Table of content

Introduction 11
1a. Describe the structure and culture of Vinamilk and evaluate the inter-relationships between the different processes and functions of Vinamilk. 12
1b. Identify the mission, the aims and objectives of Vinamilk and analyze the effect of these on the structure and culture of Vinamilk. 18
1c. Define the methodology to be used to map processes to the organization’s objectives and functions and evaluate the output of the process and analyse quality gateways 20
2a. Development plans, which promote goals and objectives for the areas of responsibility chosen. Ensure that the plans are consistent with legal, regulatory and ethical requirements. 25
2b. Use objectives, which are specific, measurable, achievable, realistic and time-based to align the staff and other resources in an effective and efficient way 29
2c.Prepare and agree implementation plans, which translate strategic targets into practical efficient and effective actions 33
2d. Manage the work activities to prevent ineffective and inefficient deviations from the operational plan through effective monitoring and control. (Provide a critical path and/or Gantt chart to support your activities) 36
2e. Implement appropriate systems to achieve the objectives and goals of the plan in the most effective and efficient way, on time and to budget and to meet the organisational standards of quality 40
3a. Define the resources, tools and systems required to support the business process 42
3b. Define and implement quality audit systems/ practice to manage and monitor quality to standards specified by the organization and process operated. 46
3c. Embed a quality culture to ensure continuous monitoring and development of the process 49
Conclusion 51
Reference 52
Introduction
Vinamilk is at the top of milk producing industry in Vietnam. Main products of Vinamilk are liquid and powdered milk. In recent years, Vinamilk has invested in new technology to product 100 per cent fresh milk and get customers’ reliability. This report will show the plans and how to set the objectives of Vinamilk in order to reach customers’ expectation. To be the one of the largest dairy portfolios in Vietnam, Vinamilk will improve its structure, culture to meet its goals and aims.

[pic]

1a. Describe the structure and culture of Vinamilk and evaluate the inter-relationships between the different processes and functions of Vinamilk.

Structure of Vinamilk

Vinamilk is the biggest company and has the strong position in Vietnam market. The key that make Vinamilk success is having the right structure, culture and inter-relationships between the different processes and functions of Vinamilk. We will go deeply to define what isVinamilk’s structure and culture, how they apply it and evaluate the inter-relationships of Vinamilk. The organizational structure of Vinamilk: [pic]

(Source: http://www.vinamilk.com.vn/eng/?vnm=sodo)

Direct: Feedback:

The structure of Vinamilk is functional structure which includes departments of dairy development, production and R&D, supply chain, finance, project, marketing, sales and HR. Functional organization is the good strategy for the organization that focuses on just one kind of product or service. In this case, Vinamilk has the right strategy when choosing this type of structure because the company concentrates on single product which is milk. In each department, there is an executive director who manages his subordinates, does the planning projects, coordinates people and resources within budget, and makes reports to the higher level of management. Tran Bao Minh is the deputy GM of Vinamilk and his responsibilities are managing a whole company, making businesses plans to position the company to a higher position in the market, receive feedbacks from departmental managers and providing them with useful information in return, coordinate all departments to work together. In the stable environment, especially in milk market of Vietnam, functional structure runs well and efficiently because its design doesn’t need to be changed and updated quickly. Definition of functional structure: Functional structure divides company into several teams or departments based on common function in a bottom-up manner. Staff in the functional structure are differentiated to perform a specialized set of functional units, such as: marketing, HR, finance, etc. For example: in Vinamilk, employees within marketing department will be responsible for the marketing of the company’s products and they don’t have any responsibility for other activities. • Advantages: - The first benefit of functional structure leads to operational efficiencies where employees become specialists within their own realm of expertise. - Employees within each department can be train and improve their skills, knowledge and experiences to complete a designed task - Since a person can concentrate working only for his very specific tasks related to his capability, not other professional areas, he will be able to work efficiently and productively because he knows his job well so he can proceed with confidence and with a minimum amount of mistakes • Disadvantage: - It’s difficult to work well together with other units. - If there is a lack of communication system or connection between one department and others, the flow of crucial information will be stuck which will lead to lower effectiveness of Vinamilk as a whole. - Each department just focuses on its own given target and doesn’t co-operate with others. For example, in Vinamilk, sales department want to sell as more as possible and they think that the large amount of sold products the more benefit of company. However, they don’t know how much quantity that production department can produce. This problem leads to lack of products for delivering to customers. - Functional structure is difficult for manager to control organization effectively and efficiently.

To minimize the disadvantages, there are some recommendations: - To have good communication between each department, managers from different department have to have monthly meetings to share information, make decision, solve problem and coordinate work. Then, they will inform the contents of the conference to their subordinates to discuss and understand them. - Vinamilk must improve horizontal communication between employees of different units with non-business activities, such as: party, sport events or even break time.

