Recommendations for improving yellow phosphorus inspection in dai viet inspection and service joint stock company

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: LUU PHUONG LINH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS FOR IMPROVING YELLOW PHOSPHORUS INSPECTION IN DAI VIET INSPECTION AND SERVICE JOINT STOCK COMPANY HAI PHONG – 2015 MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: LUU PHUONG LINH CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS FOR IMPROVING YELLOW PHOSPHORUS INSPECTION IN DAI VIET INSPECTION AND SERVICE JOINT STOCK COMPANY Supervisor: Pham Thi Yen Division: Logistics Faculty: Economics HAI PHONG – 2015 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Preface I declare that this report is my own unaided work It has not been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University Student Name and Signature Luu Phuong Linh LuuPhuong Linh – GMA 02 Page i Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Acknowledgement I have strived to complete this dissertation; however, it would not be performed without the support and help from many individuals and organizations I would like to extend my sincere thanks to all of them First and foremost, I would like to express my sincere gratitude to my advisor – Pham Thi Yen for the continuous support of my dissertation, for their patience, motivation, enthusiasm, and immense knowledge Their enthusiastic guidance helped me in all the time of thesis implementation I could not have imagined having a better advisors and mentors for my study Second, I would like to express my gratitude towards people of Dai Viet Inspection and Service Joint Stock Company, especially Industrial Department for their kind co-operation which helps me to finish this project Finally, my thanks also go to lecturers of Vietnam Maritime University, my friend and my family who helped me completes this thesis LuuPhuong Linh – GMA 02 Page ii Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Table of contents Preface i Acknowledgement ii Table of contents iii List of abbreviations v List of tables vi List of figures vii Introduction 1 Necessity Research object Research scope Research Methodology .2 Research finding .2 The contents of the dissertation Chapter 1: Literature review 1.1 Introduction about Inspection 1.1.1 Definition about Inspection Service 1.1.2 Definition about Cargo Inspection Service 1.1.3 Categories of Inspection Service .4 1.1.4 Role of cargo inspection service 1.1.5 Inspectors .7 1.2 Inspection certificate .8 1.2.1 Definition .8 1.2.2 Some general requirements of inspection certificate 1.2.3 Legal validity of inspection certificate .9 1.2.4 General content of inspection certificate 10 1.3 Inspection contract 11 1.3.1 Definition 11 1.3.2 Classification 11 1.4 The basic methods of cargo inspection 12 1.4.1 Methods of specification and quality inspection 12 1.4.2 Methods of detailed quantity inspection 13 1.4.3 Methods of trade volumes inspection 13 1.4.4 Methods of inspection following draft survey 13 1.5 The general process of cargo inspection 15 1.5.1 Receiving and examining inspection requirements 15 1.5.2 Reviewing capabilities, technical and implementation conditions 16 LuuPhuong Linh – GMA 02 Page iii Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company 1.5.3 Accepting or rejecting the inspection 16 1.5.4 Offering inspection fees 16 1.5.5 Implementing inspection operations 16 1.5.6 Granting inspection certificate and recordkeeping 17 Chapter 2: Evaluation about yellow phosphorus inspection at Dai Viet Inspection and Service Joint Stock Company 18 2.1 Introduction about the Dai Viet Inspection and Service Joint Stock Company 18 2.1.1 General information about Dai Viet Inspection and Service Joint Stock Company 18 2.1.2 Organizational Structure 19 2.1.3 Personnel 19 2.1.4 Overview about inspection services of Dai Viet Inspection and Service Joint Stock Company 22 2.1.5 Results of business activities 25 2.2 Evaluation about yellow phosphorus inspection at Dai Viet Inspection And Service Joint Stock Company 26 2.2.1 Characteristic of yellow phosphorus and inspection purpose 26 2.2.2 The necessary documents in yellow phosphorus inspection process 27 2.2.3 Yellow phosphorus inspection process of Daivietcontrol 29 2.2.4 Evaluation of yellow phosphorus inspection in Daivietcontrol 39 Chapter 3: Recommendations for improving the yellow phosphorus at Dai Viet Inspection and Service Joint Stock Company 46 3.1 Service quality 46 3.2 Facilities and infrastructure 46 3.3 Customer policy 47 3.4 Cooperative relations 47 3.5 Personnel Source 48 3.5.1 Recruitment 48 3.5.2 Training 48 3.5.3 Job specialization and job rotation 49 3.5.4 Remuneration 50 Conclusion 51 Reference 52 Appendices 53 Inspection Order 53 Survey report 53 Yellow phosphorus inspection guideline document 53 Final container record 53 Booking receipt notice 53 LuuPhuong Linh – GMA 02 Page iv Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company List of abbreviations API American Petroleum Institute ASTM American Society for Testing and Materials BoA Bureau of Accreditation BVQI Bureau Veritas Quality International Daivietcontrol Dai Viet Inspection and Service Joint Stock Company FAD The Food and Drug Administration ISO 9001 International Standard Organization 9001 L/C Letter of Credit QUACERT Metrology and