improving quality performance management at leo co ,ltd ninh khuong hand embroidery fashion

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN SOLVAY BRUSSELS SCHOOL OF UNIVERSITY ECONOMICS & MANAGEMENT MBQPM5 PHẠM THỊ XUÂN HỒNG IMPROVING QUALITY PERFORMANCE MANAGEMENT at LEO.Co.,Ltd _ NINH KHUONG Hand Embroidery Fashion MASTER PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2016) STATEMENT OF AUTHENTICATION This statement is to indicate that all of the work in this final project has been done by Pham Thi Xuan Hong under guiding of Jacques Martin professor The information presented in below is accurate in my mind These are collected from my knowledge that I understand from education program "Master Business Quality Performance Management" at Solvay Brussels School and the experience in my work at Ninh Khuong organization I tried my best to finish my assignment and I hope this project will be implemented in my company And the last, in order to optimize the results, I need recommendation of the Judges for my project better Thank you so much! Signature of student Pham Thi Xuan Hong ACKNOWLEDGEMENT I express my deep sense of gratitude to Dr Jacques Martin (Academic Director MBQPM program) for encouraging and guiding me to finish this final project I am very much thanks full to lecturers of during program "Master Business Quality Performance Management" has trained and shared a lot of value knowledge to my class I feel that the sharing of lectures does not stop at the task of trainers, but also more than on the professional values and enthusiasm of professors I would like to say big thanks to Ms Ngoc Hien (Program Coordinator – Solvay Brussels School) and Ms Viet Ha (Program Coordinator – Open University) supported a lot of during this program, all activities and their advice helped us completed course successfully Besides, if don't have the supporting of my boss, my staffs and my family also, I couldn't that I acknowledge with big thanks to them The last, in my presentation time, the attention and recommendation of the judge will be helped me optimize the results final report and implementation behind I'm truly grateful for discussing today, thanks for your value advices ACADEMIC TUTOR’S COMMENTS Signature of Academic tutor PRACTICAL TUTOR’S COMMENTS Signature of Practical tutor TABLE OF CONTENTS: STATEMENT OF AUTHENTICATION ACKNOWLEDGEMENT ACADEMIC TUTOR’S COMMENTS PRACTICAL TUTOR’S COMMENTS INTRODUCTION: 1 Company information: Objectives of the report Methodology: The company’s development plan”: PART 1: ANALYSIS AND EVALUATION OF THE KEY PROCESSES Chapter 1: Process mapping & identify the critical points of each process The Process mapping of the Ninh Khuong organization: Identify the critical points of key processes: 13 Production process mapping and critical points: 13 2.2 The Sales process mapping and critical points: 15 2.3 The customer satisfaction process mapping and critical points: 17 Chapter 2: Process evaluation 19 Identify the factors affected on each key process  conclusion the main factors affected on three key processes 19 1.1 The factors affected on critical points of production process: 20 1.2 The factors affected on critical points of Sale Process: 22 1.3 The factors affected on critical points of Customer satisfaction process: 24 Analysis the root cause/RISK of main factors above by Fishbone diagram 27 Evaluation effectiveness key process by data and dashboard 29 3.1 Data and dashboard: 29 3.2 Shortcomings: 33 PART 2: IMPROVING QUALITY PERFORMANCE MANAGEMENT SYSTEM: 34 Chapter 1: Building the Quality Performance Management System (PMS) at Ninh Khuong organization: 34 Identify the type of performance at Ninh Khuong organization 34 Building Performance Management System at Ninh Khuong organization 35 2.1 Step 1: Identify customer requirements and score strategy of company: 35 2.2 Step 2: Set Planning: Strategic goals in roadmap, main objectives and link them together to reach score strategy and company goals 37 2.3 Step 3: Set targets for each objective, measurement method and re- coordinate resources for activities to achieve targets and action to implement to achieve objectives: 43 2.4 Step 4: Execution for implementation: Combine the key process, coordinate the human resources to achieve the objectives company 46 Chapter 2: Implementation and improving Quality Performance Management system 47 The road map implementation and improvement Performance Management System at Ninh Khuong organization 47 Improving quality performance management system at Ninh Khuong 48 Sustained improvement quality performance management: 50 CONCLUSION: 54 REFERENCE LIST 56 INTRODUCTION: Company information: New Logo: Slogan: Embroidery love for life Business type: Manufacturing, trade, service about hand-embroidered children's fashion industry Founder: Mr Duong Hoan Tuyen (MSc) Human resources: 150 employees Vision: – Commit to a sustainable development – 2020, become the leading brand in the embroidery fashion industry in Asia – 2030, Ninh Khuong products will be presented all over the world Mission: – Produce the high quality embroidery fashion products: healthy for