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ng hi ep w n lo ad MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY ju y th yi pl NGUYỄN PHỤNG HIẾU n ua al n va fu ll EVALUATING THE PERFORMANCE OF SUPPLY CHAIN MANAGEMENT AND SOLUTIONS: oi m at nh z z vb k jm ht A CASE STUDY OF THAI BINH SHOES l.c gm om MASTER OF BUSINESS ADMINISTRATION THESIS n a Lu n va y te re ac th Ho Chi Minh City, 2010 ng hi ep w n lo ad MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY ju y th yi pl NGUYỄN PHỤNG HIẾU n ua al n va EVALUATING THE PERFORMANCE OF SUPPLY CHAIN MANAGEMENT AND SOLUTIONS: ll fu oi m nh at A CASE STUDY OF THAI BINH SHOES z z jm ht vb k Major: Business Administration Major code: 60.34.05 om l.c gm a Lu n MASTER OF BUSINESS ADMINISTRATION THESIS n va y te re Supervisor: Dr Trần Hà Minh Quân ac th Ho Chi Minh City, 2010 Aknowledgement ng hi ep I would like to express my heartfelt gratitude and deepest appreciation to my research Supervisor, Dr Tran Ha Minh Quan for his precious guidance, share of w n experience, ceaseless encouragement and highly valuable suggestions throughout the lo ad course of my research ju y th Besides, I would like to extend my sincere thanks to Prof Ms Ta Thi Bich Thuy, for her valuable comments and constructive suggestions on the theory foundation and the APA yi pl format from early draft of my thesis al ua My special gratitude is extended to all instructors and staff at Faculty of Business n Administration and Postgraduate Faculty, University of Economics HoChiMinh City (UEH) va n for their support and the valuable knowledge during my study in UEH fu ll I would also like to avail this opportunity to express my appreciation to Professor m oi Nguyen Dong Phong and UEH Board of Directors for creating MBA program in English nh Specially, my thanks also go to to many of my collegues from Shoes Secteur in at z Decathlon company, who have helped me during the collection of data as well as support z vb me during doing research: Ms Nguyen Thi Hoai Trinh (Supply chain production leader), jm ht Mr Nguyen Du Thuan (Development Industrialization Production Leader), as well as Mr k Nguyen Thanh Son from Board of Director, Ms Phan Thi Thu Thao, Ms Ngo Ngoc Thy, gm Mr Phan Van Phuong and other staffs of Production& Planning, Costing, om l.c Purchasing…Departments in TBS Group Many thanks to Ms Nguyen Thi Kim Anh, Mr Nguyen Thanh Trung, as well as the a Lu other classmates in MBA class, Batch 16 for their valuable and enthusiastic support for this n va research study n Last but not least, the deepest and most sincere gratitude go to my beloved mother, te re my husband Mr Nguyen Le Thanh Vinh for their boundless support, abundant love and y ac th encouragement throughout my period of study I, therefore, dedicate this work as a gift to them all i ng Abstract hi ep Nowadays, the wide application of supply chain in most of business has been observed Based on this, there are many improvements in customer’s reliability and speed w n of order fulfillment The impacts of supply chain on business’s activities were examined in lo ad reality This experimental study will seek to discuss more detail in the Chapter 2,3,4 ju y th The function of supply chain management is to design and manage the processes, assets, and flows of material and information required to satisfy customers’ demands yi pl al ua The evaluation Supply chain management‘s performance is more important in most n of companies Author chose TBS Group – one of biggest footwear enterprises with their va n supply chain management (SCM) for her research study Through key indicators to fu ll measure SCM’s performance at TBS, author will generalize the statement problem which m oi still exist in TBS’s SCM and have deeply understanding about TBS’s production planning at nh and their organization of shoes process z z vb Recommendations with concrete solutions for related entities concerning pending k improve the supply chain management of TBS Group jm ht problem of TBS such as