Quality – Vietnam Certification Centre TCVN ISO/IEC General Standards 17020:2012 organizations TCVN for the operation of inspection ISO/IEC General Requirements for the competence of testing and 17025:2005 calibration laboratories VIAS Vietnam Inspection Accreditation Scheme LuuPhuong Linh – GMA 02 Page v Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company List of tables Table 2.1: Positions and Responsibilities of all Departments in Company .20 Table 2.2: Results of business activities 25 Table 2.3: Yellow phosphorus inspection process of Daivietcontrol 30 Table 2.4: Business Activities Result of Daivietcontrol from 2010 to 2014 40 Table 3.1: Job specialization 49 LuuPhuong Linh – GMA 02 Page vi Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company List of figures Figure 1.1: Process of draft survey 14 Figure 1.2: General process of cargo inspection .15 Figure 2.1: Organizational chart .19 Figure 2.2: Maritime Inspection .22 Figure 2.3: Machinery and necklaces survey 22 Figure 2.4: Inspection of aquatic products 23 Figure 2.5: Sampling .23 Figure 2.6: Inspection of general cargoes .24 Figure 2.7: Yellow phosphorus 26 Figure 2.8: Phosphorus drum 27 Figure 2.9: Yellow phosphorus inspection stages 29 Figure 2.10: Canon IXUS 160 33 Figure 2.11: Litmus paper 33 Figure 2.12: Tape measure .33 Figure 2.13: The ratio of expenses over revenue 41 Figure 2.14: The rate of profit over revenue 42 Figure 2.15: The number inspection case .43 LuuPhuong Linh – GMA 02 Page vii Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Introduction Necessity In the process of international economic integration, commercial contract increases constantly,leading to the development requirements of goods assessment activities in Vietnam Joining the World Trade Organization (WTO) and signing Free Trade Agreement (FTA) of Vietnam are an opportunity to open Vietnamese market, expand partnerships with other nationson the world At that time, competition of Vietnamese inspection market increasingly fierce, between domestic inspection organizations, between domestic and foreign inspection organizations Besides, the development of science and technology led to the requirement for the higher inspection service quality There are huge problems of inspection organizations in Vietnam in general, and of Dai Viet Inspection and Service Joint Stock Company in particular.The higher inspection service quality and improving of inspection process for competing are unsolvable problem of Dai Viet Inspection and Service Joint Stock Company Furthermore, phosphorus is one of the important basic elements, which are widely used in the chemical industry, as raw material of fertilizers, detergents and is used in some other food industries… According to The Essential Chemical Industry online, yellow phosphorus is the most commercially important, accounting for 99% of demand worldwide Due to the important features of yellow phosphorus, yellow phosphorus is a valuable commodity in the use in domestic andexport.Manufacturing phosphorusin Vietnam has been focused by state in in the investment and development Therefore, phosphorus inspection market is a potential market, tending to develop similar manufacturing phosphorus From the above issues, I decided to research the subject: “Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company” with the desire to learn the yellow phosphorus inspection of the Dai Viet Inspection and Service Joint-Stock Company, and give suggestions to improve yellow phosphorus inspection for company development in competitive inspection market Luu Phuong Linh – GMA 02 Page Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company From 2010 to 2014, the number inspection case of phosphorus inspection accounted for 25 – 30% of total cargo inspection case, and being more than half compared with general cargo inspection 4,000 3,500 3,000 The cases number of cargo inspection 2,500 The cases number of general cargo inspection 2,000 1,500 The cases number of phosphorus inspection 1,000 500 2010 2011 2012 2013 2014 Figure 2.15: The number inspection case Source: Accounting Department (2015) These data indicate that yellow phosphorus inspection is potential service with high revenue, profit and low cost Although highly profitable,the number inspection case of this service is still low, accounting for only 25 – 30% of total cargo inspection case Company should consider developing yellow phosphorus inspection service when yellow phosphorus production and export are being national attention 2.2.4.2 Evaluation about yellow phosphorus inspection process a Advantage of phosphorus inspection - Inspection methodologyand procedure Through the process of evaluation, implementation methods of inspection service of Daivietcontrolguaranteed to comply with TCVN ISO/IEC 17020:2012,from stage of receive guidance, checking inspection order, working at field to stage of granting the Survey Report - Profile Luu Phuong Linh – GMA 02 Page 43 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company The company had done well to create and maintain profiles following the standards of Vietnam Inspection Accreditation Scheme (VIAS) issued in 2008 This standard required about profile as: Assessment organization must maintain a profile system in accordance with relevant laws and actual conditions Profile should