Môn Quản Lý và Vận Hành Management and Operations

Tài liệu môn quản lý và vận hành Management and Operations bao gồm các phần: Giải thích các cách tiếp cận chính đối với quản lý hoạt động và vai trò của các nhà lãnh đạo và quản lý Explain the key approaches to operations management and the role that leaders and managers play. Six Sigma, Lean Production Explain different operations management approaches Giải thích các cách tiếp cận quản lý hoạt động khác nhau

TABLE OF CONTENTS Introduction LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization P4 Explain the key approaches to operations management and the role that leaders and managers play Discuss the key theories of operations and operations management including: six sigma, lean production and queuing theory Explain different operations management approaches including 2.1 Principle of Total Quality Management 2.2 Just-in-time Inventory .6 2.3 The concept of continuous improvement (Kaizen) Make appropriate application to the operations of your chosen company P5 Explain the importance and value of operations management in achieving business objectives Discuss the following operational functions of a business 1.1 Control and distribution systems 1.2 Transformation of raw materials into finished goods/services 1.3 Process design 1.4 Capacity management .8 1.5 Logistics and inventory management .8 1.6 Scheduling Choose at least functions to give specific application to your chosen company .9 Explain how the good management of these operational functions would help the company to obtain its business’ objectives 21 LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment .12 P6 Assess the factors within the business environment that impact upon operational management and decisionmaking by leaders and managers 12 Macro environment: 12 1.1 Define PESTEL model 12 1.2 Apply to external environment of your chosen company 13 Business environment (Industry analysis) 16 2.1 Define Porter’s Five Force Model 16 2.2 Apply to the specific business industry in which your chosen company has been operating 17 Pressures from stakeholders 18 3.1 Define the concept of stakeholder 18 A scandal of Vedan Company .21 Conclusion .22 Renferences 23  21 Introduction Nowadays, Management and Operations very significant in business environment and Companies This assignment will state that the concept is both a function and a process that all organizations must apply to conduct business Besides, this task also distinguishes clearly and specifically the application of leadership and management in different contexts LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization P4 Explain the key approaches to operations management and the role that leaders and managers play Discuss the key theories of operations and operations management including: six sigma, lean production and queuing theory First is the six sigma Six Sigma is a “ statistically-based process improvement method that minimizes errors or defects to 3.4 errors per million possibilities of errors by identifying and eliminating sources of tooling dynamic (unstable) in business processes Six Sigma focuses on establishing a thorough understanding of customer requirements and therefore highly customer-oriented Six Sigma method system is based on the process called DMAIC: Define, Measure, Analyze, Improve and Control” Inside: Define is a client definition, quality requirements that are important to products and services Identify core business processes that need to be improved Measure is to collect data, evaluate and identify issues that arise in the implementation of “Core Business Processes” Analyze is to analyze and find out the causes of the problem, determine the gap between the planned goal and the results of the current work, and identify opportunities for improvement Improve is seeking innovative solutions by applying technical technology to 21 overcome, prevent and improve quality Implementing innovative solutions Control is a plan to monitor and control the goal of effective implementation, avoiding returning to the old direction Six Sigma model: In the early 1980s, the US Motorola company initiated a rigorous management model of production processes and began to introduce the Six Sigma concept The quality and financial success of this management model at Motorola has created a movement of widespread deployment in a number of leading companies such as IBM, DEC, Allied Signal, GE, etc So far, this model has not only been widely deployed in the manufacturing sector but also developed into the service sector with the aim of helping businesses improve service quality with strict control of the stages , the processes provided under the Sigma model It is possible to name many reputable companies that have been successfully implementing Sigma applications such as Siemens, Nokia, Navistar, Kodak, Sony, 3M, Polaroid, Citibank, ABB, Dupont, Lomega, Amex, Black & Decker, etc ( eduviet, n.d , viewed February 10, 2019) For example: “Ford Vietnam has saved over $ million thanks to Sigma” In Vietnam, in 2000, Ford Vietnam Company started deploying Sigma, implementing process improvement in all production and business areas with 200 Sigma projects As a result, in years of implementation, Ford saved 1.2 million USD and achieved customer satisfaction index of over 90% each year Among the Sigma projects that Ford Vietnam has implemented, there is a fairly typical project of applying Sigma to reduce the number of containers of imported components in 2005 Notice of car parts containers in containers Importing into Vietnam has a lot of gaps, Ford has rearranged the space in each container to better suit the 6-sigma improvement method The results show that saving space is also a way to save costs and contribute to increased profits From this space savings, Ford Vietnam has saved $ 150,000 in 2005 Secondly is Lean Production Lean Production is often called the lean name Lean It is one of the modern management methods to streamline production, reduce waste in businesses, and increase business efficiency Besides, Lean is also a system of tools and methods that continuously eliminate all irrelevant things in the production process The streamlined implementation process consists of steps: determining the value from the customer's point of view, determining the value chain process, making the value chain work smoothly, attracting customers and striving for excellence “The main benefit of this system is to reduce production costs, increase production and shorten production time, thereby providing higher competitiveness for manufacturers Most of Lean's applications make businesses achieve the goal of reducing