the delivery on time, quality, cost and lead time are suggested to om l.c gm a Lu n Keywords: supply chain, supply chain management, key indicator to measure, performance; delivery on time, quality, cost and lead time, production planning n va y te re ac th ii Contents ng hi ep w Acknowledgement i Abstract ii Contents iii List of Tables iv List of Figures v Abbreviations vi n lo ad ju y th CHAPTER 1: INTRODUCTION 1.1 Problem Statement 1.2 Research Objectives 1.3 Research question 1.4 Scope and limitations 1.5 Methodology 1.6 Research rationale 1.7 Structure of thesis CHAPTER 2: LITERATURE REVIEW 2.1 SUPPLY CHAIN AND SUPPLY CHAIN MANAGEMENT DEFINITIONS 2.2 FRAMEWORK OF SCM FROM PRODUCTION SIDE 2.3 KEY INDICATORS OF EFFECTIVE MEASUREMENT IN SCM 10 CHAPTER 3: THAI BINH FOOTWEAR JOINT STOCK AND THEIR SUPPLY CHAIN MANAGEMENT 19 3.1 GENERAL VIEW OF LEATHER AND FOOTWEAR INDUSTRY IN VIET NAM 19 3.2 THAI BINH FOOTWEAR JOINT STOCK TBS Group)’S BACKGROUND……………… 21 3.3 SUPPLY CHAIN MANAGEMENT IN TBS GROUP 27 3.4 MEASUREMENT SCM IN TBS GROUP 33 yi pl n ua al n va ll fu oi m at nh z z jm ht vb k 3.4.1 Personal Interviews 33 3.4.2 Current indicators of TBS to measure the SCM’s performance 35 gm om l.c CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS FOR TBS GROUP’S IMPROVEMENT IN SCM 50 4.1 CONCLUDING REMARKS 50 4.2 RECOMMENDATIONS OF THE RESEARCH STUDY: 51 n a Lu 4.2.1 Self-contained process 51 4.2.2 Simplification of major processes 55 4.2.3 Upgrade the system or expand sub-contract supplier 55 4.2.4 Design main style of product with investment 56 4.2.5 Outsourcing the satellites factories 56 4.3 LIMITATIONS AND FURTHER RESEARCH: 56 REFERENCES 58 APPENDIX 1: Guide for Interview & Questionaires 59 List of interviewees 61 APPENDIX 2:Key Figures of TBS Groups 62 n va y te re ac th iii ng List of Tables hi ep Table 2.1 Framework of production planning .11 w n lo Table 3.1 Sharing percent of Vietnam’s export market…………………………… 20 ad ju y th Table 3.2 Interviewees and statement concerning to SCM 34 yi Table 3.3 Shipment report of TBS from week21-week 25, 2010… .38 pl ua al Table 3.4 Quality control of TBS from the beginning until shipment 41 n Table 3.5 Top 10 models in TBS with quality high return rate 42 va n Table 3.6 Situation of lead time at TBS Groups before for some typical model… ….43 ll fu oi m Table 3.7 Lead time flow in production of TBS Groups 44 at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th iv ng hi List of Figures ep w n Figure 2.1 Basic flow of SCM (sited of Decathlon company) lo ad Figure 2.2 Basic Quality Control (From Quad tool of Decathlon Company)………….14 y th ju Figure 3.1 % Delivery on time of TBS through years for Europe Customer 36 yi pl Figure 3.2 Global lead time 2008 of TBS .44 ua al Figure 3.3 Replenishment lead time 2008 of TBS…………………………………… 45 n va n Figure 3.4 Derivation of basic cost elements 47 ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th v ng hi Abbreviations ep w n SCM: Supply chain management lo ad DOT: Delivery on time y th ju LT : Lead- time yi pl TBS: Thai Binh Shoes n ua al EU: Europe n va FDI: Foreign Direct Investment fu ll Lefaso: Vietnam Leather and Footwear Association m oi OEM: Original Equipment Manufacturing at nh R&D: Research and Development z z ht vb QFD: Quality Function Development k jm LOP: Labor cost, Overhead and profit gm EDI: Electronic Data Interchange om l.c TMS: Transportation Management System SQC: Statistical Quality Control n a Lu n va y te re ac th vi CHAPTER 1: INTRODUCTION ng hi ep 1.1 PROBLEM STATEMENT: w n Nowadays, Supply chains are becoming increasingly global and ever more complex lo ad In addition, organizations also want try to support strategic management practices such as y th ju entering new markets, controlling business activity in a good system, increasing the pace of yi pl new product introductions, improving customer satisfaction Thus, for organizations to al n ua work closely with their suppliers, logistics providers, distributors and retailers, their supply