Labor productivity improvement for Thai SMEs: a case study

Authors

  • Natha Kuptasthien Department of Industrial Engineering, Faculty of Engineering, Rajamangala University of Technology Thanyaburi, Thailand
  • Rapee Kanchana Department of Industrial Engineering, Faculty of Engineering, Rajamangala University of Technology Thanyaburi, Thailand

Keywords:

labour productivity, productivity improvement, employee empowerment, kaizen, SMEs

Abstract

This study aims to support Thai SMEs to increase the competitive advantages. The Department of Skill Development (DSD), Ministry of Labor (MOL), Thailand granted a labour productivity improvement projects throughout Thailand. With 8 selected Thai Small and Medium Enterprises (SMEs) in Pathumthani province, the Industrial Engineering (IE) faculty members work closely with the companies to improve their labor productivity. The study shows that common challenges and problems faced by Thai SMEs include a high defective rate, an overload and over stock warehouse, a lack of inventory management, an imbalanced production line, a long distance of material and labor transportation, an insufficient working standard, a low output and a poor working environment. The improvement process involves in 3 main themes which are the improvement of working methods, the waste reduction, and the inventory management. For a case-studied company, the mean score of pre- and posttests were 12.74 and 16.87, respectively. The statistical t-test shows a strong evidence (t = -23.07, p = 0.00 < 0.05) that the training provides knowledge and experience to employee in the area of quality mindset, 7 wastes and Kaizen. The labor productivity is increased 5.27%. The cycle time is decreased 38.24%. The moving distance is reduced 11.63%. For waste reduction purpose, there is an improvement of 86.98% of loss, 21.21 % reduction of inventory items, and a saving of 18.57% in transporting distance.

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Published

2019-12-02

How to Cite

Kuptasthien, N., & Kanchana, R. (2019). Labor productivity improvement for Thai SMEs: a case study. International Research Journal on Innovations in Engineering, Science and Technology, 5, 18–22. Retrieved from https://ojs.batstate-u.edu.ph/index.php/IRJIEST/article/view/46

Issue

Section

Research Paper