the consumer; the product is not harmful to the environment – Improving the best customer service for customer's satisfaction – Enrich employee knowledge & prosperity History’s company: – Ninh Khuong has been boldly exploring the application of the hand embroidery art into the daily life in order to make the children’s fashion products, household items, decorative items, etc as well as contributing to the wider promotion of this unique art form of the nation, creating a magical interference between Eastern and Western culture – Ninh Khuong was established in 2001 at 40 Le Loi, District 1, Ho Chi Minh City and has moved to 42 Le Loi, District as in current The company mostly sells the accessories cotton for home decor, such as: table clothes, runner, graph, many kinds of bag, tissues box cover, paper roll,… to foreigners customer and tourists – In 2003, Ninh Khuong started expanding domestic brand through retail’s stores by children’s clothes, focus to European and Asian markets by exporting – Since 2009, Ninh Khuong has built Quality management system for development – 2013, has been become the Number one in Viet Nam in the field kid fashion embroidery with 21 stores in Viet Nam – 2014, received ISO 9001-2008 Certification – 2015, opened stores in Ho Chi Minh City and Da Nang City – Now, Ninh Khuong has 17 stores in Ho Chi Minh City and many provinces in Viet Nam, exporting to European area Feature product: Unit product – Core value of product: Hand embroidery, traditional cultural value of the hand-embroidery pattern – Materials & other materials: 100% cotton, linen; natural color – Threads: 100% cotton, dyed with natural color without chemicals – Utilities: good sweat absorbent, soft for the skin, luxurious model, high quality (no shrinkage, fabric color no down) Ninh Khuong has brand products (3 line products): – Nkid: kid fashions, kid bedding & accessories: dress, T-shirt, pant, hat,…) – Kolala: premium kid fashions – Klinen: accessories for home decor: tablecloth, napkin, bed sheet, duvet cover, pillowcase, tissues box cover, bread cover, bags, souvenir,… Products of Nkid brand: Products of Klinen brand: Target customers: – Vietnamese female, officer from 25 to 45 years old; knowledge, mostly in middle and high class (Family income ≥1000 USD/month) 42 If the final target of strategy map is the financial and profitability indicators, the first indicators that may impact businesses, dominant, improvements to achieve customer satisfaction is an indicator of human and management systems, source the company's capacity The human factor is an important tool and the only company that can influence to improve the situation and achieve targets To have good resources, companies need to have a vision, a clear strategy, with particular since the company built a quality management system, create more value for the customers to help increase sales revenues and profits The activities and objectives of each perspective linking and mutual support have to achieve the ultimate goals financial indicators From financial indicators, CEO make decisions for all activities of other perspectives such as customer perspective, internal processes perspectives and people perspective, and in order to optimize the financial indicators: revenue, profit, lower costs,… 43 2.3 Step 3: Set targets for each objective, measurement method and re-coordinate resources for activities to achieve targets and action to implement to achieve objectives: (The BSC.Kaplan, R.S & Norton,D.P.,(1996) Harvard Business School Press, ISBN 0-87584-651-3,p.9) 44 Perspective Objectives Weight 30% 100% revenue target Finance (100%) Measurement method Auto Revenue month report (software) Initiatives Responsibility +20%/2015 o Added value service for customer o Training the sale man o Business Development (more stores) o Improving PMS BOD, Sale & Marketing, Finance department 100% profit rate on revenue 25% Financial quarter report 18% o Reduce and control discounting of goods o Control budget all departments BOD, Sale & Marketing, Finance dept Reduce 5% total costs 25% Financial report 5% o ―Just in time‖ in supply chain o Focus on three main processes and innovation by policy BOD, Financial, operational & dept Rate inventory turnover (revenue/ total inventory 20% values) Inventory report rounds/ year o Auto report alert inventory o Maintenance warehouse o ―Make to order‖ supply chain management o Feedback 3600, hotline 24/7 o To provide service timely and good attitude and high quality services o Customer care after days o Training sale man: serve process, customer care process, display goods, product, knowledge, soft skill for duty… Manufactory department Customer complaint rate 25% (product & service) Customer (100%) Target 2016 New customer/total customers 20% Friendship customer comeback rate (old customer) Rate customer to be recorded information in 20% 15% customer/ month Customer month report (software) Data customer report 65%/total customers (bought) 35%/total customers (bought) 80%/total customers Training sale man to record information Sale & Marketing, customer care department 45 software Delivery on time Rate of