include sufficient information to allow proper appreciation for the assessment - Equipment Equipment and facilities equip fully, ensuring quality and safety for phosphorus inspection,including:  Camera (Canon IXUS 160) (25 cameras)  Litmus paper  Tape measure (5 tapes)  Clothing, gloves, fireproof boots, and poisonous mask (4 set) - Staff The company has young and enthusiasm staff who are graduated from university/college with high level of English and computerization (office staffs have English certificate of 500 TOEIC) This helps staffs meet the job equipment when theycontact and receive foreign inspection order b Disadvantage of phosphorus inspection - Office staffs In theory, there are5 office staffs, including staffs of industrial departmentand staffs of maritime department.3 staffs of industrial department did the paperwork for industrial department and staffs of maritime department did the paperwork for maritime department However, in fact, office staffsdid all work of two departments, did not have discrimination at work, leading to reduce the productivity of work This is the cause of the delay in reviewing contracts, responding the inspection order of customers, and making survey report - Field staffs Inspectors who know about the yellow phosphorus inspection are not much, 3/21 people, about 14.3% of total industrial department staff In particular, there are Luu Phuong Linh – GMA 02 Page 44 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company people reaching standard following article 259 of the Commercial Law in 2005 – general standard about inspection A person did not meet standard about: Having at least three years working in the goods/services inspection field Moreover, professional qualification of staff is drawn when working long time at field, doing not train, having not certification Trainees or new inspectors for yellow phosphorus inspection did not participate in professional training courses, just learnt when worked at field or learnt from experiences of old inspector of company - Errorsin the making inspection certificate Because of a lack of people to recheck survey report, information on the report was confused For yellow phosphorus survey report, people making, checking, signing survey report was chief of department – Mr Dinh Van Bien,but no one else rechecked information on report, so report had errors in some case - Remuneration Company has not much remuneration for employee as company has not subsidies on special occasions, annual tourism program, cultural and sports activities and so on This affects “brain drain” in company Some senior leaders changed to other company which has high salary with attractive remuneration policy The firm will be passive in organizing and training workers Luu Phuong Linh – GMA 02 Page 45 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Chapter 3: Recommendations for improving the yellow phosphorus at Dai Viet Inspection and Service Joint Stock Company 3.1 Service quality Quality of service is the most important policies in the business of company In order to have more orders, maintain the company's lasting reputation and business effectively, the quality of services must be taken attention and focus Service quality must be assurance on numerous areas, but with Daivietcontrol, it summed up in the motto to serve customers of the company is "accurate, honest and timely." To improve service quality, the company should also prioritize improving inspection skills on top Therefore, the requirements of the training program, training and associated training with foreign reputable inspection company (SGS, Nippon KaijiKenteiKyokai companies…) should be focused To achieve the guideline set out above; in addition to pay attention to organizational elements, human resources, facilities and technical Daivietcontrol should strictly follow quality management system (ISO 9000, ISO 17025, and ISO 17020), process of assessment methods, management and strict control procedures for evaluation The company must also continuously improve the quality management system, professional management expertise, and should take it as the foundation to create quality service 3.2 Facilities and infrastructure Equipment for yellow phosphorus inspection of Daivietcontrolis very complete inspection operations and in terms of safety To maintain and improve service quality and operational efficiency, company should focus on equipment maintenance, and replacement of old, malfunctioning equipment Yellow phosphorus inspection is potential service in the near future So, company will expand the types of services, inspection not only about condition of phosphorus packages and container, but also yellow phosphorus quality Hence, company will build laboratory reaching standard of TCVN ISO/IEC 17025:2005 Luu Phuong Linh – GMA 02 Page 46 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company 3.3 Customer policy Customer is a prerequisite for the success of the company Therefore, Daivietcontrol needs to establish customer service department for creating good relationships with their customers, support and assistance their requirements in the process and implementation inspection as well as the steps then In their operations, the company must is always interested in creating favorable conditions for customers in preparation procedures for