n va chains must be streamlined and technology-enabled ll fu oi m However, the full understanding about supply chain management (SCM) and its at nh application in the real organizations are different among enterprises Assessing the z performance of SCM is necessarily indispensable in the period and Thai Binh Footwear z vb jm ht Joint Stock is the case at point, especially when Thai Binh is one of biggest footwear k companies of Vietnam On the other hand, Thai Binh also has a full supply chain from the gm beginning of material purchase until the finished product among footwear enterprises The l.c om results from the evaluating supply chain management of Thai Binh can be used to refer for n a Lu the application of SCM in real enterprises va n Importantly, this research will outline how supply chain management is an te re important part in business activities, from production view, especially in footwear industry y ac supply chain management in general and in Thai Binh Footwear Joint Stock- one of typical th Through working few years as supply chain leader, the real problems in applying footwear company of Vietnam in particular can show the function and physical structure ng hi supply chain management as well as the inner problems in key indicators to measure ep SCM’s effectiveness I will go to the detail to state clearly my understanding in literature w n review and analyze bottle neck in this company (Chapter 2&3) lo ad Although TBS Group owns one strong supply chain, in their management, it still y th ju exist some problems, especially with main key indicators that use to measure the efficiency yi pl of their supply chain By analyzing the situation arising at SCM of TBS Groups, the author al n ua reveals that the delivery on time (DOT) at TBS still faces some big delay Besides, Thai n va Binh controls well the orders but lead time of order processing is too long Concerning to fu ll the quality, whether TBS can produce the shoes in good quality, there are many additional m oi steps and they need to control more to follow the good and the traceability when there is nh at any problem arising at destination For the cost, the author would like to analyze deeply the z z detail of production cost and investigate why the cost of TBS is still higher than other ht vb k jm competitors in footwear field gm By examining the concrete footwear company Thai Binh Joint Stock, the author will om l.c show out the main purpose of this study, that is to find the solutions to improve their production planning in order to ensure the rate of delivery on time (DOT), reduce lead time, n a Lu control quality figure, optimize the cost in supply chain management n va ac in a footwear company, to identify key drivers to measure the performance of supply chain th The primary objective of this study is to present the important role of supply chain y te re 1.2 RESEARCH OBJECTIVES: First,, Data collection is realized with case study at typical footwear factory TBS ng Groups It is not in common and the figure analyzing only for TBS case, it should be a hi ep limit and can not give a general comments Secondly, due to some restriction of research scale, I only concentrate on supply w n chain from production view, while the data from other part of supply chain such as lo ad logistics, component supplier or warehouse control were not available for this research y th study ju Thirdly, no solution is perfect in any sector also has potential risk My proposal in yi pl improvement can apply in footwear factory, but it is not at all, in some other case, maybe it ua al is not appropriate Therefore, further research into this issue would make evaluating the n performance of supply chain more comprehensive in several fields va n Finally, this study was designed as a case study, so future research is needed to expand and fu ll make the findings more representative oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 57 REFERENCES ng hi ep w Blocher, JD, Garrett¸RW, Schmenner (1999): Throughput