(Tiểu luận) topic total quality management of acecook

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS AND FINANCE

HO CHI MINH

FINAL REPORT

COURSE : TOTAL QUALITY MANAGEMENT

LECTURER : NGUYEN THANH MY

ACKNOWLEDGEMENT

First of all, We would like to thank our teacher Mrs.Nguyen Thanh , the lecturer of Total Quality Management Without her assistance and dedicated involvement in every step throughout the process, this report could have never been accomplished Her comments and assessments have helped us a lot to improve today's report Much of the knowledge here is summed up from her lectures and the actual data available online Her lecture was the foundation for us to develop the idea for this report

However, knowledge is limitless, but the acquisition of each person always has certain limitations Therefore, in the process of completing the report, shortcomings are inevitable We hope to receive feedback from her to make this report more complete We wish our teacher good health and achievements on her teaching path

COMMENT OF A GUIDELINES TEACHER

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3 Advantages and disadvantages of Acecook's TQM system 42

4 Find out similar solutions that can be applied to Acecook 43

5 Specific solutions for Accecook’s TQM System 44

IV Conclusion 48

V Reference 49

I INTRODUCTION

In a competitive market, business success is defined by more than just high sales and profits It is critical to ensure the quality of products and services in order to sustain and grow a business Total Quality Management (TQM) is a quality management method used by many businesses to improve the quality of their products and services as well as their operational efficiency It is a management philosophy whose goal is to improve product quality and maximize customer satisfaction What distinguishes TQM is that it provides a comprehensive system for managing and updating all aspects of quality, as well as involving all aspects, departments, and individuals in order to meet the stated quality standards

TQM can also have a significant and positive impact on employee and organizational development Companies can establish and maintain cultural values that create long-term success for both customers and the organization by having all employees focus on quality management and continuous improvement TQM's emphasis on quality aids in the identification of skill deficiencies in employees, as well as the necessary training, education, or mentoring to address those deficiencies TQM promotes cross-functional teams and knowledge sharing by emphasizing teamwork Increased communication and coordination across disparate groups improves institutional knowledge and allows businesses to be more flexible in how they use their workforce

In this research paper, we will examine Acecook's total quality management system to demonstrate the benefits it provides to the company

II.THEORY

1 OVERVIEW OF TQM 1.1.DEFINITION OF TQM

Total Quality Management (TQM) is a comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations In addition, TQM describes a management approach to long-term success through customer satisfaction In a TQM effort, all meers of an organization participate in improving processes, products, services, and the culture in which they work

This management approach helps simplify supply chain management and identify, reduce, or eliminate errors TQM requires companies to focus on continuous improvement or improvement TQM focuses on long-term continuous internal and process improvement to improve the quality of products or services

All departments involved in product or service development, including design, engineering, and marketing teams, participate in TQM Management acts as a facilitator by providing high-quality employees, training, and setting goals to develop

1.2.BENEFIT OF TQM

Empowered and engaged employees: TQM involves empowering employees and

encouraging their active participation in quality improvement initiatives This fosters a culture of continuous learning, innovation, and teamwork Engaged employees are more motivated, take ownership of their work, and contribute to the organization's success

Increased efficiency and productivity: TQM promotes the elimination of waste,

streamlining processes, and continuous improvement By optimizing workflows, eliminating non-value-added activities, and empowering employees to identify and resolve problems, organizations can increase efficiency, reduce costs, and improve productivity

Enhanced product and service quality: TQM emphasizes the prevention of defects

and errors rather than simply detecting and correcting them By implementing quality control measures at every stage of production or service delivery, organizations can reduce errors, improve product reliability, and enhance overall quality

Improved supplier relationships: TQM extends beyond the organization's boundaries

to include suppliers and partners By establishing strong relationships with suppliers and working collaboratively, organizations can ensure the quality of inputs and promote a culture of mutual trust and continuous improvement throughout the supply chain

Better making: TQM emphasizes the use of data and facts for

decision-making rather than relying on assumptions or intuition Through the collection and analysis of data, organizations can identify trends, patterns, and areas for improvement

This data-driven approach enables more informed and effective decision-making, leading to better outcomes

Improved customer satisfaction: TQM focuses on meeting or exceeding customer

expectations by consistently delivering high-quality products and services By understanding customer needs and incorporating them into the quality improvement process, organizations can enhance customer satisfaction and loyalty

Stronger competitive position: By consistently delivering high-quality products and

services, organizations can gain a competitive advantage in the marketplace TQM helps organizations differentiate themselves from competitors by offering superior quality, reliability, and value to customers

