Learn & Transform Programmes boost manufacturing SMEs’ productivity and competitiveness

August 30, 2021

Participants receiving training within the scope of the Learn & Transform Program at Ankara Model Factory.

Increasing productivity by up to 100 percent with no additional investment in the production processes of manufacturing enterprises, Learn & Transform Programmes have been implemented in Kayseri, Konya and Ankara Model Factories to significantly improve the profit margins and business volumes of participating enterprises.

What is Learn & Transform Programme?

Learn & Transform Programmes involve training and consulting to help manufacturing SMEs change their production perspectives in the framework of “lean production principles” and improve productivity. Designed to enable enterprises to internally scale up the gains with no additional investment and become sustainable, this programme is implemented at Model Factories in a real production environment where there is freedom to make mistakes, and takes the experiential learning practices based on lean production to the premises of enterprises.

The programme thus takes the lead in launching lean production at enterprises, and help them increase their profit margins, business volumes and employment as well. It achieves visibly high gains even at the initial stages of implementation particularly at enterprises which, though having high potential, fail to efficiently use their resources, consequently suffer low capacity utilisation.

Learn & Transform Programmes are implemented under the “Applied SME Capability Centre – Model Factory Project” run in technical cooperation by the Ministry of Industry and Technology (MoIT) and United Nations Development Programme (UNDP), with funding from the Federal Republic of Germany through KfW Development Bank. Participating enterprises are offered 4 to 6 months of consulting services at own premises, then their project leaders take up active roles in all improvements in the actual work under coaching from trainers and consultants. The programme thereby gives the beneficiaries significant opportunities to achieve lean transformation and raise their own lean leaders.

Ankara Learn & Transform Programmes

The first Model Factory under the project was established in 2018 in Ankara in technical cooperation by MoIT and UNDP, with KfW funding, and contributions from Ankara Chamber of Industry and ASO 1st Organized Industry Zone. The first pilot of Learn & Transform was completed in December 2019 with the participation of 8 enterprises of various sectors. In a period of mere 4 months, enterprises noticed that they could achieve high productivity through lean production competence gained under the programme. Gains included productivity boosts by up to 140 percent, cost reduction by up to 18 percent, improvement by up to 33 percent in timely deliveries, and enterprises also improved machinery and equipment efficiency (OEE) by up to 41 percent and saved about 40 percent in production spaces. They also achieved gains by up to 45 percent in assembly line changes and overtime work.

In the 2nd, 3rd and 4th Learn & Transform Programmes at Ankara Model Factory, similar gains were achieved and exemplary success stories emerged thanks to growing experience of experts, firm belief of enterprises representatives in transformation, and use of correct methodology. Ankara Model Factory now works towards launching the 5th Programme.

Konya Model Factory 1st and 2nd Learn & Transform Programmes

Established in October 2020 under the same project with KfW funding, Konya Model Factory completed its 1st Learn & Transform Programme in January 2021, with contributions from Konya Chamber of Trade, Konya Chamber of Industry and Konya Organized Industry Zone, with high gains in productivity for 7 participating enterprises.

The participants in the 1st Learn & Transform Programme achieved an average 54 percent increase in production per person in pilot zones, and strengthened their internal dynamics by employees with growing competence. The time required to change batches was reduced by up to 70 percent, and production space was saved by up to 40 percent. Such indicators as overtime work and scrap rates went down by 80 percent.

Following the successful results of the 1st Programme, the second was launched in February 2021 and completed in July 2021 with similar success stories of 6 enterprises. Thus, Konya Model Factory had in total 13 beneficiary enterprises. With encouraging outcomes for the industry in Konya, the number of applicants for the 3rd Programme reached 20. The 3rd Learn & Transform Programme in Konya will start in August 2021 with 7 participating enterprises, and the launch event will be held in September 2021 where the results of the 1st and 2nd programmes will be showcased.

Kayseri Model Factory 1st Learn & Transform Programme

Kayseri Model Factory was established in January 2020 under the Model Factory Project, with KfW funding and contributions from Kayseri Chamber of Industry (KAYSO), Abdullah Gül University (AGU) and Kayseri Chamber of Trade (KTO). The 1st Learn & Transform Programme of Kayseri Model Factory started in December 2020 with 6 participating enterprises and completed in April 2021.

Consulting services were provided in the 4-month period with a view to boosting productivity and setting exemplary success stories by participating SMEs. At the end of the 1st Programme, 6 participating enterprises achieved increases in daily production of selected products by 40 percent to 100 percent, product cycles went down by up to 50 percent. Some enterprises scored 20 percent increase in OEE whereas saving in production stood at 400 m2. Consequently, the flow times were reduced by 50 percent and production quantity per employee improved by over 50 percent. Results were showcased on 24 August 2021 at an official ceremony in Kayseri with high level participation by project stakeholders.