time reduction- taking one’s n lo medicin Production and Management 8(4), 357-373 ad Dale N.: E-Procurement From Strategy to Implementation y th ju Donablue C., R., K 2002: Experimental Economics and Supply chain management Interfaces 32(5), 74-82 yi pl al n ua Handfield R.B., Nichols E.L., – Supply Chain Redesign – Transforming Supply Chains into Integrated Value Systems va n James W 21st Centuries Business: Managing and Working in the New Digital Economy ll fu oi m Jonathan C and Craig M.V: Creating Breakthough Products: Innovation from Product Planning to Program Approval nh at Kim K.Y, Osamu N., Gilbert Y.W.T, Komaran R (Published in 03/2009):Business Cases For Master of Business Administration in Viet Nam – Developing Business Cases in MBA Course of Viet Nam z z jm ht vb k Schroeder R.G - University of Minnesota Carlson School of Management – Second Editon 2003: Operations Management gm om l.c Simchi-L.D, Phil K, Simchi-L.E, Ravi S – Third Edition 2005: Design and Managing The Supply Chain(Concepts, Strategies, and Case Studies) n a Lu TBS (2008) Company’s information : TBS Joint Stock report va n Suzanne de Treville, Shapiro R.D., Hameri A.P (revised 2003): Journal Of Operation Management-From supply Chain to demand chain: the role of lead time reduction in improving demand chain performance y te re ac 58 th Vinod R.Singhal (Copy Right 2003): Quantifying The Impact Of Supply Chain Glitches on Shareholder Vaue – The Significance of Adaptive Supply Chain Networks ng hi ep APPENDIX w n lo Guidance for indepth-interviews & Questionaires ad y th + Populations for interviews: ju yi - People in many management department of TBS Group pl n ua al - Responsible people from big customer of TBS: Decathlon n va + Questionnaires: ll fu m oi Section 1: The understanding about supply chain nh at What you understand about supply chain and supply chain management in general? z z How supply chain management application in TBS in your Department? vb jm ht What are main functions of supply chain in your section? k What are advantages and disadvantages as well as strong points and weak points of How many main processes in shoes production? om l.c gm current supply chain management of TBS Group? n a Lu n va Section 2: The key indicators to measure SCM’s performance of TBS Group ac 59 th How is SCM performance measured and what measures are used at TBS? y te re How many key indicators to measure SCM at TBS Group? In each indicator, you think that whether any potential problem or risk exists? ng hi Describe performance measurement systems in your section that you have utilized ep What are your expectations of performance measurement in supply chain management w n of TBS? lo ad What is the current production planning at TBS for Europe customer in peak season? y th ju How to enlarge the current capacity at TBS to satisfy the over orders transfer from yi pl customer in their peak sale season? al n ua What are the main causes of late delivery of TBS Group in the beginning of 2010? n va What is main effect in long production lead time at TBS? fu ll 10 In rush time of production planning, how to control well quality in TBS? m oi 11 In SCM of TBS, what are major reasons for component delivery problem? nh at 12 How the lead times, delivery, cost, quality effect to SCM in TBS through the years, z z especially in 2010? k jm ht vb om l.c gm n a Lu n va y te re ac th 60 ng List of interviewees: hi ep Full Name Position Organization Nguyen Thanh Son General Director TBS Vu Manh Hoach Factory Director Sole Factory Ngo Ngoc Thi Planning Executive Production & w No n lo ad y th ju Le Lam Ky Ngoc yi planning Import-Export Executie pl al Nghiem Xuan Hiep n ua Import & Export Shoes factory Development Expert R& D Customer relay Costing and Manager Customer service n va Sole and Assembly Manager Ngo Ngoc Anh Phan Van Phuong ll fu oi m Phan Thi Thu Thao at nh Production and Production & z planning z Planning Director vb Tran Dinh Cong Technical Expert 10 Hoang Van Minh Purchasing