Continuous improvement: TQM is based on the philosophy of continuous

improvement Organizations that embrace TQM are committed to constantly identifying areas for improvement, setting quality objectives, and implementing changes to enhance performance This culture of continuous improvement ensures that the organization remains adaptable and responsive to evolving customer needs and market conditions

2 OVERVIEW OF PCDA 2.1.DEFINITION OF PDCA

PDCA stands for "Plan-Do-Check-Act", a method of quality management and continuous improvement developed by American quality manager Walter A Shewhart It is a widely used quality management method for continual improvement and assurance of the quality of products or services within an organization PDCA has applications in many areas, including quality management, project management, and process management

2.2.STEPS TO APPLY PDCA

Steps of the PDCA process:

Plan: When applying the PDCA process to any activity or job, in this Plan step,

businesses need to identify problems that need to be solved and prevented, and the specific goals of the planning are determined plan, identify the actions and processes needed to accomplish the goals, set a plan to achieve those goals, and identify the resources needed to carry out the actions and processes including the time required

Do: The implementation phase is where the enterprise implements the plan or solution

set out in the Do step, along with the recording of data and information collected during the implementation process In addition, it is necessary to record the incidents that occur during the execution process so that they can be adjusted and controlled in the next step

Check: At this step, the enterprise will have an assessment to check and confirm the

completion progress and work results in reality compared to the targets set out in the plan At the same time, the assessment also aims to detect problems arising in the implementation process From there, find out the causes and extent of their effects to take appropriate remedial measures

Act: Based on the difficulties and problems identified from the assessment, enterprises

need to establish appropriate and effective preventive and remedial measures As well as developing improvement options, changing processes or applying corrective measures to improve performance and quality These activities may include process upgrades, staff training, or adjustment of product-related parameters to achieve quality goals

2.3.BENEFIT OF PDCA

Continuous Improvement: PDCA creates a continuous cycle for process, product or

service improvement By repeating the PDCA steps, the organization can find ways to improve performance, quality and efficiency

Increased flexibility: PDCA encourages activity and adaptation in the working

process Through testing and evaluating results, the organization can adjust and change the original plan to respond quickly to changes in the business environment

Detect and resolve problems: PDCA helps detect and resolve problems quickly By

examining and comparing results with goals, an organization can identify the root cause of the problem and take effective remedial action

Increase participation and interaction: PDCA requires the participation of all

members of the organization By participating in the planning, implementation, testing, and improvement processes, employees feel that their contributions are appreciated and create a positive work environment

Optimizing processes and resources: PDCA helps organizations figure out how to

optimize workflow and use resources efficiently By evaluating and adjusting processes, an organization can eliminate unnecessary activities and focus on the activities that matter most

Quality Assurance: PDCA helps ensure the quality of a product or service Through

testing and evaluation, an organization can detect and address defects and inadequacies, thereby improving customer satisfaction

3 OVERVIEW OF KAIZEN 3.1.DEFINITION OF KAIZEN

The Kaizen philosophy, originating from Japan, is a fundamental principle in quality management that focuses on continuous improvement in all aspects of an organization The term "Kaizen" translates to "change for the better" or "continuous improvement" in Japanese It is a systematic approach that involves all levels of an organization, from top management to frontline employees, to achieve incremental improvements in quality, efficiency, productivity, and customer satisfaction

Kaizen philosophy applies to the 4M framework, which encompasses four key elements: Manpower, Methods, Materials, and Machines Here's how Kaizen's philosophy relates to each of these elements:

Manpower: Kaizen recognizes that the people within an organization are the driving

force behind improvement It emphasizes the involvement and empowerment of employees at all levels This involves fostering a culture of teamwork, creativity, and personal responsibility Employees are encouraged to identify and propose ideas for improvement, share their expertise, and actively participate in problem-solving activities

Methods: Kaizen promotes the continuous review and refinement of work methods,

processes, and procedures It encourages the elimination of waste, bottlenecks, and non-value-added activities through various improvement techniques such as standardization, streamlining, and simplification The focus is on finding more efficient, effective, and standardized ways of performing tasks

Materials: Kaizen emphasizes the importance of selecting and using the right materials

for achieving high-quality outcomes This involves ensuring the availability of appropriate materials, proper storage and handling practices, and continuous evaluation

of suppliers and materials to ensure their quality and suitability for the organization's needs

Machines: Kaizen recognizes the role of machines, equipment, and technology in

achieving quality improvements It encourages the regular maintenance, calibration, and optimization of machines to ensure their reliability, accuracy, and efficiency Additionally, Kaizen promotes the use of technology and automation to streamline processes, reduce errors, and enhance overall productivity

