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Productivity Improvement of SMEs

PMS

It is essential to upgrade the management system in order for the company to achieve external growth like sales and assets. To this end, KPC has introduced the Productivity Management System (PMS), a certification system that supports the continuous innovation activities based on the diagnosis of the productivity management system level of the company in order to build a basis for productivity improvement in the Korean industry. KPC has been developing and distributing PMS since 2004 with the Ministry of Trade, Industry and Energy. Currently, many leading companies in Korea are involved with PMS, ranging from small- and medium-sized companies to large companies and public corporations.

PMS Certification Model

The management level is classified into seven categories and diagnosed throughout the categories. The classification criteria for 10 categories are provided for each evaluation category.

Step 1

Corporate Diagnosis. A diagnostic team consisting of 2 to 7 experts is put into the field to assess the level of the productivity management system of a company. It assigns the certification level to the company according to the evaluation criteria, and it draws innovation goals and tasks according to each evaluation category.

Step 2

Action Plan Establishment. Based on the results derived from Step 1, experts and company representatives discuss the detailed implementing tasks for innovation promotion and plan for the future.

Step 3

OJT Consulting and Training. The experts are matched to solve the innovation tasks specified through Stage 2 and conduct on-site consulting and customized training.

Step 4

Monitoring of activities and performance is carried out through one-year post-diagnosis and three-year renewal diagnosis for performance evaluation, and the productivity of the company is increased through continuous improvement of certification level of productivity management system.

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Customer Case

Huneed Technologies is a wireless communication equipment manufacturer located in Incheon. Since 2014, it has introduced the innovation activity system through PMS certification and since then its sales has increased by more than 50%, operating profit has more than tripled, and the number of employees has increased by 32%

Industrial Innovation Movement

The Industrial Innovation Movement is a campaign that expects the existing cooperative growth between large corporations and their primary suppliers to be expanded into the second and third suppliers, with the aim of supporting 10,000 small and medium enterprises from 2014 to 2018. KPC has developed the Korean Manufacturing Innovation Methodology (KPS), which is used as a major methodology for the industrial innovation movement, with the Ministry of Industry, Trade and Industry. KPC is the largest performing agency for the industrial innovation movement, and are responsible for the 25% of corporate consulting and facilities support every year.

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Program

Large corporates and their primary suppliers work together with consultants and technical experts to help the second and third suppliers to perform a variety of innovation tasks so that the second and third suppliers, who have suffered difficulties in growing their business through productivity innovation due to their inadequate manufacturing environment and lack of innovation base, can engage in innovation tasks by themselves.

Customer Case

As a spindle maker, RPS, a partner company of Samsung Electro-Mechanics, has promoted productivity improvement by conducting factory environment improving activities. As a result, sections of the factory were organized and wasted time was reduced. It has reduced manufacturing costs by about 100 million wons annually.

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Partnership program

The productivity innovation support program for the partnership between large companies and SMEs is a program for which both large companies and the government raises supporting funds and which helps the productivity improvement of partner SMEs that large companies will cultivate as their key partners. This program aims to enhance the self-sustaining power of SMEs, which is the premise of mutual growth between large companies and SMEs, and to boost the productivity of the entire supply value chain. KPC is an agency for the productivity innovation support program for the partnership between large companies and SMEs and provides consulting services to partner SMEs.

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Program

The productivity innovation support program for the partnership between large companies and SMEs provides customized programs for the difficulties of companies including manufacturing and producing operation innovation, management innovation, production technology innovation, design innovation, and export activation support by utilizing the resources shared by the government and large companies. As for the productivity innovation support program for the partnership between large companies and SMEs, large companies such as Samsung, LG, POSCO and SK will form a consortium with 10 cooperative SMEs.

Customer Case

HB Technology, located in Asan, develops and manufactures testing equipment for semiconductor and display processes. HB Technology participated in the productivity partnership project, established an advanced project management system, connected with customers’ production line operation schedule, and integrated management of the whole process - equipment design, components procurement, production, and test. It also standardized the equipment manufacturing process, applied various techniques, and dramatically reduced manufacturing lead time. In order to guarantee the perfect quality from the equipment manufacturing process, the company concentrated on improving the nine defects and performed recurrence prevention activities for inappropriate things, thereby liminating field claims and increasing the reliability of the equipment.

Workplace Innovation Consulting Support Project

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Workplace innovation means all kinds of innovation activities related to changes in the system, such as a way of working for the common interests of labor and management and a way of managing people.
The workplace innovation consulting support project aims to build a workplace with high performance and provides the consulting that is appropriate to the actual situation of each workplace after screening workplaces that want to receive the workplace innovation consulting funded by the government.
This project is company-centered consulting, which is optimized for each company based on the task force team of participating companies. The improvement of problem solving ability of participating design team allows the companies to maximize the potential for continuous improvement.

Major achievements

  • Provided 190 integrated diagnoses and 300 specialized consultations
  • Achieved average sales growth rate of 10.2%, employment growth rate of 9.6%, and wage structure improvement rate of 82% (as of 2016)

Consulting Area

  • Improving the wage system
  • Building evaluation system
  • Establishing lifelong learning system
  • Building labormanagement partnership
  • Flextime work
  • Long-term employment stability and work-family balance
  • Improving long working hours
  • Improving temporary employment structure
  • Improving work organization and work environment

Outline of Major Outstanding Cases by Field

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