manager 11 Nguyen Thi Hoai Trinh Supply Chain production leader k jm ht Sole factory Purchasing om l.c gm Decathlon Customer n a Lu n va y te re ac th 61 ng p hi e n w APPENDIX 2: Key figures of TBS Groups lo ad h y j uy i 2006 2007 Export Values(USD) Export Output(pairs) an s) Output(pair v Output(pair an u l a l p 2005 Items t Output and export value of footwear and leather industry Vietnam 2005-2007 s) Values(USD) Export Values(USD) f 3,039,583,000 579,284,490 3,591,563,840 502,787,703 3,993,280,816 oi n m 472,736,000 ul l 1.Shoes all kinds(prs) h 18.1% a t z Growth rate: z In which: 11.2% v b h t 1,789,291,000 Canvas 42,017,000 611,050,000 381,645,250 2,663,041,630 391,630,780 2,701,933,690 35,499,760 217,194,900 38,318,070 205,178,270 k 272,874,000 jm Sport Shoes gm l c o m shoes L u a n v a n ey t re 62 t h a c ng p hi e 87,093,280 538,702,540 110,530,890 Sandals 68,270,000 545,521,000 75,046,210 202,624,780 74,195,620 Finished 47,000,000 51,000,000 51,700,000 50,000,000 802,567,750 w 93,721,000 89,574,000 n Ladies shoes lo ad t h y j 284,562,410 uy i l a l p 80,000,000 an u Leather of all kinds(sqft) v an Bags 500,000,000 f ul l &handbags of m oi n all kinds(unit) a t z h Source: LEFACO Vietnam (2007) z v b h t k jm gm l c o m L u a n v a n ey t re 63 55,000,000 600,000,000 t h a c ng Footwear export of Vietnam 2006-2008 hi ep w MARKET FOR EXPORTING EU NORTH AMERICA JAPAN OTHERS n lo ad ju y th 2007 Turnover(USD % million) 2,176.83 54.5 885.16 22.16 2008 Estimated Turnover(USD % million) 2,489.94 53.0 1,089.94 23.2 113.13 709.13 3.15 19.74 114.75 817.51 2.80 20.54 136.24 981.88 2.90 20.90 100.00 3,994.24 100.00 4,698.00 100.00 yi 3,591.56 pl TOTAL 2006 Turnover(USD % million) 1,966.54 54.75 802.76 22.35 n ua al Source: LEFACO Vietnam (2008) va Business performance 2004-2007 n Currency in VND Contents 2004 2005 2006 2007 Total sales 519,552,514,491 585,615,393,583 736,690,232,225 753,428,889,993 Net sales 518,839,614,929 585,615,393,583 735,353,612,014 752,191,961,582 Cost of 472,366,711,342 523,429,367,270 651,339,300,289 662,503,792,998 goods sold Gross 46,472,903,587 62,186,026,313 84,014,311,725 89,688,168,584 margin Selling 4,251,545,031 8,710,425,058 7,531,971,810 9,706,492,550 cost Finance 7,902,988,771 15,351,785,359 24,759,976,464 47,079,686,051 cost Overhead 22,909,154,765 29,482,757,810 35,545,840,306 47,936,104,842 cost Net profit 11,433,023,161 28,742,921,976 32,287,579,493 79,096,735,949 from business Other (555,429,673)* 147,541,082 74,027,656 92,797,559 profit Total profit 10,877,593,488 28,890,463,059 32,361,607,149 79,189,533,508 before tax 10 Income 2,719,398,372 7,373,613,408 9,061,250,002 14,336,936,989 tax 11.Profit 8,158,195,116 21,516,849,651 23,300,357,147 64,852,596,519 after tax ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 64 Notes:* figures in brackets were negative numbers ng hi ep 800 700 w n 600 lo 500 ad Total sale Cost Profit after tax 400 ju y th 300 200 yi 100 pl al 2005 2006 2007 n ua 2004 n va ll fu Demand, production capacity and export 2005-2009 m Demand(pairs) * 9,767,745 11,554,287 12,585,791 14,010,287 15,278,456 oi Capacity (pairs) 9,000,000 10,000,000 11,000,000 12,000,000 13,000,000 Export (pairs) 7,399,746 9,399,767 10,334,135 11,273,601 12,490,341 at nh z z jm ht vb Year 2005 2006 2007 2008 2009 k (*) Demand based on the number of orders of customers at the beginning of the year or on forecast of customers given for TBS group om l.c gm n a Lu n va y te re ac th 65 Demand,production capacity and export(prs) ng hi 18,000,000 ep 16,000,000 Demand(pairs) * Capacity (pairs) 14,000,000 w 12,000,000 Export (pairs) n 10,000,000 lo 8,000,000 ad 6,000,000 y th 4,000,000 yi ju 2,000,000 pl 2005 2006 2007 2008 2009 n ua al va n Production planning in 2009 ll fu Demand(pairs/month) Planned at nh Working days(days/month) Planned Real oi m Month Real z k om l.c gm a Lu Real average output per day(prs) 34,623.00 28,822.00 36,721.00 37,953.00 49,594.00 47,807.00 47,390.00 46,231.00 36,208.00 