production costs For example, the use of equipment and more efficient premises leads to lower depreciation costs per unit of product, more efficient use 21 of labor leads to labor costs per unit of product lower and lower number of unused products will reduce the cost of goods sold” Lean and Six Sigma combinations: Combining Lean and Six Sigma In order to maximize the efficiency of production and business, there are now many businesses that combine Lean and Six Sigma in a way or method called Lean Sigma This method provides businesses with a richer structure and toolkit to solve problems, especially with problems that the solution is still new and never done before When the goal is to design the process, organize the workshop premises, reduce waste and how to achieve the goals that are already known, Lean's tools and methods will be proposed In contrast, to improve problems that are not yet available, Six Sigma should be used Because the comprehensive improvement system includes projects with known solutions that have been implemented through, or have solutions that are not known So both 6-Sigma and Lean will have a place in this integrated governance model The integrated management model of Lean and Sigma is proposed as a more flexible approach for businesses We will not go into the analysis of the technical aspects of this management model, but mainly highlight the benefits that each model can bring In terms of corporate management, the ultimate benefit is the most important when it is possible to harmonize the benefits of these two methods together Finally is the queuing theory : “Queueing theory is the mathematical study of waiting lines, or queues A queueing model is constructed so that queue lengths and waiting time can be predicted Queueing theory is generally considered a branch of operations research because the results are often used when making business decisions about the resources needed to provide a service” Explain different operations management approaches: 2.1 Principle of Total Quality Management: Total Quality Management (TQM) is a combination of activities to guide and control an organization in quality Quality orientation and control generally includes quality policy and quality goals, quality planning, quality control, quality assurance and quality improvement Total Quality Management has now been applied in every industry, not only in manufacturing but in all areas, in all types of organizations, from large scale to small scale, even if involved international market or not Quality management ensures that organizations the right things and important things, following the "work right" philosophy and "do the right thing", "do it right at the beginning" and "do it right at all times point" 21 CS of Total Quality Management: The Cs of TQM process are depicted in the following image (Source: KALYAN CITY LIFE, April 19, 2012, viewed February 12, 2019) First is the Commitment from Employees In an organization, comprehensive Total Quality Management (TQM) will be developed These policies will be binding on all employees of the organization Therefore, improving quality will become an essential part of everyone's work Moreover, this will ensure a commitment to improving the quality from all employees for the work deployed for them Secondly is Quality Improvement Culture There will be a quality improvement culture within the organization Following culture needs to be modernized continuously to encourage staff feedback This will ensure the comfort of employees for effective management of assigned jobs Thirdly is Continuous Improvement in Process Total Quality Management (TQM) is a continuous process and not a program This requires continuous improvement in all relevant policies, procedures and controls set by management A constant search for proficiency is required to perform a better task This will always lead to scope for improvement, although that improvement may be small Next is Cooperation from Employees The application of Total Quality Management (TQM) is directly related to the total number of staff involved and after implementation The experience and cooperation of employees is used in developing improved strategies and measures Fifthly is Focus on Customer Requirements Total Quality Management (TQM) process will be prepared by focusing on customer requirements and their expectations from products and services In today's market, customers have demand and expect perfect goods and services without defect Focusing on customer requirements is critical to long-term survival and building excellent relationships with customers Finally is Effective Control shall be laid down Controls will be put in place to monitor and measure the performance of your business Controls also help overcome shortcomings, if any, in the business process The checklist of control policies will include all documents or instructions on the best current business activities 21 The goal of TQM: In TQM, quality is conceived not only the quality of the product but also the quality of the whole process of making products The requirement is that not only products must meet the needs of customers, but the process of production must be effective and achieve the highest efficiency The objective of TQM covers all aspects of production, including four elements (QCDS): Quality, Costs, Delivery or Delivery Timing, Safety Currently, in the concept of productivity expand more factors: Production Capacity and Moral TQM requires to always find ways to improve quality, constantly aiming for higher results Need to improve the production process from every process, every activity to achieve higher levels of efficiency It means mobilizing more resources, achieving higher utilization of resources Organizations are always trying to find ways to improve and prevent mistakes, not to make mistakes to find ways to overcome and improve 2.2 Just-in-time Inventory: Just-in-time is the practical approach to inventory-related strategies to enhance employees to increase efficiency and reduce by receiving goods made for this factor to predict the exact demand “Just-in-time Inventory (JIT), also known as lean manufacturing and sometimes called Toyota production system (TPS), is an inventory strategy that manufacturers use to increase effective This process involves ordering and receiving inventory for customer production and sales just because it is necessary to produce goods, not before This type of inventory management has many benefits, but not without drawbacks and depends very much on factors such as a strong, fast and efficient supplier network” The Purpose of JIT “Ordering inventory on an as-needed basis means