Culture of Vinamilk In term of culture, according to Managing Business Activities to achieve Results book (2010) defines “Culture is the commonly held and relatively stable beliefs, attitudes and values that exist within organization”. All organizations will generate their own cultures, whether spontaneously or under the guidance of positive managerial strategy. Aspects of culture in Vinamilk are described as followed: - Customs and rituals: Vinamilk always celebrate establishment anniversary for employees and loyal customers. In addition, company also has small party to promote some employees and to award their performance. - Relationship between superiors and subordinates: Since the superiors are very enthusiastic in instructing and mentoring the subordinates and the subordinates also respect his boss so the distance between superiors and subordinates in terms of communication, sharing ideas, helping each other… is close. - Symbols: there is a logo of Vinamilk in every room within the company. Also, the manager of each department has a private room which made from transparent glass so that he/she will not be working interruptedly - Physical artefacts: the main color pattern of wall, desk, chair, wardrobe… of different department is different depending on the purpose, function of that one. For example, the main color of sales department is red because the red color represents energy, enthusiasm, confidence which are all characteristics needed in sales department - Common language: technical language is mostly used in every conversation in working hours. - Values: colleagueship among employees is very strong and everybody treat each other like the one in his family. They have to self-respect, respect subordinate and respect company.
Since the market of Vinamilk is competing in is very fierce so the company must react quickly to the needs and feedback from its customer so that it can supply the best product and service beforehand its opponents. Therefore, according to the theories of Deal and Kennedy, organization culture of Vinamilk is “Work hard, play hard” culture with low risk taking combined with quick feedback and high activities is the key to survival.
Developing the ideas of Roger Harrison, Charles Handy created four basic classifications of the types of culture after the Greek God’s name: Zeus, Apollo, Athena, and Dionysus. Because the CEO has to manage all the major tasks in Vinamilk, he rules the company with quick decision, Vinamilk has a Zeus culture. Besides that, Vinamilk also has Apollo culture because company has a formal structure and operate by established rules and procedures. Generally, Vinamilk has a combined culture of Zeus (power culture) and Apollo (role culture)

Inter-relationships between different processes and functions

Before a good product can be delivered to the hand of the customer, it has to go through many stages which require the effective coordination between departments. The inter-relationships between different processes and functions are shown in the below table:
|PROCESSES |FUNCTION |
|Training the evolve personnel |HR and admin department |
|Market research |Marketing department |
|Brainstorming, looking for ideas |R&D department |
|Actualize the idea |Project department |
|Acquiring raw material |Supply chain department |
|Manufacturing |Production department |
|Testing, random selection and excluding |Quality control department |
|Introducing the products and sell the products |Marketing and sales department |

First, company needs to find out the customers’ demand and expectation of products, what kind of milk that customer want and what segment of customers that use company’s products the most. Therefore, a market research will be conducted by marketing department supported by R&D. After select necessary information, project department will plan the process of actualizing the idea. The plan illustrates the number of people involve in the project, time bound, resources needed, instruction… and everything must be within the budget allowed. The plan must be submitted to Vinamilk CEO. Then, it will have permission to carry on. After that, the supply chain department will purchase required raw materials (raw milk) and deliver them to the production department. After producing, products of Vinamilk will have random selection in order to test the quality of products and exclude products that don’t have quality standard. Afterward, marketing department will introduce those products to the market. Feedback from the customers and sale volume statistics will be collected and analyzed. During the process, all departments must work together in order to make the plan work out effectively with minimum cost. Any problems cause by a single department can delay or fail the project entirely. So, each department will have to fulfill its given mission and coordinate with others at the same time. To do this, shared information must be flown freely around the company and supervisors must keep a close eye on the project progress and fix any troubles rises. Organization has a many processes so the inter-relationship between the different processes and functions is very necessary and essential for the organization. It helps Organization not only increase efficiency for the activities of the company but also optimize the mission and objectives’ successes.

1b. Identify the mission, the aims and objectives of Vinamilk and analyze the effect of these on the structure and culture of Vinamilk.

Mission of a company describes its basic function in the society. Furthermore, it acts as a guideline and has strong effects on every business activities within company internally as well as externally such as organizational structure and culture, relationships with customers, environmental treatment, operation… • Mission of Vinamilk: “Vinamilk continues to expand its existing geographical coverage and product portfolios to maintain its sustainably dominant position in the local market and maximizing its shareholder value” (From Vinamilk website) • Aims: Vinamilk aims to increase the profitability as well as productivity and become one of 50 largest dairy companies in the world with 3 billion USD turnover per year in 2017 • Objective of Vinamilk: ➢ Dominate 80% the milk product industry market share from December 2012 to September 2013 ➢ 80% of production processes are done by automatic machines and robots from January 2013 to November 2013
The effect of mission, aims and objectives on structure and culture

Organizational structure:

The mission, aims and objectives are the first factors that influences to the design of the structure and have a big effect on the structure and culture of organization. Vinamilk organization structure is shaped to fit with the business which is functional structure so that every business units, resources, departments are built to achieve the company objectives and goals in the most effective and efficient approach. Every department has its own specialized tasks to fulfill in order to add value to the final product and to meet customer satisfaction through excellent performance. To perform specific objectives and fulfill the mission and aims, organization is designed the company structure. All department will operate and work that are be suitable and logically in order to achieve these factors. For example, each kind of Vinamilk products is for each of ages. So, company can’t use one department to work out. Vinamilk needs to change into divisional or multifunctional organizational structure. Therefore, applying functional structure is creating reliance on standardized ways of operation for the company. . However, if the mission, aims and objectives are changed, the first factors that they influence to are the design of the structure and that will have a big effect on the structure and culture of the organization which is also be changed in order to be suitable and adapt with the new objectives, aims or missions.

