group assignment mgt103 topic productivity of th group th true milk

I.Introduction of TH Group TH True Milk: - TH Group, which established itself in 2009, is in charge of a variety of food-related initiatives, including the production and processing of f

FPT UNIVERSITY- CAMPUS HO CHI MINH

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Thành phố Hồ Chí Minh, 07/2023

TABLE OF CONTENTS

I Introduction of TH Group (TH True Milk)

II Design Operations Systems

b The Importance of Quality

- GPEA (Global Performance Excellence Award)

c Total Quality Management of TH Group

- High Quality

- Sustainable production

- Animal care

- Food safety

d TQM Tools and Techniques

- Standard TH True Milk

- Milk Quality

- The control standard TH True Milk uses

VI Managing Productivity of TH Group

a Productivity of TH True Milk

b Levels of Producticity

c Forms of Productivity

d Improving and Increasing VII References

I.Introduction of TH Group (TH True Milk):

- TH Group, which established itself in 2009, is in charge of a variety of food-related initiatives, including the production and processing of fresh milk, nut milk, healthy vegetables, herbs, and purified water For the community's health, TH goods consistently prioritise "fresh" and "clean" ingredients, which are derived entirely from natural sources With a market share of more than 45% in the fresh milk market in Vietnam, TH has firmly prided itself as the market leader and 100% of consumers are completely aware of the brand Due to TH's success, businesses in the same sector are now making significant investments in high-tech focused dairy farming to produce true fresh milk Additionally, consumers now recognize the true worth of fresh milk and appreciate goods that meet worldwide standards for quality TH Group is currently carrying out its public health goal through the development of clean, organic, healthy drinks and a nutrition project for Vietnamese people.

- TH Group is a product service mix with a product line focus on dairy products such as –TH TRUE MILK, TH TRUE YOGURT, TH TRUE NUT, TH TRUE ICE CREAM, TH TRUE BUTTER, TH TRUE CHEESE, etc and other drinks and commodity namely TH TRUE TEA, TH TRUE WATER, TH TRUE HERBAL, TH FVF and TH NASU Additionally, TH Group also take part in education with TH SCHOOL project.

II.Design Operations Systems:

a Product-Severvice Mix Strategy of TH Group:

the combination of physical products and accompanying services to create enhanced value for customers

flavors such as chocolate, strawberry, and possibly more This provides diverse choices for customers and enhances the value of the product By offering different flavors, TH True Milk attracts a wider range of customers and meets their personalized needs

delivery, customer care, nutritional advice, and promotional programs This creates a comprehensive package of products and services, strengthening customer relationships and fostering positive interactions

b Facilities Decisions of TH Group: Facilities:

- TH Corporation's farms implement world-class advanced production management systems in various aspects For livestock management and dairy herd management, they utilize the advanced Afimilk system from Israel They also adopt disease management and veterinary practices from New Zealand In terms of feed mixing and formulation, they employ cutting-edge software systems like 1-One and DNS Additionally, they incorporate water and waste treatment processes and equipment from Japan, Israel, and the Netherlands

- This commitment to advanced systems and technologies is particularly evident in the waste management processes on TH Corporation's farms The waste generated from livestock farming undergoes treatment to meet standards and is transformed into high-quality bio-buffer materials for farm use and natural organic fertilizers These bio-buffer materials are easily decomposable and rich in nutrients, aiding soil regeneration and providing nourishment for crops By utilizing this organic fertilizer, TH Corporation minimizes the use of inorganic chemical fertilizers, which can have long-term negative effects on the soil and the environment

- The cows in TH Corporation's farms are imported from countries such as the United States, Australia, New Zealand, and Canada They have clear pedigrees, ensuring the production of the highest-quality milk Furthermore, each cow is equipped with health and growth monitoring chips The barns are equipped with ventilation systems and air conditioning to provide optimal living conditions The cows also enjoy daily cooling baths and listen to music to stimulate natural milk production

Locations:

- The concentrated dairy farm utilizing advanced technology from TH Corporation is located in Nghia Dan, Nghe An, Vietnam It spans across a vast area of 37,000 hectares of fertile red Bazan soil and benefits from the abundant natural water source of the Sao River This farm is considered a model farm, applying the most advanced and modern technologies in dairy farming and crop cultivation

- Building on the success in Nghe An, TH Corporation's high-tech dairy farming and milk processing farms are expanding to Thanh Hoa, Kon Tum, Phu Yen, An Giang, Ha Giang, Cao Bang, and other regions TH Corporation aims to provide Vietnamese consumers with access to clean, nutritious fresh milk products that meet international quality standards

III.Organizational Technologies:

a Manufacturing Technology:

Automation:

- TH True Milk was one of the first companies to make and sell fresh milk in Vietnam They used advanced technologies to create high-quality fresh milk and dairy products, making them one of the top choices in Vietnam Now, TH True Milk has many different products in Vietnam, like canned pasteurized milk, yogurt, and ice cream TH True Milk needs to use really advanced technologies in order to make different products

