Project Title Report On Ajinomoto Business Visit.pdf

lOMoARcPSD|38133502 Ho Chi Minh City University of Economics and Finance Faculty of Economics Project title: Report on Ajinomoto business visit Lecturer: Dr Huynh Ai Van Course code: MGT1127E Class: B04E Group: School year: 2022 – 2023 Semester: 2A City Ho Chi Minh, June 2, 2023 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Contents FOREWORD CHAPTER I ABOUT THE AJINOMOTO VIETNAM COMPANY Formation and growth: 2 Ajinomoto Vietnam's Vision, Mission, and Common Values-Creation Activities Male: CHAPTER II THE ADMINISTRATION OF THE AJI-NGON SEASONING PRODUCING OPERATIONS Delicious Aji seasoning items .3 Aji-Ngon seasoning production process CHAPTER III A REVIEW OF THE AJINOMOTO COMPANY’S OUTPUT QUALITY Quality standards of Ajinomoto Corporation 1.1 Product quality .6 1.2 Service quality CHAPTER IV AJINOMOTO’S RESOURCES AND CAPABILITIES ARE COMPARED TO THOSE OF COMPETITORS Ajinomoto Company and competitors: .9 CHAPTER V APPLYING OPERATIONAL THEORIES TO THE PRODUCTION PROCESS OF THE AJINOMOTO COMPANY .14 Ajinomoto Company has applied many theories and efficient operating methods in its production process, include as follow: 14 1.1 Lean Manufacturing: 14 1.2 Lean Six Sigma: .14 1.3 Total Quality Management (TQM): .16 16 1.4 Research and development: 16 1.5 Training and developing human resources: 16 CHAPTER VI PROPOSE THE IMPROVEMENT OF THE OPERATIONS OF THE AJINOMOTO 17 REFERENCES 18 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 FOREWORD Understanding operational management is important, but it is also important to put theory into practice outside of the classroom Practical experience is a crucial component of how we may apply the lesson effectively because learning and doing go hand in hand We had the opportunity to visit the Ajinomoto Long Thanh facility (Dong Nai) in the field tour to this well- known food manufacturing company in Vietnam Here, we were given an overview of the formation and growth of the company, led on a tour of the manufacturing and packaging facilities, and given the opportunity to witness the most recent tools and technology in action This is a very rewarding trip for us We would like to thank the school for providing us with the opportunity to have actual touch with the lesson before entering the report to show what we have learned during the trip At the same time, we would like to express our gratitude to Ms Van for her guide, which helped us create the most detailed report Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 CHAPTER I ABOUT THE AJINOMOTO VIETNAM COMPANY 1.Formation and growth: With a founding investment of more than $8 million USD, the Ajinomoto Vietnam Company is a 100% foreign-owned subsidiary of the Japanese company Ajinomoto Group With a total expenditure of up to 70 million USD for construction, operation, and market expansion, the company has gradually expanded and increased its ability to produce products since its start In addition to two production facilities, Ajinomoto Bien Hoa Factory, which has been in operation since 1991, and Ajinomoto Long Thanh Factory, which has been in operation since 2008, Ajinomoto Vietnam Company currently has two offices in Ho Chi Minh City and Hanoi Along with 60 sales locations and about 290 sales teams around the nation, the company also has three sizable distribution centers in the provinces of Long Thanh, Hai Duong, and Da Nang 2.Ajinomoto Vietnam's Vision, Mission, and Common Values-Creation Activities Male: - Vision: "Become the most loved and trusted company in Vietnam, with "Unique characteristics" in the fields of food and health." - Mission: "Through culinary culture and food source development, we contribute to Vietnam's further development, to the happiness and health of the Vietnamese people." - Ajinomoto Vietnam Company aspires to provide the Vietnamese people with a wide range of culinary products and spices of the greatest quality, safety, and flavor in order to achieve this goal and mission Ajinomoto Vietnam's goods always aim at two great values: + Contribute to scrumptious meals and convenient cooking, so fostering family cohesiveness and happiness; + Contribute to good nutritional value to health Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Figure Ajinomoto factory in Long Thanh (Dong Nai) CHAPTER II THE ADMINISTRATION OF THE AJI-NGON SEASONING PRODUCING OPERATIONS 1.Delicious Aji seasoning items The first seasoning on the market to use Stew Bone Extract is Aji-ngon seasoning, which is produced on-site at the Ajinomoto factory using modern Japanese technology A unique bone and meat stewing process used in the Bone Broth Extract manufacturing process preserves the natural sweetness of the bones and flesh while industrializing the housewife's homemade broth-making process The entire production process is monitored by an extensive quality control system to ensure that consumers are receiving high-quality, safe products Diagram Process of Aji-ngon seasoning product Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Input Transformatio Output n process Rib bones, ribs, Quality shoulder lean Meat and bone assurance and meat, pork thigh broth production food safety and lean meat process hygiene Clean water Thorough quality Sugar, salt, Aji-ngon control for starch, seasoning freshness, monosodium production temperature, glutamate process humidity, etc Onion powder, Guaranteed garlic powder characteristic Oil taste and aroma Other Nice packaging seasonings Machinery and equipment Labor 2.Aji-Ngon seasoning production process Production crew monitoring of safety and hygiene is always a critical element in delivering a clean and