that the company does not hold any safe stock and it operates with a continuous low inventory level This strategy helps companies reduce costs of carrying inventory, increasing efficiency and reducing waste JIT requires manufacturers to be very accurate in their product demand forecasts” Just-in-time inventory management is a powerful cost-cutting inventory management strategy, although it can also lead to inventory The goal of JIT is to improve the return on investment of a company by reducing unnecessary costs The JIT inventory system represents a change from the older "just in 21 case" strategy, in which producers carry larger inventory and raw goods, in case they need to produce more units because of higher demand 2.3 The concept of continuous improvement (Kaizen) In business, kaizen means continuous improvement activities for all employees' jobs, from CEO to workers in the assembly chain It also applies to processes, such as purchases or logistics, that make them cross organizational boundaries to contribute to the supply chain It also applies in the areas of health care, psychotherapy, training, politics and banking (scielo, n.d, viewed February 12, 2019) Make appropriate application to the operations of your chosen company Samsung Group is a Korean multinational corporation with headquarters located in Samsung Town, Seoul The Group owns many subsidiaries, most of which operate under the Samsung brand, the largest corporation in Korea Samsung was founded by Lee Byung-chul i n 1938, starting as a small trading company After decades, Samsung Group diversifies industries including food processing, textile, insurance, securities and retail Samsung entered the electronics industry in the late 1960s, building and shipbuilding industry in the mid-1970s After Lee Byung-chu died in 1987, Samsung split into corporations - Samsung, Shinsegae , CJ, Hansol From the 1990s, Samsung expanded its operations on a global scale, focusing on electronics, specifically mobile phones and semiconductors that contributed significantly to the group's revenue As of 2017, Samsung has the sixth largest global brand value ( Storyblocks, n.d, viewed February 14, 2019) Six Sigma: Secret process helps Samsung products to achieve top quality At Samsung, Six Sigma is deployed to “ all management levels as well as employees across all departments Within three years after deployment, the number of “Master Black Belts”, “Black Belts” and “Green Belts” reached nearly 15,000, equivalent to nearly one-third of their employees In 2004, Samsung set a goal of training Sigma training for its entire workforce, with about 49,000 people in 89 offices in 47 different countries It's easy to see the change in Samsung products after years of applying changes to them management process So far, Samsung is ranked 7th among 25 leading companies in the world in terms of supply chain efficiency, an important part of the company's production capacity In addition, this quality management process also helps Samsung determine the cause behind unsuccessful products and can recover very quickly some time later For example, the great success of Galaxy S6 has truly undermined Samsung's flagship line After that, following the success, Samsung Galaxy S7 and S7 edge 21 reached number in the smartphone market Just in time of Samsung (JIT ) In order to " just in time", Samsung understands that in each operation must be coordinated carefully, while production schedules must be fixed for each time period In addition, in order to avoid a shortage of goods in the system, good forecasts are required and specific schedules must be developed Therefore, Samsung has conducted production on the following principles: Ensuring the quality of each production batch is kept from the beginning to the end in the production process, maintaining the number of stable products required by each shipment, planning the quantity forecast exist once a week to ensure not passive when there is a shortage” In order to save space and costs, Samsung has always advocated to minimize the inventory of components and semi-finished products in its production line The whole process of operating from purchasing, importing components to manufacturing, assembling and distributing product lines (mobile phones, TVs, refrigerators, airconditioners, washing machines, MP3 players , ) is closed in strict control and minimized inventory Even in some common parts produced domestically, the level of inventory can be zero, receiving parts only before o'clock when the production is conducted After the end of each production, the amount of inventory of these components will return to zero As for semi-finished products, there is no inventory of any semi-finished products when the production process ends This requirement aims to achieve specific benefits: Cost savings for Samsung because the Company is not stagnant in capital due to inventory components and semi-finished products Saving space: space and warehousing issues are now very important for units that use a lot of materials and components like Samsung Minimizing the amount of component and semi-finished inventory as an effective measure helps the Company save necessary space for other activities at the Company Besides, motivating managers in the whole chain to try to overcome the problems in production with all existing creative capabilities It is the JIT method that helps reduce inventory to the lowest possible level, thereby helping managers find and solvedifficulties arise P5 Explain the importance and value of operations management in achieving business objectives Discuss the following operational functions of a business: 1.1 Control and distribution systems The controlling and the distribution function is a very important factor in operations management as it is “ responsible in controlling the production process and ensuring proper distribution of the products in order to fulfil the objectives of the organization It fulfils that the objective of the organization which is proper utilization of resources is followed The efficiency of the control and distribution system can be improved by adopting a strong control system and to improve the logistics infrastructure of the company in order to meet the business 21 objectives of the company The control and distribution system is concerned with the proper control of resources and distribution of the resources accordingly to the various processes in a calculative manner so that the misuse and wastage of resource is ensured by the organization and the products are effectively distributed in the markets” 1.2 Transformation of raw materials into finished goods/services Transformation