In the fast-evolving furniture manufacturing industry, optimizing operational efficiency and ensuring sustainable practices are critical for staying competitive. LAM VIET FURNITURE, a leading teak furniture manufacturer in Vietnam, has taken a significant step toward digital transformation by implementing the Vietsoft EcoMaint Computerized Maintenance Management System (CMMS). This article explores the successful deployment of the CMMS EcoMaint solution at LAM VIET FURNITURE, highlighting its impact on productivity, cost savings, and sustainability, along with insights from the International Labour Organization (ILO), the project’s sponsor.
I. Overview of LAM VIET FURNITURE
LAM VIET FURNITURE, officially known as Lam Viet Joint Stock Company, is a powerhouse in Vietnam’s furniture manufacturing sector. Established on July 17, 2002, by Chairman Mr. Nguyen Liem, the company has grown into one of the largest producers of teak outdoor furniture in Vietnam, serving major markets in the United States, United Kingdom, and Europe.
II. Key Facts About LAM VIET FURNITURE
- Location: Khanh Binh Village, Tan Uyen District, Binh Duong Province, Vietnam
- Workforce: Approximately 1,600 employees
- Production Facilities: Five factories with a total area of 85,000 m²
- Production Capacity: Up to 180 containers per month
- Main Materials: Teak, white oak, acacia, pine, poplar, MDF, plywood, and veneer
- Certifications: FSC CoC, SMETA, and other certifications ensuring sustainable sourcing and ethical labor practices
- Website: lamvietfurniture.com
LAM VIET FURNITURE specializes in producing high-quality outdoor and indoor furniture, including kitchen cabinets and OEM products such as Rail Road Tie Furniture, Reclaimed Furniture, and Contemporary Furniture. With a philosophy of “Always responsible for what we make,” the company emphasizes quality control, sustainable sourcing, and continuous investment in technology and workforce training. Its commitment to sustainability is evident through its use of FSC-certified wood and zero-waste production practices, where even wood scraps are repurposed into products like teak spoons and cutting boards.
III. The Need for a CMMS Solution at LAM VIET FURNITURE
As a major player in the global furniture market, LAM VIET FURNITURE operates a complex production ecosystem with 752 pieces of equipment across its five factories. Managing maintenance for such a large number of assets manually was becoming a bottleneck, leading to:
- Downtime: Unplanned equipment failures disrupted production schedules.
- High Maintenance Costs: Reactive maintenance led to frequent repairs and high costs.
- Inventory Inefficiencies: Excess spare parts inventory increased operational expenses.
- Manual Processes: Time-consuming manual tracking hindered operational efficiency.
To address these challenges, LAM VIET FURNITURE sought a robust CMMS solution to streamline maintenance operations, reduce downtime, and align with its digital transformation goals. The decision to implement Vietsoft’s EcoMaint CMMS was a strategic move to enhance productivity and reduce costs while maintaining the company’s commitment to sustainability.
IV. LAM VIET FURNITURE Implements CMMS EcoMaint: Project Overview
The implementation of the Vietsoft EcoMaint CMMS at LAM VIET FURNITURE was a landmark project, supported by the International Labour Organization (ILO) through the Swiss Import Promotion Programme (SIPPO) and coordinated by the Binh Duong Furniture Association (BIFA). The project aimed to modernize maintenance management for furniture manufacturers in Binh Duong, with LAM VIET FURNITURE as a key participant.
1. Project Milestones
- November 28, 2023: Contract signing and project kick-off at LAM VIET FURNITURE’s headquarters.
- January 15, 2024: System go-live after 47 days of implementation.
- March 1, 2024: Full operational deployment, followed by process refinement and reporting optimization.