- We use different tools and technologies to make sure our milk is high quality We use software like Afifarm to manage our herds We also use a tool called Total Vets for veterinary care To treat and filter our water, we use a solution called Amiad We also use

technology like SAP and ERP to help with our operations We follow strict quality standards like ISO , Halal, USDA Organic, and EU Organic All of this helps us bring the best milk to the market and create different products for people to buy

- Another key to creating such amazing, fresh, and high-quality products is that if the milk is not good enough, the network will send warnings and tell the farmers how to change what they give to the cows, so that the milk will be better quality When the farmers milk the cows, they play symphonies for them This makes the cows feel calm and happy, and helps them make really good milk On an average day, a cow can make around 30 to 40 liters of milk

EX: Using two-in-one machines to chop the grass operating in the fields Grass is then

transported by carts to the farms All the steps are done by machines Hung also said that grass strains are imported from Australia and planted under European technology and quality standards.

b Service Technology:

- Whenever customers contact the customer support center with their requests or problems, they are promptly and respectfully addressed Based on information from 2017, almost all customers, around 99.7%—felt happy and content after getting assistance

- Create different ways for people to seek help and support, such as by setting up phone hotlines, social media pages, and offering direct assistance TH's customers not only have their needs taken care of quickly, but they also get helpful information about how good the products are, any special deals, and facts about staying healthy through food

IV.Supply Chain Management of TH Group:

a Raw Material:

Farm & Dairy Cow Breeds:

- Since October 2009, TH Group has been implementing the project "Concentrated dairy farming and dairy processing on a high-tech industrial scale" with a total investment capital of 1.2 billion USD, on the advice of Bac A Commercial Joint Stock Bank

- The first farm cluster was constructed at Nghia Dan Nghe An So far, 3 farm clusters, –including 9 farms, have been finished and placed into operation The total number of dairy cows in these clusters is close to 70,000

Packaging:

- Vietnamese consumers have reacted favourably to and adored TH genuine MILK fresh milk products when they were introduced to the market over 8 years ago Along with the origin of the raw ingredients, which determines quality, current production and packaging techniques must be used effectively if consumers are to receive the cleanest and purest cans of fresh milk

- While preserving the maximum amount of nutrients and the product's natural flavour, TH genuine MILK sterilized fresh milk uses UHT sterilization processing technology with ultra-high heat treatment and ultra-fast cooling In a totally sterile setting, the completed milk is subsequently packaged in six-layer sterilized paper bags, with each layer serving a particular purpose Pasteurized milk products made with the genuine MILK are consequently very secure and have a shelf life of up to 6 months without the need for refrigeration or preservatives TH genuine MILK pasteurised fresh milk products are currently packaged by Tetra Pak (Sweden) and SIG Combibloc (Germany), two of the most cutting-edge manufacturing facilities in the world

b Work in Process:

- Symphonies are played while the cows are being milked, which helps them relax and provide the greatest milk possible A cow can typically produce between 30 and 40 litres of milk each day Each cow has a chip attached to its tag that emits a warning if the animal has breast inflammation This kind of chip ensures that the cows' milk is always pure and free of pollutants by causing the milking equipment to shut off automatically in such a situation

- It will be filtered again to remove all of the unseen pollutants once the cows have been milked It will then be delivered to the processing factory after being kept in tanks at 3 to 4 degrees Celsius - The factory is equipped with state-of-the-art equipment imported from Germany, Italy and Sweden,

meeting G7 standards I hear that the TH Fresh Milk Plant is listed as the largest plant of its kind in Southeast Asia European visitors to the factory recognized TH true Milk's quality meets European standards

c In Transit

- TH true mart is TH's retail chain that focuses on providing hygienic, nutritious, safe and fresh natural food produced on TH farms High-tech application, TH true mart is an advanced We have guaranteed management methods with equipment and the best refrigeration facilities for food and dairy products

Over 350 branches nationwide and still expanding Serving over 200,000 customers monthly

Lead all new product launches: Butter, cheese, FVF vegetables, ice cream Generate excellent sales over the years

- TH True Mart has evolved into a familiar and convenient shopping channel, a breakthrough modern distribution model in terms of service quality that delivers real value to consumers TH has introduced a home delivery service Purpose: To shorten and eliminate intermediate steps in the process of transportation, distribution and delivery to the consumer, making fresh, clean and natural products available quickly and conveniently.

V.Managing Total Quality of TH Group:

a Quality:

- Among the more than 130 TH products currently available, three product lines with formulas suitable for age groups stand out: TH true MILK formula TOPKID, HILO and TH true MILK GOLD

- According to TH representative, the product is made entirely from organic fresh milk of TH farm, supplementing the set of micro-nutrients for children with 3 basic benefits: supporting brain development (with DHA, folic acid and micro-nutrients) other important substances), support optimal height development (enhanced vitamin D and calcium) and increase resistance and absorption (with vitamins C, B)

b The Importance of Quality:

GPEA (Global Performance Excellence Award) :

- GPEA is an internationally recognized award for quality, to honor businesses in the Asia-Pacific region that achieve excellent performance in production and business, affirming a new approach to principles management

