Báo Cáo môn học Quản trị Vận Hành

Trình bày hoạt động quản lý của công ty bao gồm đầu vào, quá trình chuyển đổi và đầu ra. Giải thích chất lượng sản phẩm đầu ra của công ty. Giải thích chất lượng sản phẩm đầu ra của công ty. Áp dụng các lý thuyết hoạt động vào quá trình sản xuất của công ty để giải thích tính hiệu quả của chúng trong việc tăng năng suất.

University of Economics and Finance

Faculty of Economics

MIDTERM REPORT OPERATIONS MANAGEMENT - MGT1127E

Semester 1B (2021 – 2022)

Lecturer: Huynh Ai Van

Group members:

% contribution

of the task to the overall task

Evaluat ion of task results

1 Phạm Thị Ngọc Tới 195081886 Introduction,

3 Trần Hải Yến 195080046 Question 3,

Total: 100%

Ho Chi Minh City, Oct 2022

TABLE OF CONTENS

I ABOUT THE AJINOMOTO GROUP 3

1 History of Ajinomoto: 3

2 History of Ajinomoto Corporation in Vietnam: 3

II REPORT QUESTIONS 4

1 Describe the operations management of the company including input, transformation process, and output 4

a Input 4

b Pioneering product manufacturing process 5

c Output 6

2 Explain the quality of output of the company (is product quality and service quality) 7

a Ajinomoto System of Quality Assurance (ASQUA) 7

b Ajinomoto Group's Quality Standards 8

c Obtaining third-party certification 9

d Human resources development to raise quality assurance levels 9

3 Compare the resources and competencies of the company to other competitors 9

4 Apply the operations theories to the production process of the company to explain their effectiveness in increasing the productivity 12

5 Propose the improvement of the operation to increase the competitive advantages of the Company 16

III References 18

I ABOUT THE AJINOMOTO GROUP

1 History of Ajinomoto:

“Driving from the Japanese people's desire to improve the diet and understanding that delicious taste can stimulate digestion, Professor Kikunae Ikeda (1864-1936) at Tokyo Imperial University invented MSG in 1908.” In

1908 he identified the source of this flavoring agent in kelp: glutamate - an amino acid that makes up protein and

is ubiquitous in food He named this flavor “Umami” (meaning “delicious taste”) in Japanese In 1909, he cooperated with businessman Saburosuke Suzuki to produce MSG on a commercial scale, officially appearing on the market as AJI-NO-MOTO®, which means Essence of Taste in Japanese This was the starting point for the birth

of today's mighty global Ajinomoto Corporation

Ajinomoto Corporation was established in 1909 in Tokyo, Japan with the world's first umami-flavored product under the brand name AJI-NO-MOTO With the motto "contributing to building a better life for everyone

on earth by contributing important advances in the field of Food and Health and by activities For Human Life", the Group currently has 136 subsidiaries and 20 member companies around the world, operating in 3 main areas: Food, Amino Acids, and Pharmaceuticals & Health

2 History of Ajinomoto Corporation in Vietnam:

- Business name: AJINOMOTO Vietnam

- Established time: 1991

- Location of operation: there are two representative offices in Ho Chi Minh City and Hanoi, and two

manufacturing plants including Ajinomoto Bien Hoa Factory operating since 1991, and Ajinomoto Long Thanh Factory operating since 2008 with the same factory The third is also in Long Thanh, which started construction in 2016 In addition, the company has 3 large distribution centers in Long Thanh,

Hai Duong, and Da Nang and branches spread over 63 cities The total number of employees working

at Ajinomoto Vietnam Company is more than 2,300 people

- Company information: Ajinomoto Vietnam Company is a 100% foreign-invested company belonging to

Ajinomoto Group, Japan with an initial investment value of more than 8 million USD Over 30 years of establishment and existence in the market, the Company has been maintaining its position in the field

of supplying MSG products with the brand AJINOMOTO To compete with other competitors, the Company must always innovate techniques, improve product quality, and have a methodical strategy

to help the Company stand firm in the present as well as in the future Therefore, the Company has constantly developed, expanded its business network, and improved its production capacity

- Message:

- Business philosophy: Ajinomoto Vietnam's vision, mission, and shared value-creating activities

- Vision: "Become the most loved and trusted company in Vietnam with " Unique features " in the

field of food and health."

