internship report on the usage of bsc and kpi model at phu an packing jsc

iii ABSTRACT This thesis focuses on Balanced Scorecard/Key Performance Indicators BSC/KPIs and their efficacy for the package manufacturing business Phu An Packaging JSC.. KPIs can be us

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INTERNSHIP REPORT ON

THE USAGE OF BSC AND KPI MODEL AT PHU AN PACKING JSC

Submitted by: Le Van Hoai

ACADEMIC SUPERVISOR

Mr Dao Ngoc Tien, Ph.D

Lecturer of International Trade

Manager of Human Resources and Administration Foreign Trade University

ACKNOWLEDGMENT

I am using this opportunity to express my gratitude to everyone who supported me throughout the course of this MBA thesis I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice during the project work I am sincerely grateful to them for sharing their truthful and illuminating views on a number of issues related to the project

I express my warm thanks to Mr.Dao Ngoc Tien for his support and guidance

I would also like to thank my project external guide Mr.Nguyen Manh Ha and Mr Cuong from the Phu An Packaging JSC and all the people who provided me with the facilities being required and conductive conditions for my MBA thesis

Thank you,

Le Van Hoai

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ABSTRACT

This thesis focuses on Balanced Scorecard/Key Performance Indicators (BSC/KPIs) and their efficacy for the package manufacturing business (Phu An Packaging JSC) The purpose of the study is to help relevant stakeholders gain a view of how BSC/KPIs can help them boost their business The report examines whether KPIs are useful for every business model and whether they can help businesses to monitor and measure the business The thesis focuses on the framework for essential package manufacturing company KPIs

The thesis report begins with a problem statement, the aims of the study, and research objectives This is followed by a literature review in which past package manufacturing company BSC/KPIs are discussed and reviewed in a detailed manner The results section presents an analysis of key performance indicators The report concludes that KPIs are an effective tool for the company and these can help the companies to make sound decisions for their business At the end of the thesis report, framework limitations and future work for packing business regarding KPIs are also discussed

1.7 Basic finance figure 11

CHAPTER II COMPANY STRUCTURE AND ORGANIZATION CHART 12

2.1 Phu An’s Organizational Chart 12

2.2.6 Sales & Marketing 13

2.2.7 The Intern’s Position 13

CHAPTER III THE MISSION: ASSIGNED TASKS AND GOALS 14

3.1 The tasks assigned 14

3.2 The link between the subject matter and the mission 14

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3.5 The theoretical knowledge to be put into Practice 16

CHAPTER IV DEVELOPMENT 18

4.1 Stakeholder’s Matrix 18

4 2 SWOT analysis 20

4.3 Develop BSC/KPIs for Phu An 21

4.3.1 Method 21

4.3.2 Designing Performance Measurement System 26

4.3.3 Application to IT Department of Phu An JSC 31

INTRODUCTION

Balanced scorecards / Key performance indicators (BSC / KPIs) are the metrics needed to understand an entity's performance KPIs can be useful for a variety of factors because business performance can be known and they are useful for the owner, production manager, sales and marketing manager and webmaster of the company KPI is considered effective to evaluate the business activities related to the company's packaging activities and KPI can say whether the operation is successful or not

There are various key performance indicators that packaging manufacturers can choose to promote For sales, marketing, and customer service, key performance indicators can help improve business For sales, KPIs are inventory levels, cost of goods sold, conversion rates, etc For marketing, KPIs are website traffic, chat sessions started and blog traffic, etc counting, etc These KPIs will improve the sales, marketing and customer service of the business and if sales and marketing are improved, the business will improve as well That's how KPIs helps improve the business

Therefore, after analyzing market situations and after determining real growth or analyzing company conditions, it is possible to make recommendations for possible improvements in the company as well as for improvement Actual data results Through KPI, companies can assess business performance and can have an analysis of the packaging company Moreover, KPI can help and lead companies so their statistics can be improved.

