The Toyota Way: How Progress Group Scaled Productivity Through Lean Management
Among industry leaders, Khrystyna and Pavlo Fediuk, co-owners of Progress Group, boast the most extensive experience in Lean management. Their company produces footwear under the Progress Service and Mayfed brands. While the manufacturing facility has been operational since 1991, the Fediuks have been actively implementing Lean methodology for the past seven years. As a second-generation family business, Pavlo initially inherited traditional, "classic" management methods.
"We used to believe that mass production was the most profitable model and that piece-rate pay was the best motivation. Once we discovered Lean management, we realized how wrong we were," recalls Khrystyna Fediuk.
The first radical shifts following the Lean implementation became evident within three years:
Productivity: The same number of employees began fulfilling three times as many orders.
Quality: Defect rates (claims) plummeted from 10% to just 0.1%.
Space Efficiency: 60% of the production floor space was freed up.
Work-Life Balance: The work week was reduced from six days to five, and night shifts were eliminated.
Financial Health: Working capital was optimized, requiring 10 times less than before.
From Mass Production to Small Batches
At the Progress Group plant, Lean implementation led to a shift toward smaller production batches. How did these entrepreneurs achieve such remarkable results? Which "wastes" did they identify and eliminate?
"Previously, we would launch a massive batch of 3,000 pairs of shoes into production. Work couldn't move to the next department until the entire batch was finished in the current one," explains Khrystyna Fediuk.
By splitting those 3,000 units into smaller batches of 61 pairs, they unlocked several "bonuses":
Reduced Lead Time: Minimal waiting time between production stages.
Rapid Quality Control: Defects are identified almost instantly, leading to a drastic drop in claims.
Liquidity: Significant amounts of working capital were freed up.
Agility: The management team gained greater flexibility in decision-making.