of raw materials into finished goods/service: One important function ofoperations “ management is to transform raw materials and component parts into finished products By performing this function, managers ensure right production processes areused and right employees are assigned to execute these processes” 1.3 Process design Process design: Process design- The designing of the process of production is a vital function of operations “ management as by specifying the process in the production process the production is carried out of the product of the company in order to meet the demands of the customers and to make profits from it which will in turn fulfil the business objective of the organization It fulfils the organization objective of designing the products according to the needs of the customers The efficiency in the process design helps the company to gain more productivity by applying the right process for production by utilizing the least possible resources The organization make sure that the process which is involved in the production process of the products comply with the standard of the production process and it produces quality materials which complies with the benchmark of quality of the organization” 1.4 Capacity management Capacity Management:Producing more than demand increases inventory costs and a waste ofmaterials and “ products On the other hand, producing less than demand causes customer’sdissatisfaction Operations management manages organization’s capacity to produce the rightamount of products at the right time according to market demand” 1.5 Logistics and inventory management Logistics and inventory management:Logistics and inventory management is the essentialtask of operations “ management because the logistical drivers play the vital role in deliveringproducts in the market These 21 functions include warehousing, transporting, procurement andother activities to make the product available to customers” 1.6 Scheduling “ Scheduling is a very important function of operations management as it helps in the proper scheduling and distribution of the tasks according to the skills of the employees, the resources of the organization and the time available for completion of the task Before starting a task scheduling is a very important process for every organization as it creates the entire framework of the task to be done in a given period of time It is very important from a business point of view in achieving its objectives as it helps in completion of the process within the shortest possible time limit in order to gain a competitive advantage It fulfils the organization’s objective of designing the right product at the right time by following the right process The efficiency of the scheduling process will help the company to complete a given task or objective in the given span of time and it will also help in the prioritization of the tasks by the company according to the needs and requirements of the company which will help the company to accomplish their business goals The scheduling process also helps the organization to properly organize the production process of the product so that the entire production cycle continues in a smooth manner and the market process not hamper the schedule” Choose at least functions to give specific application to your chosen company Process design of Samsung Samsung always designs environmentally friendly products Samsung is committed to minimizing the environmental impact of innovative products including smartphones, TVs and more As part of this commitment, Samsung has developed many eco-friendly, unique and diverse design processes On the occasion of the World Environment Day celebration, this is a closer look at Samsung's comprehensive efforts The key to designing environmentally friendly products is simply three principles: minimizing, reusing and recycling Samsung applies these basic principles to product design using a circular resource management system Or is it to draw a life cycle of devices To sum up, Samsung aims to minimize the environmental impact of products by maximizing the efficiency of resources from assembly to final processing This requires the reuse of parts, the use of recycled packaging and plastics, and the ability to recycle new components of the product for later use In the future, Samsung will continue to design and develop environmentally friendly initiatives, demonstrating the success of product design, and will ultimately help protect our planet for generations future Logistics and inventory management of Samsung In recent times, inventories in Samsung have considerable changes in value, proportion and composition of inventory Raw materials at Samsung are divided into several main categories and have specialized departments to buy and manage those materials The value of raw 21 material inventories at the end of 2018 fell more sharply than the end of 2017 from USD 719 million to USD 404 million Samsung company must clearly define the objectives of inventory management policy The company is trying to reserve products based on the JIT model, types of reserves include: regular reserves, seasonal reserves and insurance reserves In addition, Samsung always designs and builds a standardized warehouse system to ensure raw materials and inventory materials Inventory work performed by Samsung twice a year For each different type of inventory, the company uses a unified method of calculating the value of raw materials, reducing inventory prices Samsung Company has come up with solutions to Logistics and inventory management: Improve the quality of inventory management staff, Strengthen inventory checking, Strengthen staff management Scheduling of Samsung Today, the demand for technology of Vietnamese people is increasing So, Samsung alway have a perfect plan for the company They often improve product quality, customer service and offering 5% discount for each product will help the company sell more products Samsung usually be responsible to customers by diversifying products and services, offer promotions to customers on special occasions such as holidays or birthday of customers Build more customer care centers in all three regions of North, Central and South Vietnam Moreover, the application of science and technology to the production line will help the company improve the quality of products Finally, they reduce staffing costs by finding cheap labor and changing the pay system properly Besides, Samsung always responsible for allocating resources, distributing employees to work according to their skills and abilities and deciding the time frame to complete a specific task Explain how the good