Page 60 - Countertrade

PRODUCTS - MARKETS - AND TECHNOLOGY

Ivan had a simple strategy: "Quantity then Quality". Supporting this
strategy was a strong emphasis on cost control and efficiency. When the
market for industrial lighting collapsed the enterprise was saved by
switching over to the production of domestic lighting. The new product -
hand-decorated lamps - did not have a rival in the market when it was
introduced. By 1995 60 people were producing these items. They were
engaged on a competitive basis - their art skill. They were not employed
directly by the enterprise: they constitute a separate enterprise.

The production norm for the shade decoration section was 100 pictures
per day. A smaller experimental unit, employing two art school graduates,
tried to produce higher quality art work. Here there were no norms. Lamp
shades in total account for 30 per cent of the volume of output of the
enterprise. An increased volume of output was made possible by the
purchase of an adjoining gym from a failed enterprise. Space had been at
a premium in the enterprise.

Operational and functional skills were developed in the process of
developing lamp shade production. These skills could then be transferred
to other areas. The production philosophy which underpinned this
development and which was applied progressively to other areas was to
create the products in micro sections of workers. It was an idea that had
its origins in a stone-cutting shop set up in 1992 under the guidance of a
graduate of the art school. The system of organising the work was
transferred to the lamp painting section and it worked. Ivan believed that
the system created a culture and a team spirit which led the micro groups
to fight to keep their identities. It also made it easier for the enterprise to
retain its skilled workers.

MARKETS

The markets for Revdan products extend throughout Russia and into
Belorussia, the Ukraine, Kazakstan and the far East. In these markets too
financial restrictions constrained market development and so a wide range
of Revdan goods and spare parts were exchanged for raw materials. The
VOS network helped to establish contacts so that a total of six regions and
two republics were served.