3.2.THE KAIZEN PRINCIPLE

Let's get rid of the assumptions Always proactively solve problems Don't be satisfied with existing things

Abandon perfectionism and adopt an adaptive attitude instead Provide solutions when mistakes are discovered

Create a work environment that empowers everyone to contribute Don't accept requests, instead ask why 5 times so you can do better Listen to information and opinions from multiple sources to make decisions Use creative thinking to optimize costs by making small improvements Never stop improving

3.3.BENEFITS OF KAIZEN

Tangible benefits

Tangible benefits are the values that the business can see Through the Kaizen method, businesses will receive the following tangible benefits:

Kaizen helps businesses accumulate experience, improve every small detail to aim for long-term goals and great results

Kaizen helps businesses reduce waste and improve production productivity In addition, this method also helps businesses reduce inventory, products that do not meet quality standards, wait time for transportation or hone the skills of employees, etc

Invisible benefits

In enterprises, the intangible benefits that Kaizen brings are shown through:

Kaizen helps HR teams create work motivation, thereby providing effective improvement suggestions

Increase employee morale as well as connect people within the company Kaizen facilitates building an efficient, cost-effective culture in each stage

4 OVERVIEW OF HACCP 4.1.DEFINITION OF HACCP

HACCP is an acronym for Hazard Analysis and Critical Control Point System, and means “the system of hazard analysis and critical control”, or the system that analyzes, identifies and organizes the control of hazards important in food production and processing”

HACCP is a quality management system based on hazard analysis and critical control points It is an analytical tool to ensure food safety and quality HACCP includes systematic reviews of all relevant steps in the food processing process, and identifies those steps that are critical to food safety and quality This tool allows to focus technical resources and expertise on processing steps that have a decisive impact on food safety and quality

4.2.PRINCIPLES OF THE HACCP SYSTEM

Principle 1: Perform a hazard analysis Identify potential hazards associated with food

production at all stages, from primary production, handling, manufacturing and distribution to the point of consumption Assess the likelihood of hazards occurring and determine measures to control them

Principle 2: Identify Critical Points (CCPs) Identify the points, processes or steps of

the activity that can be controlled to eliminate hazards or reduce the likelihood of them occurring

Principle 3: Determine critical limits Determine achievable critical limits to ensure

CCP is under control

Principle 4: Establish a monitoring and control system for CCP Establish a monitoring

and control system for CCP by testing or observational planning

Principle 5: Establish corrective action to be taken when monitoring specific CCP

indicators out of control

Principle 6: Establish a validation process to confirm that the HACCP system is

working effectively

Principle 7: Establish documentation relating to all processes and records

corresponding to the principles and their application

5 EFQM MODEL

5.1.DEFINITION OF EFQM

The EFQM Model of Excellence is a framework developed by the European Foundation for Quality Management (EFQM) to help organizations evaluate and improve their performance and strive for excellence

The EFQM Model of Excellence provides a holistic approach to achieving organizational excellence by considering various aspects of an organization's operations, including leadership, strategy, people management people, partnerships and

resources, processes, products and services, customer outcomes, and social impact It emphasizes the importance of a systematic and integrated approach to management and continuous improvement

5.2.BENEFIT OF EFQM

By applying the EFQM Model of Excellence, organizations can identify areas for improvement, refine their strategies and operations, and foster continuous learning and innovation This model encourages a systematic approach to excellence, emphasizing the importance of all aspects of the organization working together to achieve sustained success

III ACECOOK'S TOTAL QUALITY MANAGEMENT 1 ABOUT ACECOOK

1.1.HISTORY DEVELOPMENT

Full name: ACECOOK VIETNAM JOINT STOCK COMPANY (Acecook Vietnam JSC)

Line of business: Producing pasta, noodles and similar products Producing food, ready- -eat food to Acecook Vietnam Joint Stock Company was formed on the basis of the development of a joint venture, Vifon - Acecook Joint Venture Company

(established on December 15, 1993 between the famous instant noodle manufacturer Vifon - Viet Nam, etc.) Nam and Marubeni financial trading group, Acecook - Japan) From February 3, 2004 Vifon-Acecook Joint Venture Company was transformed into Acecook Vietnam Co., Ltd - one of the leading instant noodle and noodle manufacturers in Vietnam with more than 50 types of consumer products domestically and internationally On January 18, 2008, Acecook Vietnam Co., Ltd was officially transformed into Acecook Vietnam Joint Stock Company

