Vadim Gladtsyn, «Arman»: The RPSS should not be «an event for the sake of appearance»
Vadim Gladtsyn,
Development Project Manager
Stiff solutions lead to irreversible stagnation. Efficiency drive strengthens the company's position. The Development Project Manager Vadim Gladtsyn tells how it works in Arman LLC.
- Your company operates only 12 years, but you have come to the understanding that rationalization activity is one of the most important mechanisms of internal development. However, many enterprises keep away from it. In your opinion, what are the competitive advantages of the companies, which are engaged in rationalization activity? How relevant are these at all?
- The system of delivery and implementation of rationalization proposals allows any enterprise, especially operating in the field of rapidly-changing technologies and in the conditions of rigid competitive struggle, to develop more effectively. Here we can distinguish two aspects: a constant stimulation of creative search among the technical staff, as well as the increase of general dynamics, the rejection of the well-established and “stiff” solutions, by implementation of them you will be «staying up» for awhile at the cost of the subsequent irreversible stagnation.
- What principles of the past – from the times of the Soviet era, in your opinion, prevent development of rationalization today? Or, may be, on the contrary, – shall the modern enterprises turn entirely to the experience of the Soviet manufacturers as for the most progressive one?
- I would like to note that in some periods of Soviet system existence, the rise of rationalization movement was very noticeable. Moreover, a lot of breakthroughs in the industry were stimulated due to the rationalization proposals, which succeeded in reaching the implementation stage. Another point is that with the implementation of interesting ideas there were always problems in our country related to bureaucratic delays as well as to mistrust between management and employees. So, it is more correct to speak about the historical heritage generally without referring to a particular age.
In order to find a «sweet spot» it is necessary, as it seems to me, on the one hand – to support innovators, as it was in the USSR, and on the other hand – to practically implement a promising idea as soon as possible, as it happens in the West.
- According to research results, the rationalization activity at Russian enterprises is not identical to its counterpart in foreign companies. In our country it often affects the process engineering and aims at finding solutions to the problem, as today one wants to “squeeze” the maximum out of the old equipment. Whereas, the rationalization like in «kaizen classics» is typical for foreign enterprises, i.e. when the rationalization proposals are aimed at the development of a culture of continuous improvement and improvement of all production processes and operations. And how does «Arman» understand the concept of rationalization activity that allows maintaining a mode of «auto-update»?
- Indeed, historically, since the Soviet times, the majority of rationalization proposals were aimed at output of results provided that the minimal investments were required. In general, it is a good approach, because the Russian producers too often lose to their Western competitors not only on product quality, but also on its cost. I won’t conceal the fact that in our company the problem of the cost of the product is topical, and all our staff makes an effort to achieve success in overcoming of it. However, more important are those technological aspects, which are related to changes in business culture, the use of the most modern developments, components and design methods... Our Company constantly encourages its employees to find such solutions that would allow us to be at the top of the technological progress.
- Under what circumstances, in your opinion, the rationalization at enterprise can justify itself and become a truly effective mechanism of development?
- The answer to this question is very simple: when the system of rationalization proposals is used not for the sake of “appearance” in the regular «plan of actions», but when it becomes one of the essential elements of corporate culture. It is very important that the average executives and (much more!) the management understand that in the modern world the issue of a constant «auto-update» is a matter of survival of the enterprise in the business world, and each employee as an individual may contribute to the collective success! Key words used in respect of rationalization are «they all together make common cause».
- When did an idea of establishing rationalization proposals submission system (RPSS) come to your company’s mind? What made you refer to this mechanism?
- In Arman Company such a system didn’t emerge by the order given by the heads, rather it was born as a response to the challenges. If the company employs high-class professionals, it’s natural that each of them will see in his field (as often much broader) opportunities for improvement. Since the company’s management always meets new ideas, gradually a coherent system begins to form. Nevertheless, I want to note that at this moment we are looking for ways to further improve production machineries – you should never stop on the achieved. In regard to this item, I really like the quote from Lewis Carroll: «It takes all the running YOU can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!..».
- What was your vision of how the RPSS should work? Whose experience did you find useful?
- As I wrote earlier, a common vision of system was formed gradually as its implementation and development – we learned, including from our own mistakes and from our own success. And tried to use any available experience – whether it's an implemented practice of successful partners, publication in specialized periodicals or advice of experienced colleagues.