management of these operational functions would help the company to obtain its business’ objectives The good management of these operational functions would help the company to obtain its business’ objectives “ because operations management involves the overseeing, designing, controlling the process of production and redesigning the business operations in the productions of goods and services It is very important in business operations since it forms the heart of the organization by controlling the system of operations It deals with the design, operation and improvement of the systems that creates and delivers an organization primary product or service” LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment P6 Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers 21 Macro environment: 1.1 Define PESTEL model Political: the influence factor of the government intervening in the economy Business owners should consider “ the political environment as new policies or new laws so that business owners can tailor their businesses accordingly Business owners should consider to ensure that their business has complied with regulations while keeping the business operating smoothly” Economic: Economic factors have a strong influence on business and business expansion It involves currency exchange rate changes, rapid or slow growth rates, economic environment and changing trends that affect changes in production and demand Sociological: Social factors have a strong influence on consumer behavior, which plays a decisive role in the “ enterprise It involves cultural and social change In today's modern society, consumer demand has a lot of influence from culture” Technological: Technology includes factors such as research and development, automation, and improvement of relevant personnel It affects the way people search and access business information, the way businesses handle their information widely Legal: Businesses that want to operate, businesses must obey the laws of employment, competition, health, “ safety and business standards Laws affecting the organization and culture of a number of enterprises from the way employees are trained to the operation of the business are in accordance with the law ” Ecological: The production of the business concerned is not small to the ecosystem More production can cause “ environmental pollution such as smoke, dust, waste water,etc, or more production that depletes natural resources” 1.2 Apply to external environment of your chosen company I will choose Vinamilk Company “The first tracking force of the Macro environment is Population, because humans make up the market Entrepreneurs usually take interest in the rate of population growth in different cities, regions and countries Growth of the population is the factor affecting the business sector Census results for 2008 show that Vietnam's population is 86.160 million, third in Southeast Asia and 14th among the world's most populous countries” 21 This is the population diagram in Vietnam over a few years (SOURCE: Duyentran, n.d viewed 16 October 2018) We can see that with a large population and rapid population growth, Vietnam is an attractive market for this company The educational level in Vietnam is relatively high, especially in urban areas Graduation rate of universities, colleges etc quite high compared to the whole country Moreover, intellectual labor in Vietnam excels in technology - so this is a good source of human resources for the company Besides, drinking milk is not only essential for developing height, enhancing intelligence and providing adequate nutrition for children to develop comprehensively Milk also boosts calcium for the elderly and helps their bones are strong Therefore, Vinamilk always offers many products with different types, meeting the needs of different ages Secondly is the economic At present, Vietnam is facing high economic inflation and this has greatly affected the company's investment capital In addition, the cost of raw materials and materials from suppliers also increased due to the impact of economic inflation So Vinamilk should have reasonable financial solutions to overcome this situation Next is the environmental The natural environment has a great impact on Vinamilk's business For example: Air pollution causes the milk to become contaminated with the toxin and affect the activities of many companies including Vinamilk The following is technical Thanks to modern science and technology, Vinamilk products are easily delivered to consumers with low cost and short time Technology gives businesses new ways of communicating with consumers For example: advertising on the Internet, advertising on the mass media As a result, Vinamilk's image has become increasingly close to consumers “Finally are political and legal factors A business that wants to stand on the international market faces a multitude of factors beyond its control Among these factors, political and legal factors are a matter of concern Businesses built in any country are affected by the laws and policies of the government in that country When doing business on an administrative unit, businesses will have to follow the legal organizations in that area Organizations with high stability will be able to facilitate good business and vice versa More than 90% of the company's revenue comes from Iraq The country's unstable economic and political situation has affected 21 Vinamilk's export earnings Therefore, the company is expanding its export market to Australia, America, Canada, Thailand and other countries.” Identify the key factors affecting operational management and decision making The business environment gets affected by a number of external factors which affects the operations of the business and also the decision making part of the organization Therefore it is very essential from an organization’s point of view to identify the impacts of the external factors on the business environment so that it can adopt appropriate strategies and policies to reduce the impacts of the external factors on the operations of the business and also in the decision making part of the organization The various external factors which are identified are political, economic, social, technological, environmental and legal The leadership and management in an organization have a great role to play in context of Corporate Social Responsibility The organizations must adopt short term goals for the organization which should be beneficial for the company in the long run Therefore a company needs to make minor adjustments and compromise from their part in order to practice the Corporate Social Responsibility The organization must