Transforming thinking through practicing modern management technologies at industrial companies in

Central Asia

Astana, Republic of KazakhstanSeptember, 2017

About

Anatoly Feskov Partner, leading coach/advisor (since 2006).

Kaizen Arsenal LLC (Kazakhstan)

Arsenal Uspekha LLC (Russia)

Certified TPS expert (Lean Production) Japan Institution.

Erickson College International Coach

A member of СМС Kazakhstan (CMC Global) association of consultants;

2010-2017 – working on projects for GIZ and European Bank of Reconstruction and Development. More than 20 projects completed. The cooperation is ongoing…

Achievements:

2010-2011 – 25 Kaizen consultants trained in Kazakhstan and Kyrgyzstan.

2013 – Almaty Ventilator Plant project got 3rd place in Project of the Year category at the international competition of consulting projects organized by Gabriel Al-Salem Foundation.

2014 – Aksengir-RG BRANDS LLC was recognized by Kazakh-Japanese Centre (JCA) as a benchmark company in terms of using Kaizen philosophy, methods and tools in Kazakhstan.

2015 – Marked for “Significant input in the development of Lean Production in Russia” by the Chamber of Commerce and Industry in Naberezhnye Chelny.

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We are so different - and yet so similar...

Phases of human/business/organization/ region /country development

Birth –

formation

Development

– driving phase

Integration –

maturity

Prosperity –

successful

work

Recession –

degradation

Time

Our internal processes and reaction obey the same laws

Why? Human information channels

1%

3,5 %

83%

1,5%

11%

Companies are at different stages of

their development -and this is the main thing when carrying

out changes? (Consulting)!

Phases of development for countries/regions/businesses/organizations

Effectiveness of the organization

The life stages of the organization

Life сycles of the OrganizationTime

"Tusovka“ "Mechanization“ "Internal "Quality Management“Entrepreneurship"

Life Cycles of an Organization

1- formation of the organization, 2 - intensive growth, 3 - stabilization, 4 - crisis.

To change we must change the way of thinking

Perception

Thoughts

Behavior

/JobHabits / System

Personality /

Culture

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Changing thoughts

- change yourself- the family will change- friends will change- the country will change- the world will change

Are you ready for change?

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1. Find a couple near you2. Get to know3. Study carefully the image of

the partner4. On my command - turn your

back on each other5. Everyone - make 3 changes

in your appearance / clothes6. Turn around facing each

other and find 3 changes in the look of your partner.

7. Did everyone manage to do the exercise?

8. Who was it difficult to do the exercise?

Время/Деньги

Характерис

тики

ДОРОЖНАЯ КАРТА РАЗВИТИЯ БИЗНЕСА И КОЛЛЕКТИВА

I

II

КОЛЛЕКТИВ

БИЗНЕС 1. БИЗНЕС НА ОАО «ЗРА» УЖЕ НА НОВОЙ

S - ОБРАЗНОЙ КРИВОЙ, В НАЧАЛЕ СТАДИИ

РОСТА

1.1 Ориентация на будущее

1.2 Стремление стать «европейским»

предприятием

1.3 Прирост объемов производства и

реализации, совершенствование

технологической базы, ориентация на

новые продукты

2. КОЛЛЕКТИВ НА ОАО «ЗРА» ПОКА ЕЩЕ НА

СТАРОЙ S -ОБРАЗНОЙ КРИВОЙ, В КОНЦЕ

СТАДИИ ЗАСТОЯ

2.1 Репрессивный менеджмент

2.2 Стремление коллектива к стабильности,

неизменности -«болото»

2.3 Ориентация на настоящее, страх неудачи

3. НЕОБХОДИМ ПЕРЕВОД КОЛЛЕКТИВА С ЕГО НЫНЕШНЕЙ

СТАДИИ ЗАСТОЯ НА СТАДИЮ, СООТВЕТСТВУЮЩУЮ СТАДИИ

РАЗВИТИЯ БИЗНЕСА, НА СТАДИЮ РОСТА

Данный перевод требует смены менталитета

коллектива (целей, ценностей, принципов), что очень

болезненно для коллектива

4. ДАЛЬНЕЙШЕЕ ПОДДЕРЖАНИЕ СОСТОЯНИЯ КОЛЛЕКТИВА В

СТАДИИ РОСТА МЕНЕЕ БОЛЕЗНЕННО И ЗАТРАТНО КАК В

ПСИХОЛОГИЧСКОМ, ТАК И В ФИНАНСОВОМ ПЛАНЕ

I

II

Company’s personnel and business development

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PERSONNEL

BUSINESS

Kyrgyzstan. What it was like

1) Staff turnover over 60%2) Low quality.3) Failures to fulfil orders

in time.3) Lack of sales systemMany other problems

Beginning. Excess inventory everywhere.

