kl huynh thi ngoc tuyen 082741q

VIETNAM GENERAL CONFIDERATION OF LABOUR TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION SOLUTIONS TO IMPROVE QUALITY MANAGEMENT OF CREW EXPORT AT INLACO SAIGON Thesis submitted as a requirement for the degree Bachelor of Business Administration Supervisor: MA DINH QUOC HUNG Student: HUYNH THI NGOC TUYEN Student ID: 082741Q Intake:12 HO CHI MINH CITY,8/2012 ACKNOWLEDGEMENTS After month period of probation at Inlaco Saigon, I have finished my thesis about the quality management of crew export In order to complete it, I would like to thank everyone that helped me a lot They are all lecturers of business administration faculty at Ton Duc Thang University I have been impacted useful knowledge as well as valuable experience in four years Particularly, I would like to sincerely thank Dinh Quoc Hung for giving me very helpful guidance, and supplementing the knowledge to complete it in a better way During the practice time, I have received enthusiastic guidance and assistance of staff in crew department I have learned a lot I have more understanding of crew export This is completely new knowledge for me After all, I thank deeply staff of Inlaco Saigon in general and crew department in particular Finally, I wish good health for managing board of Ton Duc Thang University, all the teachers I also send my best wishes to Inlaco Saigon Apprentice Huynh Thi Ngoc Tuyen ABSTRACT Crew export plays a key role in Inlaco Saigon’s profit Currently, they only have Japanese customers When there is an increased demand for Vietnamese crews, this will be their chance to expand market share To it well, it is necessary to assess quality of crew export at Inlaco Saigon Because there is no report on this matter before, the thesis’s content focuses on analyzing problems of quality management of crew export They are lack of crews, poor quality of crews, ineffective marketing The model cause-and-effect is useful tool in order to find reasons for each problem that Inlaco Saigon has been facing By that tool, the thesis can solve the problem completely, rather than just addressing part of it and having the problem run on and on LIST OF ABBREVIATIONS GMDSS Global Maritime Distress Safety System IMO International Marine Organization ISC Inlaco Saigon Company ISM International System Management ISPS International Ship and Port Security MARPOL Marine Pollution Prevention SOLAS Safety Of Life At Sea STCW Standard of Training Certification and Wachtkeeping LIST OF FIGURES Figure 2.1: Organizational system of Inlaco Saigon 25 Figure 3.1: The process of crew export at Inlaco Saigon 33 Figure 3.2: Baltic Dry Index Chart 43 Figure 3.3: Cause-and-effect diagram of lack of crews 48 Figure 3.4: Cause-and-effect diagram of poor quality of crews 55 Figure 3.5: The miniature model of vessel at the University of Transport 58 Figure 3.6: Tanker vessel 58 Figure 3.7: Cause-and-effect diagram of ineffective marketing 60 INDEX INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Some definitions 1.1.1 Labor export 1.1.1.1 Definition 1.1.1.2 Feature 1.1.1.3 Form of labor export 1.1.2 Quality management 1.1.2.1 Definition of quality 1.1.2.2 Definition of quality management 1.2 Theoretical review 1.2.1 Joseph Juran’s theory 1.2.2 Deming’s theory 1.2.3 Ishakawa’s theory 1.2.4 Total Quality Management theory 20 CHAPTER 2:REVIEW OF INTERNATIONAL SHIPPING AND LABOUR COOPERATION JOINT STOCK COMPANY (INLACO SAIGON) 22 2.1 History and development of Inlaco Saigon 22 2.2 Duty and function of Inlaco Saigon 23 2.2.1 Duty 23 2.2.2 Function 23 2.3 Organizational system of Inlaco Saigon 24 2.3.1 Organizational chart 24 2.3.2 Departments’ funtion 26 2.4 Review of Inlaco Saigon’s operation 27 2.5 The importance of crew export at Inlaco Saigon 29 2.6 General review of Inlaco Saigon’s operation in 2010-2011 29 CHAPTER 3: REAL SITUATION OF CREW EXPORT AT INLACO SAIGON 33 3.1 Process of crew export at Inlaco Saigon 33 3.1.1 Recruiting, collecting applications 34 3.1.2 Interviewing and evaluating applicants 34 3.1.3 Recommend applicants to directors, sign contract 35 3.1.4 Educating, training new crews 35 3.1.5 Training crews on vacation 36 3.1.6 Appointing and making documents for crews 36 3.1.7 Training crews before they are on board 39 3.1.8 Managing crews on board 39 3.1.9 Crews leave the ship, evaluation of captain 39 3.2 Real situation of crew export at Inlaco Saigon 41 3.2.1 Result of crew export from 2009 to 2011 41 3.2.2 Problems in crew export 44 3.2.2.1 The shortage of crews 47 3.2.2.2 Poor quality of crews 54 3.2.2.3 Ineffective marketing 60 CHAPTER 4: SOLUTIONS TO IMPROVE QUALITY MANAGEMENT OF CREW EXPORT AT INLACO 63 4.1 Direction of Inlaco Saigon’s crew export in 2012 63 4.2 Solutions to improve quality management of crew export at Inlaco Saigon63 4.2.1 Solutions to the problem of missing crews 63 4.2.2 Solutions to improve the quality of crews 64 4.2.3 Solutions to improve marketing 66 4.3 Recommendations 66 4.3.1 Recommendations to Inlaco Saigon 66 4.3.2 Recommendations to the government 68 CONCLUSION 71 REFERENCE 72 APPENDIX 73 INTRODUCTION Statement of problem Nowadays, globalization