What is Productivity Factories?
Productivity Factories is the flagship program of the Ministry of Commerce, Industry and Tourism, which will be led by Colombia Productiva, an entity allied with the industries to produce more, with better quality and greater added value. to produce more, with better quality and greater added value.
The program seeks that small, medium and large companies that are part of the manufacturing, agribusiness and services sectors improve their efficiency and profitability indicators and increase their capacity to compete within and outside the country.
It will be executed in conjunction with Confecámaras, SENA and the chambers of commerce of Bogota, Bucaramanga, Cali, Medellin and Manizales. In addition, it will have the support of the Private Competitiveness Council and the National Planning Department (DNP) to monitor its results and impact.
Why is Productivity Factories being created?
For Colombia to increase its productivity levels, it is important to do it from the heart of the companies. Productivity Factories was created to provide the entrepreneurs of the permanent tools to make its processes efficient and thus produce quality goods and services. OBJECTIVE. lean MANUFACTORING + kaizen
Productivity Factories gathers the best practices of the technological extension initiatives and programs that have been developed since 2012 in the country. In particular, it is based on the Technological Extension Pilot led by SENA and DNP, the Colombia Productiva program led by the Productive Transformation Program, the Productivity Factories pilot and other business improvement initiatives.
The main objective of Productivity Factories is to improve the capabilities of companies through technical interventions and accompaniment to improve their production results.fORMATION CONTINUOUS IMPROVEMENT METHODS. The next step is to evolve towards the implementation of new technological solutionsthat drive productivity at a higher level.
Why is it important to work on the internal productivity of companies?
Although Colombia’s Total Factor Productivity – TFP – grew in 2018, the average of this indicator between 2006 and 2016 has been negative (-0.3%). While labor proactivity in Colombia has remained unchanged over the last few years and the gap vis-à-vis other countries is widening more and more, as of 2017, one U.S. worker produces what four workers produce in Colombia (The Conference Board).
Colombia’s lagging productivity is affecting economic growth. In fact, studies show that the increase in productivity explains approximately half of the increase in Gross Domestic Product, (Lederman & Maloney 2014), so making efforts for its increase is indispensable in the sustainable growth of the economy.
Who will make the interventions in the companies?
The companies will be assisted by local managers who belong to the chambers of commerce, which will be the operators of this program in the regions. The work within the companies will be carried out by extensionists (productivity experts).
To consolidate the national supply of experts, the National Extension Program will be launched to train high-level personnel in accordance with the needs of companies and their regions. These extensionists will be trained by Colombia Productiva and SENA.
What is extensionism and what role does it play within Productivity Factories?
Para que los servicios de Fábricas de Productividad sean permanentes en el tiempo, es importante tener más expertos en productividad (extensionistas) en las regiones.
Los Servicios de Extensión Tecnológica (SET) son instrumentos de intervención de largo plazo, con foco en las condiciones locales para la mejora de la productividad de la Pymes. Los servicios incluidos tienen como objetivo atender las necesidades de aparato productivo regional (DNP) y mejora de la sostenibilidad empresarial.
What are the steps to enroll my company in Productivity Factories?
- Step 1. Entrepreneurs can apply through the online platform of the website, www.fabricasdeproductividad.com. Once the requirements are validated, you will be informed of the steps to follow.
- Step 2. A local manager (linked to a chamber of commerce) will contact the company to schedule a visit and make a diagnosis (designed by Colombia Productiva) to identify its challenges and potential for improvement.
- Step 3. With the support of the local manager and Colombia Productiva, the entrepreneur will define the services that need to be worked on to improve their indicators.
- Step 4. The process of technical assistance of up to 80 hours by specialized consultants (extensionists) in the region begins, who will provide technical support according to the needs of each company and will be accompanied by the local manager and Colombia Productiva. Most of the cost of the technical assistance will be provided by the national government and the chambers of commerce. The beneficiary entrepreneurs will contribute a smaller amount commensurate with their size.
- Step 5. Once the consultancy is finished, the evolution and results of the company will be evaluated, and it will be agreed with the company if it continues in a process of continuous improvement through a new cycle.
How long does the procedure last?
A company will receive intervention of 80 hours per year. The company may continue in the process for more than one year if it wishes. The purpose of Productivity Factories is to offer continuous and permanent improvement services.
What are the benefits that Productivity Factories offer to companies?
A company participating in Productivity Factories will be able to:
- 1. Improve time and optimize costs for the procurement, production and delivery of the product or service (process improvement).
- 2. Optimize energy consumption in production to make the final price of the product more competitive (energy efficiency).
- 3. Meet the minimum quality standards required by the companies (quality).
- Manage human talent to avoid high personnel turnover (human capital).
- Promote the linking of supplier companies.
- 4. Develop products and services with more added value and sophistication.
- 5. Increase the use of technological tools to improve processes and enhance productivity and competitiveness.
- 6. Incorporate sustainable practices in their production processes.
- Improve its logistics processes to deliver on-time, cost-effective and quality products to customers.
Why will you work through local operators, such as the Chambers of Commerce?
It is a priority for this government to work with allies from local and regional entities. The Chambers of Commerce know the companies in their region and are the strategic actors to adopt the methodology that Colombia Productiva has developed to serve companies and improve their productivity.
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