Acecook Vietnam currently owns 11 production factories spread across the country, the company's products are diversified in domestic and foreign business including instant noodles, instant vermicelli, instant vermicelli, and pho instant noodles, with brands such as Hao Hao noodles, De Nhat noodles, Thai hot pot noodles, Mikochi instant non-fried noodles, Suki-Suki Udon noodles, Enjoy premium cup noodles, Number Red noodles, Hao 100 noodles, North Central South noodles, Phu Huong vermicelli, Diem Sang vermicelli, Nhip Sinh noodle soup, De Nhat fish sauce, De Nhat premium cooking oil,

With many years of operation in the Vietnamese market, Acecook has achieved the title of high quality Vietnamese goods voted by consumers In addition, the company also won many awards by the People's Committee of Ho Chi Minh City and the Department of Industry and Industry, was a member of the World Instant Noodle Association in 2007, achieved many certificates of food safety and system Quality management system ISO 9001: 2008, HACCP, IFS, environmental management system ISO 14001

1.2.MISSION:

“Providing high-quality products/services HEALTH SAFETY SECURE for

customers”

Based on this mission, Acecook Vietnam always puts the top priority on product quality, while supporting the communication of correct and scientific information about instant noodle products to create safety and peace of mind for customers client In recent years, Acecook Vietnam has focused on products for health, both to meet the new needs of consumers and to increase the value of instant noodles

1.3.VISION

Vision of Acecook: "To become a leading food production enterprise in Vietnam with sufficient management capacity to adapt to the globalization process"

Through the production and sales of high-value products and services, meeting the needs of the times in order to:

Bring satisfaction to consumers

Bringing stable life and development of employees Become a business with worldwide standing and support

1.4.CORE VALUES:

This is both the slogan and the value of Acecook company, which is specifically expressed by 3 words HAPPY as follows:

(1) Happy Customers

Acecook Vietnam will always make efforts to make customers who use Acecook's products happy Therefore, the company will always produce and supply delicious, quality, safe, and secure products to meet the needs of customers Specifically, it is necessary to thoroughly achieve 3 goals as follows:

Make sure to use safe materials

Using advanced Japanese production techniques, quality assurance machinery, and strict management of the production process

Monitor the distribution process, product preservation in the market, and request not to adversely affect the quality

(2) Happy Employees

Acecook Vietnam always strives to make Acecook employees and their families happy Therefore, the company will always try to create a good welfare regime, and a good working environment, and care about the work and life of its employees

(3) Happy Society

Acecook Vietnam always strives to make the whole society feel happy

The company always contributes to the development of the instant noodle industry in particular and the Vietnamese economy in general, supporting suppliers to improve quality In addition, the company actively sponsors and organizes charity and environmental activities to contribute to a better Vietnamese society

GOVERNANCE COMPLIANCE

These are the necessary principles for the company to develop sustainably, and gain the support of employees, customers, and society

(1) Corporate Governance (Government Control):

Build a system to control and prevent wrongdoings and arbitrary and disorganized actions of company executives or managers

Build a system to control and prevent illegal acts of the organization or a certain part of employees

Is the right operation orientation for all leaders and employees to implement the company's business philosophy

(2) Compliance:

The company operates based on compliance with all basic rules such as legal regulations, and internal regulations of the company

The company not only complies with the law but also has to consciously and strictly adhere to business ethics

(3) Disclosure (Transparency):

Information sharing: in addition to confidential information, the company will actively share information with employees

Recognize employee contributions and appropriately share superiors' evaluations with employees

The Board of Directors, officers, and employees declare (do not hide) all relationships related to the interests between themselves and the company

1.5.PRODUCT LINE

In the hearts of Vietnamese consumers, Acecook has a special position when it has successfully built the company brand thanks to the quality of delicious and safe products Although the market today is increasingly diverse in brands and offers food and instant noodles similar to Acecook, thanks to its reputation and product portfolio, it is easy for them to touch the culinary taste of customers Vietnamese The list of Acecook's products currently includes:

Instant noodles: Acecook Vietnam manufactures and supplies a variety of instant

noodles products to meet the preferences and needs of customers with many noodle lines as follows:

Hao Hao instant noodle line: this is Acecook's famous noodle product line in the Vietnam market, Hao Hao is produced in many different flavors such as traditional instant noodles, kimchi instant noodles, seafood instant noodles, chicken instant noodles, spicy instant noodles,…