2. Project Scale
The EcoMaint CMMS was deployed across LAM VIET FURNITURE’s five factories, covering 752 pieces of equipment. The project involved:
- Leadership and IT Team: 3 users
- Maintenance Department: 13 users
- Production Department: 61 users
The kick-off event, attended by representatives from LAM VIET FURNITURE, Vietsoft, and BIFA, marked a collaborative effort to ensure the project’s success. Both parties expressed confidence in achieving the project’s objectives, with Vietsoft committing to provide ongoing support to ensure a smooth implementation.
V. Key Features of Vietsoft EcoMaint CMMS
The Vietsoft EcoMaint CMMS is a comprehensive solution designed to optimize asset management and maintenance processes for industries like furniture manufacturing. Below are the key features that made EcoMaint the ideal choice for LAM VIET FURNITURE:
1. Preventive Maintenance Scheduling
EcoMaint enables LAM VIET FURNITURE to schedule regular maintenance tasks, reducing the likelihood of unexpected equipment failures. This feature ensures that machines are serviced proactively, extending their lifespan and minimizing downtime.
2. Work Order Management
The system streamlines work order creation, assignment, and tracking. Maintenance teams can access real-time updates, ensuring tasks are completed efficiently and on time.
3. Inventory Management
EcoMaint optimizes spare parts inventory by tracking usage and predicting future needs. This reduces excess stock, lowers costs, and ensures critical parts are available when needed.
4. Real-Time Reporting and Analytics
The system provides detailed reports on equipment performance, maintenance costs, and downtime. These insights help LAM VIET FURNITURE make data-driven decisions to improve operational efficiency.
5. Integration with ERP Systems
EcoMaint seamlessly integrates with LAM VIET FURNITURE’s existing ERP system, creating a unified digital platform for managing production and maintenance processes.
6. User-Friendly Interface
With an intuitive interface, EcoMaint is accessible to users across departments, from maintenance technicians to management, reducing the learning curve and improving adoption.
7. Compliance and Sustainability
EcoMaint supports compliance with industry regulations and sustainability standards by maintaining detailed records of maintenance activities and ensuring environmentally responsible practices.
VI. Benefits of CMMS EcoMaint for LAM VIET FURNITURE
The implementation of Vietsoft EcoMaint CMMS has delivered measurable benefits to LAM VIET FURNITURE, transforming its maintenance operations and supporting its digital transformation strategy.
1. Reduced Downtime
From March 1, 2024, to June 31, 2024, LAM VIET FURNITURE achieved a 42.2% reduction in equipment downtime, equivalent to 1,790 hours. Assuming a minimum cost of $10 per hour of downtime, this translated to savings of $17,900 over three months.
2. Lower Maintenance Costs
Total maintenance costs decreased by 20.2%, saving $2,883. Notably, costs related to unplanned repairs dropped by 76.7%, indicating fewer and less severe equipment failures.
3. Cost Savings
The combined savings from reduced downtime and maintenance costs amounted to $20,783 over three months. Extrapolated annually, this equates to $83,132 in savings, with the system’s return on investment (ROI) achieved within three months.
4. Improved Inventory Efficiency
By optimizing spare parts management, EcoMaint reduced excess inventory, freeing up capital and storage space while ensuring critical parts were always available.
5. Enhanced Productivity
The automation of maintenance tasks reduced manual processes, allowing technicians to focus on high-value tasks. This improved overall productivity across the production floor.
6. Sustainability and Stability
EcoMaint helped LAM VIET FURNITURE establish a stable and sustainable production environment by minimizing waste, optimizing resource use, and supporting the company’s commitment to eco-friendly practices.
VII. ILO’s Assessment of the CMMS EcoMaint Project
The International Labour Organization (ILO), as the project sponsor, has provided a positive evaluation of the CMMS EcoMaint implementation at LAM VIET FURNITURE. According to Mr. Hoang Phung Duc, National Programme Coordinator at ILO, the digitalization pilot in the wood processing sector has shown promising results. The use of a Computerized Maintenance Management System (CMMS) has cut breakdown time by 40%, thanks to its preventive maintenance approach. From a market development perspective, the pilot highlighted the potential of CMMS services, attracting interest from service providers keen to explore opportunities to enhance enterprise efficiency and productivity. The pilot has also showcased a viable market package for CMMS, with investments ranging from $12,000 to $20,000, which can be recouped within approximately six months through reduced breakdown and maintenance costs.