40,214.00 42,034.00 43,365.00 n n va 900,174 489,969 954,753 986,790 1,289,435 1,290,780 1,279,540 1,202,011 832,786 1,085,765 1,050,843 1,127,495 12,490,341 jm 990,600 670,420 1070,400 1,240,578 1,890,072 1,732,000 1,732,000 1,290,549 1090,810 1,213,500 1,224,560 1,132,967 15,278,456 ht 26 17 26 26 26 27 27 26 23 27 25 26 vb 27 17 27 26 27 27 29 27 25 28 27 28 z 10 11 12 Total Planned average output per day(prs) 36,689.00 39,436.00 39,644.00 47,715.00 70,003.00 64,148.00 59,724.00 47,798.00 43,632.00 43,339.00 45,354.00 40,463.00 y te re ac th 66 ng hi ep The cost information for producing sport shoes Currency in VND Expense Index Regular time cost (VND/pair) Over time cost (VND/pair) Subcontract cost Inventory cost ((VND/pair/month) Training cost (VND/pair) Lay off cost (VND/pair) w 43,350 65,025 51,000 2,700 17,850 15,300 n lo ad ju y th yi pl ua al n Management System Model of Thai Binh Shoes 2005-2009 n va SHAREHOLDERS MEETING TBS GROUP ll fu m oi BOARD OF MANAGEMENT at nh BOARD OF CONTROLLERS & CAPITAL MGNT,INVT STATISTICS, ANALYSIS & LEGAL DOCUMENTS z LEADERSHIPS z ht vb FINANCIAL BLOCK jm BLOCK OF HUMAN RESOURCE DEVELOPMENT k HR& IT ACCOUNTING RECT & TRAI NING SECURITY & SAFETY TRADE UNION & BENEFI TS om LABOR FORCE SALARY &PRODUC TIVITY MGNT l.c INVEST & ASSETS’ MGNT gm FINANCIAL MGNT n a Lu n va y te re ac th 67 Main products of TBS Group ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m Production performance from 2005-2008 nh 2005 852,524 2006 971,162 at z 2007 1,138,596 2008 1,354,603 10,789 1,240 z 8,078 9,403 k jm ht vb Criteria Turn over (million VND) Production volume (million prs) gm Demand,production capacity and export(prs) om l.c 12,407 2008 1,354,603 a Lu 10,789 2007 1,138,596 n 9,403 va 2006 971,162 n 8,078 852,524 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 y te re 2005 Production volume (million prs) ac th Turn over (million VND) 68 ng p hi e Production Process with cold cement technology for sport shoes w n lo Batching EVA (EVA cutting machine) ad Batching compound (Rubber cutting machine) Rolling-Laminating (Laminating roller) t h y j Cutting (Hydraulic cutting machine) Dispersion Kneading (Dispersion kneader) uy i Dispersion Kneading (Dispersion kneader) p l a l Embroidering logo Mixing (Mixing roller) u Mixing (Mixing roller) (Computer embroidery machine) an Printing-pressing logo (High frequency embossing machine) v an Sheeting (Sheeting machine) ul l f Stitching pieces (Stitching machine) Sheeting (Sheeting machine) m oi n Cutting pieces EVA pressing (Cutting machine) (EVA pressing machine) a t z h Upper moulding (Upper moulding machine) z jm b h t v Lasting (Lasting machine) Buffing-Attaching EVA Phylon k Attaching (Sole attaching machine) Outsole pressing (Hydraulic outsole pressing machine) Trimming EVA cutting (Trimming-machine) (Cutting machine) gm (Buffing machine) l c o m Removing form,cleaning& Pakaging EVA Skiving (Skiving machine) L u a n v a n ey t re 69 Phylon pressing (Phylon pressing machine t h a c ng p hi e Production organization of a sole factory and shoes factories of TBS w n lo ad t h y j Shoes Factory Sole factory uy i p an f ul l m h oi n a t z z v b h t k jm gm l c o m L u a n v a n ey t re 70 Printing shop u Cutting shop l a l Lamina ting shop Stockfiting shop v MixingPresssing shop an EVAPhylon shop Embroide ry shop Stitchin g shop Lasting shop t h a c ng p hi e n w Production flows at TBS Group lo ad Collecting Information Step p Step NO u an an v YES Step Implementing production Plan f ul l m Supervising Implementation Step Coordinating & handling problems occurred Step Synthesizing production performance a t z h oi n Step z v b h t Reporting k jm Step gm c o m l Step 10 Step 11 Analyzing, evaluating periodical production performance Having preventive measurements L u a n Step 12 Continuous improving v a n ey t re 71 (b) l a l Considering alternatives Step h y j uy i Planning Step t NO YES Adjusting & feedback (a) t h a c
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