Project Title Report On Ajinomoto Business Visit.pdf

OPERATIONS MANAGEMENT City Ho Chi Minh, June 2, 2023 Project title Report on Ajinomoto business visit Lecturer Dr Huynh Ai Van Course code MGT1127E Class B04E Group 6 School year 2022 – 2023 Semester[.]

Project title: Report on Ajinomoto business visit Lecturer: Dr Huynh Ai Van

Course code: MGT1127E

Ho Chi Minh City University of Economics and Finance

Faculty of Economics

FOREWORD 1

CHAPTER I ABOUT THE AJINOMOTO VIETNAM COMPANY 2

1 Formation and growth: 2

2 Ajinomoto Vietnam's Vision, Mission, and Common Values-Creation Activities Male: 2

CHAPTER II THE ADMINISTRATION OF THE AJI-NGON SEASONING PRODUCING OPERATIONS 3

1 Delicious Aji seasoning items 3

2 Aji-Ngon seasoning production process 4

CHAPTER III A REVIEW OF THE AJINOMOTO COMPANY’S OUTPUT QUALITY 6

1 Quality standards of Ajinomoto Corporation 6

1.1 Product quality 6

1.2 Service quality 8

CHAPTER IV AJINOMOTO’S RESOURCES AND CAPABILITIES ARE COMPARED TO THOSE OF COMPETITORS 9

1 Ajinomoto Company and competitors: 9

CHAPTER V APPLYING OPERATIONAL THEORIES TO THE PRODUCTION PROCESS OF THE AJINOMOTO COMPANY 14

1 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

Understanding operational management is important, but it is also important to put theory into practiceoutside of the classroom Practical experience is a crucial component of how we may apply the lessoneffectively 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 known food manufacturing company in Vietnam Here, we were given an overview of the formation and growth

well-of the company, led on a tour well-of the manufacturing and packaging facilities, and given the opportunity towitness 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 thelesson before entering the report to show what we have learned during the trip At the same time, we wouldlike to express our gratitude to Ms Van for her guide, which helped us create the most detailed report

CHAPTER I ABOUT THE AJINOMOTO VIETNAM COMPANY1.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 70million USD for construction, operation, and market expansion, the company has gradually expanded andincreased its ability to produce products since its start In addition to two production facilities, Ajinomoto BienHoa Factory, which has been in operation since 1991, and Ajinomoto Long Thanh Factory, which has been inoperation 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 sizabledistribution 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 culinaryproducts 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 andhappiness;

+ Contribute to good nutritional value to health

Figure 1 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 1 Process of Aji-ngon seasoning product

2 Aji-Ngon seasoning production process

Production crew monitoring of safety and hygiene is always a critical element in delivering a clean andsafe product to customers Before entering the production area, every worker goes through the identicalprocedures: donning safety nets, helmets, and masks; donning clean clothes and shoes; wash their hands withsoap; 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 willoccur after direct factory production

After passing rigorous quality checks, basic ingredients including sugar, salt, starch, and monosodiumglutamate are held in tanks and weighed automatically The force sensor of the weighing device will enable

Input

Rib bones, ribs, shoulder lean meat, pork thigh lean meat

Clean water Sugar, salt, starch, monosodium glutamate Onion powder, garlic powder Oil

Other seasonings Machinery and equipment

Aji-ngon seasoning production process

Output

Quality assurance and food safety and hygiene

Thorough quality control for freshness, temperature, humidity, etc Guaranteed characteristic taste and aroma Nice packaging

accurate measurement of the components of the Aji-Ngon seasoning It was then put in the tank to finishblending with the other spices.

Figure 2 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 componentsare well-combined and ready for grinding, store them in the big ingredients tank To uniforming the size of theraw materials in advance of mixing and homogenization, the raw materials will be stored in the mill forcrushing

 Step 3: Mixing and homogenizing stage

The materials will next go through a process of mixing and homogenization after being ground Theessential ingredients, including bone broth and meat, are blended in this important step Bone broth and meatare packaged and kept in cold storage to guarantee the best products The team will move the meat and bonebroth from here to the Aji-Ngon workshop

The homogenization process improves cohesiveness, generates the appropriate moisture, and imparts theunique taste of the constituent mixture This is a demanding phase that demands not only speed but also theexperience 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

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 theyare 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 glossand 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 willthen be transported to the testing facility, where they will be precisely weighed, carefully scrutinized forappearance, and then chosen, packed, and transported to the distribution facility

Figure 3 A close-up of the granulation process

of Aji-ngon® seasoning seeds, at Ajinomoto

Long Thanh factory

CHAPTER III A REVIEW OF THE AJINOMOTO COMPANY’S

OUTPUT QUALITY

The Ajinomoto Corporation Quality Standards are designed to ensure that products meet the qualityexpected from the Ajinomoto Group brand These are strict standards from training, labeling, packaging, totraceability, etc

