Leaning Towards Productivity Improvement: DOST-NCR Conducts Lean Management Trainings For MSMEs

Author: Angeli Gerone R. Platino and Reny B. Caspe Jr. Published: Dec. 17, 2019

“Lean [Management] is a mindset.”

Mr. Marciano B. Hermo IV, Lean Six Sigma Master Black Belt Holder Entrepinoy Volunteers Foundation, Inc. (EVFI) Consultant

Involving best practices such as the 5S System (Sort, Set in Order, Shine, Standardize and Sustain); the identification and, ultimately, elimination of waste in a business process; and the key concepts of Cost Reduction Principle and Toyota Production System among others, the Department of Science and Technology-National Capital Region (DOST-NCR) together with the Entrepinoy Volunteers Foundation, Inc. (EVFI) drove the completion of the three-month long Lean Management training to selected SETUP adoptors from food processing, leather goods, pharmaceutical, printing services and office fixtures and furniture sectors in the region.

The ongoing series of training is being conducted to six batches of participating firms which was grouped accordingly to accommodate representatives from firms who were mostly company owners and/or employees with supervisory positions from the CAMANAVA, PAMAMAZON, PAMAMARISAN and MUNTAPARLAS clusters. Meanwhile, the three phases of the training for each includes a two-day seminar, Coaching and Mentoring and Presentation of Results or Best Practices.

Moreover, to get a grasp of the lessons taught, the participants were involved in various activities such as assembling a set of ballpoint pens repeatedly done for three rounds to identify possible wastes in each group’s processes; drafting of each firm’s Project Charter for goal-setting purposes; and generating a Process Map and Cause and Effect Diagram to visualize each firm’s current process flow, potential problems encountered and their corresponding actions. Firms who took part in the said phase conducted at Philippine Science High School-Main (PSHS-Main) in Quezon City, Kapatiran-Kaunlaran Foundation, Inc. (KKFI) in Manila City, ALERT Center in Valenzuela City, Kapitan Moy Galleria in Marikina City and Philippine Textile Research Institute in Taguig City for Batches 1-5, respectively, were comprised of those involved in food, printing, metals, personal, home care and institutional products and leather goods sectors.

In the Coaching and Mentoring or second phase of the training, individual firms were given the chance to have a one-on-one consultation with Mr. Hermo to tackle the critical choke points from the financial aspect of a business and, consequently, amend them using best practices through Lean Management. During the training for the first batch of participants held at the Kapatiran-Kaunlaran Foundation, Inc. (KKFI), the mentoring activity was participated in by EVFI Chairman Mario Gatus, Consultant Fernalyn Palacpac, Trustee Sonia Tiong-Aquino, and Trustee Maret F. Bautista who each gave their insights regarding the ongoing finalization of the participants’ individual Project Charters. For the third batch of participants, Panther Electrical Industries’ showed notable improvements in their companies through the following ongoing root causes and corresponding solutions: establishing an incentive-based scheme to address lack of employee motivation and communication especially regarding issues involving faulty equipment and/or raw materials; and cleaning up of work space for experiencing inefficiencies in movement and lack of work space. 

During phase three of the training for the fourth batch of participants, representatives of TJ Milky Mushroom Co. presented the impacts of Lean Management to their business and highlighted how they were educated on the proper inoculation procedure and process mapping. “Mas lalong napadali ang pagraramify namin ng mushroom after namin natutunan ang maayos na inoculation [process]. Kung dati umaabot siya ng 30-45 days, ngayon [after]10-15 days na lang pwede na namin siyang i-harvest,” said their representative. On the other hand, Xyzco Foods Corporation shared their achievements in terms of financial growth. They were able to sell all of their products bound for one month which paved the way to increasing the salary of their workers and even the regularization of some of them. In the process, they also realized their potential savings if they acquired raw materials directly from the farmers who also serve as their suppliers. Clearly, applying Lean Principles to one firm’s existing operating processes leads to a favorable impact for practicing companies. Evidently, VES Dessert Food, Inc.’s representative stated, “Lean transformation cannot happen overnight. At times, it requires abandoning many of the principles that have gotten us to where we are.”

Since its implementation in July 2019, the Lean Management training has garnered a total of 49 invited firms equivalent to 84 participants. To date, DOST-NCR and EVFI has concluded the three-phase training for four of the six batches, achieving a total of 10 graduated firms (18 individuals) and garnering an average projected monthly savings of PhP 38,250.04–PhP 422,100.00 and average projected annual savings of PhP 459,000.48–PhP 5,065,200.00. The two remaining batches are expected to complete the training by March 2020.