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By understanding the needs of the market and implementingwell the risk management in product quality in combination with the use ofmodern production models, technology and the right busi
THUONGMAI UNIVERSITY Finance – Banking - Insurance - - RISK MANAGEMENT DISCUSSION Topic: Risk management of product quality in the supply chain of Vinamilk Class: 23100BMGM0217E Teacher: PhD Pham Trung Tien Hanoi, 2022 TABLE CONTENTS CONTEXT …………………………………………………………………….3 NAME/TYPE………………………………………………………………… REASON CHANCE OF LOSS SOLUTION CONTEXT 1.1 Reasons for choosing the topic Currently, Vietnam's dairy industry is making great strides to meet the increasing demands of the market In the context of economic integration, dairy brands face stiff competition between domestic and foreign Research contact: Vinamilk is a leading enterprise in the dairy industry in Vietnam By understanding the needs of the market and implementing well the risk management in product quality in combination with the use of modern production models, technology and the right business strategy, Vinamilk bids shrimp large market share of the dairy market despite stiff competition with famous foreign brands such as: Abbott, Dutch Lady, Lothamilk, Therefore, researching and proposing product quality risk management for Vinamilk will bring many meanings in terms of knowledge as well as economic value 1.2 Vinamilk company and Risk management of quality of Vinamilk Vinamilk is the short name of Vietnam Dairy Products Joint Stock Company, established in 1976, with the business of manufacturing and trading milk and dairy products as well as equipment and machinery Vinamilk is the first representative of Vietnam to appear in the Top 200 Best Asian Enterprises in 2010 voted by Forbes Asia magazine Ranked in the top largest private enterprises in Vietnam by Vietnam Report (VNR) In addition, Vinamilk is also ranked as one of the 10 most favorite brands by Vietnamese consumers by Nielsen Singapore Currently, Vinamilk is the leading enterprise of the dairy processing industry, accounting for 55% of the country's milk market share, of which 54 5% market share in liquid milk, 40.6% market share in powdered milk, 33.9% market share in drinking yogurt, 84.5% market share in edible yogurt and 79.7% market share in condensed milk nationwide In addition to strong domestic distribution with a network of more than 250,000 sales points covering 63 provinces and cities, Vinamilk products are also exported to 43 countries around the world such as the US, France, Canada, Poland, Germany, Japan, and the United States Middle East, Southeast Asia After more than 40 years of launching to consumers, Vinamilk has now built 14 production factories, logistics factories, branch sales offices, a dairy factory in Cambodia (Angkormilk) and a representative office in Thailand Technical equipment and materials with quality problems: The company always focuses on investing and renewing technological equipment at all stages: raw materials, processing, finished products, preservation and transportation The old and outdated equipment has been replaced by advanced and modern equipment such as LIHT milk production equipment, condensed milk, yogurt In the investment process, the company always aims for modernity, synchronization The company attaches great importance to technology transfer and considers it the secret of success The company always ensures high quality products trusted by customers Topping the Topten Vietnamese high-quality goods for consecutive years from 1997 to 2005 (Saigon Marketing Newspaper) Topten favorite Vietnamese goods (Dai Doan newspaper) Currently the company is applying the quality management system ISO 9001: 2000 and HACCP This ensures that the company always upholds the quality of management and process because a good process management system will produce high quality products, ready to satisfy all needs of customers in and around the world overseas and holds the leading position in the dairy processing industry in Vietnam Human resources for quality management and assurance processes are responsible for quality management in the production process, including: quality management department at the company; quality control departments at factories, quality control departments are responsible for setting technical requirements of raw materials and finished products; announce the quality of products according to the law; manage and track quality records; Advising management on strategic objectives and quality policy In short, this is the department that manages the quality function at the corporate level At the factory level, there are "KCS" departments that are responsible for checking the stages, input materials at each stage of the production process and the final product must be analyzed for criteria in accordance with the standard Quality process: (1) the quality control department sets out the quality requirements; (2) The import-export department purchases goods according to that request; (3) The imported materials must be inspected and certified by the Food Safety and Hygiene Department; (4) KCS department at the factory checks the