understanding strategic goals of top manager Internal process (100%) 20% Delivery month report Survey report 40% Costs of waste (rework, repair,…) 30% Finance report; HR report Rate internal interaction error (Number of error 30% Operation report Rate of employee satisfaction 25% Number of procedure reviewed Learning Rate of employee and growth competencies (100%) 25% HR report Rate of employee productivity 25% HR report interaction/procedure) Number of staffs leave 25% job HR report bought/ month 100%/ month o ―Just in time‖ in delivery o Implement PMS o Train to top manager TQM, PMS o Management review per year at 100% least 0.05%/ total o Review all quality control costs/ year procedures every quarter o Management review times/ year error/ o Knowledge management method month (training, meeting, discussing,…) o RACI (help clear responsibility) 95% o To review all quality control procedures in company o Review management o HR policy comfortable >95%/year >100%/ month [...]... etc The competitors: Replacement Item Ninh Khuong Direct competitors (Indirect competitors) Brand name Ninh Khuong DLS Tiki A Kiko Disney Hikosen Cara Number of shops 17 07 09 26 06 20 _ Kid fashion (casual, party, at home Kid fashion: Product category _ Accessories for Outside, at home, home (runner, graph, warm clothing Kid fashion: Party/Outside Casual, Casual, comfortable outside/ at home, comfortable... controlled the performance in order to reduce the time and the cost of operation management Standardized quality management system at LEO in 2016: overcoming the inconsistencies, building the missing quality requirements; training for all top manager about the quality management system knowledge for implementing and maintenance QMS; regular evaluation, management review and improvement performance -... home, comfortable wear, wear, smart wear warm clothing smart wear Same as Ninh Khuong High quality Higher Higher table cloth,…) Quality High quality Same as Ninh Khuong Same quality Brand longer Brand longer Price Medium and high Higher Medium Higher Lower 5 Type of Industry Made in Total hand embroidery Hand embroidery & Hand embroidery in Machine industry Machine industry by machine some designs Machine... directly to the dissatisfaction of customers on both the products and services that customers expectation 26 HR competency: staff capacity is not sufficient demand application development and continuous improvement of the company to increase competitive advantage and meet development needs Management methods: the company applies management methods combined management by objectives and management by process... method of management at Ninh Khuong of company is management by objectives (MBO) and management by processes (MBP) Interactive vertically and horizontally are the interaction between of all departments in organization This method makes the interaction is tight, increasing control and the system reach the self-control better, help to reduce time and cost of management 2 Objectives of the report - Continuous... that base on the interaction of all departments gained the benefit for our company: production process, sale process, customer satisfaction process: 13 2 Identify the critical points of key processes: 2 1 Production process mapping and critical points: The PRODUCTION PROCESS of Ninh Khuong organization: Management review MANAGEMENT RESPONSIBILITY Data analysis Prevention/ Improving PLANNING QUALITY MANAGEMENT. .. QUALITY MANAGEMENT SYSTEM POLICY - QUALITY OBJECTIVES RESPONSIBILITY – COMPETENCE, RESOURCE MANAGEMENT, INTERNAL INFORMATION, DOCUMENT CONTROL Estimate Supplier Recognite product Import - Export - preserved products Monitoring measurement products Control products are not suitable control production measurement equipment Control customer’s property Estimate Suppliers Recognize product Import - Export... http://expertresearchers.blogspot.com/2014/01/how-modern-approaches-tomanagement.html) 4 The company’s development plan”: - Now - up to 2020: we will improve Economic performance Build the quality management system on standard ISO 9001– 2008  and then set standards quality performance for company and all departments in order to increasing the performance each individual and department to reached control the system, everything and every process will be measured and controlled... improving the work efficiency of the system But the capacity of the management level is insufficient to operate on the improvement of the system Management selling software: the software has just was being updated in 2 years ago since nearly 10 years established operation without a plan to improve the feature data statistics, measuring the customer, goods, discount of goods/revenue, no complete database... customer satisfaction about quality service and product 16 So the critical points of the sale process: o The rate of customer complaint about the product and service (design, price, quality, color,…) o The rate of customer comeback for buying product o Delivery on time 17 1.3 The customer satisfaction process mapping and critical points: The Orders need selling Repair & welcome the customers Consulting