Building quality management system at STYLE FASHION co , ltd

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM4 PHAN HONG YEN PHUONG Building Quality Management System at STYLE FASHION Co., Ltd MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2014) -2 STATEMENT OF AUTHORSHIP I certify that this project entitled “Building quality management system at STYLE FASHION Co., Ltd” is my own work Except where reference is made in the text of the project, this project contains material published elsewhere or extracted in whole or in part from a project by which I have qualified for or been awarded another degree or diploma No other person’s work has been used without due acknowledgement in the main text of the project Ho Chi Minh City, 01 June 2014 Phan Hong Yen Phuong -3 ACKNOWLEDGEMENTS I would like to thanks: All my Professors, especially Dr Jacques Martin, who gave me the inspiration about the wonderful things of quality management They are like my fathers They are the excellent Professors! I understand thoroughly the tutorial teaching background Master’s program helped me access to modern methods of management that I had actually applied at my company In addition, my Professors also gave me an objective view detail why quality management is important, to me it is an indispensable condition in the operating and development that my company needs to have My Professors have communicated to me the knowledge and experience which I can apply for my company These are very valuable knowledge which I believe is not only useful for my current job but also for my future Classmates have shared the books with me so I can refer to and complete this assignment They also join me to discuss requirements of the assignment so that we can complete this final project in the best way My director gave me the chance to be shown and taught me how to look at as a real manager to be able to figure out the problem from deep inside She is also one of those who have a strong influence on me so I have to always learn and develop myself She believes I can everything that I wish, if I always strive and learn My family has been enabling me to participate this course and access the knowledge’s about quality management that is extremely useful Since learning to the work and have business trips quite often so sometimes I feel a lot of pressure and limited time At such times the family was always there to support me and motivate their best -4 COMMENTS OF GUIDE PROFESSOR(S) -5 TABLE OF CONTENTS CONTENTS Page Statement of authorship 02 Acknowledgements 03 Comments of Guide Professor(s) 04 I Introduction 06 – 16 Part 1: General introduction of STYLE FASHION Co., Ltd 06 – 13 1.1: Company profile 06 1.2: Organization Chart 09 1.3: Production process 12 Part 2: The present management system and problems 14 – 16 2.1: The present management system 14 2.2: Evaluation of the present management system 16 2.3: Why we need to build the QMS? 16 II Building quality management system 17 – 29 The need of implementing QMS 17 Building the QMS 17 The effectiveness of QMS 27 III Conclusion and further developments 30 – 36 References & Appendices 37 – 42   -6 I INTRODUCTION: PART 1: General introduction of STYLE FASHION Co Ltd 1.1 Company profile: YES'S is a famous fashion brand name of official dress It has a solid position on the market for over 10 years and earned the favourite of most office female employees With a growing chain of 19 retail stores nationwide and the labour force approximately 60s office staffs and 2500s workers, YES’S are going continuously to expand into the international market to demonstrate Vietnamese brand name’s high quality, especially in 02 main categories: Y type- normal product and R type – luxury product YES’S is not only the manufacturers, retailers but also the distributors for supermarket channels nationwide With the young, creative and passionate range of staff to arouse customers desire to own the perfect product made from the talent human of YES’S Starting from 2013, YES 'S has introduced a new product line for children called YES'S KIDS, its aim to serve the infinity potential customer in Vietnam To make the differences among the current extremely competitive kids fashion market, YES'S KIDS has launched an incredibly unique and impressive product of the collection of Mother & Baby with the appearance of mother and daughter in the same dress and the little girl holding a cute teddy bear which wearing the same outfit In addition to these unique and innovative products to attract customers we are also one of the leading brands in reaching customers a friendly and approachable way through fashion shows, parties that for dedicated customers, competitions, the playing field for families with the opportunity to exchange and learn in parenting, and