quality of all materials before putting them into production; (5) During the production process, each stage is strictly controlled, recorded and analyzed; (6) The final product must be thoroughly inspected before it is sent to the warehouse Food safety and hygiene issues: Food safety and hygiene is one of the top quality policies that Vinamilk sets out in its operations All factories apply the HACCP system on food safety and hygiene Food hygiene and safety are strictly followed in all stages n: input, process, and output For raw materials: the company issues technical requirements which emphasize the requirements of food safety and hygiene During the production process, all processing parameters must meet the requirements such as hazard analysis of the HACCP system, critical control points are monitored and reported by warehouse operators For finished products: The KCS department at the factories will check each production shipment according to the prescribed procedures when the test results meet the processing requirements, the factory will conclude for shipment NAME/TYPE 2.1 Input distribution of Vinamilk The risks Vinamilk may encounter in the production process such as: • Risk of substandard product Document continues below Discover more from: trị rủi ro quản abcd08 Trường Đại học… 144 documents Go to course ĐỀ CƯƠNG QTRR • Risks in the contract between the purchasing center and the farm • Improper storage •Mold, fire, flooding in the 27 warehouse • The procedure for testing milk samples is not in accordance with the quản trị rủi ro 100% (14) specifications BÀI THUYẾT Trình • Non-closed, non-sterile, interrupted process • Quantification is not correct with the formula • Natural disasters • Waste water treatment process is not in accordance with regulations 80% (10) • Inconsistent packaging leads to torn, dented packaging NHÓM - KFC quản trị rủi ro Vinamilk uses modern production and packaging technology at all factories, technologies imported from European countries such as Germany, Slide-RISKItaly and Switzerland to apply to production lines Management Vinamilk is the only 33 company in Vietnam that owns a system of machines using spray drying quản trị rủi (1) technology manufactured by Niro of Denmark, ro the world leader 100% in industrial drying technology In addition, Vinamilk also uses international standard production lines provided by Tetra Pak to produce dairy products Chuyên đề thực and other value-added products to help make the production process more efficient and create products good quality 46 tập Nguyễn Thị Thanh… At processing plants, cow's milk, after being milked, will flow directly quản trị rủi 100% (1) into the cooling system quickly from 370C to 40C ro through Delaval's automatic milking line From here, this raw milk will be quickly transferred to factory Applying standards in the process of handling raw milk such as rủi roand cooling system, high temperature treatment system quản to help trị materials products ensure hygiene, easy storage, create a longer SAbeco shelf life (6 trước months) nghị… one year) 14 quản trị rủi 100% (1) All laboratories at Vinamilk's factories are ISOro17025 certified for chemistry and biology All factories operating in Vinamilk's production block have an environmental management system certified to ISO 14001:2004 2.2 Output distribution of Vinamilk Possible risks: 38 Chuyen de BD HSG Vat ly THCS TT 2021… quản trị rủi ro • Ineffective marketing leads to inventory • Demand is too great, not enough goods to sell to customers 100% (1) • • Store management is not strict, the maintenance has problems Problems in the process of transporting goods to consumers Transportation: Regulations on transporting milk are only allowed to load up to boxes on top of each other, but many small Vinamilk milk distribution agents load up to 15 boxes, then the loading and unloading damage the packaging, affecting the quality product quantity On the other hand, Vinamilk only transports products to general agents by specialized vehicles with refrigeration systems to ensure the required temperature, while the distribution to stores is mainly by motorbikes or cars without refrigeration systems Therefore, the quality assurance is still limited Storage: Vinamilk's products are available everywhere, in rural areas of the provinces and most are sold in grocery stores For some fresh milk products that must be stored according to the regulations of Vinamilk's cold products, they must be preserved at a temperature below degrees Celsius for 45 days, and at 15 degrees Celsius, only 20 days, at normal temperature If it takes or days for the milk to sour, the fact that stores not have air conditioning or refrigeration equipment are very limited in preserving products that require cold storage REASON OF THE QUALITY’S RISK 3.1 Peril Causes of quality risks can come from: Production stages such as production materials not meet the standard quality, are not stored properly, Staging of packaging such as unsatisfactory product packaging, open or torn The stage of preservation and storage such as the storage temperature is not guaranteed The distribution stage such as the container is wet with water or distorted during