also ensure that the natural resources are used according of the demand of the situation and therefore the production process must be controlled in order to not to produce excess products by putting maximum pressure even if it is not needed and the CSR policy should also ensure that they not contribute to the increase of pollution level of a particular place by its activities and rather they should focus on decreasing the pollution levels of that place Culture is defined as ideas, customs and social behaviour of people of a particular place The culture of a place “ affects the business environment in a direct manner as the company identifies the culture of a place and designs their products according to the culture of that place ” Culture also plays an important role in operations management as during the operation process the culture of the work force of the people are taken into account and accordingly strategies are devised to increase the effectiveness of the work force of a particular culture The culture of a particular place also plays an important role in the decision making process of the organization as the decisions are made by the company for a product keeping in view the cultural background of that particular place by keeping the view the cultural diversity of the place so that the people readily accepts the culture by perceiving it as a part of their culture Values are defined as principal or standards of one’s behaviour “Values are considered as important factor in the business organization as the products and services of an organization is developed and modified after analysing the values of the general customer at a particular place In the operations management too values are considered as important parameters to finalize the standards of the production and also to set the working standards of an organization In the decision making process values are 21 given ample importance as the values of the people of a particular place helps the organization to plan the decision making process and also to implement it ” The managers and leaders of the organization must focus on developing a proper culture in order to provide a proper platform to the employees of the organization to showcase their skills and talents and also ensure that no non-ethical cultures are values are cultivated in the organization Ethics: In order to follow the Corporate Social Responsibility an organization must practice ethical business and ensure that the activities of the organization not harm the stakeholders of the businesses and also the environment Ethical business is defined as the business which is dome by following ethics and it aims to benefit all its stakeholders through its activities The organization must also ensure that they comply with the basic codes of conduct for businesses and must not deceive their products to mislead and mislead customers because it is contrary to ethical business policies In the operations Management Department of the organization the manager or the leader of the operations management should ensure that the all the factors related to operations management are followed in an ethical manner are followed in a sustainable manner and the production should not be pressurised much because it leads to the depletion of the natural resources of the environment The organizational leaders and managers must also ensure that the policies and strategies of the organization must be ethical in nature and must not mislead the society In order to become an ethical organization the company must adopt an ethical approach right from its grassroots and inceptions Ethics plays a great role in the decision making process of the organization as the decisions of the organizations which are taken is ethical in nature which aims to benefit itself also its stakeholders in the business In the organization the leader and manager’s main role is to follow proper ethics of work ,behaviour and business so as to motivate the employee in to working hard and to create a sense of equality among all the employees of the organization Sustainability: Sustainability is defined as an approach which focuses on to meet the demands of the present generation without compromising the needs of the future generation It is a very important aspect of every business as every organization wants to promote themselves as a responsible organization to the general customers so that they the general customers get more aware about the company and it is also important from a business’s point of view as it aims in the saving of resources which will be required by the company in the future Business environment (Industry analysis) 2.1 Define Porter’s Five Force Model Porter’s model says that the structure of an industry and the ability of firms in that industry to act strategically depend upon the relative strengths of five forces: current competition, potential competition, the threat of substitute products, the power of buyers and the power of suppliers Each of these five forces will be examined 21 in turn Businesses often use this model to analyze whether they should enter a particular market, or operate in a particular market However, because the business environment today is "dynamic," this model is also applicable to search in a certain sector areas need to be improved to produce more profit Government agencies, such as the Antitrust and Mergers Commission in the United Kingdom, or the Antitrust and Justice Department in the United States, also use this model to analyze whether there are companies that are profitable public or not Porter’s Five Force Model includes: suppliers, customers, potential entrants, substitute markets, are intra market rivalry 2.2 Apply to the specific business industry in which your chosen company has been operating Firstly are suppliers: Building long-term and sustainable development goals for major domestic and foreign strategic suppliers is the main goal of Vinamilk to ensure the supply of raw materials is not only stable in premium quality but also at very competitive prices Because most of Vinamilk's production materials are imported, Vinamilk is under great pressure and highly competitive pressure from suppliers In recent years, the high price of raw materials has also the cause increase Vinamilk's production costs Secondly are customers: Customers will be able to change to other company's products if Vinamilk's product quality is not good Customers always want to use high quality products but the prices are cheap Besides, customers are quite sensitive and picky Therefore, both the supply of quality products and customer care are very significant Moreover, Vinamilk must pay