Productivity Strategy in Kazakhstan. How we implement it? - - PowerPoint PPT Presentation

Productivity Strategy in Kazakhstan. How we implement it?

Singapore May, 2017

Productivity in Kazakhstan. In average the productivity is $30K–$40K/person. In mechanical engineering of Kazakhstan, the productivity was $10K-$17K

World ranking on Productivity

«Productivity 2020» Program in Kazakhstan

The Resolution of the Government of Kazakhstan dated March 14, 2011 № 254.

Goal: «Enhancing competitiveness

• f 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»

Increasing the competitiveness of industrial enterprises in priority sectors of the economy by increasing labor productivity

Modernization (technical re- equipment) of existing and creation of new productions Service Support Support for the development of cluster initiatives

GOAL TASKS 1 CRITERIA FOR APPLICANTS 2 3 Implementing activities in priority sectors

• f the economy

at least 1 year (with the exception of leasing financing, including the development of a comprehensive plan):

• Mining (services);
• Light and woodworking;
• Chemistry and pharmaceutics;
• Production of building materials;
• Machine building;
• metallurgy;
• Metal working;
• Other sectors.

CRITERIA FOR CONSULTANTS *, ATTRACTING APPLICANTS Qualification and work experience no less than 3 (three) years in the sphere

• f

provided services At least one executed project in similar area

Goal, tasks and criteria of «Productivity 2020»

*

Terms of financing of tools for supporting the "Productivity 2020" Program № п/п

# State support description Size of State Support The maximum amount of state 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 Plan for applying for Long term leasing financing

50 %

Max 2 mln tenge (appr 7K USD) 2.2 Payment of expenses incurred in the development and / or examination

• f the feasibility study for Industrialization Map projects

50 %

Max 15 mln tenge (appr 50K USD) 3 Reimbursement of the enterprises-applicants to improve competence: 3.1 reimbursement of expenses incurred by the enterprises applied to the p rogram in the process of diagnostic and trainings need assessment an d professional development of companies personnel, including top man agers

40 %

No more than max 2 mln tenge per one employee and max for 15 persons a year 15 3.2 reimbursement of expenses incurred by the enterprises applied to the p rogram in the process of implementation of the best practices by прои зведенных предприятием при внедрении лучших производственны х практик by engaging experts

40 %

Max 9 mln tenge per 1 expert a year, max 3 experts a year

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

4) Orders are not executed on time - out of 10

• rders 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

Road to the success. How it began?

The organization of production – was:

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

• ffice.

Road to the success. How it began?

The year of 2011 - the first successes! All Staff became funs of Kaizen

Lead time for orders on the pilot section has changed

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)

Road to the success. How it began?

And this is the new Plant!

New Rules of work– in the stream!

Now the management is visual!

Results

500 1000 1500 2008 2009 2010 2011 2012 2013 2014 5 10 15 20 2008 2009 2010 2011 2012 2013 2014 50 100 150 2008 2009 2010 2011 2012 2013 2014

Issue volume, mln tenge Number of employees, persons Output per employee, million / person

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!

General-purpose fans

Recuperator plants for cooling Data centers

Russia

Partners assessed the potential (Enterprises and products)

South Korea

• Gefest Climat

Central fans Smoke exhaust fans and fire extinguishing valves

Effective Enterprise – «National Champions»

Competitive Business = Effective Sector

Effective City = Competitive Country

Happy People

Thank you!

• Tel. +79193855394

www.arusp.ru feskov@arusp.ru agulsum@cmc.kz

Anatolii Feskov, Director, Partner, Lead Consultant& Trainer Gulsum Akhtamberdiyeva, Chair, CMC Kazakhstan

Ulken Rakhmet!