Organizational culture:

Vinamilk culture is taking good customer service, best product quality and best team of staff as its core values and every business activities are mean to increase that value. Company will propose a program that train and develop employees. With high skills of employees and promoted products, customers are benefit of knowing that they are being dealt with by expert staff and employees are benefit of having a better job. All of these can help increasing the value and image of the whole company which will also improve the profitability and reduce the staff turnover. Internally, team members and different teams have to respect each other so that teamwork can be synergized which will make the work to be done effectively. This action also creates a better image for the whole company because the personal boundaries are erased when employees treat and being treated well by the managers and colleagues. The result is that employees will feel they are an important part in their company and is willing to devote their best for the company by completing the given tasks successfully and care for the customers. Vinamilk is a company that has a formal structure, and operates by well-established rules and procedures so that it has the role culture combining with power culture. , The mission, aims and objective motivate and direct employees to be more responsible and active to achieve the aims, objectives of organization.This culture helps organization to concentrate on its objectives, perform more efficient, and achieve them more easily and effectively.

1c. Define the methodology to be used to map processes to the organization’s objectives and functions and evaluate the output of the process and analyse quality gateways

❖ Methodology to be used to map processes Definition of process according to BPP 2010 indicative book: “a set of related activities that collectively realize a business goal”. - Basic framework: The environment

Input Output

- Advanced framework:

[pic]

Suppliers Input Process Output Customers

(Source: http://www.thecqi.org/Knowledge-Hub/Resources/The-Quality-Survival-
Guide/Surviving-processes/)

S – Supplier. Suppliers provide necessary inputs such as raw material, separated components to the process

I – Input. Inputs may include capital, raw materials, people, information, managerial and technical skills and knowledge.

P – Process. A process is a transformation; it converts its inputs into its outputs.

O – Outputs. Generally include products, services, profits and rewards.

C – Customers are the ones who receive the final products or input for another process

Every company needs a process to describe its detailed activities from the beginning to the end. This procedure map help the manager to control the steps, evaluate the effectiveness, amount of resources required for each step, progress of work...

The Methodology below is described as a form of SIPOC – suppliers, input, processes, output and customers.

- Suppliers: The main suppliers of Vinamilk are Fonterra, Hoogwegt International BV, Perstima Binh Duong, Tetra Park Indo who milk powder, tins, carton packaging and packaging machines. With fresh milk, Vinamilk collect it from farms. Apart from them, company has also built relationship with other suppliers for the last 10 years. Any shortage of product provided or delay in delivering can hinder or stop the whole production line of Vinamilk which make the company waste a lot of money such as employee payment basic per day, time for nothing, lack of products in market. Fortunately, Vinamilk has good relationship with its suppliers because the company always tries to establish and maintain new relationship with suppliers so that it can take advantage of good contract with bargained price. - Inputs: there are all the requirements need to produce a final product or service. The inputs are the demand, information from the customer to create the best product as customers’ expectation. Besides that, employees are trained to improve technical skill and knowledge to provide best service to customers. The inputs for production lines of milk are raw materials and technology. For example, in Vinamilk scenario, company invested in new technology to produce 100 per cent fresh milk. Everyday, each plant of Vinamilk releases thousands of million of milk packs which are strictly controlled from input materials. All the inputs are examined by Quality assurance department based on the International Quality Control Standard of ISO and HACCP. If the inputs fail to meet specification agreed upon in the purchasing contract, the input will be return to the supplier asking for new one suitable. - Processes: they are the steps that transform raw materials or unprocessed information into complete products or refined service. This is the most important part in the whole procedure because it strongly affects the quality of the product/service as well as how it has effect on the environment. It requires all departments within a company to work dependably and supports each other so that the final product is made in the most effective and efficient method. In scenario, Vinamilk pushes up marketing of products by advertising through TV, print, posters, etc. All of them support to sell department in order to bring the best products and services to customers effectively. - Outputs: they are final product or service that can be utilized by the end user or as inputs for other business. The outputs must meet the specifications indicated in the contract between two parties involved. Vinamilk has to ensure that its product or service is qualified and functional upon agreed. - Customers: Customers are the most important factor that has strong influence on the quality and quantity of the products, how products are made, and the standard of each product. The target customers of Vinamilk are mothers and children but in general, customers are all of ages. Vinamilk has to have the right strategy to meet and satisfy customers’ demand. If the company fails to do so, it losses loyal customers who are very essential to the existence of the business.