attention to customer feedback Next are potential entrants: Today, with the development of human life, the economy is getting better and people are paying more and more attention to protecting their health Therefore, the demand for milk and milk products is huge Especially the Vietnamese market today, besides big dairy companies such as TH True Milk, Dutch Lady and Vinamilk are taking stable steps Other businesses such as DaLat Milk, LoTha Milk, etc they only have a very small market share Therefore, So, potential entrants to Vinamilk are not worrying The following are substitute markets: Due to various reasons, many customers cannot use dairy products So the birth of milk substitutes is quite important in society The strong development of science has helped us to create many milk substitutes effectively Some milk substitutes are those made from grains such as soybeans, rice, sticky rice, corn, etc However, because milk is a specific, essential, and important product for humans (science has also demonstrated that milk is an essential nutritional supplement to human needs) So the pressure from replacement products for Vinamilk dairy products is not much, but Vinamilk should also strengthen research to make its dairy products able to best meet the needs of customers 21 Finally are intra market rivalry: Vinamilk and Dutch Lady are the two largest dairy producers in Vietnam, accounting for nearly 60% of the market share Foreign milk such as Mead Johnson, Abbott, Nestle, etc accounts for about 22% of the market share, with the main products being powdered milk Currently domestic dairy producers are under increasing competition due to the reduction of foreign milk tax The remaining 19% market share belongs to more than 20 small-scale dairy companies such as Nutifood, Hanoi Milk, Ba Vi, DaLat Milk, etc Although Vinamilk is a leading dairy company in Vietnam, it also faces a lot of competition pressure from other competitors Applying SWOT analysis to evaluate internal environment SWOT is one of the five steps that make up the business strategy of an enterprise, including the establishment of corporate mandates, SWOT a nalysis, strategic targeting, formulation of strategic objectives and plans Strategic, defining strategic control mechanisms SWOT is the abbreviation for the first letters of the words Strengths, Weaknesses, Opportunities and Threats This is a well-known model in business analysis of business SWOT helps bring insights into an organization, project, or situation so it is particularly useful in decision making, strategic planning, and planning Let's take a look at SWOT analysis commonly used in specific cases such as brainstorming meetings, problem solving (organizational structure, resources, productivity, corporate culture) , Strategy development (competition, product, technology, new market), planning, decision making, product quality assessment, competitor assessment, self development plan Pressures from stakeholders 3.1 Define the concept of stakeholder A stakeholder is either an individual, group or organization who is impacted by the outcome of a project They have an interest in the success of the project, and can be within or outside the organization that is sponsoring the project Stakeholders can have a positive or negative influence on the project There are a lot of people involved in getting a project from inception to a successful completion You’re going to have to know how to manage each and everyone one of them, even those who don’t work directly under you One such person is the project stakeholder A stakeholder is a person, like any other member of the project, and some will be easier to manage than others You’re going to have to learn to deal with a variety of personalities and make sure you’re having a productive dialogue with them to know the project goals you’ve been hired to meet 21 “Responsibilities of stakeholders” Evaluations Internal Stakeholders Employees Manager Owners Connected stakeholders Shareholders Customers Suppliers Employees always would like to get a raise Besides, they want a stable job and they often want to reduce their work hours Next, managers want employees to work hard and high performance In addition, they often want to job security Owners always want to have a lot of profit Besides, they also want their staff to work hard Besides, owners always want to recruit the staff qualified and have a lot of experience or have more knowledge Shareholders always want to have a lot of dividends In addition, they often want capital growth Customers always want to use high quality products but not too expensive Next, suppliers always want to be paid on time Trade union often solve the problems of the employees, active part in decision making Financers always want to recapture capital and profit quickly “Besides, financers want to spend their money on the right purpose and bring high efficiency” Financers Trade union External stakeholders The government and community always wants the business to meet the legal requirements and they are always friendly with the environment Government Community (Source: author) CSR in the Stakeholder’s Perspective “ Corporate now has spent decades to promote not only a firm’s economic but also a social responsibility This challenged a discussion in corporations what corporate responsibility should be In the past, the CSR approach was useful to foster these important discussions and thus it is important to analyse it from different perspectives, for what CSRs should be responsible It seems that the CSR responsibilities are not very promising to understand real-world situations for three main reasons First, the concept of CSR itself is not distinguishable as most decisions of businesses are not purely economic, legal, ethical, or philanthropic ” Consequently and by agreeing with Freeman (1994), the separation of economic and social responsibilities to which the CSR approach contributes is rejected Second, another argument raised by Freeman (2004) against the CSR concept comes in the form of a risk that business could treat their CSR activities as moral substitutes to compensate for other irresponsible activities And third, we argue that the general responsibilities implied by the CSR approach can’t 21 neither account for the specificity of an individual firm nor for the specific stakeholder network where it is embedded in “Summing up, it can be claimed, similar to Freeman (2004) that corporate responsibility should refer to a firm’s strategically relevant stakeholders Thus, mainly the instrumental framework of the stakeholder’s view, that sees strategic stakeholders as the core of corporate wealth creation Within