SiuKay noodle line: this is a line of noodles with tough and unique noodles, combined with soup and seasoning ingredients to create a rich and attractive

taste This noodle product line has many different flavors such as SiuKay seafood instant noodles, SiuKay beef, and SiuKay old flavor,

De Nhat noodle line: this is a popular and popular instant noodle line because it meets the preferences of consumers with many flavors such as Seafood instant noodles, and De Nhat instant noodles with minced meat,

Besides, Acecook also has a number of other special instant noodle product lines such as Thai Hot Pot Noodle, Red Number Noodle, Udon Suki Suki Noodle, created to meet the diverse needs of consumers

Pho - Hu Tieu - Vermicelli :

Pho Xua & Nay: This is considered a product that brings deliciousness to users when creating a typical Vietnamese instant food that everyone knows Hu Tieu Nhip Song: This is a product specially designed to bring a rich and

varied noodle culinary experience to consumers This product includes noodle soup, seasoning packages, and soup packages so that users can create a delicious bowl of noodle soup at home with many flavors such as Nam Vang Hu Tieu, Braised Beef Hu Tieu, Pork Rib Hu Tieu,

Hang Nga vermicelli: Vermicelli is considered one of the famous pure Vietnamese dishes Hang Nga Vermicelli creates soft chewy noodles that help meet the needs of delicious, perfect quality, and at the same time bring a healthy and friendly feeling to the user With some current flavors such as Bun Bo Hue, Vermicelli with Spicy and Sour Shrimp, Bun mam,

In addition to the popular products in the category of Pho-Hu Tieu - Vermicelli, Acecook also has some unique products compared to brands in the instant food market such as Mixed Pho, Xua & Dried Pho,

Bowl - Cup - Tray: In order to meet the immediate needs of consumers for food,

Acecook has launched a variety of product states with the aim of helping to store instant noodles but still ensure the health of consumers users using plastic, safe quality control packaging

Glass noodles: glass noodles are one of the dishes that is very accessible to people

because it is a delicious dish with chewy pieces, rich in flavor Understanding that as well as wanting to diversify the product portfolio, Acecook has launched a number of products in the market such as multi-flavored Phu Huong glass noodles such as chicken, pork ribs, minced meat, and some other mixed glass noodles such as glass noodles mixed with crab sauce flavor; glass noodles mixed with sweet and sour beef flavor,…

New category: OHAYO Instant Porridge flavored with minced meat and Hao Hao

salt Instant Porridge, which contains the necessary fiber for a day and dried vegetable powder, brings a sense of deliciousness, helps to regulate the intestinal environment, improves the digestive system, and can satisfy the appetite easily and with peace of mind With no pressure on the stomach, you can be active all day With Hao Hao salt, it helps to create a taste of sour and spicy shrimp from the Hao Hao salt pot in a completely new style, which can be modified or combined along with many different dishes, in many different ways, to satisfy unlimited snacking needs, for an enjoyable experience in a unique way

Freshlife: This is considered a separate product provided by Acecook For the first

time, a type of instant sports noodles was born, the product contains ingredients such as Protein, Fat, essential vitamins, and minerals suitable for a convenient and nutritious meal for sports players

2 APPLICATION OF TQM TO ACECOOK 2.1.PDCA

Acecook has applied the PDCA process to the production of instant noodle products:

Plan

Recent consumer studies show that more and more people around the world are shifting to consuming food products made from plant-based ingredients with mild, ethereal flavors, vegetarian cuisine or products that do not use a lot of fat to maintain better health Many people are also "afraid" with fried noodles for fear of heat, fear of "poison" because they contain a lot of Transfat - a type of fat that is harmful to health Even many people have to boil water 2-3 times to eat less "poison"

In fact, in Acecook's modern instant noodle production technology, the noodle frying oil is indirectly heated by steam to control the temperature of 140 - 1650C during frying (similar to water bath) And new refined oil is always supplied in an amount equal to the amount lost during frying in a systematic, continuous manner So no stale oil, frying oil over and over again As for Transfat, according to the Transfat test results from Center 3 (2016) of some Vietnamese instant noodle products, the Transfat content is very low and meets the FDA's "zero trans" declaration standard

Although Acecook has tried to transmit information about this, there is a lot of unverified information about the package, so consumers misunderstand and listen when using it Therefore, since 2015, Acecook's convenience food business has been flat due to the negative growth in the instant noodle market in terms of consumption Realizing that fluctuations in the market have seriously affected the company's sales, Acecook's R&D team proposed a solution that is to produce Fried Noodles and Non-Fried Noodles at the same time to satisfy all needs all people on the market