- Mission: "We contribute to the further development of Vietnam, contribute to the happiness and

health of the people in Vietnam through culinary culture and development of food sources." With this vision and mission, Ajinomoto Vietnam's research and development always aim at two great values: contributing to delicious meals and convenient cooking, and creating reunion and happiness In the production process, environmental protection is always a top priority Ajinomoto Company is proud to be the first foreign-invested enterprise in Vietnam to achieve ISO 14001 certificate on system management environment

II REPORT QUESTIONS

1 Describe the operations management of the company including input, transformation process, and output

a Input

- To ferment to produce glutamic acid, people use mainly sugary juice such as sugar cane, sugar beet, cassava, corn, molasses, or starch raw materials that have passed the saccharification stage Tapioca is the raw material Starch is the most commonly used material today There are also additional sources of nutrients such as ammonium salts, phosphates, sulfates, biotin, B vitamins, etc

- In production practice, a fermentation medium is used instead of cornstarch Molasses is usually mixed to 13%-14% and duplicated before fermentation It is an integer that contains starch, the starch must be hydrolyzed (translation and saccharification) by the enzyme a-b-amylase and then added nutrients to the environment up men

b Pioneering product manufacturing process

❖ Description of MSG production process of AJI-NO-MOTO VietNam company

• Raw materials: Use materials for the production process from the following two sources:

o Buy molasses from sugar mills However, they will conduct treatment to separate the amount

of Ca in the molasses into a simple sugar solution, the chemical commonly used for this process

is usually concentrated H2SO4

o Purchasing starch (cane, tapioca) The raw material is then made into a simple sugar solution by the cleavage of hydrolytic enzymes

o Molasses reaching more than 48% (sugar) meets the standards for the production process

• Fermentation: The use of yeast (yeast) to carry out this process is also guaranteed to be safe for the

benefit of the company Yeast is brought back from Hokkaido (Japan) in a small test tube, and stored

at -85oC, and factories in other countries will clone it for one year After fermentation, they recover glutamic acid The recalled product also contains a number of fermentation by-products These products will be separated and used to produce fertilizer Ami, which is also the company's product

• Neutralize: After recovery, glutamic acid will enter the neutralization phase The chemical used for

this process is soda in powder form to form the formulation of natri glutamate

• Color Filter: The color filtering will be carried out by a layer of activated carbon (3 layers) to decolorize, forming a clear white MSG solution

• Crystallize: Made in a stirring tank, the MSG crystals are stirred continuously, then the MSG crystals

are screened After screening, there are 5 different sizes: too small, small, medium, large, and too large For those that are too small and too large, they will be diluted and recrystallized or will go through the production of Ajingon seasoning powder, the rest will be sold to the market for consumers

• Packaging: It is a very important step to ensure the safety and hygiene of the product before it

reaches the user The packing area is divided into 3 zones with separate functions In addition, must undergo tests such as metal detection, and important content in each package of MSG, QA, and QC Employees in this field must undergo health and hygiene checks before entering work

c Output

• Over the past 30 years, Ajinomoto Vietnam has

always made constant efforts in research and

development to bring a wide range of household

products with the best quality, safe, and suitable to

the location and needs of the Vietnamese people

Currently, has more than 35 product categories that

are widely introduced nationwide with brands

trusted by many users such as AJI-NO-MOTO® MSG, Aji-ngo Seasoning®, Gia Aji-Quick ®, Aji-mayo® Mayonnaise, etc…

• Besides, AJI-NO-MOTO also cares about its customers by creating many promotions when buying products of AJI-NO-MOTO will be given surprise gifts when winning