charity activities hold by our company with the participation of clients in visiting orphanage temples, orphanages, hospitals But YES'S still feel like that is not enough to make the customer feel most satisfied We also linked with business partners in a number of fields such as cosmetics, lingerie, cuisine to send gifts to special and loyal customers And this is also an opportunity to introduce more customers to the business partners in a WIN - WIN spirit of cooperation We greatly appreciate one statement of Adam Khoo that deeply inspired us: "We all have the same starting point, but only 10% of the 90% who are likely to succeed Because they have creative ideas and turn ideas into reality." (Secret hand White millionaire, 2012) Vision: Developing distribution channels into domestic and international markets with 100 franchised outlets to 2030 Mission: The desire to make Vietnamese fashion brand famous among international market in both quality and design   -7 We now are investing development of brands:    : Lady fashion -8    : Kids Fashion -9 1.2 Organizational Chart: Founder: Ms Nguyen Thi Phuong Trang    Place of Birth: Dong Nai Province  Education: BA  Experience: 20 years in the garment industry  Participated in international tradeshows in many countries such as Myanmar, France…  Participated in many charity activities in the local and international -10 Product’s features:  Lady fashion: + Standard form design, hiding body defects + Diversified models more suitable to customers + Excellent quality product, color fastness and high product life  Kids Fashion: + Fabric material is carefully chosen so as not to irritate baby's sensitive skin + Designs to fit the rich kid can go to school, walk around, and the party + All products are 100% cotton lining helps wicking sweat while playing baby Public Relation Activities:  Thoi Trang Tre Magazine usually introduces new collections of YES’S every month And they receive good feedback from customer  Many television stations such as VTV3, HTV7, HTV9, and VTC1 use YES’S dresses as uniform for MC of many hot programs (news morning, 60 second, 24 hour, news world…)  Phong Cach Tre media usually organize many fashion show, and YES’S is one of the best grand name for this program Business objectives:  YES’S Turn-over increasing 100% the year after  The 25 Domestic Distribution Outlets will be launched to 2015 Target Customers:  Successful 25 - 55 year-old Vietnamese women, whose income is more thyan $1,000 per month  Foreign customers have female fashion business in many country + Cambodia + Lao + Malaysia + Philippines + Japan + Australia + England   -28 3.3 The performance of employees can be measured easily MONTH Mar-14 Apr-14 May-14 40.74 44.58 61.65 59.04 55.2 38.13 PERCENTAGE OF EMPLOYEES WHO HAVE ≥ 75/100 POINTS PERCENTAGE OF EMPLOYEES WHO HAVE < 75/100 POINTS 70 60 50 PERCENTAGE OF EMPLOYEES WHO HAVE ≥ 75/100 POINTS 40 PERCENTAGE OF EMPLOYEES WHO HAVE < 75/100 POINTS 30 20 10 Mar-14 3.4 Apr-14 May-14 Increase in the company turnover MONTH TURNOVER (VND Million) Mar-14 Apr-14 May-14 1840 1870 2002 TURNOVER (VND Million) 2050 2000 1950 TURNOVER (VND Million) 1900 1850 1800 1750 Mar-14   Apr-14 May-14 -29 3.5 Increase of profit MONTH Mar-14 Apr-14 May-14 435.2 456 572.3 PROFIT (VND Million) PROFIT (VND Million) 700 600 500 400 PROFIT (VND Million) 300 200 100 Mar-14 3.6 Apr-14 May-14 Reduction of customer complaints MONTH Mar-14 Apr-14 May-14 18 14 TURNS OF COMPLAINTS TURNS OF COMPLAINTS 20 18 16 14 12 10 TURNS OF COMPLAINTS Mar-14   Apr-14 May-14 -30 III CONCLUSION: After applying the QMS, we get many advantages in our operation: Improvement: 1.1 Process: We have established all the processes to standardize all the circular parts of the whole company system, as follows 1.1.1 Human Resource and Administration division: 1.1.1.1 Engineering:  Management and completely fix the problems when software running online  Accounting software in running stably because maintenance constantly  Web master is constantly updated information base to support for the sale in each marketing campaign in time 1.1.1.2 Accounting:  Complete control of inventory of goods  Timely reports on the first monthly increase and decrease materials and finished products warehouse  Dissemination and application of written rules for people to follow and handling thoroughly when problems occurred 1.1.1.3 Finance:  Forecasting and financial balance sheet almost exactly 94% each month  Debt collection client according to plan, customers with debt  Using debt leverage to stretch the suppliers more time commitment   -31 1.1.1.4 Design:  Handle most of the backlog of his predecessor  Complete the standard store design  The brand identity standards and meet the requirements of the marketing department sale 1.1.1.5 Sales & Marketing Division:  Set out sales and revenue monthly and quarterly basis  Employee enthusiastic customer service from the new to step in at the door  The programs are prepared for each year( monthly, quarterly, yearly): gift certificates, promotions and customer cares, customer service hotlines and treatment of internal customers, the newspaper regularly PR… 1.1.2 Production Division:  Delivery Materials: Test sample: color, material labels, traceability  Delivery semi products: based on the form has specific instructions to avoid errors, communication must be drawings, documents, delivery time was faster than before  Delivery of finished products: labeling, packaging, 1% random check properly requested QMS products Benefit:  Increase revenues and increase profits based on business results of the month  Restrict push responsibilities between divisions  Reduce customer complaints   -32 Employee:  The Policies and regulation to personnel in accordance with applicable labor policy and the salary of state issued  Employee enthusiasm and responsible at working time  No employee would quit after the first year and after application of QMS  The questions asked of staff and only one opinion/on month Expanding:  Set out new shops in July and August + Hai Ba Trung St + Nguyen Dinh Chieu St + Vo Van Tan St Before and after QMS approach The Before Many mistakes from stitchers but the manager accepted (Customer complaint)   -33 Before 5S: Documents and goods not tidy   -34 After QMS approach (Quality control, TQM, Quality service ) Shop decoration   -35 Warehouse   -36 Office After QMS applied throughout the company, we have achieved great progress Each departments of the company have been set up standard procedures The financial situation of the company also improved markedly Staff care is better All of the above has led to the increasing in customers’ favourite and willing to stick with the company's products If we continue to apply QMS and improve processes, we believe the company will be elevated to a new height and in the future, we will be a QM international standard company, the pride of Vietnamese brands   -37 REFERENCES -   ISO 9000:2005, Quality management systems-Fundamentals and vocabulary, Geneva Switzerland ISO 9001:2008, Quality management systems-requirements, Geneva Switzerland ISO 19011:2002, Guidelines for quality and/or environmental system auditing, Geneva Switzerland Christina Koutra (2013), Quality and Human Resources, MQM-Open University of HCMC Vietnam -38 APPENDIX A STYLE FASHION Co, Ltd SOCIALIST REPUBLIC OF VI T NAM No: 135 /Q -TTNK-HCNS Independence-Freedom-Happiness Ho Chi Minh city, 09th Jan 2014 DECISION About: Establishment of the company’s ISO committee DIRECTOR OF STYLE FASHION Co, Ltd Based on the Decision No 144/2006/QD-TTg dated 20 Jun 2006 of the prime Minister about applying the quality management system following the TCVN ISO 9001:2000 Based on organizational structure of STYLE FASHION Co, Ltd, Based on the responsibilities and authorities of the director TO DECIDE: Clause To establish the ISO committee of STYLE FASHION Co., Ltd, to apply quality management system following the ISO 9001:2008 The committee consists of the following people: Permanent members:   Ms Phan Hong Yen Phuong - Director: Chief of committee Ms Nguyen Thi Thao Nguyen - Deputy Chief of committee Ms Le Thi Hong Yen - Secretary -39 Other members: Mr Nguyen Van Phuong - Member Ms Le Thi Minh- Member Ms Nguyen Thi Bich Thu - Member Ms o Xuan Huong - Member Ms Le Thi Le Thuyen - Member Ms Le Thi Mong Tuyen - Member Ms.– Phan Tuyet Hoa – Member Clause The ISO committee of the company has the responsibilities:  Planning to apply the quality management system at the company  Establishing and submitting the procedure to apply the quality management system  Building the audit plan, evaluating, controlling, maintaining and improving the policy and quality management system  Leading, monitoring and checking the processes of implementing quality management system following the ISO 9001:2008  Providing resources and facilities for implementing the quality management system  Solving the potential problems during the implement of quality management system Clause Ms Phan Hong Yen Phuong takes overall responsibility Ms Le Thi Hong Yen is responsible for documentation system Ms Nguyen Thi Thao Nguyen is responsible for training and internal audit Clause This Decision is effective from the day of approval Clause The related department and people named in this decision have responsibilities to follow the Decision Distribution: - DIRECTOR As clause 5; Filing at HR department PHAN HONG YEN PHUONG   -40 APPENDIX B EVALUATION RECORD FOR SHOP ASSISTANT Name of shop assistant ………………………………………Month-Year:…………… No Criteria Key Performance Indicators Not good