transportation But no matter where the cause comes from, it also has serious consequences, leading to production line delays and damaged and unsatisfactory manufactured goods to consumers 3.2 Hazard The danger of quality risk mainly comes from problems in the planning of storage and management of distributors Inventory levels affect the quality of goods in stock If the preservation of goods is well stocked, the quality of goods is also guaranteed If the preservation is not good, the quality of goods will be reduced, causing the consumption activities to be reduced, the inventory level will increase Employee quality is also a factor affecting the increase or decrease of change in risk If employees are well-trained, have enough knowledge and skills in dealing with unexpected situations such as weather (rain, storm, flood, etc., affecting the transportation and preservation of goods) (especially for small dealers in rural areas, where equipment is limited), the likelihood of the occurrence of risks will be significantly reduced The level of inventory of goods affecting goods is also guaranteed If the preservation is not good, the quality of goods will decrease, causing the consumption activities to be reduced, the inventory level will increase CHANCE OF LOSS 4.1 Severity The seriousness of the risk on product quality of Vinamilk is quite serious, it directly and indirectly affects the business for the following reasons: - It affects the company's revenue: When the amount of damaged goods is large, the company will suffer loss, damage and have to throw away the unsatisfactory goods and have to spend the cost of producing new products to make up for the goods defective Therefore, for defective products that customers complain about, Vinamilk has to spend a lot of money to check and evaluate that shipment to find the error and then find solutions such as: Compensation costs: the number of defective products when complained by customers, Vinamilk must compensate to help reduce the loss of reputation If a customer uses a product that affects their health, Vinamilk must be responsible for the cost of the drug Expenses for exchange: If the goods are returned, Vinamilk must exchange them for a new product, causing loss of revenue and selling expenses - Effects on the production line: quality risks disrupt the company's product lines and supply chains For example, a container that gets wet and dented) will cause serious consequences and losses (unusable packaging, resulting in production line disruption) Therefore, the enterprise must rebuild the production plan of the missing goods to compensate for the quantity of damaged goods In addition, goods that not meet quality standards will cause a shortage of product output; causing the time to be extended, the time to complete the orders is overdue, the market supply is reduced, thereby disrupting the company's original production plan Reputation: Vinamilk is a big enterprise, Vinamilk is a big and long-standing brand, not only developing in the domestic market, Vinamilk also expanding its brand in foreign countries, so if the number of goods that not meet the standards is large, it will affect the reputation of the company , this affects sales Besides, the quality of Vinamilk's products has problems, if the strict process is not guaranteed, it will also affect the brand In addition, products that not meet standards and are not timely to detect and remove, when they reach customers, will cause quite serious consequences, making them unhappy and thereby losing trust, making them unsatisfied, reduce the prestige and trust of customers, which also causes a lot of inventory : For the above reasons, it is found that the degree of impact of the risk is very high and high severity 4.2 Stakeholders Subject Approach Commit Shareholder - Meet and consult face-to- - Ensure safe investment, face - sustainable profit Collect shareholders' 10 opinions in writing - Organizing the General Meeting of Shareholders - Diversify products, optimize -Collect information from options for customers sales staff/ distributors Consumers - Ensuring the quality of -Online customer support nutrition department and hotline -Surveys of tastes by expert organizations and health for product users - Ensure the most suitable and competitive price - Surveying all employees - Constantly improving the about the environment: working working environment to bring salary, bonus satisfaction to employees with and benefits, work, superiors, learning Staff colleagues, training and development and opportunities, and welfare and development income policies - Internal notifications - Ensure -Training program and annual conditions, conference safe working occupational health is taken care of - Meet and exchange face to - Development cooperation on face Collect information from the basis of mutual benefits, Partner the purchasing department, transparency using the service and social responsibility - Contracts and agreements to - Building a sustainable value purchase goods and services chain Governmen - Participating in conferences - Comply with the policies t and seminars organized by the and regulations of the State in State the field of