Evaluate the output of the process and analyse quality gateways

The output of the process must be evaluated before handling it to the customers. This activity is very crucial in order to improve the product quality and check for any defectives. The philosophy of Vinamilk says that it is prevention not detection which means all requirements, factors that have impacts on the products and those influences come from the products on other subjects must be in the control. Those factors that need to be evaluated are listed below:

1. Customer satisfaction: for every batch production, it must meet the quality and quantity agreed with the customers. Quality, in business terms, is the extent to which client’s wants and needs are met by the system. Customers always want 100% fresh milk that is good for their health and company met this customers’ satisfaction. Quantity is the number of pieces produced in a certain period of time defined in the agreement. . If both criteria are achieved, the customer satisfaction is going to increase which means the clients will order more next time. However, any defectives or missing of goods if not detected and not informed to the customer appropriately can cause problems for Vinamilk depending on the degree of the issue. 2. Manner of delivery of outputs: finished products manufactured in perfect shape can be damaged during the delivery time if they are not being distributed correctly. Any piece of product must be packaged in cartons boxes so that the milk products are safe inside. If Vinamilk deliveries milk to retailers, they have to make sure that products are in box and no out of shape. 3. Reliability of output quality: products offered must be safe and functional correctly. Company also makes sure that milk products are fresh and no out of date. This is very important. When customers realize that milk is out of date or not fresh, this bad new will publish in public because Vinamilk is the biggest company in Vietnam and it has long-term prestige. This will effect on company image and it is hard to take customers’ loyal back, company will be in the worst situation. Any feedback from the customers must be processed to figure out the problem causes. This action minimizes the possible failures in the future as well as increases the performance of products. 4. Impact on environment and community: Society gradually increases the awareness of proper waste treatment as ethics issues from businesses. Vinamilk use environmental-friendly package to protect nature and to reduce environment pollution, so, company doesn’t have any activities that are dangerous to environment. However, company must notice the waste water and smoke from factories. They have to build system to manage harmful waste water, treat the smoke, exhaust fumes and noise.

❖ Quality gateway According to BPP 2010, quality gateway is defined as a single point that every requirement must pass through before it can become a part of the specification. Vinamilk realizes that quality gateway is important in order to control the quality of products. Quality gateway in terms of producing a computer case is a test between two steps in the process. During the process of manufacturing, if at any point, the product is not qualified enough according to standard set by that respective quality gateway; the product is rejected and returned to source. After requirements of Vinamilk, such as: brand name (Dielac, Probi…), description (for children or mother, fresh milk), these products turn into gateway process. In this case, target product is milk with 100 per cent fresh milk. Products will be tested components of milk to make sure that there are no powder and water and the quality is as high as customer’s expectation. Vinamilk always wants to enhance the quality of its product so that it will not fall behind the competitors. Therefore, the more gateways Vinamilk applies, the more quality the products. The examples of these quality gateways are: - Checking whether the quality of a particular has met specific requirements from the customer. For example: customers want products are made from 100 per cent fresh milk. So, Vinamilk must purchase raw materials from farms to ensure that milk is fresh as customers’ expectation.

- Checking if the proposed budget is allowable. The design team must propose the plan of how to complete a project as well as the budget requirement. The proposed budget to complete the project must be profitable for Vinamilk. That means it must equal or below the limitation of the customers agree to pay as well as Vinamilk’s competitors.

2a. Development plans, which promote goals and objectives for the areas of responsibility chosen. Ensure that the plans are consistent with legal, regulatory and ethical requirements.

To achieve Vinamilk objectives and goals, there are two strategic plans is created. The detailed content of the plans are showed below:
1. Dominate 80% the milk product industry market share from December 2012 to September 2013: in scenario, Vinamilk dominates Vietnam’s milk product industry with 75% of the market. So, to dominate 80% the milk product industry market share is possible and can be achieve in short time.

- Increase the amount of cows to provide 50% of raw material to factories in order to focus in producing fresh milk - CEO and managers conducts a meeting in which proposes the optional strategies to achieve the goal - A detailed plan which show what to do, who takes responsibility for each activities, and appropriate time bound is created - The head of finance department will check whether the plan is within allowed budget or not. And then he provides budget for involved departments and individuals - A market research is conducted by Marketing department to find out what customer’s need, trend in milk industry, what should be the core products in the future… - R&D department will develop new products accordingly to the market research - Marketing department will conduct advertisement and promotion campaigns to attract customers - All of Vinamilk warehouses are constructed and each of them is at the south, central and north of Vietnam. These ones will ensure the products are always available for distribution - A better supply chain is created by working with professional forwarders. - Receive feedback from customers for evaluation and analyses the problems. These data will be reviewed to give out solution for better improvement

2. 80% of production processes are done by automatic machines and robots from January 2013 to November 2013: The super factory of Vinamilk will be in use in the first quarter of 2013. This factory will produce 400 million liters/year with the capacity of the total of 9 already factories. This factory is completely automatic machine and robots. Company also has already had 9 factories and 3 factories will be published soon. So, this objective can be reached. - Out of date machines will be liquidated for money and space in the factory

- Looking for professional machinery contractors who will supply, install and guarantee the performance of the machines

- Signing a contract with the best contractor who provide excellent service with reasonable price

- Receiving the machine and check whether the machine’s specifications is exactly as required

- Assembling the machines

- Testing the machine to find any error arises

- If every is passed, the production line is ready to produce mass quantity

Tools and techniques that will be used in the process of promote goals and objectives are:

o Mind mapping (Mindjet Mind Manager Software),

o Brainstorming,

o Feedbacks form,

o SMART objectives,

o Value chain analysis

o Quality audit results.

o Suggestion system

o Quality group

o Crisis/Change management project to eliminate the damage company values and images

These are the tools that help managers to process the plan quickly and precisely. Moreover, it can visualize the words into picture so that involved individual, teams, groups can have a general view of what is going to happen.