safe product to customers Before entering the production area, every worker goes through the identical procedures: donning safety nets, helmets, and masks; donning clean clothes and shoes; wash their hands with soap; and dry their hands  Step 1: Receiving, checking and weighing materials The two most important components are meat and bone broth Transfer to the Aji-Ngon workshop will occur after direct factory production After passing rigorous quality checks, basic ingredients including sugar, salt, starch, and monosodium glutamate are held in tanks and weighed automatically The force sensor of the weighing device will enable Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 accurate measurement of the components of the Aji-Ngon seasoning It was then put in the tank to finish blending with the other spices Figure Bones, marrow and flesh are examined visually and micro biologically, at Ajinomoto Long Thanh factory  Step 2: Raw material grinding stage Garlic powder, onion powder, and other spices are still weighed in specific ratios Once the components are well-combined and ready for grinding, store them in the big ingredients tank To uniforming the size of the raw materials in advance of mixing and homogenization, the raw materials will be stored in the mill for crushing Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502  Step 3: Mixing and homogenizing stage The materials will next go through a process of mixing and homogenization after being ground The essential ingredients, including bone broth and meat, are blended in this important step Bone broth and meat are packaged and kept in cold storage to guarantee the best products The team will move the meat and bone broth from here to the Aji-Ngon workshop The homogenization process improves cohesiveness, generates the appropriate moisture, and imparts the unique taste of the constituent mixture This is a demanding phase that demands not only speed but also the experience of the operational and supervising team to assure the granulation stage  Step 4: Granulation and drying stage The granulation process starts when the powder is put in the granular machine after homogenization Particles of a relatively uniform size have now been created by blending the various components Following that, the Aji-Ngon seeds are fed through a deep-bed drying device using hot air The water within the seeds will start to evaporate once the temperature reaches 100 degrees Finally, the temperature is dropped to allow the grain to cool, and while it is drying, it is maintained at a constant, moderate temperature to preserve the flavor and color of the ingredients Figure A close-up of the granulation process of Aji-ngon® seasoning seeds, at Ajinomoto Long Thanh factory Step 5: The stage of turning and spraying oil The Aji-Ngon seeds are taken to a filter mechanism after drying to be sorted by size, ensuring that they are of an even and appealing size Sorted particles of a standard size are delivered to the oil injection portion Each Aji-Ngon seed will now receive a thin coating of oil from oil jets, which will enhance the seasoning's gloss and color At this point, Aji-Ngon spice will help create a nice and attractive golden coating for the food Step 6: Packing The Aji-Ngon seasoning seed box stacks will then be placed in the warehouse by the robot The items will then be transported to the testing facility, where they will be precisely weighed, carefully scrutinized for appearance, and then chosen, packed, and transported to the distribution facility Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 CHAPTER III A REVIEW OF THE AJINOMOTO COMPANY’S OUTPUT QUALITY Quality standards of Ajinomoto Corporation The Ajinomoto Corporation Quality Standards are designed to ensure that products meet the quality expected from the Ajinomoto Group brand These are strict standards from training, labeling, packaging, to traceability, etc 1.1 Product quality - Quality assessment standards: The Company is dedicated to understanding the needs of customers as well as providing products and services that satisfy customers They proactively provide relevant information that suits clients and continuously improve reputation They not compromise on safety issues, conduct the most thorough research and surveys possible and strictly follow the laws and regulations, while always providing products and services of uniform quality The company also guarantees quality through the Ajinomoto quality assurance system (ASQUA), based on the concepts described in the ISO International standard Figure Components of ASQUA - Standards for quality control of raw materials and standards for safety and hygiene of food packaging materials: + Technical quality requirements, management requirements on hygiene and safety for packaging in direct contact with products, etc - GMP standards for food, GMP standards for pharmaceutical products and standards for Food Safety Management System (including HACCP) : Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 + The basic operating and environmental conditions necessary for the production of safe food Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 - Food defense standards: + Measures to prevent the intentional introduction of impurities into food The Group will check all stages from the procurement of raw materials until the product reaches the consumer, in order to prevent anyone from intending to put toxins or other impurities in the food 1.2 Service quality - Customer Service Center of Ajinomoto Vietnam Company wishes to have the best service to customers through consulting activities on product use, collecting and processing customer comments, thereby