operation - Continuously update policies - Comply with and fulfill tax and regulations issued by the obligations in a full and timely 11 State - Organize events in many Community provinces across the country - Coordinate with local authorities 4.3 manner - Take responsibility, share values and join hands to develop the community Frequency The frequency with which product quality risks of Vinamilk occurs depends mainly on weather-related issues Product quality is affected as the box gets wet due to rain, especially in the rainy season The rainy season in Vietnam occurs, although there are differences between regions across the country, but in general, our country has quite a large amount of rain This affects the product preservation of agents during heavy rain, flood, storm Therefore, the frequency of occurrence of the risk is quite large Not only is the effect of rainfall, but the frequency of quality risks is also related to temperature Today, under the influence of global climate change, the temperature in Vietnam tends to increase more and more Summer lasts for many months with very high temperatures above 40 degrees Celsius, which also affects the quality of products if not preserved carefully It is the prolonged period of hot weather that also increases the level of risk : The level of quality risk of Vinamilk in our opinion is quite large because of the above analysis SOLUTION Vinamilk uses modern production and packaging technology at all factories, technologies imported from European countries such as Germany, Italy and Switzerland to apply to production lines Vinamilk is the only company in Vietnam that owns a system of machinery using spray drying technology produced by Niro of Denmark, the world leader in industrial drying technology In addition, Vinamilk also uses international standard production lines provided by Tetra Pak to produce dairy products and other value-added products to help the production process be more efficient, creating good quality products At processing plants, cow's milk after being milked will flow directly into the cooling system quickly 12 from 37°C to 40°C through Delaval's automatic milking line From here, this raw milk will quickly transfer to the factory Applying standards in the process of processing raw milk such as refrigeration system, high temperature treatment system helps raw materials and products ensure hygiene, easy storage, create a longer shelf life (6 months – year) For pasteurized milk there is a more complex processing but at temperatures lower than 75°C, for about 30 seconds, then quickly cool at 40°C As a result, Vinamilk's 100% pasteurized fresh milk will retain most of the vitamins, minerals and nutrients from pure fresh cow's milk The positioning of raw materials and potential markets is also one of the important factors determining the success of the supply chain Good positioning will help the supply chain operate at optimal performance In order to reduce risks in the supply chain, Vinamilk needs to include efficiency targets in contracts with raw material suppliers or logistics service providers, eliminating incompetent suppliers, along with customers sharing high costs, improve the linkage in the enterprise, hedging risks of goods and exchange rates, paying attention to insurance BIÊN BẢN THẢO LUẬN 13 Địa điểm: phòng D210 Thời gian làm việc:11h đến 11h30 ngày 30 tháng Thành viên: Hoàng Thị Hải Anh Lê Quỳnh Anh Cao Ngọc Bích Lương Thảo Chi Đỗ Thị Thu Hà Đinh Bình Lan Phương Nội dung công việc: Chọn đề tài: Quản trị rủi ro chất lượng chuỗi cung ứng sản phẩm Vinamilk Phân công công việc: Cao Ngọc Bích (nhóm trưởng): phân cơng cơng việc cho thành viên, làm phần Solution Powerpoint Lương Thảo Chi (thư ký): soạn đề cương, làm phần Peril Hazard, tổng hợp word Lê Quỳnh Anh: làm phần Severity (direct and indirect), thuyết trình Hồng Thị Hải Anh: làm phần context (lý chọn đề tài, giới thiệu công ty nêu thực trạng quản lý) Đỗ Thị Thu Hà: làm phần Stakeholders Đinh Bình Lan Phương: làm phần Frequency BẢNG ĐÁNH GIÁ THÀNH VIÊN Họ tên Công việc Nhận xét Xếp 14 loại làm phần context (lý Hồn thành tốt cơng việc Hồng Thị chọn đề tài, giới thiệu công giao nội dung Hải Anh ty nêu thực trạng quản hạn lý) làm phần Severity (direct Hoàn thành tốt cơng việc and indirect), thuyết trình giao nội dung Lê Quỳnh hạn, tinh thần làm Anh trình Hồn thành tốt cơng việc thành viên, làm phần giao nội dung Solution Powerpoint Soạn đề cương, làm phần hạn Hoàn thành tốt công việc Lương Peril Hazard, tổng hợp giao nội dung Thảo Chi word hạn, có tinh thần làm làm phần Stakeholders việc tốt Hồn thành tốt cơng việc Bích Đỗ Thị giao nội dung Thu Hà Đinh Bình A việc tốt xung phong thuyết phân công công việc cho Cao Ngọc B làm phần Frequency B A B hạn Hoàn thành tốt công việc Lan giao nội dung Phương hạn B 15 More from: quản trị rủi ro abcd08 Trường Đại học… 144 documents Go to course ĐỀ CƯƠNG QTRR 27 quản trị rủi ro 100% (14) BÀI THUYẾT Trình NHĨM - KFC quản trị rủi ro 80% (10) Slide-RISK33 46 Management quản trị rủi ro 100% (1) Chuyên đề thực tập Nguyễn Thị Thanh… quản trị rủi ro 100% (1) Recommended for you Actual Test 12 Quản trị thương… 100% (1) Vocabulary Set 35 Public Transport Quản trị thương… 100% (1)