsky , Deputy Minister of Economic Development of the Russian Federation.
Lack of funding
Petr Zaselsky at EEF 2021. Photo: Sergey Grachev, roscongress.org
“There are not enough project financing instruments, the rates are quite high,” - Pyotr Zaselsky, Deputy Minister of Economic Development of the Russian Federation.
Underdevelopment of transport infrastructure
“The role of infrastructure here [in the Far East] is very important. Anyone who travels around the Far East knows that getting from one city to another is almost impossible. You always need to either go through the center of Russia or through Moscow. This is a huge obstacle to business development. There are people, people come, there are investors, powerful economic partners - everything is nearby. There is everything for development, but there is not enough infrastructure,” Petr Zaselsky , Deputy Minister of Economic Development of the Russian Federation.
Solutions
Improving management
“Labor productivity is a top-level indicator that collects everything that happens in the economy. We are talking about the need to increase investment. We are talking about the quality of capital that exists. These are the technologies that are used. We are talking about the quality of human capital. Of course, it is very important to combine all these elements and use them correctly. This is already a question of management quality,” Maxim Oreshkin , Minister of Economic Development of the Russian Federation.
Ko Po Kun at WEF 2021. Photo by Sergey Grachev, roscongress.org
“The management philosophy [needs] to change. Because if the owners don't want it, then there won't be any changes. They must be the customers of all these processes. And then it goes into the workers' philosophy. Because if the manager’s philosophy changes, that’s not all. The workforce also needs to be retrained,” Koh Poh Koon , Senior Minister of State for Trade and Industry of the Republic of Singapore.
Increasing investment in technology and human capital
“We need to invest more, <...> we need to introduce technology. For example, a new project on the introduction of artificial intelligence technologies and their development is now starting within a few months. <…> We estimate that this story could add up to 1% annual growth by 2030 if we do everything right here. <…> This is the quality of investment. Russia invests a lot, and more and more every year, in the quality of human capital. This is education, this is also the scientific environment,” Maxim Oreshkin , Minister of Economic Development of the Russian Federation.
He Zhenwei at the EEF 2021. Photo: Sergey Grachev, roscongress.org
“The first thing is to invest in the machine tool industry, instruments and devices that are used in production. <…> High-tech equipment is needed. The second point is the human factor, human resources. <…> We need to improve the infrastructure, because if you don’t have the infrastructure, then no matter what you do, you won’t be able to sell,” He Zhenwei , Secretary General of the China Overseas Enterprise Development Association.
Digitalization of all sectors of the economy
Alexander Liberov at EEF 2021. Photo: Sergey Grachev, roscongress.org
“Digitalization is one of the most important strategic directions today. Digitalization is not an end in itself, it is an opportunity to increase the competitiveness of an enterprise both in the local market and in the international sphere. There are many examples where we help our clients increase this productivity. In the automotive engineering industry, we actively work with. The latest KamAZ long-haul tractor was developed using our Siemens PLM Software, and this made it possible to practically digitize all R&D and the creation of a new product in the company. <…> Another example: with Russian Railways, we have created an analytical center for collecting big data from Lastochka trains, locomotives that are used by Russian Railways on Russian railways. This allows you to practically go to the service by state. <…> It’s the same in agriculture. With the help of digitalization and weather forecast analysis, you can turn on the pumps on time and drain the land before it floods,” Alexander Liberov , President of Siemens in Russia.
“We have mainly developed recently in this area [increasing productivity] thanks to digitalization. What were we doing in Russia? We have modernized all our sites, we have digitalized the entire preparation procedure. <…> Thanks to all this, we have reduced the waiting time for an order over the past year by one minute. On average, you now need to wait 140 seconds from the moment you order until you receive it. In some locations we were able to reduce this time to 120 seconds. This all increases customer satisfaction,” Mark Carena , General Director of McDonald's in Russia.
Sergey Kolesnikov at EEF 2021. Photo: Sergey Grachev, roscongress.org
“Using IT technologies, we were able to more than double labor productivity. In this sense, in Russia we are top 3 [in terms of labor productivity], although we also compare well with Chinese, Japanese and, I think, European and American companies in terms of output,” Sergei Kolesnikov, President of TechnoNIKOL Corporation .
Katsutoshi Nishimoto at EEF 2021. Photo by Sergey Grachev, roscongress.org
“High technology and robotics are always valued, and we always understand that this will contribute to both quality and productivity. <…> Digitalization allows us to identify deviations faster, respond faster,” Katsutoshi Nishimoto , Senior Vice President of Toyota Motor Europe.
Development of logistics and transport infrastructure in the Far East
Maxim Oreshkin at EEF 2021. Photo by Sergey Grachev, roscongress.org
“We are now working with our colleagues from the Ministry for the Development of the Russian Far East on how to create additional productivity centers within the framework of a national project that would logistically cover the Far East region,” Maxim Oreshkin , Minister of Economic Development of the Russian Federation.
“The Far East is a unique opportunity to create infrastructure in an area that, unfortunately, is not yet fully developed. If you look at the best world practices, then Canada, like the Far East, is surrounded by seas. They have a low population density, mostly mining with low levels of processing. At the same time, they were able to create a center in the province of Saskatchewan that collects almost all products that are imported from Asia and then distributed throughout North America. In the Far East, we can become a bridge that connects China and Europe and other parts,” Alexander Ivlev, managing partner for the CIS countries, deputy head of client relations for the countries of Central, Eastern, South-Eastern Europe and Central Asia at EY.