Legal, regulatory and ethical requirements

All activities in progress of and after achieving goals and objectives must follow legal, regulatory and ethical requirements. This is very important in terms of protecting the employee’s rights, safety of the customers, and image of the whole company.

Ethical issues are drawing interests of the society since there are many moral problems rising in the recent time. And, following the legal and regulatory is one of the ways to not violate the ethics. To protect the employee’s right and safety, Vinamilk has to follow the Vietnamese labor law. For example, only people above eighteen years old are allowed to work in Vinamilk factory. Furthermore, workers are trained to operate the machines correctly to evade regretful avoidable accidents and must be informed in advanced the risks of working in this environment as well as being provided instruments for labor protection.

In addition, company has to make sure that Vinamilk’s all machines are safe and not harmful for employees’ health. The manufacturing machines must be in good quality that have passed all the international quality tests performed by reputable third-party organization specialized in measuring and checking a product’s quality to make sure the machines will function correctly without creating any dangerous situation such as sudden explode.

Moreover, Vinamilk must provide their employees the comfortable environment which is no stressful and has sound of machines as low as possible.

Products of Vinamilk have gone through many quality gateways to make sure they are safe for the customers to use and safe for environment. For example: Vinamilk has changed their product designs into lighter tin cans which are easily recycled or destroyed. This action has not only protection of the environment for future generation but also cost-efficiency for Vinamilk.

Regarding ethical aspects, the company can do following things.

Company has completely responsibility for its products. If their products have any problem, such as: milk packages are out of shape, products are out of date, customers can complaint and change new one or being compensated with promotion or voucher.

Employees have to have good communication and high responsibility. They will attract customers easily and make them feel safe when using Vinamilk’s products with their professional communication.

For supplier, company does not put over price pressure on suppliers and has to pay full payments for them at due day

2b. Use objectives, which are specific, measurable, achievable, realistic and time-based to align the staff and other resources in an effective and efficient way

The goal of Vinamilk is increase its competitive strength on the market by building up sustainable development and competitive advantage from customers. So the objectives are designed based on SMART criteria to help the company to increase the profitability as well as productivity and become one of 50 largest dairy companies in the world with 3 billion USD turnover per year in 2017. The objectives are: • Objective 1: Dominate 80% the milk product industry market share from December 2012 to November 2013

SMART objective analysis:

|SMART |Dominate 80% the milk product industry market share from December 2012 to September 2013 |
|MEASURE |Dominate 80% the milk product industry market share |
|ACHIEVABLE |Vinamilk has dominated Vietnam’s milk product industry with 75 per cent of the market for several|
| |years. Moreover, Vinamilk is the biggest milk company in Vietnam and it has been in this market |
| |for over 35 years, so, its employees and managers have professional experience in producing milk.|
|TIME-RELATED |From December 2012 to November 2013 |

OBJECTIVES SETTING based on criteria and company’s issues:

|Objective |Activity |Resources Needed |Duration |Staff |
|Dominate 80% the milk |Do market research |Marketing, Research & Development |50 days |15 |
|product industry market | | | | |
|share from December 2012 | | | | |
|to September 2013 | | | | |
| |Train staff |Human Resource and Administration |90 days |20 |
| |Apply new technology in |Production | | |
| |production line |Research and Development | | |
| |Increase the number of products |Supply chain | | |
| |produce per day | | | |
| |Advertisement and promotion |Marketing department |50 days |20 |
| |campaign |Sale department | | |
| |Review, observe the results and|Production |60 days |10 |
| |fix the problems ( if any) |Quality control department | | |

• Objective 2: 80% of production processes are done by automatic machines and robots from January 2013 to November 2013

SMART objective analysis:

|SMART |80% of production processes are done by automatic machines and robots from January 2013 to |
| |November 2013 |
|MEASURE |80% of production processes |
|ACHIEVABLE |Vinamilk has already had 9 factories with some automatic machines and 3 factories are in the |
| |execution and they will be finished in the beginning of 2013. One of them will run by completely |
| |automatic machines and robots. |
|TIME-RELATED |From January 2013 to November 2013 |

OBJECTIVES SETTING based on criteria and company’s issues:

|Objective |Activity |Resources Needed |Duration |Staff |
|80% of production processes |Looking for machinery supplier |Supply Chain |60 days |30 |
|are done by automatic machines|Purchase new machine |Production | | |
|and robots from January 2013 | |Research and Development | | |
|to November 2013 | |Engineering department | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
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| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| |Providing training sections about new|Human Resource and Administration |90 days |7 |
| |technologies. |Production | | |
| | |Research and Development | | |
| | |Engineering department | | |
| |Applying to set up the technologies. |Production |90 days |5 |
| | |Research and Development | | |
| | |Engineering department | | |
| | |Quality control department | | |
| | | | | |
| |Supervising the operational results |Production |60 days |5 |
| |of the new system. |Research and Development | | |
| | |Engineering department | | |
| | |Quality control department | | |
| |Review, observing, auditing, fixing |Quality control department |30 days |5 |