- To be honored in the top prize category in the GPEA system, TH has demonstrated quality and excellence at a "world-class" level in its production and business activities with rigorous evaluation of leading economic and technical experts in Asia and the world This is a worthy reward for TH True MILK's comprehensive efforts in improving production and business efficiency, applying advanced management systems, building a clean and natural food ecosystem, and pursuing Sustainable Development

c.Total quality management: High Quality:

- TH True Milk is committed to providing the highest quality dairy products to consumers They adhere to strict quality standards throughout the production process, from the care of the herd, the nutrition of the dairy cows, to the processing and packaging of milk

Sustainable production:

- TH True Milk values environmental protection and uses sustainable production methods They ensure that their production does not have a negative impact on the environment, including managing waste, using natural resources responsibly, and ensuring that their ecological impact is minimized

Animal care:

- TH True Milk is committed to ensuring the best care for dairy cows They create good living conditions for cows, including a balanced diet, no use of growth hormones and limited use of antibiotics in the care of cows

Food safety:

- TH True Milk complies with food safety regulations and ensures that their products meet the highest safety standards They apply strict quality control procedures to ensure the purity and safety of dairy products.

d TQM Tools and Techniques:

Standard TH True Milk:

- TH is completely autonomous in terms of feed ingredients to ensure top nutrition for dairy cows TH Farm applies advanced technologies in the world with modern agricultural machines to serve optimally in growing and harvesting all kinds of raw materials for cow feed all year round: corn, American sorghum, Mombasa grass, Mulato grass…

- Thanks to the rigor in the process of raising cows from international standard farms, TH True Milk has an extremely reliable source of input materials Recently, TH has successfully built a closed model from green pastures to clean milk cups with the largest scale in Southeast Asia TH Group affirms that all stages from planting grass, raising cows to milking are strictly controlled by a team of leading experts with standard technology to delicious taste and the most guaranteed quality

Milk Quality:

- TH has developed a quality management system according to TCVN ISO 9001: 2008 and applied it from the supply of main ingredients (fresh cow's milk) to the processing plant and product distribution system If Vinamilk focuses on developing a delicious, attractive flavor that is suitable for all tastes, TH True Milk is rated for a fatter milk taste, some new products limit the use of sugar, so the taste is also light than

The control standard that TH true Milk uses:

- HACCP standard: is an international standard for quality management system HACCP standard is an acronym for Hazard Analysis and Critical Control Points to help businesses and organizations control and limit hazards formed during food production and processing

- ISO standards: Some ISO standards that TH uses: ISO 9000, ISO 9001:2008, ISO 2200:2005 - to ensure food safety criteria, ISO 17025:2005 - for testing laboratories, ISO 14001 :2004 - for environmental management systems according to factories

VI.Managing Productivity of TH Group:

a Productivity of TH True Milk:

- TH True Milk's productivity may be assessed in a number of ways, including the quantity of milk produced per cow, the effectiveness of milk processing, or the overall profitability of the business - By putting an emphasis on the health and wellbeing of their dairy cows To keep their cows healthy

and able to provide high-quality milk, they place a high priority on correct feeding, housing, and veterinary care Depending on factors including breed, genetics, and environmental circumstances, the precise productivity metrics may change, but TH True Milk works to increase milk production per cow.

- In order to prepare and package their milk products as efficiently as possible, TH True Milk uses cutting-edge tools and technology This helps to reduce waste and increase the processing facilities' productivity.

- In order to increase productivity and overall profitability, TH True Milk concentrates on a number of variables, including cost control, market demand, and product diversity They want to boost sales and profitability by streamlining their production procedures and broadening their product offering.

b Levels of Productivity:

- Milk output per animal By putting an emphasis on the health and happiness of its dairy cows, TH True Milk seeks to optimize milk production per cow To keep their cows healthy and able to provide high-quality milk, they place a high priority on correct feeding, housing, and veterinary care

- Processing milk effectively: TH In order to assure effective and hygienic processing, True Milk uses the latest technologies and equipment in their milk processing facilities To reduce waste and increase facility productivity, they improve their operations They strive to maximize processing efficiency by making constant improvements to their processing methods and purchasing cutting-edge machinery

- Cost control: In order to increase production, TH True Milk puts a strong emphasis on cost control To save expenses, they improve resource allocation, adopt effective supply chain strategies, and simplify their operations They strive to increase their total productivity and profitability by carefully controlling expenditures

- Market demand and product diversification: To make sure they are addressing customer demand for their products, TH True Milk continuously analyses market developments and consumer preferences To better serve various client segments and expand their market share, they diversify their product offering They want to increase efficiency and income by matching their product offers to consumer demand

- Research and development: TH True Milk makes investments in this area to increase production and create new products They work together with specialists and researchers to investigate new technologies, increase breeding initiatives, and improve agricultural and processing methods They hope to boost production and keep a lead in the market by being on the cutting edge of technical developments

Capital productivity assesses how effectively capital resources, such machinery, equipment, and facilities, are used during the manufacturing process By purchasing new, effective machinery, keeping up with facility maintenance, and employing technology breakthroughs to increase operational effectiveness, TH True Milk seeks to maximize capital productivity They can increase productivity and profitability by optimizing the output for each unit of capital expenditure