is not still a strange terminology with countries all over the world The economies of the countries among different continents have had the same breathing rate since globalization became popular This leads to issues that transportation among regions are taken interest in According to the International Maritime Organization, there are more than 80% of goods transported by sea in the world The variety of types, sizes, and weights as well as different requirements for goods’ preservation and handling leads to expansion of the international fleets in both quantity and quality Then, this results in more demand for crews A research on forecasting need for crews done by Japan Institute International and The Nippon Foundation Transport was published on May, 2010 The research shows that the world fleet will have 38,197 vessels (5,000 GT and above) in 2020, which rose more than 2,754 vessels in 2010, after subtracting the number of vessels will be explored If the average for each vessel needs from to officers, from 14 to 16 crews (sailors, mechanics, mess men), the demand for worldwide crews will be 1,173,004 crews in 2020, compared with a demand for crews was 1,093,968 crews in 2010 Demand for officers will increased by 32,153 officers and 46,811 crews in 2020 Crews’ average salary is about 1,100 USD / person So, turnover of crew export is about 1.3 billion USD That figure is an exciting signal for the maritime nations Labor market of hiring crew is still widely opened It is a delicious piece of cake for those who want to participate in this very competitive and attractive market Recently, cost of hiring crews has accounted for over 50% of transportation cost In addition, the price of hiring crews in developing countries is cheaper than one in developed countries So, there is trend that countries having developed fleets tend to gradually replace crews in their countries by crews in developing countries What will Vietnam in order to grab opportunity and how many percentage of cake will Vietnam get? Vietnam in general and Inlaco Saigon in particular are facing great opportunities to grow and expand market share How can compete with domestic companies as well as foreign countries including the Philippines, Indonesia, China is a problem for Inlaco Saigon Identifying that improvement is a continuous process and there is no official assessment of quality management of crew export at Inlaco Saigon So choosing topic of the thesis is: "Solutions to improve the quality management of crew export at Inlaco Saigon " Objectives of the study The objective of the study is to analyze quality management of crew export at Inlaco Saigon Basing on problems, the thesis suggests some solutions Research methodology The cause-and- effect diagram is used to analyze and evaluate each specific problem that the company has been facing Scope of study: The thesis concentrates on analyzing of crew export at Inlaco Saigon Organization of the thesis Besides the introduction and conclusion, the thesis consists of four chapters Chapter 1: Literature review Chapter 2: Review of International Shipping and Labor Cooperation Joint Stock Company (Inlaco Saigon) Chapter 3: Real situation of crew export at Inlaco Saigon Chapter 4: Solutions to improve quality management of crew export at Inlaco Saigon CHAPTER 1: LITERATURE REVIEW 1.1 Some definitions 1.1.1 Labor export 1.1.1.1 Definition According to the Vietnamese labor law, "Labor export is the process of sending laborers to work abroad legally in identified period It is managed and assisted by state through service organizations, business organizations, enterprises winning the bid, enterprises getting contract, organizations and individuals investing abroad, occupation skills developing contract, or individual contracts between workers and labor users." Laborers working abroad are called abroad workers Country they leave is called abroad country Labor coming to one foreign country is called immigrant labor Country they coming to is called immigrant country 1.1.1.2 Feature Labor export is a special type of service which is shown by exporting “human physical strength” It is a special commodity because the owner is human being and human being is free to use and dispose purchase on the domestic and overseas market Labor export organizations are subject which is not only managed by the state but also adjusted by foreign laws On the other hand, they are subject manage labor export activity Their duty is to bring workers to work overseas, and then manage workers Therefore, labor export activity is related to human being, enterprises, and affected by many factors subjective, objective complexly In brief, labor export is socio-economic activity which is complex and sensitive When mentioning labor export, we need to understand that “human physical strength” is exported Workers sell it to their foreign owners According to the contracts the workers sign, they have to live and work overseas There are abroad complicated factors in relationship between selling partner and buying partner which are shown in the following three features: Economy: Human physical