1.1 Product quality

- Quality assessment standards: The Company is dedicated to understanding the needs of customers aswell as providing products and services that satisfy customers They proactively provide relevant informationthat suits clients and continuously improve reputation They do not compromise on safety issues, conduct themost thorough research and surveys possible and strictly follow the laws and regulations, while alwaysproviding products and services of uniform quality The company also guarantees quality through the Ajinomotoquality assurance system (ASQUA), based on the concepts described in the ISO International standard

Figure 1 Components of ASQUA

- Standards for quality control of raw materials and standards for safety and hygiene of food packagingmaterials:

+ Technical quality requirements, management requirements on hygiene and safety for packaging indirect contact with products, etc

- GMP standards for food, GMP standards for pharmaceutical products and standards for Food SafetyManagement System (including HACCP) :

+ The basic operating and environmental conditions necessary for the production of safe food.

- Food defense standards:

+ Measures to prevent the intentional introduction of impurities into food The Group will check allstages from the procurement of raw materials until the product reaches the consumer, in order toprevent 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 customersthrough consulting activities on product use, collecting and processing customer comments, therebycontributing 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 andpolitely

+ Ajinomoto respects customers' opinions and tries to use all input information to add value toproducts and services

+ Ajinomoto proactively discloses relevant information to customers

+ Ajinomoto adheres to voluntary internal regulations and standards regarding the protection ofcustomers' interests

- Standards for effective handling and the use of “Customer Feedback”:

+ Customer feedback, first response time, customer effort and sympathy metrics, customerproblem resolution rate and customer abandonment rate

Figure 2 Consultant Ajinomoto's guest

CHAPTER IV AJINOMOTO’S RESOURCES AND CAPABILITIES

ARE COMPARED TO THOSE OF COMPETITORS.

1 Ajinomoto Company and competitors:

Human

Resources

employees working at Ajinomoto Vietnam is more than 2.300 people

implementing initiatives and activities to take care of physicaland mental health for all employees

policies include:

• Create favorable working conditions for pregnant and lactating female employees

in the Company are more than 3000 people

training plan to ensure the implementation of skills such

as informatics, production techniques, maintenance and repair of machines,

occupational safety and hygiene, fire prevention, etc

has more than 2000 employees

and improving professional qualifications for employees

qualified staff, good communication skills, teamwork skills and a sense ofresponsibility for the assigned work

nutrition for all employees.

• Organize periodical health check-ups and consultations for employees

Business

networks

Company has two offices in

Ho Chi Minh City and Hanoi

manufacturing plants including Ajinomoto Bien Hoa Factory operating since 1991 and Ajinomoto Long Thanh Factory operating since 2008

distribution centers in Long Thanh, Hai Duong and Da Nang provinces with 60 business branches and nearly

290 sales teams nationwide

was established in 1991

Hanoi and Binh Phuoc

expanding investment scale and business development, Vedan Vietnam has also built

a series of agent systems and distribution channels

throughout the country

by Nestlé in 1947

1866 and has its head office inVevey, Switzerland

beverage company in the world

business network in 191 countries with 500 factories

Capital and

market

of more than $8 million USD, Ajinomoto Vietnam Company

is a 100% foreign-invested subsidiary of Ajinomoto Corporation Japan

operation, and market growth

Vietnamese market after Ajinomoto, Vedan has a higher market share than Ajinomoto and used to be the leader in the Vietnamese MSGmarket However, Vedan's policy on environmental protection is not good,

aimed at the segment of consumers with economic conditions, but this audience only accounts for 17-23%, compared to Ajinomoto, which is preferred by everyone because of its low price, suitable for all

of up to 70 million USD, the firm is continuously increasingand enhancing product manufacturing capacity

Resources

of agricultural raw resources obtained from nearby farms, such as sugar cane and tapioca starch

proposal to enable farmers growing ami-ami fertilizer in the form of molasses made from waste created during

electricity supply is still limited, Vedan has developed

a steam-based power

world's energy development trend

source for production activities from Vedan Vietnam

nutrients from bones and meat in MSG products

markets, not Vietnamese consumers

the Vietnamese market

emphasizes the taste of the

runs into action.

gain an edge over suppliers, reduce reliance, and create enduring bonds with farmers

fertilizer products and a supply of sustainable manufacturing materials

in technology and raw materials

extracting bone broth and meat in place helps to reduce the cost of raw materials and save time

headquarters on the Thi Vai River brings abundant

advantage compared to Ajinomoto

2006 with the discharge of wastewater into Thi Vai River

serious impact on finance andbrand

companies resources as well

as those of the nation where the subsidiary is situated

raw materials wisely and invest in a large pool of young, talented workers

launching new products deprive sales of old products

falling into an imbalance between brands

strong in all areas it operates

potential

problems to solve such as a weak reputation, above-average revenue, large debt, ashort supply chain and a lack

of finance