• AJI-NO-MOTO especially contributes to the creation of practical cooking programs, modes designed specifically for mothers and babies

• AJINOMOTO COOKING STUDIO: a "modern, unique" cooking

training and instruction center that is a place to inspire

inspiration and passion for cooking, thereby contributing to

keeping happiness, and enhancing health and wellness

through a delicious meal

• The company organizes factory tours for many different customers Help to better understand the production process of the company's products, and the Japanese corporate culture environment as well as share more knowledge about the production and culinary fields

• Ajinomoto Vietnam accompanies many social contribution activities such as awarding thousands of scholarships, philanthropists, building schools, welfare works, giving Tet gifts to the poor, and raising awareness activities environmental protection for workers and the local community,etc

2 Explain the quality of output of the company (is product quality and service quality)

During 25 years of existence and development in Vietnam, quality has always been a top priority at Ajinomoto Vietnam Company That is reflected in the application of the Quality Management System according

to international standards at two large factories in Bien Hoa and Long Thanh, Dong Nai province

Ajinomoto Vietnam Company has pursued and obtained the certifications of Quality Management System ISO 9001, and HACCP right from the early stages of production in Vietnam At each stage in the production process, the Company has optimized quality control through modern means to actively monitor and evaluate quality

Specifically, at the raw material stage, all materials are carefully analyzed for criteria such as appearance, physical chemistry, heavy metaand ls, microbiology Based on this analysis result, the software system will evaluate Raw materials are of good quality to put into production or not Thereby, all the materials that Ajinomoto Vietnam uses such as sugarcane and cassava/tapioca the for production of MSG AJI-NO-MOTO, pork meat and bones for Aji-delicious seasoning, soybeans for soy sauce production Fuji, fresh chicken eggs for Aji-mayo mayonnaise… are guaranteed to be the best quality ingredients, thereby bringing satisfaction and peace of mind

to consumers

Quality is the most important factor for businesses because it will help them get to become big companies

in the market In addition, it also helps enterprises assert their brand name in the market To improve and control their quality standards, Ajinomoto System based on the Certifications to provide a guideline for their firm The Ajinomoto Group applies its quality assurance system, the Ajinomoto System of Quality Assurance (ASQUA), to all of its products and services This ensures strict quality assurance from raw material procurement to product sales

a Ajinomoto System of Quality Assurance (ASQUA)

Established in 1997, ASQUA is the Ajinomoto Group’s quality assurance system It is based on ISO 9001, the international quality management system standard, as well as manufacturing management standards like Hazard Analysis and Critical Control Points (HACCP), a food hygiene management standard, and good manufacturing practices (GMPs)

The system also incorporates the Group Shared Policy on Quality,

Ajinomoto Quality Assurance Regulations, Regulation for Quality

Assurance, Quality Standards, and other rules and requirements

established by the Group or each internal organization With ASQUA, the

Group carries out painstaking quality assurance activities worldwide, from

the procurement of raw materials to the sale of products, always pursuing

even higher quality manufacturing Customer requests and expectations

are also promptly utilized to improve products, services, and business

operations

Comprised of members of senior management and reporting to the Management Committee, the Quality Assurance Committee is the highest body for quality assurance in the Ajinomoto Group Considering customer

feedback, it drafts basic policies and plans relating to the Group’s quality assurance, and after approval by the Management Committee, promotes their implementation at group companies worldwide

This framework ensures that everyone—from top management to frontline employees working in production and sales— maintains a strong awareness of product quality and a total commitment to providing safe products that are worthy of consumer trust

ASQUA implementation system

ASQUA components

b Ajinomoto Group's Quality Standards

The Ajinomoto Group’s Quality Standards are designed to ensure that products meet the level of quality expected of the Ajinomoto Group’s brand, and are strict standards covering a wide range of areas including training, labeling, packaging, traceabilit,y and so on

Examples :