contributing to product improvement and development, and better customer service - Ajinomoto has been applying a code of conduct on customer satisfaction The rules are as follows: + Ajinomoto provides safe and reliable products and services to customers + Ajinomoto responds to complaints, requests and inquiries from customers accurately, quickly and politely + Ajinomoto respects customers' opinions and tries to use all input information to add value to products and services + Ajinomoto proactively discloses relevant information to customers + Ajinomoto adheres to voluntary internal regulations and standards regarding the protection of customers' interests - Standards for effective handling and the use of “Customer Feedback”: + Customer feedback, first response time, customer effort and sympathy metrics, customer problem resolution rate and customer abandonment rate Figure Consultant Ajinomoto's guest Lecturer: Dr Huynh Ai Van Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 CHAPTER IV AJINOMOTO’S RESOURCES AND CAPABILITIES ARE COMPARED TO THOSE OF COMPETITORS Ajinomoto Company and competitors: Ajinomoto Vedan Maggi - The total number of Human employees working at - The number of employees - Currently Maggi Company Resources Ajinomoto Vietnam is more in the Company are more has more than 2000 than 2.300 people than 3000 people employees - At Ajinomoto Vietnam, - The company has a - Invest heavily in training focus on training and training plan to ensure the and improving professional developing staff capacity implementation of skills such qualifications for employees as informatics, production - Always create a healthy techniques, maintenance and - Having a team of highly working environment, repair of machines, qualified staff, good encourage employees to occupational safety and communication skills, contribute creative ideas hygiene, fire prevention, etc teamwork skills and a sense of responsibility for the assigned work - Regularly pay attention to implementing initiatives and activities to take care of physical and mental health for all employees - The company sets out policies include: • Create favorable working conditions for pregnant and lactating female employees • Educate and improve Lecturer: Dr Huynh Ai Van Page 10 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 nutrition for all employees • Organize periodical health check-ups and consultations for employees Business - Ajinomoto Vietnam - Vedan Vietnam Company - Maggi is a brand acquired networks Company has two offices in was established in 1991 by Nestlé in 1947 Ho Chi Minh City and Hanoi - Nestlé Group was born in - There are branches in 1866 and has its head office in - There are two Hanoi and Binh Phuoc Vevey, Switzerland manufacturing plants - The largest food and including Ajinomoto Bien Hoa - In the process of beverage company in the Factory operating since 1991 expanding investment scale world and Ajinomoto Long Thanh and business development, - Has a wide production and Factory operating since 2008 Vedan Vietnam has also built business network in 191 a series of agent systems and countries with 500 factories - The company has large distribution channels distribution centers in Long throughout the country Thanh, Hai Duong and Da Nang provinces with 60 business branches and nearly 290 sales teams nationwide Capital and - With an initial investment - Although entering the - Maggi's strategy is only market of more than $8 million USD, Vietnamese market after aimed at the segment of Ajinomoto Vietnam Company Ajinomoto, Vedan has a consumers with economic is a 100% foreign-invested higher market share than conditions, but this audience subsidiary of Ajinomoto Ajinomoto and used to be the only accounts for 17-23%, Corporation Japan leader in the Vietnamese MSG compared to Ajinomoto, market However, Vedan's which is preferred by - A total cost of building, policy on environmental everyone because of its low operation, and market growth protection is not good, price, suitable for all Lecturer: Dr Huynh Ai Van Page 11 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 of up to 70 million USD, the leading to many negative audiences products are of firm is continuously increasing aspects to the market high quality and enhancing product manufacturing capacity - Maggi doesn't have a synchronous advertising strategy like Aji-Ngon - Spending $5 million on garbage sorting and recycling are how Ajinomoto differentiates itself from its rivals - Even if significant investment in the environment will lead to increased costs and reduced profits (actually), Ajinomoto has succeeded in capturing the trust of consumers and maintaining a leading position in the industry MSG Resources - They make extensive use - Before Vietnam's - Maggi uses very little of agricultural raw resources electricity supply is still nutrients from bones and obtained from nearby farms, limited, Vedan has developed meat in MSG products such as sugar cane and a steam-based power tapioca starch generation system  the - Focus on mainly European world's energy development markets, not Vietnamese - The business has put its trend consumers proposal to enable farmers growing ami-ami fertilizer in - Provide stable power - Maggi lost its position in the form of molasses made source for production the Vietnamese market from waste created during activities from Vedan Vietnam productions to use in a trial power plant - The advertisement emphasizes the taste of the food rather than providing Lecturer: Dr Huynh Ai Van Page 12 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 runs into action - The location of the nutrition headquarters on the Thi Vai - Is much