With Binh Duong Furniture Association (BIFA) taking strong ownership of the initiative, the knowledge can be shared with many other member companies. The ILO expressed gratitude to the Binh Duong Furniture Association and Vietsoft Ltd. for their essential support in making this pilot a success. Special thanks also went to the board of directors of Lam Viet Furniture JSC for their involvement, the factory IT team for their hard work and patience, and all the employees of Lam Viet Furniture for their patience and dedication in testing the system in their workshop. This pilot is seen as a crucial first step in the digitalization process for the industry, setting a new standard for SME Productivity & Decent Work.
VIII. How LAM VIET FURNITURE Implements CMMS EcoMaint for Success
The successful deployment of EcoMaint at LAM VIET FURNITURE was driven by a collaborative approach and a clear implementation strategy. Key factors included:
1. Strong Leadership Commitment
LAM VIET FURNITURE’s leadership, led by Chairman Mr. Nguyen Liem, prioritized digital transformation and actively supported the project. Their involvement ensured alignment with the company’s strategic goals.
2. Collaboration with Vietsoft
Vietsoft’s expertise in CMMS solutions and its tailored approach for the furniture industry ensured a smooth implementation. Regular communication and training sessions helped address challenges and ensure user adoption.
3. Integration with Existing Systems
By integrating EcoMaint with LAM VIET FURNITURE’s ERP system, the company created a cohesive digital ecosystem that streamlined operations across departments.
4. Employee Training and Engagement
Comprehensive training programs ensured that employees, from maintenance technicians to production staff, were comfortable using the system. This fostered a culture of continuous improvement and accountability.
IX. Impact on LAM VIET FURNITURE’s Operations
The implementation of Vietsoft EcoMaint CMMS has positioned LAM VIET FURNITURE as a leader in smart manufacturing within the furniture industry. By reducing downtime, cutting costs, and improving operational efficiency, the company has strengthened its competitive edge in global markets. The system’s integration with existing ERP tools has created a robust digital infrastructure, enabling real-time decision-making and long-term sustainability.
Moreover, the project’s success has set a benchmark for other furniture manufacturers in Binh Duong. LAM VIET FURNITURE’s willingness to share its preventive maintenance data with other companies in the industry, as part of the ILO and BIFA program, has accelerated the adoption of CMMS solutions across the region.
X. Why EcoMaint is Ideal for the Furniture Industry
The furniture industry, particularly in Vietnam, faces unique challenges such as high equipment usage, strict quality standards, and the need for sustainable practices. Vietsoft EcoMaint addresses these challenges by:
- Supporting Preventive Maintenance: Ensures equipment reliability in high-output production environments.
- Reducing Costs: Minimizes downtime and maintenance expenses, critical for cost-sensitive industries.
- Enhancing Sustainability: Aligns with FSC and SMETA standards, supporting eco-friendly production.
- Scalability: Suitable for businesses of all sizes, from small workshops to large manufacturers like LAM VIET FURNITURE.
XI. Conclusion
The deployment of Vietsoft EcoMaint CMMS at LAM VIET FURNITURE demonstrates the power of technology in transforming traditional industries. By implementing this solution, LAM VIET FURNITURE has achieved significant cost savings, reduced downtime, and enhanced operational efficiency, all while reinforcing its commitment to sustainability. The positive assessment from the ILO further validates the project’s success, positioning it as a model for other furniture manufacturers looking to embrace digital transformation.
For companies in the furniture industry seeking to optimize their operations, Vietsoft EcoMaint offers a proven, user-friendly, and scalable solution. Explore the CMMS EcoMaint solution here.
Contact us for consultation via hotline: 0986778578 or email: sales@vietsoft.com.vn.
