Lean Manufacturing: Effective Practice for the Development of the EAEU Countries

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Photo by: EEF

Introduction of Lean production in Russia has allowed, in particular, enterprises participating in the “LabourProductivity” national project to earn an additional over 60 bn RUB over five years and this business support mechanism to be actually rolled out to the other countries of the Eurasian Economic Union. This is theconclusion drawn by representatives of the Union’s member nations and experts from the results of the “Eurasian Integration: Best Practices for Boosting Productivity” session of the second Eurasian Economic Forum.

The programme for introducing Lean production in Russian enterprises has proven its effectiveness

“The ‘Labour Productivity’ national project is being implemented in the Russian Federation, having been developed on the instructions of the Russian President [Vladimir Putin – Edit.]. This project has now beenunder implementation in our country for five years on the basis of the Lean production principle. <...> As oftoday, we have over 4.8 thousand enterprises participating in the project and 1.5 m employees are now covered by it. <...> We can see that the growth rate of labour productivity in these companies is outstripping that of companies not embraced by the national project. We can see a faster wage rate increase in theparticipating companies. The figures show that companies within the scope of the national project have earnedan additional over 60 bn RUB, which is many times greater that the amounts invested by the state in financing the given national project”, Murat Kerefov, Deputy Minister of Economic Development of the Russian Federation. 

“The Lean production culture is introducing many work teams to completely different work practices. Peoplestart to think differently, taking an interest in improving processes and getting rid of what is not needed. <...> To say nothing of the substantial improvement in company indicators, above all economic ones”, Nikolay Solomon, General Director, Federal Competence Centre (FCC). 

The EAEU countries are ready to exchange experience of introducing Lean production in enterprises

“We are currently holding an active dialogue with colleagues from the Republic of Belarus and have agreed ona broad range of consultations in the given sphere, including on cooperation on setting up a republican centre of competences. We are open here to dialogue with all EAEU participants. Especially to provide colleagueswith access to our digital platforms where a considerable number of solutions are brought together. <...> So, we are together prepared to share with you all the accumulated knowledge and competences at our disposal”, Murat Kerefov, Deputy Minister of Economic Development of the Russian Federation.

“Kazakhstan is also focusing particularly on this issue. Questions of raising labour productivity are reflected inour programme documents and the law on industrial policy. <...> Our sphere of activity is very similar to that ofthe Federal Centre of Competences; we provide consultations and support directly to businesses themselves. Speaking of business support measures for raising labour productivity, we help in raising employeecompetences, introducing digital technologies, improving production processes and making production organization more efficient. Here, precisely within the scope of this instrument, we are helping enterprises introduce elements of Lean production. <...> We are interested in the experience of the EAEU countries as part of the given work and we are ready to study and share experience”, Berik Bekenov, Chairman of the Board, Kazakhstan Industry Development Institute "QazIndustry". 

Shortage of competences and efficient specialists in the EAEU industrial sphere

“By 2025, we are planning, with you, to complete the formation of common markets, including a labour market. So, the Eurasian Economic Union is now actively working to encourage and support industrial cooperation, focusing particularly on high-tech production, such as aircraft construction, ship building and micro-electronics. We are endeavoring together to reduce our countries’ import dependence and have been discussing for a few years already producing high quality jointly manufactured goods within the Union for global markets. And, ofcourse, during fulfilment of these tasks, the problem arises of shortages of competences and efficient personnel”, Veronika Isaeva, Advisor to President, Kyrgyzindustry.

Lack of robust experience of state advisory support for enterprises in other countries

“When the national project was launched, we wondered whether the state would be able to offer a completelynew type of support different from financial or benefits in relation to taxes and financing, under the title of state consulting. <...> We believed but were not convinced that this would work. Why weren’t we sure? We did somepreliminary research into analogous experience, studied effectiveness and productivity of labour in othercountries: does the state assume any functions of assisting businesses of interest to all parties? <...> And wefound no examples of a structure providing more than just methodological recommendations or Lean production courses. <...> We were convinced that changes would not come from books or methodologicalguidelines”, Nikolay Solomon, General Director, Federal Competence Centre (FCC). 

Roll-out of Russia’s “Labour Productivity” national project throughout the Eurasian Economic Unionspace

“Here, state support is important following the example of Russia’s ‘Labour Productivity’ national project. I thinkrolling out this programme to the rest of the EAEU should be considered. I believe regional divisions of the Federal Centre of Competences should be set up”, Veronika Isaeva, Advisor to President, Kyrgyzindustry.

Study and roll-out of individual enterprises’ advanced practices

“I found it very pleasant and interesting to hear the Federal Centre of Competences. I believe it was set up atjust the right time. And what it does – gathering advanced industrial experience, understanding what shouldwork and how, giving advice to anyone interested, – is precisely the work conducted in conjunction with theMinistry for Economic Development [of Russia. – Edit.] for both raising labour productivity and cutting energy and water consumption”, Sergey Korotkov, Director, UNIDO Center for International Industrial Cooperation in the Russian Federation.

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