inferior to - Utilize wise policies to River brings abundant gain an edge over suppliers, resources to Vedan  A great Ajinomoto in the Vietnamese reduce reliance, and create advantage compared to market enduring bonds with farmers Ajinomoto - Develop a market for - The economic crisis in fertilizer products and a 2006 with the discharge of supply of sustainable wastewater into Thi Vai River manufacturing materials was slapped  causing serious impact on finance and - Always focus on investing brand in technology and raw materials - Customers lose trust - Using the technology of extracting bone broth and meat in place helps to reduce the cost of raw materials and save time Enterprise - The international - Brands under Nestle - Maggi’s business is not capacity corporation Ajinomoto makes launching new products strong in all areas it operates the most of its parent deprive sales of old products companies resources as well  total revenue stagnates, - Have not reached its full as those of the nation where falling into an imbalance potential the subsidiary is situated between brands - There are still many - Utilize Vietnam's plentiful problems to solve such as a raw materials wisely and weak reputation, above- invest in a large pool of average revenue, large debt, a young, talented workers short supply chain and a lack of finance Lecturer: Dr Huynh Ai Van Page 13 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 - Integrating the advantages of an excellent corporate governance model, cutting-edge technology, and advantageous production and consumption circumstances, bringing the firm numerous advantages and pursuing shared goals in Vietnam and Japan  In summary, in terms of resources and market, Ajinomoto is more appreciated than Vedan and Maggi thanks to constantly expanding, improving production capacity, investing heavily in products, putting the health and interests of consumers first used on top In addition, Ajinomoto also promotes investment to train, care and bring many benefits to employees with many incentive policies and good benefits From there, bring a lot of value to the company and create a business that stands out from the competition Currently, consumers tend to use and consider product selection based on quality Therefore, Ajinomoto Company is the first choice of consumers today The company is constantly improving on packaging, materials and technology to produce quality products to serve consumers Lecturer: Dr Huynh Ai Van Page 14 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 CHAPTER V APPLYING OPERATIONAL THEORIES TO THE PRODUCTION PROCESS OF THE AJINOMOTO COMPANY 1.Ajinomoto Company has applied many theories and efficient operating methods in its production process, include as follow: 1.1 Lean Manufacturing: The company adopts lean manufacturing methods to eliminate unnecessary activities, reduce waste and increase productivity Specifically: - Ajinomoto Company has applied advanced and environmentally friendly fermentation technology  Helping the company to consume less input materials, create more products and simplify the production process with fewer steps From there, the production becomes more efficient and increases the competitive advantage for the Company 1.2 Lean Six Sigma: The company uses Lean Six Sigma to optimize production processes, reduce waste, and shorten production cycles right from the start For example, promoting production according to a closed dual biological cycle helps to strictly manage the source of raw materials, improve the yield and quality of crops, thereby ensuring a sustainable source of raw materials for Company’s production process Figure 1.The closed biological cycle Lecturer: Dr Huynh Ai Van Page 15 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Figure The closed biological cycle  Represents the company's continuous efforts to develop and change production techniques to conserve energy and resources such as using renewable energy, investing in existing cooling and water treatment systems grand Since then, they have been successful in implementing of the clean production targets: on-site recovery/reuse Lecturer: Dr Huynh Ai Van Page 16 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 1.3 Total Quality Management (TQM): The company implements TQM to ensure the quality of its goods and services while increasing output and reducing expenses To guarantee product quality and food safety, Ajinomoto Company implements quality management systems like GMP (Good Manufacturing Practices), HACCP (Hazard Analysis and Critical Control Points), OHSAS 18001 (Health and Safety Management System), ISO 9001 (quality management system), and ISO 14001 (Environmental management system) Figure ASQUA frame 1.4 Research and development: Ajinomoto invests heavily in research and development to improve production processes and products They use advanced technology and expertise to create new products and optimize production processes 1.5 Figure Using advanced technology to enhance deliciousness Training and developing human resources: Ajinomoto appreciates the role of human resource in the production process and understands that training and human development is an important factor to improve product quality and increase production efficiency Thus, Ajinomoto invests heavily in training and human resource’s development, providing its employees with intensive training, enhancing their professional skills and helping them develop their careers In addition, Ajinomoto also creates conditions for young employees to develop themselves and advance in the company Lecturer: Dr Huynh Ai Van Page 17 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com)