2c.Prepare and agree implementation plans, which translate strategic targets into practical efficient and effective actions

After identifying all the crucial parts need to be included in the general plan, a more detailed activities which derived from those are deployed in implementation plans. These plans point out exact time, resources, activities, dependencies, duration and method of control. All of these criteria are necessary to translate strategic targets into practical efficient and effective actions. Effectiveness: is the degree to which objectives are achieved and the extent to which targeted problems are solved and the objective is met within designed time bound. Efficiency: achieving the objective with minimum resources, error, variables… The implementation plans are described below:

Objective 1: Dominate 80% the milk product industry market share from December 2012 to September 2013

|Code |Activi|Depend |
| |ties |on |
| | |activiti|
| | |es |
|A |
|0 |0 |80 |
| |
| |80 |40 |120 |
| |B |
| |80 |0 |120 |
| | |
| | |120 |40 |160 |
| | |C |
| | |120 |0 |160 |
| | | |
| | | |160 |10 |170 |
| | | |D |
| | | |160 |0 |170 |
| | | | |
| | | | |170 |10 |180 |
| | | | |E |
| | | | |170 |0 |180 |
| | | | | |
| | | | | |180 |
| | | | | |180 |
| | | | | | |240 |
| | | | | | |240 |

| | | | | | |270 |30 |300 | | | | | | | | |H | | | | | | | | |270 |0 |300 | |

2e. Implement appropriate systems to achieve the objectives and goals of the plan in the most effective and efficient way, on time and to budget and to meet the organisational standards of quality To achieve the objectives and goals of plan effectively and efficiently, Vinamilk has to implement appropriate systems. Systems are built so that everybody involved in the project must follow accordingly to the steps, procedures which are needed to complete the work as planed with minimum resources. They also help managers evaluate the risk, anticipate the difficulties, and analyse the malfunctioned sectors so that they can prepare backup plans in advanced, control and continuously improve the quality. The systems that Vinamilk applies are:

• Communication system (IT system)

Information is one of the most valuable assets of a company. If the information flow is stuck at any point during the process of implementing the plan, the chances of failure are high if it is not fixed. There are two types of information transmission, internal and external company. The internal information flow is among the department and individual within Vinamilk. This flow can be managed and enhanced by using intranet or Management information system (MIS). These tools helps the communication is updated constantly, exactly, and is documented so that it can be traced back easily and acted as evidence. Moreover, Vinamilk employees can use Smart Phone to work and communicate with manager whenever they are. External communication evolves with suppliers and customers. The communication with these objects can be through online forum, call centre, trouble shooting customer service. They create two-way communication between the company and its stakeholder, receiving feedback and responding. This communication system acts as glue connecting separated objects into one piece so that it can function effectively.

• Operations management system

This system describes both general and specific the connection and direction of the whole process. It helps making the decisions more quickly and accurately, and prevents lack of consistency and visibility across plant processes, incoherent work processes, and failure to foresee and evade confrontations and trouble in retaining position between manufacture and customer orders. Without operation system, employees will not know the steps in which converts the input into output. The system is shown below:

3a. Define the resources, tools and systems required to support the business process

The resources are everything needed to transfer into outputs through the business process. The resources are in many forms and are shown below: I. Key sources • Human resources: This is one of the most important resources because it is the knowledge base of the company. Without man power to do the job there will be no business. Therefore, the more talented, professional the employee, the stronger the company. To increase the quality of human resource, recruitment and training process is very significant. Vinamilk spend more time and money to train and improve employees’ skill and experiences before going into producing milk products. • Infrastructure: Infrastructure is office, factories, machines, electricity, water system… without these things employees cannot produce anything productively in mass quantity and work properly. Vinamilk have to invest more on and maintain continuously the infrastructure if it wants to improve the quality of the products or better service. • Work environment (culture, internal relationship): Environment is the space surrounding the employees. Vinamilk has to create a healthy work environment for its employees. It is a place where people enjoy their job, the environment is compliance with health and safety legislation, the physical infrastructure is comfortable to work with, the staff policies are clear and fair, no bullying, harassment and favoritism… The healthy work environment makes them want to devote more for the company, work harder to achieve higher result and rewards, and the interrelationships between individuals and department are also built stronger.

• Information system (management information system):
This helps update the information as quick as possible and keeping the stakeholders in touch. With a modern, accurate information system, it can save time of travelling, connect everybody through computer screen such as online conference. Thanks to the internet, and high technology, people can communicate easier than ever. This system must be constantly updated and checked for any problem which can deliver fail, delayed, incorrect information. Vinamilk can use MIS to manage the information effectively and productively. For example, MIS can help manage the data of customers such as name, contact phone number, address, date of transaction, number of milk products and amount of money transacted… this system arrange and manage the “accounts” more logically with minimum space.