inspection requirement and must always maintain proper attitude, create goodwill with customers Company also need to give some specific regulations to apply to handle breaches in relations with customers, and should set up a telephone hot line to receive feedback from our customers, to help companies detect and fix the shortcomings in time To improve the quality of services to create customer satisfaction, Company must regularly obtain information from customers to determine if their content inspection can meet the current requirements of the customer or not, which changes to suit their needs 3.4 Cooperative relations Any company that wants to grow and have a large and sustainable market must establish their relationship with the Government, with the authorities and with other assessment organizations to enlist the help and cooperation to create favorable conditions for their business operation In addition to strengthening the relationship closely and appropriate attitude for import and export businesses, Daivietcontrol should maintain friendly relations, often with the authorities of the State in both central and local Close and friend relations with the State management agencies will help the company solve many of the policy issues such as investment policy, and will receive the support and advantages for the Company in the open inspection services operators Such as, company often communicates with Directorate for Standards, Metrology and Quality in order to find information for service development Company must regularly strengthen international cooperate and regular contacts and further strengthen existing relationships with foreign colleagues as FOCUS; while expanding relationships with new assessment organizations in major markets as the Luu Phuong Linh – GMA 02 Page 47 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company US, Russia, EU, China and other countries in the ASEAN region on the basis of mutual benefit to joint ventures, signed business cooperation contracts, entrustment assessment contracts and support staff training inspector of Daivietcontrol 3.5 Personnel Source 3.5.1 Recruitment The recruitment is organized according to the objectives and requirements of business development strategy of the company The standards for the recruitment of phosphorus inspection: - Labors areVietnam people, who were domestic or foreign university/college - graduates For inspector:Labors have expertise in phosphor inspection, have experience of working in a laboratory or have major related to the phosphorus inspection - For office staff:Labors have in foreign languages and office informatics certificates Programs for undergraduate students: trainee program with the goal of creating opportunities for students to become familiar with the professional work environment in the company and prepare a team of skilled professionals in the long term 3.5.2 Training Human is most important factor determining the success or failure of all the activities of an organization So Daivietcontrol must have qualified leadership, professional staff, management staff and assessor, with good moral character, passionate, responsible for the job In order to that, company must focus on training, retraining, additional training knowledge for staffs, inspectors on a basis regular and effective Pay particular attention to training and building leading inspector team to serve as the core for the main field of inspection of the Company The company also needs to improve the management of technical and professional, continuing training and self-training in a basically, focusing on providing specialized knowledge for inspector; encouraging employees to actively study and regularly update their knowledge, especially professional inspection and foreign language skills of inspectors and staffs of the Company Luu Phuong Linh – GMA 02 Page 48 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Firstly, company should cooperate and associated training with universities, colleges and vocational schools across the country as Haiphong University, Hanoi University of Industry, Vietnam Maritime University to train inspector team in a professional manner Secondly, the company also strengthens contact activities, improve experience, and build relationships long-term cooperation with many leading inspection companies at home and abroad, such as Vinacontrol, SGS, and NipponKaijiKenteiKyokai… to learn their experiences in the implementation of phosphorus inspection process in order to enhance yellow phosphorus inspection Namely, every months, Daivietcontrolshould appoint a team of phosphorus inspectors to attend some course of the famous domestic inspection organizations such as Vinacontrol, Technical and Safety Inspection Center Each year, Daivietcontrol should invite professional inspectors, especially phosphorus inspectors, of SGS, Nippon KaijiKenteiKyokaito exchange their experiences.Moreover, every months, Daivietcontrolshould organize inspection course for new inspectors in order to enhance inspection skill andupdate knowledge Finally, manager and department chief should participate in training courses on management to improve quality management of company 3.5.3 Job specialization and job rotation The company needs specialized work, especially office work to increase production efficiency This is