1 Standard for Quality Assessment

2 Standard for Educational Training on Quality

3 Standard for Halal Control

4 Standard for Kosher Control

5 Standard for Product Labeling

6 Standard for Quality Control of Raw Ingredients

9

7 Standard for Safety and Sanitation of Food

Packaging Materials

8 Standard for Food GMP

9 GMP Standard for Pharmaceutical Drug

Products

10 Standard for HACCP

11 Standard for Quality Control of Subcontracted

and Procured Products

12 Standard for Responding to Complaints

13 Standard for Determination of Responding to Quality Emergencies

14 Standard for Food Defense

15 Standard for Traceability

16 Standard for Handling of “Voice of Customer”

17 Standards for Reflecting “Voice of Customers”

c Obtaining third-party certification

The Ajinomoto Group is working to obtain third-party certifications in ISO 9001 All certified group companies and sites of the Ajinomoto Group is maintaining their ISO 9001 certifications The Group is also advancing to obtain Food Safety System Certification (FSSC) 22000*5 at multiple manufacturing sites from the Global Food Safety Initiative (GFSI) following customers’ requests

d Human resources development to raise quality assurance levels

The Ajinomoto Group leverages its human resources development programs to further improve quality Each year, the Group reviews its quality training and creates programs that meet the needs of each organization and company The programs are then implemented according to a plan

3 Compare the resources and competencies of the company to other competitors

Referring to Ajinomoto company, we often think of a company that produces MSG without knowing that besides MSG products, they have countless products of spices, cooking oils, beverages, and sweeteners,… With products on Ajinomoto, it must be followed by competitors such as Vedan, Miwon, Maggi (Nestle VN), and Knorr (Unilever) However, at present when it comes to Ajinomoto MSG, we will think of two big rivals, Vedan and Miwon The following is a comparison of the competitive resources of the three companies

Established in

Viet Nam

since 1991 since 1991 since 1994

Investment Ajinomoto's initial investment

capital of more than 8 million USD has now reached 65 million USD (in 2015)

Vedan's initial investment

in Vietnam increased from

180 million USD to 580 million USD (2017)

Miwon's initial investment is 13 million USD

Price MSG package 1kg ≈ 70.000 VND MSG package 1kg ≈ 65.000

VND

MSG package 1kg ≈ 73.000 VND

10

Distribution • 2 representative offices in Ho Chi

Minh City and Hanoi

• 2 production factories in operation (Ajinomoto Bien Hoa Factory and Ajinomoto Long Thanh Factory) and a third factory have also started construction since 2016 in Long Thanh

• 3 large distribution centers and branches spread over 63 provinces

• 2 branches: Branch of Vedan Vietnam Company in Hanoi, Phuoc Long flour processing factory (Binh Phuoc)

• It has established a series of agents and distribution channels nationwide

• In addition, it also exports to countries such as China, Japan, Taiwan, Southeast Asian countries, and countries

in Europe

• 3 branches in Hanoi, Da Nang, Ho Chi Minh and

3 factories, factories producing noodles and food in Viet Tri, Phu Tho, MSG packing factory in Linh Trung Industrial Park 2, Ho Chi Minh, starch factory in Tay Ninh

• More than 200 agents distributing products to

64 provinces and cities across the country

Human resource • More than 2,300 employees

work in Vietnam out of a total of 32,000 employees worldwide

• There are advanced training courses for employees

• More than 3000 employees, and Vietnamese staffs have been trained to become key officials

• More than 1200 employees

nationwide

Communications

program

• Product strategy: diversity, concentration, and localization

• Media: TVC, cooking show

• Social activities: ASV activities, school meals and nutrition system development in Vietnam, awarding thousands of scholarships, hundreds of houses of love, building schools, public welfare works, giving Tet gifts to the poor,…

• Marketing Strategy:

“Vedan Cooking Challenge” Contest

• Social activities: Vedan was boycotted for a long time for discharging waste into the Thi Vai River

• Communication and advertising activities are still weak Not focusing on investing in brand promotion compared to other competitors

Competitive advantage of AJINOMOTO compared to VEDAN and MIWON