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UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI ANH THU THE INEFFECTIVE OPERATING PROCEDURE AT MORE UK IN HO CHI MINH CITY MASTER OF BUSINESS ADMINISTRATION Ho Chi[.]
UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI ANH THU THE INEFFECTIVE OPERATING PROCEDURE AT MORE UK IN HO CHI MINH CITY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI ANH THU THE INEFFECTIVE OPERATING PROCEDURE AT MORE UK IN HO CHI MINH CITY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Phan Thi Minh Thu Ho Chi Minh City – Year 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SUPERVISOR’S REPORT ON THE FINAL THESIS SUBMITTED FOR THE DEGREE OF MASTER of BUSINESS ADMINISTRATION Final thesis title: The Ineffective Operating Procedure at More UK in Ho Chi Minh City Student name: Nguyễn Thị Anh Thư Supervisor name: Dr Phan Thị Minh Thư General comments: ∙ Remarks on the student’s attitude: ∙ Remarks on the assignment’s academic quality: Overall assessment: □ Meet requirement for submitting; □ Not meet requirement for submitting Other remarks: - Did the student follow the report schedule? □ Yes □ No □ Other - The Turnitin plagiarism percentage: ❧✶❧ Supervisor’s signature LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents Executive Summary Introduction CHAPTER I: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND 1.1 Industrial Overview 1.2 Company Background CHAPTER II: PROBLEM JUSTIFICATION 2.1 Problem finding process 2.2 Company’s Symptoms 2.3 Problem Identification 2.3.1 Problem mess 2.3.2 Potential Problem 14 2.3.2.1 Ineffective partnership management 14 2.3.2.2 Ineffective operating procedure 15 2.3.2.3 Unclear organizational structure 16 2.3.3 Identify the central potential problem 19 2.3.3.1 Central problem definition 19 2.3.3.3 Justify the importance of central problem 21 2.3.3.3.1 Potential Consequences 21 2.3.3.3.2 The problem importance in MORE UK 22 CHAPTER III: ALTERNATIVE SOLUTIONS 23 3.1 Cause validation 23 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3.1.1 Affiliative leadership style 23 3.1.2 Lacking of job description 24 3.1.3 Lacking of training 25 3.1.4 Poor planning and scheduling 26 3.1.5 Language and Culture Barriers 26 3.2 Proposed solutions 27 3.2.1 Solution 1: Writing job descriptions 29 3.2.2 Solution 2: Creating an official integrated process planning and scheduling 29 3.2.3 Solution 3: On-the-Job Training 33 3.2.4 Solution 4: Diversity training 34 3.3 Alternative sets of solutions 34 3.4 Action plan 37 3.4.1 Objective 37 3.4.2 Timeline and Cost 37 Conclusion 44 Reference 45 Appendix 47 Appendix 1: The survey questions were contributed for choosing sets of solution 47 Appendix 2: Interview 48 Appendix 3: Related template which using in MORE UK operating procedure 56 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURE Figure 1: Value chain of Vietnam’s textile and apparel industry……………………………5 Figure 2: Initial Cause – Effect Map………………………………………………………… 13 Figure 3: Updated Cause – Effect Map……………………………………………………….18 Figure 4: Solution Map………………………………………………………………………… 28 Figure 5: Sets of solution ……………………………………………………………………….35 Figure 6: The process of fabric development and importing process …………………….40 Figure 7: The process of developing neck ring trims and importing trim ……………… 40 Figure 8: The actual hangover date and the docket hangover date……………………….41 LIST OF TABLE Table 1: The amount of orders which transferred to supplementary factory………………7 Table 2: The CMT Price in VC factory and supplementary factory……………………… Table 3: The transferring expense to supplementary factories……………………… Table 4: Proposed solution assigns the tasks for employee in Solution 2.1…………… 31 Table 5: Proposed solution assigns the tasks for employee in Solution 2.2…………… 32 Table 6: Survey result ……………………………………………………………………………36 Table 7: Timeline and estimated cost for Solution ……………………………………… 38 Table 8: Timeline for a bulk fabric ……………………………………………………………39 Table 9: Timeline for a bulk trim ………………………………………………………………40 Table 10: Timeline and estimated cost for Solution 3……………………………………… 42 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com DEFINITION OF TERMS Merchandiser is a person who is the bridge between the industry and the buyer Merchandiser have to look after every job like buying the raw material which is required to finish the product, making the garment, finishing the garment, documentation, finally shipping Pattern maker is a person who take responsible for taking fashion designers ideas and creating a workable pattern that will ultimately become an article of clothing Trims: The raw materials used in sewing room other than fabric, which materials are directly attached to the fabric to make a garment are called trims For example: Threads, buttons, lining, Interlining, zippers, labels, etc Docket is the production orders to the factory The docket is the order to your factory that tells them exactly: What style to make, how many garments and the size breakdown What the hangover date is PP sample (Pre-production sample) is essentially an example of what will be produced during the manufacturing process The PP samples are garments that are produced in the facility that is planning to manufacture the bulk order Lead time is the latency between the initiation and execution of a process For example, the lead time between the placement of an order and delivery of bulk of button from a manufacturer may be from 10 days to 15 days Hangover date is the delivery date of garment LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Executive Summary The purpose of this paper is to point out the problem that exists in the operation of MORE UK in Ho Chi Minh City and the author have proposed alternative solutions to solve problems that help to manage the company become more effective In Chapter I, the author introduces MORE UK as well as the general situation of the garment industry in Vietnam According to the company size, MORE UK is a rep office which