Ps Deputy Minister of Economic Development of the Russian Federation Pyotr Zaselsky on labor productivity after the move of three ministries to new towers.
Based on materials from the sites productivity.rf, VEF, Roscongress and Vesti
PRODUCTIVITY
Productivity as a personal quality is the ability to be personally effective, create material and spiritual values, and achieve high results; work productively, fruitfully and usefully.
Productivity requires thinking about constantly improving your skills. Not only writers, artists and poets have to think about their own fruitfulness and productivity. Anyone who hits the top ten of their life purpose is fruitful and productive. If there is a serious love affair with work, it will definitely be productive.
In productive work, time flies, like on a date between lovers.
When there is no happiness in work, fatigue accumulates like a snowball. You can forget about productivity. Only by doing what one loves can a person become truly productive.
When a person is busy doing what he loves, the very path to the products of his labor turns into a holiday for him. By definition, labor you love becomes productive and gives you an incomparable taste of happiness. When a person is productive, heaven gives him involvement, obsession and unflagging interest. He becomes efficient, effective and creatively active.
Productivity involves the ability to collaborate.
Productivity is based on hard work. Hard work, in addition to the desire to do what you love, implies professionalism and the ability to come to a reasonable, optimal organization of work. Therefore, it is effective, efficient and effective. Unlike a hardworking person, a workaholic is not bothered by the scientific organization of work. It is important for him that there is more work; in it he sees the only value in life. For a hardworking person, work is desirable, he goes to work with love, and leaves with pleasure.
Hard work is productive, it leads to wealth and prosperity, and work based on the promises of greed leads to poverty and disease. If you want not to work for the rest of your life, find something that suits your purpose. Work as intended is productive, because it is pleasure and joy. A hardworking person is productive, fulfilling his duty, he experiences happiness, for him every working day is a holiday.
A person in whom productivity has taken root uses his time productively, that is, he organizes his work day productively, showing efficiency, efficiency and organization.
Productivity is the daughter of fruitfulness - the ability to produce results that are impressive in quantity, to contribute to the development of something that can lead to further growth, the success of something, to have a positive effect on the development of something.
High productivity is the result of high goals. It brings joy and satisfaction that no amount of money can buy.
Peter Kovalev
Other articles by the author: https://podskazki.info/karta-statej/
Sayings, aphorisms and quotes about effectiveness.
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64
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The most effective means of maintaining peace is readiness for war.
• George Washington
War, Life Quotes, Universe, Efficiency
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62
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The human race had one truly effective weapon - laughter; nothing can resist the power of laughter.
• Mark Twain
Life Quotes, Nothing, Laughter, Efficiency
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73
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Our judicial system is very efficient, its effectiveness only sometimes wavering due to the difficulty of finding a dozen or two people every day who cannot read and write.
• Mark Twain
System, Funny Quotes, Judge, Efficiency
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69
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The one who is cured in love first will be cured better. In first love, women love the beloved, in subsequent love, love. There are many remedies to cure love, but none of them are effective.
• François de La Rochefoucauld
Love, First love, Efficiency
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59
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Just finding a life partner is not enough: it is necessary that this person nourishes us emotionally and helps us develop effectively.
• Jorge Bucay
Love, Development, Sex, Efficiency
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66
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Why do people bang their heads against the wall? After all, banging your head against a corner is much more effective.
• Anna Gavalda
Irony, Advice, Efficiency, Humor
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81
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Keep busy. This is the cheapest medicine on earth - and one of the most effective.
• Dale Carnegie
Depression, Life, Medicine, Efficiency
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73
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Silence is an effective tool that many women find too difficult to use. It would seem that it would be simpler, but anxiety and the desire to please make you pour out words where a few minutes of silence would suffice. The reputation of a mysterious and wise woman is most easily achieved not by a stream of sparkling chatter, but by the ability to pause and give the interlocutor space for self-expression.
• Martha Ketro
Silence, Efficiency
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89
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It's not about how much money you make, but how much money you keep, how effectively it works for you, and how many generations after you can use it.
• Robert T. Kiyosaki
Money, Efficiency
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74
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Combat is the only effective way to wage war; its goal is the destruction of enemy forces as a means of ending the conflict.
• Carl Von Clausewitz
War, Enemy, Efficiency
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78
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Since the point of money is to spend it, all its value lies in how it is spent. You may have as much money as I do, but if you spend it in a special way, you will be richer than me. The value of money is measured by its use. Someone who knows how to spend money uses it a thousand times more efficiently than someone who doesn’t.
• Osho
Wealth, Money, Values, Efficiency
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46
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Act like you're fine. You will be surprised when you realize how effective this method is. Once you manage to deceive yourself, you will be able to handle everything in the world
• Max Fry
Life, Irony of Life, Method, Efficiency
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72
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The main cause of suffering is lack of support. Hence the anxiety and the resulting neurosis. This means that awareness of hopelessness is a fairly effective way to relieve anxiety.
• Sigmund Freud
Neurosis, Support, Suffering, Efficiency
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72
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A well-functioning tyranny is as rare as an effective democracy.
• Robert Heinlein
Democracy, Tyranny, Efficiency
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73
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Terror is a less effective means of control than non-violent transformation of the surrounding world, as well as the thoughts and feelings of people.
• Aldous Huxley
Peace, Means, Terrorism, Efficiency
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90
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Typically, the simplest approach is the most effective.
• Donald Trump
Simplicity, Efficiency