strength said here is valuable and used valuable labor It must be seen as commodity Party having labor needs to be paid with the reasonable price consistent with market’s price and not contrary to law The purchaser of labor must calculate how to utilize it effectively Society: Human physical here is wide comprehension It includes physical force, mental power, and willpower It is also the human’s capital and reflects the educational level, quality and dynamic of the country's human resources Labor relations having abroad factor: When worker live and work abroad, they will be managed by not only abroad country’s law but also immigrant country’s law In addition, they will be affected by the economic relations, culture, society, and customs in immigrant country Furthermore, international treaties that abroad country and immigrant country participate in will adjust them 1.1.1.3 Forms of labor export Currently labor export is performed in many forms: Based on contract bringing labor to abroad country: labor export is performed by an agreement between the Governments; a contract between labor export enterprises; bid contract; foreign investing contract; occupation developing contract; or single contract between worker and owner of labor Based on spatial movement of workers: direct labor export means that moving labor is organized from one country to another with changing place to stay in identified period This is popular international exchange of labor now Limitrophe labor export means employees in the countries have same borderline work back and forth between countries There is no temporary or permanent movement of place to stay Stay-in labor export means workers have job on their country in export processing zones, foreign invested industrial parks ; non-formal labor export is that workers find jobs abroad illegally, this way is accounted for small percentage, the workers’ risks is very high Based on the quality of exported labor: skilled labor export is also known as exporting specialists, technicians, and skilled labor Low-skilled labor or unskilled labor export is also known as general type The two types of labor export’s movement are so diverse Skilled workers move in parallel investment flows from developed countries to less developed countries On the contrary general workers move from less developed countries to more developed ones Currently, Vietnam's labor export was carried by the following forms: Through service businesses, business organizations are permitted to bring workers to abroad countries Through businesses winning the contract; business are received contract; or organizations or individuals to invest abroad are allowed to send laborers to work abroad Through trainee forms, internship forms to improve their professional skills abroad 10 Degree, certificate and passport must fit the actual state For instance, crews' passport should be applied in accordance with the 10-year passports system of the Immigration Administration There should be a policy that shipping companies have to be responsible for training crews, receiving maritime students for practice Which contribute to the maintenance of Vietnamese crews in the "White List" Developing regimes and other social welfare for crews in accordance with the type of hard and specific work on board and a high specificity of job The government needs to adjust the income tax for crews as well as the service charge for crew export businesses to maintain and develop, strengthen education, training, preferential treatment for crews and their families Review and promulgate mechanisms and policies to encourage the export of crews as well as sanctions to breach of contract At present the administrative procedures of the state is very cumbersome, complex and costly for shipping companies and crews This hinders crew export operations deeply So the state should have innovation of doing things They should have specific regulations about performance of civil servants, against negative phenomena When new regulations are released, the shipping companies should be noticed so that they can prepare to avoid errors Striking features of the crews on board is that at the same time, they are subject to many legal systems: the law of country whose flag is flown on vessel, the countries where vessel is in port, and law of crews’ hometown In addition, they have to be adjusted by a series of provisions of the International Maritime Convention, the ship owner, crew agency Therefore the state should develop a legal framework adequate and close to protect the rights of seafarers Maritime Trade Union had better keep on making good relationship with crews’ family Because family is source of encouragement helping crews have more strength to complete tasks well In summary, if the state makes those certainly, it will help the maritime industry in general and Inlaco Saigon in particular to overcome the difficulties The quality and quantity of crews will be improved It makes crew export developing so as to compete with foreign crews Conclusion: For each problem that the company is facing, the thesis has taken the measures In addition, the