also a necessary condition when company expands Namely, company needs: Table 3.1: Job specialization No No of people Task 1 Receiving inspection order, reviewing about capacity of company 2 Contacting with customer, offering inspection fee Planning and arranging inspectors for inspecting 3–4 inspection Handling and making survey report Checking survey report Luu Phuong Linh – GMA 02 Page 49 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Responsible of department chief ismanaging, monitoring and evaluating the job performance of staff In addition, department chief should have reasonable job rotationafter a period of job specialization to reduce the boredom on the job, and maintain productivity 3.5.4 Remuneration On the general regulations of the company, the inspection management unit should actively specify wages policy and rewarding regime appropriate for the excellent inspection staff to encourage working spirit of everyone in the company, to create a dynamic working environment, encourage the development of the capacity of each member of the company Company should have subsidies on special occasions, annual tourism program, cultural and sports activities For the officials violated rules, the company will also need categorical sanctions regime promptly.To so, Daivietcontrol may retain talent, avoiding "brain drain", skilled workers move to other assessment organizations Luu Phuong Linh – GMA 02 Page 50 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Conclusion Yellow phosphorus inspection is one of important factors to determine the reality condition of goods It plays an important role not only in determining the actual status of the consignment on the quantity, quality and specifications, but also in ensuring national prestige on the international market when country exports abroad or imports into the country Through research on the status of Daivietcontrolyellow phosphorus inspection, I noticed that there are many advantages of company such as reputable company in the market inspection in Haiphong, various types of inspection,experienced and professionalinspectors However Daivietcontrol also reveals many restrictions on operations management inspection as lack of equipment, insufficient human resources to meet the needs of company and so on Building andimproving theyellow phosphorus inspection of Daivietcontrol are an important step for the company confirming its position to against the domestic and foreign enterprises in the market at the period of Vietnamese integration process In the future, Daivietcontrol should promote further the existing potentials, limitations to stand and reach successful and higher of international standards Through this thesis, I hope that I will help to shed more light on the status of activities in Daivietcontrol, thereby offering useful recommendations for improve the efficiency of Daivietcontrolyellow phosphorus inspection in Vietnam market as well as international market Luu Phuong Linh – GMA 02 Page 51 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Reference BoA (2011) Categories of Inspection Company, D V (2012) Handbooks Haiphong: Dai Viet Inspection and Service Joint Stock Company Company, V J (2010) Handbooks Haiphong: Vinacontrol Joint Stock Company Directorate for Standards, M a (2012) General standards for the operation of inspection organizations – TCVN ISO/IEC 17020:2012 HarperCollins (2012) Collins English Dictionary Glasgow Justice, M o (2005) Commercial Law in 2005 Justice, M o (2006) Decree No 20/2006/Decree – Government NSW, C S (2014) Consulting Surveyors NSW Retrieved September 22nd, 2015, from What is a Surveyor?: http://www.acsnsw.com.au/content/231/what-isa-surveyor.aspx Vinacert (2013, June 7th) Survey - Report Survey Retrieved October 1st, 2015, from Vinacert Certify and Survey Joint Stock Company: http://www.vinacert.vn/giam-dinh-va-chung-thu-san-pham-cua-hoat-donggiam-dinh_info.html Vinacert (2013, June 11th) Survey - Role of cargo inspection service Retrieved September 20th, 2015, from Vinacert Certify and Survey Joint Stock Company: http://www.vinacert.vn/vai-tro-cua-hoat-dong-giam-dinh-thuongmai_info.html Luu Phuong Linh – GMA 02 Page 52 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Appendices Inspection Order Survey report Yellow phosphorus inspection guideline document Final container record Booking receipt notice Luu Phuong Linh – GMA 02 Page 53 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Luu Phuong Linh – GMA 02 Page 54 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Luu Phuong Linh – GMA 02 Page 55 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Luu Phuong Linh – GMA 02 Page 56 Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company Luu Phuong Linh – GMA 02 Page 57 ... yellow phosphorus inspection at Dai Viet Inspection and Service Joint Stock Company Chapter 3: Recommendations for improvingtheyellow phosphorus inspection atDai Viet Inspection and Service Joint. .. ? ?Recommendations for improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint Stock Company? ?? with the desire to learn the yellow phosphorus inspection of the Dai Viet Inspection. .. about yellow phosphorus inspection at Dai Viet Inspection and Service Joint Stock Company 2.1 Introduction about the Dai Viet Inspection and Service Joint Stock Company 2.1.1 General information