II. Tools: with the right tool for the right job, it can boost the progress up to very fast and can be the difference of success between who own a better tool. 7QCs tools support the process. It includes:

• Process Flow Chart,

• Pareto Analysis,

• Cause & Effect Diagram,

• Check list / Data Collection,

• Histogram,

• Scatter Diagram,

• Control Chart.

Vinamilk can apply the Plan-Do-Check-Act cycle (PDCA) which is invented by Deming. This continuous cycle is used: as a model for continuous improvement, when starting a new improvement project, when developing a new or improved design of a process, product or service, when defining a repetitive work process and implementing any changes.

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(Source: http://hoadn.com/pmp-project-management/pdca-plan-do-check-act-ton-chi-cua-moi-thay-doi/463)

• Plan: create a plan, identify a chance and plan for a change

• Do: implement the plan on small scale, carry out the planed process and produce the products

• Check: searching for any errors or possible improvement, measuring how effective the test solution was and analyzing

• Act: take action based on what have been studied in previous step. If the change is good, apply it to the system and continuously improve it. If the change is not good, refine it or starting at step Plan again until have a better plan

For example: • Plan: Vinamilk should identify exactly its problem. The problem here is ensuring Vinamilk products are made from 100% fresh milk. So, Vinamilk collects information and lists all reliable suppliers to find out the raw milk that is fresh. Each department analyzes this problem and plans what to do. For example: production department plans where they can find out the raw milk. Supply chain plans what they have to do to keep 100% fresh milk in each product while producing. Marketing department plans what they make customers to believe that Vinamilk products are 100% fresh. Sales department plans what they do to sell all products quickly and effectively etc. Notice that, company just uses a small amount of raw material for trial in one factory. • Do: Each department carries out the plan. Getting raw material, transportation, producing products, packaging and handing to customers are all the things that Vinamilk has to do. Besides doing it, they make a list of problems as they encounter them. • Check: They have to collecting information and result to make charts and analyzing them in order to make it better for the next time. By doing this, Vinamilk can easily meet customers’ expectation • Act: It the change of products is not effective, back to the PDCA circle to create the new plan. If successful, company can use these plans to apply for all factories.
System: to ensure the product’s quality is always high, Vinamilk have to set up the quality management system ISO or TQM that meets the Technical and management standards are needed for Company. It helps them to better control the quality system and maintain effectively and efficiency.

3b. Define and implement quality audit systems/ practice to manage and monitor quality to standards specified by the organization and process operated.

The term quality audit has been defined by Karapetrovic as a method of measure of a QMS against the ISO standards. A quality management system (QMS) can be expressed as the organizational structure, procedures, processes and resources needed to implement quality management. So, the quality audit is checking whether the company is set in compliance with ISO standards to make sure the effectiveness of control is high. If the company waits until the customer feedbacks the problems or criticisms, it may be too late to retain them.

Internal audit: According to the national computing centre limited (1994), independent checks of an organization within an organization are internal audit. The internal audit function is the mechanism through which the operation of the quality management system is formally monitored and conformance with the documented quality system is assured. The purpose of the audit function is to verify, or otherwise, conformance of practice with the documented quality system and with the requirements of the standard. Most activities covered by the scope of the quality management system should be the subject of an internal audit with a frequency of once per year. Auditors are selected by quality manager who is responsible for choosing, training and managing the quality auditors, scheduling internal audits, monitoring the implementation of the audit schedule and reporting to the Management Review body. The plan of conducting internal audit of Vinamilk can be as follow: • Agree on the date of conducting internal audit. • Auditors list on the objectives of audit • Processes/area(s) to be audited • Allocating responsible for auditor at each process/area • Agree timing for questionnaires and interviews • Requirements and references

External audit: auditing by an external certification body or organisation to make sure that the company ensure the quality standards. This is depended on Company quality strategy in the near future (assume that Company does not have the Quality Management System like ISO 9001 – 2008). External audit is more reliable than internal one because it is conducted independently and neutrally. The more reputable the auditing company, the more valuable the external audit is. The findings in the external audit can go public so that the stakeholder can know the real situation of the company and the investors can make decision whether to invest money or not. The plan for conducting an external audit of Vinamilk can be summarised as follow: • Vinamilk hire a reputable auditing company such as SAVO or AChau to do the audit • A team fro auditing company will come and look at quality management system, management responsibility, resource management, product realization. After that they will analyze and measure the effectiveness compared with criteria in ISO • A report of improvement will be given to Vinamilk so that it can standardize those systems
Delay a quality management: Vinamilk can also use Corrective action report (CAR). It is Procedure used in reply to a fault. This means that an auditor reports on a noticed Non Conformance (NCR or NCMR) and has identified root cause to fix this from reoccurring. The example of CAR is in appendices part.