thesis provides a proposal to improve quality management of crew export Today when Vietnam joined the Maritime Labour Convention 2006, the ship owners will ask the company to have ISO 9001:2008 certificate This is used to 67 demonstrate the quality management capacity of the company Through this certification, the company confirmed the process of the company’s crew export satisfies the clients’ requirements This encourages partners to find the company and create the initial trust The Company will have the benefits when applying ISO standards They are: Employees in organizations with better working conditions, more job satisfaction, improved working conditions; work is more stable, improved spirit Operating result of organization is improved to increase market share and profitability Customers trust that they will get the crew in accordance with requirements Relations with training facilities for crews and partners is closer, more understanding relationships create long-term business The order of the steps to apply for the certificate is the initial contact, application for certification, preliminary assessment, formal assessment, issuing certification, periodic surveillance and reassessment To be certified, the company must establish, document, implement and maintain a quality management system and continually improve the quality of the system This is a long process; the company can seek the help of the consulting company specializing in the field of quality management such as DNV This is a famous company specialized in consulting and issuing ISO certification for organizations If the company overcomes those problems, the quality and quantity of crews will increase significantly This will be a firm foundation for developing the company's fleet in the future Thereby the company will contribute to the development of the domestic fleet in order to achieve the objective of "Vietnam's marine strategy until 2020": Vietnam becomes the country which is strong and rich because of sea In brief, to improve quality of crew export requires whole strategy which includes the Inlaco Saigon’s effort, the change in education of marine schools, and crew training centers The company needs to have good relationship with marine schools, and crew training centers Inlaco Saigon must realize that the company has responsibility for educating marine students while they are at schools 68 Conclusion When the crew need of world is increasing, this is an opportunity for shipping companies in Vietnam in general and Inlaco Saigon in particular According to the experts, Vietnam has a lot of advantages They are Vietnam is a maritime nation having a young population; Vietnamese crews are smart so as to adapt the work on the vessels Moreover, the Indian crews have been losing advantages Because shipping agents are afraid of Muslim The Philippines crews tend to find work on shore This is the perfect opportunity for Vietnam To capture this opportunity, Inlaco Saigon must have an effort to improve quality management of crew export The issues of crew export today are: lack of crews, poor crew quality, and ineffective marketing Thesis gives some solutions for each problem Due to the short training time and having a little experience in marine field, some solutions are still subjective 20 year experience of crew export will create favorable conditions for the company to get ISO 9001:2008 certificate It is essential for the company when Vietnam joined the Maritime Labour Convention 2006 More customers will ask the company to have this certification Due to limited time and ability to collect data, my thesis can only use cause-and-effect diagram to analyze the problems of crew export and find some solutions If conditions permit, the use of combination indicator KPI and Juran’s Quality Trilogy is a better way to be able to objectively evaluate and having solutions to improve quality management of crew export in the company 69 REFERENCE Reports of Inlaco Saigon from 2009-2011 Regulations on recruitment, training, crew of Inlaco Saigon BIMCO/ISF -Escap-Economic and Social Commission for Asia and the Pacific Nancy R Tague, “The Quality Toolbox”, Second edition, ASQ Quality Press, 2004 MA Doan Gia Au Du (2011), Quality management, chapter Understanding Quality and Total Quality MA Doan Gia Au Du (2011), Quality management, chapter Tools for Total Quality Management Tieu Van Kinh, “To innovate education and training seafarer”, Visabatimes Newspaper, (122/2011), 20-29 2011 70 APPENDIX 71 72 73 74 75 76 77 78 79 80 81 ... Hoang Hai Nguyen Hoang Hai Nguyen Thi Thuy Bui Hoang Thien Bui Hoang Thien Le Chieu Quyen Nguyen Thi Thuy Nguyen Hoang Anh Nguyen Thi Huong Nguyen Anh Dao Nguyen Ngoc Anh Le Chieu Quyen 3.2.2.1... Department Nguyen Anh Dao Crew Department Nguyen Thi Thuy Crew Deparment Le Chieu Quyen Crew Deparment Nguyen Thi Huong Crew Deparment Nguyen Ngoc Anh Crew Deparment Nguyen Hoang Anh Crew Deparment... joining brainstorming Lack of crews Poor quality of crews Ineffective marketing Tran Thi Cam Ha Tran Thi Cam Ha Tran Thi Cam Ha Truong Tan Loc Truong Tan Loc Truong Tan Loc Vo Le Anh Dung Vo Le Anh