Goals and objectives of the project

Organizing efficient knit-wear production to strengthen the company's position on Kyrgyzstan's inner market and to increase enterprise's export capacities.

Project objectives:•Building a sales system and effective value creating flows at the production site.•Involving the enterprise's personnel into business development work using the Lean/Kaizen philosophy, principles and tools.•Raising products' quality

Training personnel and managers first

Methods of operation – 20% theory and 80%

practice

Training personnel on-site

Changes start with the managers and the owners.

Changing manager’s role – from directing to helping and hearing

Kazakhstan

Russia

Uzbekistan

Business assessment through Value Creation Flow Mapping

Changing motivation system

Transition from piecework to competence-based time rate plus bonus payment system

Pilot project results

The stocks of raw materials necessary for production sections' seamless operation have been calculated and are maintained.

BEFORE AFTER

Building flows. Works completed

Excessive stocks have been cleared, sections rearranged,workplaces organized according to the 5S system

Production management visualization

Finished goods storage.

Before After

Faulty goods storage. Works completed

Standard procedures for defective goods delivery/return to the STOLL section were developed. Results: the faulty goods storage was Eliminated in 6 months.

Теперь дефекты видны всем.Before

Here’s the result!

QC – the amount of defects reduced greatly, and it is noticed by everyone...

The 2014 results

2015 – stable results!

Kyrgyzstan – results

the number of failures (incorrigible marriage) decreased by 4, 7 times.

Equipment's efficiency reaches 85-90%;

The amount of broken needles reduced 3.8 times.

Lead time reduced 3-4 times. All orders are fulfilled in time.

The amount of a launching lot reduced 4 times (from 100 to 25 units).

Kyrgyzstan. More results.

Production standards and product quality come up to the European level.

100% of the orders are fulfilled in time.

The lead times for orders have been reduced from 1 week to 1 day;

The amount of orders increased by 50%;

Labour productivity increased 3 times

What was used during the project?

1. TOP managers and personnel training and involvement practices

2. Kaizen Proposal System.3. VSM4. Problem solving5. 5S6. Autonomous Maintenance of Equipment7. Visualization and SFM8. Building flows9. Inventory management and logistics10.Quality by Design, etc...

The beginning of the project in Kazakhstan

First production floor

Second production floor

Before

Creating a project team at the production unit.

Road to Success. How did it start?

Implementing changes at the production floor together with workers and managers.

Road to Success. How did it start?

Implementing changes at the production floor.

Road to Success. How did it start?

Involving personnel into workplace improvement.

Road to Success. How did it start?

Road to Success. How did it start?

Began changes in the office.

2011 — first success! The entire personnel fell in love with Kaizen

Lead time at the pilot section reduced 2 times.

All the improvements have been implemented by workers themselves

Further, bigger – building a new plant.

Then a miniature

Layouts Construction began –2012

Project first

Here comes the new plant!

Work results. KazakhstanProduction output, mil. tenges Number of employees, people

Output per worker, mil./person

More results. Kazakhstan

• Production standards and product quality come up to the European level.

• 100% of the orders are fulfilled in time.

• Lead time reduced 4 times: from 1 month to 1 week;

• Labour productivity increased 4 times

What was used during the project?

1. TOP managers and personnel training and involvement practices

2. Kaizen Proposal System.3. VSM4. Problem solving5. 5S6. TPM and SMED7. Visualization8. Standardization9. Building flows10. Inventory management11. Quality by Design 12. SFM, etc...

Our success was recognized!

President Nursultan Nazarbayev personally granted the enterprise’s CEO with the Altyn Sapa 2014 prize for product quality!

General ventilation fans

Recovery cooling plants for Data Centres

Russia

Partners appraised the company(its products and prospects)

South Korea

• Gefest-Klimat

Central ACs

Smoke exhaust fans and fire dampers

Lessons learned

“Kaizen is eternal and it has no limit. (Kaizen has no end)” Taiichi Ono.

Система Лин/Кайдзен успешно работает везде

Она может применяться в различных странах, отраслях и культурах.

Она строится на управлении с участием всех

Достичь критической массы, синергетического эффекта… делиться успешным опытом, избегать скуки

Критично присутствие “духа мероприятия” …видения, лидерства, соответствующих условий и помощи

Важны как процесс, так и результат Лин/Кайдзен – это “живая” система

The power of consulting lies in synergy of knowledge, experience and practice

Together with Kaizen experts from EBRD: Fukuyama-san and Sato-san

Thank you for your attention!

Anatoly Feskov Contacts:

•Tel. (Russia) – +79193855394

•Tel. (Kazakhstan) – +77058760505

E-mail:

•Feskov@arusp.ru

•www.arusp.ru