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CHAPTER I: COMPANY BACKGROUND

Phu An Paper and Package joint stock company is a manufacturing company which specializes in production of packages After more than 15 years, the company has experienced failures and success Phu An Packing is now growing fast and becoming a traditional supplier of some big manufacturers in food and pharmaceutical industries Below is some key information about Phu An:

1.1 Key facts:

Bac Ninh Province,Viet Nam

- Scope of business licensed: packaging production

 Website: www.baobiphuan.bizz.vn  Telephone number: 02226.286.832

1.3.2 Vision

Our goal is to be the best flexible packaging company in the industry – by delivering packaging excellence defined by superior quality, unmatched service, relentless continuous improvement, and constant innovation

1.3.3 Core value Respect

Phu An considers its employees, customers and suppliers to be its partners and as such, they are among its most valuable assets Phu An therefore, treat them with the utmost respect

Excellence

Building, creating and performing are key components of all our processes Continuous improvement drives Phu An’s commitment to excellence, which allows us to offer high-quality products and services

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Phu An Packing only produce paper (carton) package for local and for export as below:

PAKAGE FOR TH TRUE MILK

SẢN PHẨM SỮA BA VÌ

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PACKAGE FOR HANOIMILK

PAKAGES FOR DUC NHAT CERAMICS

PAKGES FOR OKIFOOD

PAKAGES FOR HẢI CHÂU BAKERY

AND OTHERS

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1.5 Factory

Below are some images of package making machines in Phu An Factory

- TH true milk Food Chain Joint Stock Company - Royal Food Co., Ltd

- International Fresh Fruit and Vegetable Production and Supply Joint Stock Company - Hai Phong Leather Shoes and Development Joint Stock Company

- Hai Chau Confectionery Joint Stock Company - Huu Nghi Food Joint Stock Company

- Hanoi Milk Joint Stock Company - Kanegabo Company Limited - MIWON VIETNAM CO., LTD - Ba Vi Milk Joint Stock Company

- GELEX - EMIC Electrical Measuring Equipment Company Limited - …

1.4.3 Business orientation

• Focusing on expanding and expanding the high-end packaging market, diversifying product categories to meet key customers: Food industry; Medicine; Electronics, Export goods • Customer-orientation for all efforts and allocate the resources of the business in a logical and scientific manner to meet and satisfy the increasing demands of customers

• Applying a quality management system into production to constantly consolidate and enhance product quality to create value chains for customers

• Making the best use of available human resources by strengthening and maintaining regular training on appropriate topics, especially managers and technicians to further improve skills, job knowledge, mastering modern technology, improving labor productivity and improving product quality

1.4 Basic financial data

The company do not want to leak out the data because they consider this is top secret They just let me know that the sales revenue in the year 2016, 2017, 2018 respectively is 25 Billion VND, 30 Billion VND and 110 Billion VND They go too fast so that is the reason why they need o strategic management method like BSC/KPIs for them to manage and measure their operations and staff’s performance.

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CHAPTER II COMPANY STRUCTURE AND ORGANIZATION CHART

The company’s organizational structure is illustrated in the following chart:

Figure 2: Phu An Organization Chart

2.2.1 Board of Management

As the head of the company, Board of Management (BOM) is in charge of governing mission and has full authority to make decision in development strategy and annual business plan in the name of Phu An BOM directly supervises the daily work of Board of Directors

Sales & marketing

After sales services

BOM includes 3 persons which are Chairman (Ms.Nguyen Thi Hoa), Vice Chairman (Nguyen Van Tien) and a member Ms Nguyen Thi Hoa is the person who makes all important decisions

2.2.2 Board of Directors

The Board of Directors (BOD) members are appointed by BOM Mr Nguyen Manh Ha is the CEO of Phu An He has outstanding organizational skills Under the direction of BOD, all divisions work fluently to reach BOM targets He has a deep knowledge and extensive experience in packing business

2.2.3 Divisions and Departments

The company has 3 divisions: Administration, Production and Sales and Marketing

2.2.3.3 Sales & Marketing

The department directly responsible for the implementation of marketing activities and sales in domestic and oversea markets, finding potential customers and making them become company’s partners in order to achieve sales target

Sales & Marketing division has 4 departments which are Sales & Marketing, Logistics and Warehouse and After sales service

2.2.4 The Intern’s Position

During the internship, I worked as a assistance and consultant to CEO Nguyen Manh Ha I evaluate all the activities of the companies and then persuade him to apply BSC/KPIs in management