- How difficult to you was the realization of an idea to create a system?
- Usually any innovation meets lots of obstacles in its path. However, in case of implementation of RPSS it was different: everyone understood its great demand; the need to involve employees in the company development process didn’t raise any questions, especially considering the highest level of qualification of the leading specialists. It was they (the heads of departments, experienced engineers and managers) who became the base of new service, even it wasn’t documented yet.
In the course of time, as the more experience was gained, the work on rationalization was regulated by the governing documents, which became a part of the quality management system of the enterprise.
Among the major issues that had to be solved in the period of formation of RPSS, we can list the following. How to support the “grassroots” initiative avoiding the technical anarchy or fantasy? How to assess the expediency of the proposal? Who is authorized to say his decisive «YES» or «NO»? How to assess the budget required for implementation correctly and as a priori estimate the effect of this implementation, especially for proposals on improvement of business-processes?
Since no one could give an answer to these questions single-handedly and a collegial body was created, where all may freely exchange opinions, regardless of the hierarchy (that was the principled position!) and thus find ways that are optimal for all. Of course, in some cases there was a need for a firm and resolute position of the management.
- How did the staff respond to the establishment of the system?
- As the system in our enterprise initially was arising from «the grass roots», so the interest of the employees gave a stimulus to its further formation. It wasn’t important for them to receive a prize for the best idea, but as soon as possible to see it implemented – having raised the quality of products, having facilitated the routine work or having brought another important benefit.
- The employees of what kind of level expressed the greatest interest?
- The greatest interest to the system has been showed by the employees who can be conventionally referred to the «technical elite» – the engineers and managers, who are quite young, but having already achieved a high professionalism in their field.
- Currently, how does the RPS look like in your enterprise? How perfect is it? Are there any weaknesses?
- As I already said, no system should be «stiffen» in its development – we are constantly refining and improving all the processes and procedures of the enterprise. Of course, there are also weaknesses, and they, too, can and will be the point of implementation of rationalization proposals. After all, the approach based on the encouragement of staff initiatives is universal.
At the present time, we have established the Institute of field-oriented technical (and not only) colloquiums, automated the collection of proposals by means of a corporate portal, the Technical Development Committee whose decisions are approved by the Directorate and thus acquire legal force meets on a regular basis.
- In your opinion, what measures should be taken in order to increase the interest of employees in rationalization?
- It would be a mistake to think that the only incentive for the employee is the level of his income. Yes, of course, it is a necessary basis, and the financial incentives for innovators should be incorporated too. Nevertheless, as an important incentive may be a desire to see your own idea having been implemented and to hear the words of gratitude from colleagues and managers, perhaps even – to read publication about it in the appropriate publication.
That is why I constantly repeat that RPSS should not be «an event for the sake of appearance»: «an obligation» on the one hand and the feeling of «lost labor» on the other hand ruined in Russia more than one thousand great ideas...
- In order to submit a worthy rationalization proposal that could seriously improve the processes occurring at the enterprise, the employees should have sufficient experience and competence. Do you conduct appropriate trainings, forming the skills to evaluate the whole process and reveal potential in it for improvement?
- One of the most important advantages of Arman Company is the ideology of «self-learning organization». The staff and the top management of the enterprise are constantly raising their qualification at the training courses on profession-oriented and related areas. In addition, a total transparency, positive attitude and the lack of unnecessary formalities help employees to realize their potential in full, both when working and during the business communication at the meetings and seminars.
- How many and what kind of proposals were implemented during the existence of RPSS?
- Over the past years, several dozens of serious rationalization proposals and significantly a great number of ideas connected with the recent improvement of both product and production culture have been considered and implemented. Each of them brought a certain effect, which cannot always be directly expressed by financial component. For example, the increase of staff involvement in the general cause or their positive attitude cannot be immediately evaluated in monetary terms, but with the lapse of time the economic effect of this can surpass all the technical innovations.
- Currently, are there any proposals, which are in the process of discussion or implementation? What are they about?
- At the present time, the suggestions for further development of the company’s product range, application of new components, as well as for improvement of the work on designer’s and technical supervision of goods, are the topical one. A number of proposals are connected with the improvement and automation of separate business processes of the enterprise.
- What further improvements is rationalization proposals system of your company waiting for?
- In the near future we want to make the rationalization one of the essential elements of our «life style», which will become a guarantee of stable development and strengthening of positions on the market.
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