Introducing IMPAC to the administration staff
Acknowledging this fact, CAU TRE EXPORT GOODS PROCESSING JOINT STOCK COMPANY (CTE JSCO) has implemented the IMPAC 10000 Program since 2008. The first results were promising.
What ís IMPAC?
IMPAC stands for Improved Management Productivity And Control. IMPAC uses its own approach to supervisory management and point of execution control. It analyzes existing practices, then designs and installs the necessary improvements to upgrade the system’s performance, productivity and profit thereof while reducing execution cost. IMPAC program implementation involves operational systems analyses, enhancements and augmentations.
Where does IMPAC begin?
In the first phase of an IMPAC Project, the following steps are taken.
* Evaluate the work planning procedure of each division and of the company; the balance in the production line; work/raw material input norms; and the work division/supervision/report methods.
* Approach all the supervisors and managers to investigate the attitudes and opinions; thereby collecting the “hot” ones directly associated with the company’s performance.
* Develop a matrix of relations and communications among senior managers in the company. Such matrix provides a clear picture of how the staffs understand and communicate about the company’s targets and plans.
* Investigate and record the supervisors’ behaviour since they relate to the management and superintendence skills.
Usually, the middle management level is the main cause of the company’s poor performance as they use ineffective management methods, said IMPAC.
They may be brilliant technicians, skillful workers or experienced experts, etc. but lack of management skills to steer their staff. They are promoted to a management position because they do too well in their domain. And often those in charge forget to help them develop their management knowledge and skills before the promotion.
IMPAC Implementation tasks
To implement IMPAC Project, the following key tasks are executed simultaneously:
1. Area development : IMPAC experts will work with the managers at different levels and supervisors to monitor the work norm developing practices in their area, help them to get the clear picture of the relations between the work amount and the time schedule (work norm). Both will together observe, identify, measure and determine the work load at each production phase and then develop “work norms”.
These norms will be a basis for managers to assign the work, monitor and control regularly (in short term) the performance of each staff and the whole team. Any variances beyond tolerances will be explained and properly addressed by taking specific corrective measures.
2. System development: is based on the management and supervision tools developed in each level (each area and the whole company). These tools are combined to create a communication matrix among managers of different levels and among areas, and applied widely and thoroughly for the whole company.
At the same time, the two-way report/feedback on various issues between managers of different levels is also established to ensure i) the deputies’ thorough understanding of the targets and plans set by the superiors; and the work done by these deputies is quickly acknowledged and praised by the superiors.
In the IMPAC program, there are two types of backbone reports, i.e.
* Management Report: a data report on key performance indictors (KPI) that the superiors request from each area on weekly basis. In such report, the different between the planned targets and results are highlighted.
* Weekly Variance Report: a weekly report sent to the superiors from each area. It records and list both objective and subjective loss in the production and trading process. The purpose is to remind the managers of the opportunities to save money and help them quickly make decision on how to avoid waste.
3. ACCES training aims to improve the supervision and management skills for supervisors and managers at all levels (top managers, middle managers, low managers) based on the actual state and demand investigated and training. Right after each general training and/or installation of control/management tools, on- on-one training was conducted to evaluate the knowledge that each manager acquired and deepen their understanding of the lessons an the new management tools applied
Performance of IMPAC 1000 Program in CTE JSCO
The savings achieved after implementing the Project (calculated for the first year of implementation)
+ Savings from increased labour productivity: US$306,509
+ Savings from reduced material input: US$115.646
+ Average increase in labour productivity: 25%
Changes in the behaviour and attitude of supervisors and mangers at different level
+ More proactive in the supervision of the area;
+ To pay more attention to and have a thorough grasp of the daily/weekly plans. Closely monitor the productivity and quality;
+ To identify and solve the arising problems in a serious manner;
+ To significantly reduce the hours (habit) of working as a worker.
* Works shoplevel
+ To realize the importance of recording production indicators;
+ To closely monitor the norms, productivity and increasingly question the deputies;
+ To make longer plans and communicate them with the deputies and relevant units;
+ To provide much information to others and communicate in accordance with the procedure;
+ To become more dynamic in the improvements/encouraging improvements.
* Division level
+ More active in taking responsibility and solving problems;
+ To communicate information in accordance with the procedure;
+ More proactive in supporting other units.
* Executive management level
+ To pay more attention to the monitoring of the assigned tasks;
+ To make positive changes in allocation of tasks;
+ To offer deputies with due challenges;
+ To take fewer interventions in the deputies’ duties.
As time passes by, the application of management and supervisory tools developed through the IMPAC program has been more smoothly. More achievements have been made accordingly, which create dramatic changes toward improving the company performance.
Nguyen Van Thai Binh
(Compiled by TP)