2 Build BSC / KPI system

3 Apply BSC/KPI to a simple department first (IT Dept) then replicate

3.2 The link between the subject matter and the mission

Under instruction of company’s supervisor, my mission is linked directly with the subject matter Firstly, I had studied about company, its rules and operation structure in order to have a comprehensive understanding of the company and its business operation Then, I help them to build the BSC/KPIs for them to

3.3 The desired goals

During this period, my general goal is to consult and build the BSC/KPIs for Phu An Packing Following is my individual action plan to complete the subject matter and goals during the internship time:

Study the company

- Find the information about the company: its main business activities, financial situation, company structure, culture, its products, customers and competitors and the problems that they are facing and need to be improved

- Read the company documents - Discuss to peers at different department to have a clear overview of company

- Study on its competitors to know more about the company strengths and weaknesses

30thJuly

Study the strategy of company in management

- Understand the all the activities and processes of the company in strategy management

- Read documents related to strategies and processes

- Join the discussions with colleagues

- Attend the company’s meetings to find more about their operations and people mindsets

6thAugust

Collecting data

- Collect related information about the targeted market: politics, economy, social culture, legislation, technology, nature environment factors and I collected data about market demand, target customers, the suppliers, distributors and competitors

- By using both primary and secondary method

15thAugust

Analyzing data

- Analyze the data collected to give a solution for the company

- Collect and analyze the data collected by using SWOT

August

Developing BSC/KPIs Models for the company

- Based on the analyzing of the company strategies on management, draft developing the strategy

- Give advises to CEO and BOM on developing strategy

management to cope up with the fast development of the company - Train the BOM and its key staff on BSC/KPIs

- Develop BSC/KPIs for the company

15th September

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3.4 The Contribution to the Company

During my internship period, I gathered a lot of information about Phu An Packing and its operation as well as packaging market I carry out training for them on the BSC/KPIs and consult them to use the BSC/KPIs model to control and measure their business and its staff performance to cope up with their fast developing

3.5 The theoretical knowledge to be put into Practice

With all the knowledge I have achieved during the AMI Master program, they support me so much in understanding the operation of Phu An and help me develop good BSC/KPIs for them There are some subjects that I have learnt during the AMI program that gave me a vital theoretical knowledge for me to apply into practice during the internship time:

1 International Strategy

- Helps to select and build up the suitable strategies for international expansion - Provides different methods and tools to analyze market by using models such as PESTEL, Porter’s five forces and SWOT analysis

2 International Economics and Globalization

- Supply the background of the globalization process and tendency

- Present both potential opportunities that the company may have to expand the business oversea and challenges during its performance

3 International Business Plan

- Provides useful knowledge for the penetrating market

- Supply me with a lot of factors for taking into consideration while doing international transaction

4 International management

- Helps to understand how to manage business internationally - Provides general overview of business and management

5 International Distribution Channel

- Provides an overview about different distribution channels

- Helps to choose suitable channel to distribute and promote company’s product and set up KPIs for them

6 International Business Communication

- It helps me learn to analyze problems in companies and organizations and to transform the results into specific communications in various contexts; from political crises and organizational changes to the introduction of new products in the global market

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7 International and Intercultural Negotiation

- Equipped us with the knowledge about cultures and the influence of cultures in doing international business

- Helps to analyze different culture through various methods, such as Hofstede’s Model and Hall’s Model and figure out the most effective ways to do business in this country, is an essential part of my internship work

8 Business Game

Provides information about potential market and teaches us experiences which can apply in practice for market expansion, business management via playing business game online I have come to a realization that all subjects in AMI Master Course have influence significantly on my work at my company and especially my ideas for finding the strategic management method for Phu An

projects

- Decide strategy of company

- Decide the key staff of company

- Return on investment: ROE = 7%

- Export to oversea markets: - Having more customers:

Customer base increases by 30%

operate daily business activity to meet

shareholders’ requirements

- Promulgate internal regulations, culture of the company

- High salary: Higher than competitors 5%, increased regularly

- High remuneration

- Good working environment: Motivated environment, good workplace relationships

salary for all staff of the

- High quality of products and services