Controlling documentation and records: to describe how to control the document and records, reviewing to ensure they are safe and are protected to be not loss. It includes: ✓ Quality policy ✓ Quality objective ✓ Quality manual ✓ Procedures required by the Standard ISO or company procedures - Control of document - Control of records - Internal audit - Control of nonconforming products - Corrective action - Preventing action
3c. Embed a quality culture to ensure continuous monitoring and development of the process
Quality culture of a company is employee’s believe and value that driving them to continuous increase the quality in the product and service. It is very important that everyone is aware of his role in the company and the responsibility with the customer, supplier, and other partners. However, this cannot happen if Vinamilk does not have the right policies and courses to train and educate its staff in order to increase their expertise, attitude and morale. This help employee express themselves so that they can develop. Also, Vinamilk also have to create a reward system so that they can feel better and thrive to achieve more. Methods to embed a quality culture are shown below which give high motivation in organization for quality focus and continuous contribution and improvement: • Build up the trust employees: managers can empower employees to some acceptable extent related to his current job and let him decide how to achieve the goals and be responsible for it. They also allow a suitable talented employee to accomplish a whole process instead of completing partially. • Communicate and train all employees: it is crucial for Vinamilk to continuously develop. The information updates everyday is massive and if it is not learned frequently, the company employee’s knowledge will be obsolete which will lead to the decreases in productivity and effectiveness. Therefore, Vinamilk has conducted many training course in order to provide the latest information, skills for its employee. There are many types of training methods: the lecture method, discussion methods, case study method, role playing business games, t-group exercises. Besides that, communicating often will help managers understand their employees and make the relationship between employees and managers be better. • Motivation and empowerment: these leverage the team’ strength. Leader must aware of his strengths and believe in those of others. Through accurate empowerment, he can utilize the capabilities of his employees. This inspires them to work more efficiently and effectively because they feel that they are an important part in the organization so that they can try their best to enhance the quality of product and service • Job enlargement is expanding the task set into many work areas. It releases the employee from boredom and repetition of the daily activities. It also gives employee higher status and power to control. For example: Sale employee can be allowed to design products within marketing department • Job rotation is sending an employee to many departments which give people the opportunity to use a variety of skills, and perform different kinds of work. For example, an employee can work as salesman for six month and then change his job as marketing after that. This is motivating if the employee wants to learn more experience and discover the new. However, since this method do not let employee expertise in any particular field as well as promote them to higher position, abusing this method can cause adverse effects in long-term • Encourage all employees to propose the suggestion: Offering the employees some benefits for their contribution, such as: pay raises, bonuses, career promotion. In addition, public announcement the good mirror in internal and external communication about the excellent performance of employees will motivate the continuous and sustainable improvement of quality

Conclusion
This report review the company structure, objective, goals and the inter-relationships between the different processes and functions of Vianmilk so that the audience can have a general view of the company. Moreover, it shows that steps which transform raw material, ideas into final products and services. There are two plans proposed with Gantt charts in compliance with legal, regulatory and ethical requirement to show how to achieve the company objective in an effective and efficient method. These two plans also illustrate how to coordinate employees, what resources needed, monitor method to eliminate ineffective and inefficient deviations, appropriate systems to achieve the objectives and goals of the plan. Furthermore, it defines the resources, tools, audit systems, monitor quality, and systems required to support the business process.
Reference
1. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 1: Business process and functions, page 5-7. London: BPP Professional Education.

2. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 1: Business process and functions, page 13. London: BPP Professional Education.

3. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 1: Business process and functions, page 18. London: BPP Professional Education.

4. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 1: Business process and functions, page 22-23. London: BPP Professional Education.

5. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 2: Plans for area of responsibility, page 43. London: BPP Professional Education.

6. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 2: Plans for area of responsibility, page 60. London: BPP Professional Education.

7. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 4: Quality, page 127. London: BPP Professional Education.

8. EDEXCEL HNC & HND Business. (2010) Managing Business Activities to achieve Result book, chapter 4: Quality, page 137. London: BPP Professional Education.

9. Benefits and disadvantage of Functional organization structure, Chris Joseph. [Online] available at [Assessed on 7 November 2012]
10. CAND online, Truong Minh (2/4/2012). [Online] available at [Assessed on 8 November 2012]
11. Project manager, PDCA, Dang Ngoc Hoa (May 2012). [Online] available at [Assessed on 9 November 2012]
12. Vinamilk homepage (2008), Structure of Vinamilk. [Online] available at http://www.vinamilk.com.vn/?vnm=sodo [Assessed on 8 November 2012

13. Vinamilk homepage (2008), Vision and Mission. [Online] available at [Assessed on 10 November 2012]

14. Vinamilk homepage (2008), Our brand. [Online] available at [Assessed on 12 November 2012]

15. Vinamilk, bao cao thuong nien report (2010), page 69.

16. Russel, J. P., & Regel, T. L. 2000. After the Quality Audit: Closing the loop on the Audit Process, 2nd Edition Ed., Milwaukee, Wisconsin: ASQ.

17. The four intrinsic rewards that drive employee engagement, Kenneth Thomas (2009). [Online] available at < http://www.iveybusinessjournal.com/topics/the-workplace/the-four-intrinsic-rewards-that-drive-employee-engagement>. [Accessed 15 November 2012]

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