28 April 2016
The Technodinamika Holding, part of the Rostec State Corporation, carries on its performance optimization efforts to improve production efficiency. In 2015, the company closed the gap in performance with the world’s leaders from 7 to 4 times: the value added per production worker grew from 2.3 to 3.2 million rubles.
The reasons for the backlog are the fact that most of enterprises have a full production cycle, from casting to assembly, while supporting processes abroad are typically outsourced. Inefficient organization of production with unnecessary movement of parts across the production area, disadvantages of the planning system and the associated production downtime, loss of working time due to insufficient production discipline lead to a decrease in revenue per basic worker.
Technodinamika has managed to Increase productivity by 40% over one year with no significant investment by applying an integrated approach: continuous monitoring of the bottle necks with hourly control, switching to monthly planning, a quarterly analysis of the problematic products and increase in employee engagement and shop-floor discipline.
The strict control of overhead costs with an increase in revenues has allowed Technodinamika to reduce them to 25% of revenue.
Despite a rise in prices and inflation, we were able to keep the share of material cost in revenue through centralized procurement, alternative suppliers, QC system development and improving automation.
“The package of measures we introduced has largely contributed to the growth in the holding’s financial indicators on a year-on-year basis,” says Technodinamika CEO Maxim Kuzyuk. “We keep on working to improve our efficiency, but we expect that our new products will become the main drivers of growth in the near future.”