the stakeholder view, stakeholders can be defined as ”all individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and are therefore its potential beneficiaries and/or risk bearers” Based on this definition the stakeholders can be distinguished in four categories: benefit-providers/receivers and/or risk-providers/bearers This comprehensive stakeholder perspective not only considers resource-based (e.g employees, investors) and market-based stakeholders (e.g customers, business partners, competitors) but also social and political stakeholders (e.g government, nongovernmental organizations (NGOs) media) The stakeholder view framework is used here because its normative core i.e., a comprehensive understanding of property rights is one of the most important principles of our society (Friedman, 1970) The stakeholder view enhances the idea of property right to not only those parties who provide financial resources but also to all those that contribute other firm-specific investments such as knowledge, networks etc We argue that such a consideration of stakeholders as those individuals and groups that contribute to the firm’s wealth creation process can serve as a useful foundation for thinking about corporate responsibilities It is thereby important that this wealth creation process is not viewed in a one-sided fashion from the corporation’s perspective, but also from the stakeholders’ perspective The corporation is only legitimized in its existence if it creates wealth for and with its strategic stakeholders Summing up, the stakeholder view claims for a corporate responsibility that takes into account stakeholders’ contributions to the corporate wealth creation process Therefore, the firm is responsible to reduce risk and increase benefits for stakeholders at one side but also for a fair distribution of benefits at the other side ” Two different viewpoints • Stockholder viewpoint of CSR The traditional perspective on social responsibility that a business organization is responsible only to its owners and stockholders The manager’s job therefore is to satisfy the financial interests of the stockholders By doing so, the interests of society will be served in the long run CSR is a by-product of profit seeking 21 • Stakeholder viewpoint of CSR: The viewpoint contends that firms must hold themselves responsible for the quality of life of the many groups affected by the firm’s actions This reflects the modern viewpoint of the corporation The organization and its stakeholders work together for their mutual success Different stakeholder groups Organizational stakeholders can be divided into main groups: internal and external ( Source: Boundless, 2016) A scandal of Vedan Company Vedan company "killed" Thi Vai river for 14 years After more than months of monitoring, on September 13, 2008, the interdisciplinary inspection team caught the result of Vedan Company located in Long Thanh district, Dong Nai province discharging a large amount of untreated wastewater into Thi Vai river It is estimated that Vedan can discharge wastewater to 5,000 m3 / day to the river According to the initial assessment, the installation of the discharge system of Vedan Company is a violation of the law on environmental protection According to Colonel Luong Minh Thao, this violation is particularly serious At the scene, the Deputy Director in charge of the Vedan Vietnam office acknowledged the company's violation After that scandal, the company has limited the discharge of wastewater to Thi Vai river With the problems surrounding environmental destruction, the Vedan brand quickly becomes worse in the eyes of consumers However, after this incident, it was a surprise that Vedan revenue still grew well in years 2010 and 2011 In 2010, Vedan revenue reached 170 million USD and in 2011 increased to 181 million USD However, since then, Vedan's revenue has been going down continuously Latest figures show that 2016 revenue is only USD 161 million, the lowest since 2010 Vedan leader 21 acknowledged that consumers have not fully recovered confidence with Vedan since the problem of environmental pollution on Thi Vai River Vedan Deputy General Director, Mr Ko Chung Chih said: “During the past years, despite many efforts to overcome and strongly invest in environmental protection, we have not been proactive open information to share with the press and the people of Vietnam know the remedies that the company has worked so hard for This has caused the public to still have many questions and has not fully recovered confidence with Vedan Vietnam " Mr Ko Chung Chih said that in the coming time, Vedan will open the information for consumers to better understand the efforts to overcome and efforts to protect the environment and the next 25 years of Vedan's development in Vietnam Conclusion: “ This Assignment evaluates the role that operations management play in the daily activities of the organization starting from production process right up to the delivery process The leaders and managers of an organization follow a variety of principles and approaches to increase the efficiency of the operations management in their organization This assignment notes that every organization has to undertake the Corporate Social Responsibility in order to protect the culture, ethics and enviroment in a sustainable manner, to become ethical in nature and also consider the impact in wider community thus grabbing the atention of the customers by doing ethical business practices” Renferences 21 scielo, n.d, viewed February 12, 2019 from https://scielo.conicyt.cl/scielo.php? script=sci_arttext&pid=S0718-50732018000200173&lng=en&nrm=iso&tlng=en eduviet, n.d , sixsigma viewed February 10, 2019 from http://eduviet.vn/tin-tuc/6-sigma-phuong-phap-quan-tri-chatluong.html KALYAN CITY LIFE, April 19, 2012, viewed February 12, 2019 from http://kalyan-city.blogspot.com/2012/04/howto-implement-total-quality.html Storyblocks, n.d, viewed February 14, 2019 from https://www.videoblocks.com/video/editorial-samsung-logoon-glass-building-socwlcx6lj139tmx7 21 ... approaches to operations management and the role that leaders and managers play Discuss the key theories of operations and operations management including: six sigma, lean production and queuing... according to market demand” 1.5 Logistics and inventory management Logistics and inventory management: Logistics and inventory management is the essentialtask of operations “ management because the... Management: Producing more than demand increases inventory costs and a waste ofmaterials and “ products On the other hand, producing less than demand causes customer’sdissatisfaction Operations management manages