Vinamilk’s manufacturing system

BACH KHOA UNIVERSITY SCHOOL INDUSTRY MANAGEMENT Vinamilk’s Manufacturing System Student’s name: Hoang Minh Bao Tran - 1652624 Phan Thanh Cao Nha - 1552256 Nguyen Ngoc Tuong Vi - 1652697 Lam Hong Le - 1552193 Subject: Manufacturing System Professor: Dr Duong Vo Hung Contents I Introduction Milk is known to be a complete and ideal food for a long time that provides many nutritional values for society, enhances human health and intellect The demand for milk is increasingly focused and becomes the top concern of most people Understanding this demand of consumers, Vinamilk always performs the role of leading the supply of essential nutrients to millions of Vietnamese people, thus helping to build a good image and a quality brand that always ensures quantity and production process This report is intended to provide an overview of the Vinamilk, the analysis of the production system and the production planning in order to see the benefits and limitations of the process, thereby providing a reasonable remedy There are main purposes to this report: • To look overview about my subject – manufacturing system • To understand deeply what I have learnt (theory) and what happened in real life • To perform knowledge which I received after this subject II Company overview Introduction Vinamilk which stands for Vietnam Diary Products Joint Stock Company, was established in 1976 as the state-owned Southern Coffee-Diary According to the UN Development Program, it is the 15th largest company in Vietnam in 2007 Vinamilk has dominated approximately 75% of the milk market of our nation In addition to the strong distribution network which spread through 64 provinces with 183 distributions and 940000 points of sale, Vinamilk products are also exported to other countries such as The United States, France, Canada, Poland, Germany, and many more After almost 40 years of establishment and development, Vinamilk has become one of the leading corporations in Vietnam, continuously contributing to the development and prosperity of the country Vinamilk's subordinate units, consisting of branches, 13 factories, warehouses, and subsidiaries, have always been creative and constantly striven to take the brand to new heights Vision “To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products.” Mission Vinamilk commits to deliver the valuable nutrition to community with our respect, love and responsibility Core value To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products - Integrity: Integrity and transparency in actions and transactions - Respect: To have self-respect, to respect colleagues To respect the Company and partners To - cooperate with respect Fairness: To be fair with employees, customers, suppliers and other parties Compliance: To respect the established ethical standards and act accordingly Ethics: To comply with legal regulations, the Company’s Code of Conduct, and the Company’s procedures and policies Business philosophy The quality, innovation, and consumer demand are Vinamilk's most important companions, which are always prioritized on top They act with customer-centered approach and commit to respond to all their needs These factors could help Vinamilk to become one of the most favourite brands in every region and territory Picture Vinamilk’s Philosophy Vinamilk’s products + + + + + Liquid milk Including fresh, pasteurized, and UHT milk Main competitors: Dutch Lady Powdered milk Including powdered milk and nutrition powder Competitors: Dutch Lady, Abbott, Mead Johnson, Nutrifood, Dumex, Nestle Condensed milk Traditional products: Southern Star Sweetened Condensed Creamer, Longevity Sweetened + + + + + + - Condensed Milk Competitors: Dutch Lady Vinamilk yogurt Including UHT Drinking Yogurt, Probiotic Drinking Yogurt, Spoon Yogurt Having various flavors Cheese and Ice-cream Ice- cream is offered with various flavors Cheese is produced from French production line and has very high nutritious value Main competitor: Kinh Do Healthy beverages: + A strong brand which specializes in pure fruit juice, green tea, milk mixed fruit juice, soft drinks, and soya-bean milk + Main competitors: Tan Hiep Phat, Tribecco III Production process The production process refers to the stages (phases) required to complete a media product, from the idea to the final master copy The process can apply to any type of media production including film, video, television and audio recording The stages in each medium vary; for example, there is obviously no storyboard in an audio recording However the same general concepts work for any medium Vinamilk’s production process Vinamilk continuously launches new breakthrough products to expand the market This success comes from modern, advanced production processes, following strict standards of the following steps Employees who directly and indirectly participate in the production process must meet health, professional, capacity, professional and responsible requirements Firstly, at the breeding farm, VINAMILK selects the cows reaching the standard After being squeezed from the dairy farmer, fresh milk is quickly brought to the transfer station At the transfer station, the factory's quality control staff will conduct tests regularly at each morning and afternoon to analyze the precipitation, taste sensation, microbiological criteria, fermentation acid lactic Company will not purchase milk that contain antibiotic residues for the purpose of protecting the health of consumers Picture Raw fresh milk receiving area After going through quality check, measurement equipment and clarification, fresh milk will be sampled and poured into a cold storage system (150 m 3/s) at the transfer station Milk samples were coded and sealed before being transferred to the laboratory for analysis of dry matter, fat, protein, sugar content and freezing point Picture Cool tank With the modern equipment, VINAMILK can detect and prevent most cases of adding strange substances to milk (if any), the raw fresh milk will be processed through centrifugal bacteria separation (which removes the harmful bacteria and microorganisms spores), assimilation, pasteurization and get cooled down to degree Picture Centrifugal bacteria separation machine Then, the milk is transferred to a tank ready for UHT sterilization: Advanced Sterilization System heats the milk up to 140 degree, then the milk is quickly cooled down to 25 degree that contributes to retain the natural flavor and the nutritional components, vitamins and minerals of the product Picture UHT sterilization machine Milk is transferred to a sterile container for sterilization and sterile packaging Thanks to the combination of advanced processing technology, UHT sterilization technology and sterile extraction technology, the product can keep the taste fresh for months without preservatives Picture Filling system Automatic LGV robots will move the finished-goods pallet to the smart warehouse area In addition, LGV also moves the packaging roll and packaging materials to other machines automatically and recharge battery without human intervention Then Picture Automatic LGV robots The management of import and export goods is based on Wamas software The operating system is based on the Tetra Plant Master automation solution, which enables the integration of the entire plant from raw material to finished products and provides all the necessary data that the plant can continually improve its production activities and maintenance Especially, Wamas Warehouse Management System integrates ERP management system and Tetra Plant Master automation solution that bringing about smoothness in the operation of the plant with activities from production planning, raw materials to the finished product of the company Start Select cow breed, bring engineer to guide far Picture Wamas software and Tetra Plant Master automation After milking, the milk was tak transfer station conducting t analysis Sampling into a cold storage tank at the transfer station, coded by Take the amount of milk being tested into cold storage tank, und Transfer to a container ready for pro The LGV robot converts finished pallets to smart warehouse Tetra Plant Master automation system integrates ER Finish Picture Overview by diagram Advantages and disadvantages of process a Advantages - The process is self-contained, applying modern technology and advanced machinery Vinamilk's dairy production line possesses many technologies and machines such as centrifugal separator, UHT sterilizer, LGV robot, Stacker Crane to ensure the "sterility" of milk, keep the milk at highest quality - The harmonious combination of human factors and mechanical technology Not only focus on machinery, human factor is also taken care when they not entrust to the farm in raising dairy cows but control from the input, select the standard cow, assign engineer to guide people to how to raise dairy cows according to their standards - Strict controlling of the quality of output milk Each step in the production process is checked, measured again after completion to ensure milk quality b Disadvantages Outsourcing: Depends on the supply of milk from the farm outside c Solution Develop Vinamilk’s own dairy cow farms: Due to the fact that in their business, it is all about the quality of milk, Vinamilk should shift to produce their own milk to control well the input milk quality 10 IV Production Planning Production planning is the planning of production and manufacturing modules in a company or industry It utilizes the resource allocation of activities of employees, materials and production capacity, in order to serve different customers Activity Activity2 Farmers Activity Processing Raw milk production Distribution Retailers,stores Customers : Product line :Information line Imported raw :materials Cost line Picture 10 Vinamilk’s Production Planning Activity 1: Input supply of Vinamilk dairy company includes: imported and purchased raw materials from cattle farmers and domestic cattle farms Vinamilk gives priority to the selection of raw materials, technology and equipment from areas with advanced agriculture, standards and 11 requirements for quality assurance and food safety Material may be imported through intermediaries or directly from the United States, New Zealand, and Europe and then shipped to the factory For raw materials purchased from farmer raising cattle, fresh raw milk must undergo a rigorous quality inspection before being put into production through a milk collection station Milk purchased from farms must always meet the standards established by Vinamilk and domestic dairy farms Vinamilk is expected to continue importing premium breeds from Australia and the USA to meet the needs of new breeders Activity 2: Processing, Vinamilk collects raw milk from dairy farms and buys powdered milk from foreign partners (Fonterra, Hoogwegt…), then processes and packages for the various final products Activity 3: Vinamilk distributes goods through Phu Thai Group to agents, stores and consumers (the direct consumption of milk) Distribution Vinamilk has a strong and nationwide distribution network The strong channel development is partly attributable to its information technology tool ERP which has helped switch the firm from wholesaler to retailer, manage its inventory more precisely and improve its sale teams’ efficiency The firm is now trying to expand its channel to acquire more market share, especially in rural areas and small urban areas Vinamilk products are currently available in majority of supermarkets and retail outlets throughout Vietnam With the extensive distribution network, Vinamilk ensures that all customers in Vietnam can easily find and purchase its products Vinamilk products are also promoted in the most popular media and mass communication channels The advertisement films and images of Vinamilk products often have a playful tone, vivid images, light colours and unique messages which are easy to remember and access to all the senses of the customer, especially children V Conclusion In the current trend of integration and competition, in order to gain the competitive advantage the company needs to pay attention to technology investment in production not only for the quality but also the productivity and output of the company At the same time, Vinamilk should step up its activities to save money on machinery and waste 12 References • Saenger, C et al., “Contract farming and smallholder incentives to produce high quality: Experimental evidence from the Vietnamese dairy sector”, Agricultural Economics 44 (2013) 3, 297-308 • Vinamilk Supply Chain Management Project - Van M Vu V V? Follow - https://www.slideshare.net/ssuser17491c/vinamilk-supply-chain-management-project-van-m-vu? fbclid=IwAR2NgX0qT3kEGyRELABXQ08HiWQ9IfZFhKhCi4znxHdDDEyQ6NJJxPYR5VY • Yêu Cầu Quy Trình Sản Xuất Sữa Tươi Tiệt Trùng Của Vinamilk Giới Thiệu Về Công Ty Cổ Phần Sữa Vinamilk Hoang Truyen - https://www.academia.edu/23938454/Y%C3%8AU_C %E1%BA%A6U_1_QUY_TR%C3%8CNH_S%E1%BA%A2N_XU%E1%BA%A4T_S %E1%BB%AEA_T%C6%AF%C6%A0I_TI%E1%BB%86T_TR%C3%99NG_C%E1%BB %A6A_VINAMILK_1_GI%E1%BB%9AI_THI%E1%BB%86U_V%E1%BB%80_C %C3%94NG_TY_C%E1%BB%94_PH%E1%BA%A6N_S%E1%BB%AEA_VINAMILK? fbclid=IwAR39KbU_aZA7bR0tpof6cqv4bapn7pnOBmgJbbfnXJLLxouUSLio3_RjkqY • Tiểu Luận: Công Tác Quản Trị Chiến Lược Tại Công Ty Sữa Vinamilk https://tailieu.vn/doc/tieu-luan-cong-tac-quan-tri-chien-luoc-tai-cong-ty-sua-vinamilk454419.html • Production Planning, https://en.wikipedia.org/wiki/Production_planning • Vinamilk Dairy Product Catalog And Features Marketing Essay, Answers Ltd https://www.ukessays.com/essays/marketing/vinamilk-dairy-product-catalog-and-featuresmarketing-essay.php?vref=1 13 ... reasonable remedy There are main purposes to this report: • To look overview about my subject – manufacturing system • To understand deeply what I have learnt (theory) and what happened in real life... Vinamilk to become one of the most favourite brands in every region and territory Picture Vinamilk’s Philosophy Vinamilk’s products + + + + + Liquid milk Including fresh, pasteurized, and UHT milk... its production activities and maintenance Especially, Wamas Warehouse Management System integrates ERP management system and Tetra Plant Master automation solution that bringing about smoothness