specializing in processing women's clothing and export to countries such as England, Australia, America, Korea, as well as describe company products and company structure In Chapter II, the author analyzes the problem that MORE UK is facing From problem finding mess, the author presents the symptoms of the company that is MORE UK looking for supplementary factories with better production capacity and clearer production plans to take over orders because the main factory can not continue to handle orders because of many problems between related parties such as: Customers changing order detail information, low capacity of factory for production, Insufficient dealing FOB price between MORE UK and factory, Lacking of person who charge in controlling sample room and Lacking of merchandiser's role clarity internally MORE UK Therefore, MORE UK noticed that with the VC production capacity will not complete the progress to export garments in time, hence, the Chief Rep make decision to find supplementary factories which leads to pay higher CMT price and other costs as transferring cost and importing cost By the interview method, the authors proposed some potential problems leads to the company symptom are Ineffective partnership management, Ineffective operating procedure and unclear organizational structure, the central problem is ineffective operating procedure However, to justify the existence of problem, the author analyzed the main problem in ineffective operation management, which led to issues related to Ineffective partnership management, Ineffective operating procedure and unclear organizational structure These problems are linked together, however, the central problem leading to the symptom is ineffective operating procedure officially The authors also show the importance of central problems by pointing out the potential consequences which are increasing cost management, affecting firm performance and LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com customer satisfaction, which is unavoidable if the situation is not resolved At the same time, the author had pointed the level of important of these potential consequences when this problem occurs at MORE UK to justify the importance of this central problem In Chapter III, the author is continuing to analysis the cause validation to find out what causes of core problem of MORE UK is the presence of unexpected supplementary factories By interview and related theories, the author identified the potential causes of the problem are Affiliative leadership style, Lacking of job description, Lacking of training, Poor planning and scheduling and Language and Culture Barriers Because the cause “Affiliative leadership style” is an objective cause, the author did not build a solution for this cause but focused on solving the remaining causes By doing survey and analysis, the author choose the set of solution is the combination of Writing job description, Each employee in the merchandiser team will take responsible to follow up one or two customer in whole process, from receiving purchasing orders to exporting the goods and On- the- job training to develop action plan to solve problem of MORE UK is ineffective operating procedure The above is a executive summary of the thesis to give the reader a preliminary view of the content of the paper There is the full thesis "The ineffective operating procedure at MORE UK in HO CHI MINH CITY" from the author LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Introduction In recent years, in the tendency of world integration, Vietnam has succeeded and developed the products in the country and has exported many kinds of goods such as petrolium, textiles and garments, agricultural products, footwear, software, etc to the world and brings great value for this country One of the main exporting goods is garments MORE UK is a garment manufacturing company headquartered in Leeds, UK with the main line of clothing for women, which is the intermediary company between the factory, supplier and customer The main purpose of this thesis is to explore the causes of appearance of unexpected supplementary factories at MORE UK since the beginning of 2017 It leads to the increasing of related expenses, for instance, CMT price, transferring expenses or garment quality The methodology is the combination between validated data and theories which collected through in-depth interview and company survey to explore the causes of problem The finding of the study revealed that ineffective operating procedure is the main problem why it occuring the unexpected supplementary factories and leads to the thing is that MORE UK have to pay higher CMT price for factory From the analysis, the author point out the central problem is the ineffective operating procedure in MORE UK from receiving purchasing order from customer to ship the garment back to customer is not effective The causes led to it happens are from are Affiliative leadership style, Lacking of job description, Lacking of training, Poor planning and scheduling, Language and Culture Barriers To solve the problems, the author proposed the set of solution Writing job description, Each employee in the merchandiser team will take responsible to follow up one or two customer in whole process, from receiving purchasing orders to exporting the goods and On- the- job training to help MORE UK can decrease the expenses which happens if the situation continues LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI ANH THU THE INEFFECTIVE OPERATING PROCEDURE AT MORE UK IN HO CHI MINH CITY MASTER OF BUSINESS ADMINISTRATION... summary of the thesis to give the reader a preliminary view of the content of the paper There is the full thesis "The ineffective operating procedure at MORE UK in HO CHI MINH CITY" from the author... BUSINESS ADMINISTRATION Final thesis title: The Ineffective Operating Procedure at More UK in Ho Chi Minh City Student name: Nguyễn Thị Anh Thư Supervisor name: Dr Phan Thị Minh Thư General comments: