Enhance the footwear vietnam development excellent in nike

1 HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM DUONG NGOC TUNG ENHANCE THE FOOTWEAR VIETNAM DEVELOPMENT EXCELLENT IN NIKE MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Tutor: Jacques Martin Ho Chi Minh City (2018) STATEMENT OF AUTHENTICATION I hereby declare that I have written this thesis independently, without assistance from my collages and classmate The knowledge is taken directly or indirectly from external sources are duly acknowledged in the text The material, either in full or in part, has not been previously submitted for grading in any course or any other academic institution Date Signature DUONG NGOC TUNG ACKNOWLEDGEMENTS This report cannot be successful without the knowledge support from the Business Quality and Performance Management Courses, specially thank to Professor Jacques Martin who support and guide myself from the initial project plan Nobody has been more important to me in the pursuit of this project than my family, supportive wife who gave me the inspiration ACADEMIC TUTOR AND PRACTICAL TUTOR’S COMMENTS AND APPROVAL SIGNATURE TABLE OF CONTENTS Page I II III IV I II III IV I II I ACRONYMS INTRODUCTION FOOTWEAR VIETNAM DEVELOPMENT SWOT ANALYSIS PART 1: Analysis of the Footwear Vietnam Development Problems Chapter 1: Statement of the Problems I Uncontrolled Project Time Line in overlap seasons II Over the Target Free on Board (FOB) of developing new footwear product III Missing tracking Materials, Shoes Testing, Fit/Feel and Long-Term Wear Testing IV Low the Footwear Sustainability Index (FSI) Chapter 2: Investigation root causes of the Problems I Uncontrolled Project Time Line in overlap seasons II Over the Target Free on Board (FOB) of developing new footwear product III Missing tracking Materials, Shoes Testing, Fit/Feel and Long-Term Wear Testing IV Low the Footwear Sustainability Index (FSI) PART 2: Solving the Footwear Vietnam Development Problems Chapter 1: Possible solutions to solve the problems I Enhance the Project Time line II Control the over Development Cost III Track back the Materials, Shoes Testing, Fit/Feel and Long-Term Wear Testing before production IV Support the Footwear Sustainability Index (FSI) Chapter 2: Performance improvement I The proposal Footwear Vietnam Development Excellent Strategy map II Build the Balance scores cards for Footwear Vietnam Development Excellent III Footwear Vietnam Development Excellent with KPI system CONLUSION REFERENCE ANNEXES 10 12 12 12 14 16 17 18 18 19 21 24 26 26 26 29 33 35 36 36 37 48 51 52 53 ACRONYMS BOM CA DET DR ETS EXT FDPA FMEA FSI FSR FX GTM IPW ITP KAPM KPI NLO NSW OCC PCC PEAC PFC PPW PRO RFC RPN SEV SPC TP WHQ X-FTY Bill of Materials Category Alignment Detection (in FMEA) Design Review Estimate Shipping Extreme sizes Trial First Day Production Audit Failure Mode Effect Analysis Footwear Sustainability Index Full Size Trial Freight Exchange Go to market Initial Production Week Initial Tech package Key Accountable Key Performance Index Nike Liaison Office Nike Sport Wear Occurrence (in FMEA) Product Creation Center Product Excellent Alignment Calibration Process Flow Chart Planning Production Week Product Read Out Ready for commercialization Risk priority number (in FMEA) Severe (in FMEA) Share Product Creation Tech package World Head Quarter Shipping date at the factory INTRODUCTION I have worked in the footwear development for 10 years, the current job is in Nike, the world’s largest seller of footwear, sportswear, clothing and sport equipment supplier that the World Head Quarter (WHQ) in Beaverton, Oregon, United States Nike started in January 1964 by Bill Bowerman and Phil Knight through at the time, the company was known as Blue Ribbon Sport, and then changed to Nike in May 1978 In June 15th, 2017, Nike Head Quarter, introduced the Consumer Direct Offense, a new company alignment that allows Nike to better serve the consumer personally In the new alignment, the company will drive growth by deeply serving consumers in 12 key cities, across 10 key countries: New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan These key cities and countries are expected to represent over 80 percent of Nike’s projected growth through 2020 (source: https://news.nike.com/news/nike-consumer-direct-offense) The Development team is the core team as WHQ development team (Developer, Designer and Marketing), calling as “Triad” team to support the process starts with Marketing’s ideas and concepts The Designer translates the ideas and concept into sketches The Developer who is the Project Management involves meeting the critical Gates and Dates, keeping the sample on-time These “Triad” are the key players that make sure the sample not only meet the consumer expectation as well as manufacturability The Asia Nike Liaison Office (NLO) in Vietnam, Korea, Taiwan, China and Indonesia are support both WHQ development and Product Creation Center (PCC) In Vietnam we have various functional departments including Planning, Development, Production, Costing and Sustainable teams supporting 14 Nike factory partners to ensure the manufacturing operations run smoothly, efficiently and effectively in terms of quality, productivity, cost and delivery There are types of Development Process in Nike: (1) Direct Development process: WHQ development team works directly with factory PCC with minimal support from the Asia team WHQ development team (Triad team) Asia NLO development team Figure 1: Direct Development process : Indirect working (consultant role) : Direct working Factory PCC team (2) WHQ development team works with factory PCC through the Asia NLO team, calling as Share Product Creation (SPC) WHQ development team (Triad team) Asia NLO development team Factory PCC team Figure 2: Share Product Creation Development process This report is mainly focused how to build the Footwear Vietnam Development Excellent through analysis the root cause of current problem and provide solution support factory PCC team in Share Product Creation (SPC) model development Nike Vietnam was established 22 years ago and has been growing dramatically to become the biggest countries of Nike sourcing and manufacturing operation, contributing nearly 50% sourcing (updated 2017) There are many teams involving the projects to support from WHQ team (Developer, Designer, Marketing, Engineer, Costing, Planning, Material) to Asia NLO (Developer, Material, Engineer, Chemical, Manufacturing Manager, Planning, Costing and Tooling) and PCC factory highly alignment with Nike side (WHQ team and Asia NLO): Figure 3: Development Organization in Vietnam Here are the flow charts in Development Stages, breaking down to key processes: Development Developers are Accountable Stage ITP from PCC Tear (Design WHQ Down Review- DR Meeting Stage, Category AlignmentCA Stage) BVTN CA Meeting Sample Shipping PCC 1st Pattern Trial Prepare for CA Feedback/ Comment Post to PCM Open tooling & Upper molds WHQ CFM 2D & 3D tooling PCC 2nd Pattern Trial Developers are Accountable Product Read Out(PRO Stage) CA WHQ Feedback/ Revision PCC Tear Down Meeting PCC 1st Pattern Trial Feedback/ Comment Post to PCM WHQ CFM 2D & 3D tooling PCC 2nd Pattern Trial BVTN CA Meeting Sample Shipping Prepare for PRO samples Tooling and Upper Revision/Re-Open Developers are Accountable BVTN Feedback/ Revision BVTN Release GTM BOM Go to Market(GTM Stage) Prepare for GTM (PFC Updating) GTM CFM Sample Shipping Tooling revision/ Re-open Sample Inspection/S hipping PCC Tear Down PCC Pattern Trial GTM POs Download NLO Offer GTM Qty The 2nd Pattern Trial PCC GTM new model introduction WHQ confirmed BVTN GTM Meeting Feedback/ Revised Pattern send to BVTN/PCM GTM Feedback & Revision Developers are Accountable Ready for Commercialization (RFC stage) WHQ release Re-RFC memo Model size Trial/ Simultaneous Trial Video Call with Offshore factory Model size Confirmed Feedback to BVTN/PCM Nike Asia release RFC memo, EXT, FSR can proceed Commercialization Stages (Extremize TrialEXT) (Full Size TrialFSR) Engineers are Accountable for these stages Developers to be Informed 10 FOOTWEAR VIETNAM DEVELOPMENT SWOT A SWOT Analysis outlines how these strengths which need support from the Sr Leadership, relate to the development department’s weaknesses, opportunities and threats Understanding insights on how development should go “from brief to box” as well as achieve the global goals STRENGTHS (S) Possible Strengths Response Is it Strength? Developers have the experience in With different functional roles, Yes different roles and countries hired expats in different countries Developers have rights easily to access Yes to the manufacturing to enhance the footwear knowledge Worldwide Networking thru current The system in place to Yes technologies maximize the connection Differentiation with other competitors Yes in term of the 2020 Sustainability Target commitment Globally WEAKNESSES (W) Possible Weaknesses Response Is it a Weakness? Opportunity to make the world smaller Each department has a Yes (combine and enhance the current different system, almost them internal different systems such as Last, didn’t talk together Costing, Materials and Chemical library into one database for Development Excellent) Level of understanding the Footwear Inconsistency and Limitation Yes Development Competencies for of trainings Developers OPPORTUNITIES (O) Possible Opportunities Response Is it an Opportunity? China Consumers demand for higher It is a potential market for the Yes quality footwear grows Revenue growth Male and Female consumers have Opportunity to invest the Yes totally different criteria when it comes Women Category to buying shoes 39 Financial results: Increase profitability through reduced FOB 1.1 Build the Opportunity Cost ($) by Stage: To be the leading Asia country, Vietnam NLO should have the lowest number in term of Opportunity cost ($) across Categories by stage and by season in comparison with Korea, China, Taiwan and Indonesia The Opportunity Cost means the amount of development budget that we may have a chance to reduce or saving in each stage It can define by Target Free On-board minus to current FOB (TFOB-FOB= Opportunity cost $) Workshop seasonally between Nike and footwear factories to study and standardize the method to minimize the percentage over TFOB In general, each category will have the target to meet Assuming the numbers show up as below for easy understanding: Table 10: Seasonal Opportunity Cost ($) Tracking Seasonal Opportunity Cost ($) Tracking Target: Vietnam Ranking #1 Season: Spring 18 Stage Category Vietnam Korea China Taiwan Indonesia Core NSW $150,000 $170,000 $250,000 $170,000 $150,000 Young Athlete $170,000 $160,000 $300,000 $1300,000 $210,000 CA Soccer Tracking Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Tracking Total $320,000 $330,000 $550,000 $400,000 $360,000 Core NSW Tracking Tracking Tracking Tracking Tracking Young Athlete Tracking Tracking Tracking Tracking Tracking PRO Soccer Tracking Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Tracking Core NSW Tracking Tracking Tracking Tracking Tracking GTM Young Athlete Tracking Tracking Tracking Tracking Tracking Soccer Tracking Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Tracking Core NSW Tracking Tracking Tracking Tracking Tracking Young Athlete Tracking Tracking Tracking Tracking Tracking RFC Soccer Tracking Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Tracking Country ranking Source: The proposal template by Tung Duong, 3/2018 1.2 Increase profitability through reduced FOB by Pattern Efficiency Project The Pattern Efficiency Report uses to manage the best netting cutting die by Pro-Cost system This tool can be used in each stage which can measure how many percentages that Vietnam reaches Global Pattern Efficiency Target across Categories by each development stage Assumption data below to easily understand: 40 Table 11: Seasonal Pattern Efficiency (%) meets Target Tracking Seasonal Pattern Efficiency (%) meets Target Tracking Target: Vietnam Ranking #1 Season: Spring 18 Stage Category Vietnam Korea China Taiwan Core NSW 98% 99% 87% 93% Young Athlete 97% 98% 92% 95% CA Soccer 98% 95% 95% 99% Core Performance 99% 98% 97% 98% Total 98% 98% 93% 96% Core NSW Tracking Tracking Tracking Tracking Young Athlete Tracking Tracking Tracking Tracking PRO Soccer Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Core NSW Tracking Tracking Tracking Tracking Young Athlete Tracking Tracking Tracking Tracking GTM Soccer Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Core NSW Tracking Tracking Tracking Tracking Young Athlete Tracking Tracking Tracking Tracking RFC Soccer Tracking Tracking Tracking Tracking Core Performance Tracking Tracking Tracking Tracking Total Tracking Tracking Tracking Tracking Country Ranking 1 Source: The proposal template by Tung Duong, 3/2018 Indonesia 95% 98% 97% 98% 97% Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking Tracking 1.3 Increase profitability through reduced FOB by Process Optimization Project before RFC stage The Process Optimization Projects are tracked by the total number of cost driving processes, Vietnam should have better scores in comparing with others The key model can be decided through review the Forecasts, Technology Difficulty (TD) Assumption data below to easily understand: CA PRO GTM RFC Number of Process Optimization Projects Table 12: Seasonal Process Optimization Project Tracking Seasonal Process Optimization Project Tracking (Number) Target: Vietnam Ranking #1 Season: Spring 18 Stage Vietnam Korea China 5 6 Taiwan Indonesia 4 6 41 Total in Season 24 19 Country Ranking Source: The proposal template by Tung Duong, 3/2018 24 18 20 2 Customers Perspective: Our consumers who buy Nike products, sale representatives and distributors 2.1 Enhance Customer Value: Understand what drives value for your customers, talk to them, survey them, and watch their actions and reactions In short, capture data to understand what is important to the customers and what opportunities to help them The value customers receive is equal to the benefits of a product or service minus its costs Annual Market Trip with WHQ team should conduct minimum one trip for each Category per year 2.2 On Time Delivery: Reduce development process and Long lead-time materials are critical However, the developer should be master in the timeline Management seasonal and provide highlight solutions right away if any development gate missing We align to the Nike Consumer Direct Offense allows better serve the consumer personally at scale Table 13: The Sample Delivery Tracking Report The Sample Delivery Tracking Report Target: 100% On-time delivery Season: Spring 18 Stage Category Vietnam Korea China On- time On-time On- time Core NSW On- time On-time On- time Young Athlete CA On- time On-time On- time Soccer On- time On-time Core NSW Ontime On-time Ontime Young Athlete PRO Soccer On- time On- time On- time On-time On- time Core NSW On- time On-time On- time Young Athlete GTM Soccer On- time On-time On- time On- time On-time On- time Core NSW On- time On-time On- time Young Athlete RFC Soccer On- time On-time Total model Late Shipping Country Ranking Source: The proposal template by Tung Duong, 3/2018 Taiwan Indonesia On-time On-time On-time On-time On-time On-time On-time On-time On-time On- time On- time On- time On- time On- time On- time On- time On- time On- time On- time On- time It can also be broken to downstream in each Category goal, sub tracking list and developed the to identify the root cause, in each factory 42 2.3 Right Price to the consumer It can be defined by how many percentages that product optimizes from initial FOB to RFC FOB It can be differentiated because the TFOB may be changed, the design or shoe construction may be also changed However, this capture to see how much the team effort on one product Since it is related to marketing job I recommend the Annual Market Trip with survey online or at the stores 2.4 Product friendly to the environment: Manage each pair of Shoes meet the Global Sustainability 2020 Target FSI in term of working better materials, low energy, less solvent chemical Workshop annually to ensure each developer upto-date the Category Target to focus on daily job Assumption data below: Table 14: Footwear Sustainability Index Tracking Report Footwear Sustainability Index Tracking Report Target: Ranking #1 for Vietnam Season: Spring 18 Category: Global Football (example) Stage Ranking Vietnam Korea China Taiwan GOLD 99% 97% 95% 98% SILVER 0% 3% 2% 1% CA BRONZE 1% 3% 1% GOLD 100% 96% 95% 100% SILVER 0% 3% 2% 0% PRO BRONZE 0% 1% 3% 0% GOLD 98% 97% 94% 98% SILVER 0% 3% 3% 1% GTM BRONZE 2% 3% 1% GOLD 100% 99% 95% 98% SILVER 0% 1% 3% 1% RFC BRONZE 0% 2% 1% Country Ranking Source: The proposal template by Tung Duong, 3/2018 Indonesia 98% 2% 98% 2% 98% 2% 100% 0% 2.5 High Quality Product: Ensure consumer satisfies with shoes when buy them Monitors the defect return (= return pairs/ total orders) from the markets Quarterly The country Ranking base on the lowest number of Quality Product Return end of Fiscal Year Assuming the data as below Table 15: Quality Product Return Report Quality Product Return Report Target: Minimum reduce 0.01% Quarterly Quarterly Update 43 Quarter Category Core NSW Young Athlete Core NSW Young Athlete Core NSW Young Athlete Core NSW Young Athlete Average per country Vietnam 1.21% 0.07% 1.01% 0.17% 1.00% 0.16% 1.10% 0.18% Korea 1.51% 0.09% 1.42% 0.06% 1.52% 0.07% 1.42% 0.06% China 2.01% 0.04% 1.96% 0.05% 2.01% 0.07% 1.99% 0.06% Taiwan 1.30% 0.17% 1.01% 0.08% 1.21% 0.09% 1.20% 0.08% Indonesia 1.21% 0.21% 1.42% 0.12% 1.32% 0.12% 1.31% 0.11% 0.6125 0.76875 1.02375 0.6425 0.7275 Country Ranking Source: The proposal template by Tung Duong, 3/2018 2.6 Brand Image Footwear Sustainability Index (FSI) should be enhance before the RFC stage The best evaluation stage is RFC in comparison with other countries We able to archive the 2020 Sustainability Global Target: 10% reduction in CO2 Ranking #1 for Vietnam Here is an example: Table 16: Seasonal Footwear Sustainability Index (FSI) Seasonal Footwear Sustainability Index (FSI) Target: Ranking #1 for Vietnam Season: Spring 18 Items Vietnam Korea RFC FSI scores meet target (%) 98% 99% RFC FSI Meet Deadline (%) 100% 100% Country Ranking Source: The proposal template by Tung Duong, 3/2018 Stage: RFC China Taiwan Indonesia 97% 98% 99% 100% 100% 100% 3 Internal Business processes: it relates to the business systems that insure the development, operation and stability of the business 3.1 Time line control process: Each developer monitors the project timeline at each stage, here is just the demo: Table 17: Project Timeline Tracking Report Project Timeline Tracking Report Model name: A (example) DEVELOPMENT EVENT Spring Summer (SP, SU, FA, HO seasons) Evaluation Evaluation CA- Event On-time On-time CA- Event On-time On-time CA- Event On-time On-time CA- Event On-time Late Factory name: B Fall Holiday Evaluation Evaluation On-time On-time On-time On-time On-time Late On-time Late 44 CA- Event Total Late Event Percentage of Late (%) Action Plan (Yes/No) (Yes, if % Late >=10%) On-time 0 No Late 20 Yes Late 40 Yes Late 60 Yes Source: The proposal template by Tung Duong, 3/2018 3.2 Footwear budget control processes Each developer monitors in detail the CBD, to make sure FOB vs TFOB within the range 10% As the WHQ triad team will review post-stage and there are many revisions in term of construction, materials and colors This report helps products stay on track each stage Here is the proposal template Table 18: Project Costing Tracking Report Project Costing Tracking Report Model name: A Factory name: B Season: Spring 18 Example: $0.97: Over TFOB 0.97$ ($0.93): Under TFOB 0.93$ Over FOB Percentage (%) Model code CA PRO GTM RFC $0.97 ($0.53) Model A Model B $1.77 $1.17 ($0.93) ($0.93) Model C Model D ($0.33) $0.23 Model D $1.15 ($2.07) Total model over TFOB Percentage of over TFOB 60 40 (%) Action Plan (Yes/No) Yes Yes (Yes, if % over FOB >=10%) Source: The proposal template by Tung Duong, 3/2018 Dropped ($0.73) $1.20 $1.20 S0.23 60 $0.22 Dropped $0.02 $0.20 40 Yes Yes 3.3 Proven and Tested that enhance customer value Leverage the current finish shoes inspection in their daily job before shipping Long term is keeping the training with “zero” defect concept Reinforce the materials and finish shoes Testing by tracking in Bi-weekly, strictly for any requested approve Product Exception due to some limitations Training annually to factories ensure whole team is continuously focused on Quality Create the check list as below and track every stage, which including Material tests, the completed shoes, Fit and Feel test and Long-term wear test seasonal (from CA Stage) Assumption data below, add comment to be followed any failure reason and missing result 45 Table 19: Proven and Tested Project Tracking Report Proven and Tested Project Tracking Report Model name: A P- Pass F: Fail, need add comment Factory name: B N/A: Not yet test Seasonally (4 seasons) Material testing items Leather Textile Synthetic New materials Shoes testing items CA P P F P PRO GTM RFC P P P P F P P P P P P P Aging P P P P QUV P P P P G97 P P N/A P Washing F F P P Shoe Flex P P P P Pull test P P P P China Flex Test N/A F P P Bonding P P P P Materials P P P P Fit/Feel Testing P P P P Long term Wear Test P P P P Percentage P 76.92 84.61 84.64 100 Percentage F 15.38 15.38 7.69 (Target: 0) Percentage N/A 7.69 7.69 (Target: 10%) Source: The proposal template by Tung Duong, 3/2018 Action comment if F - Comment add - Comment add - Comment add - Comment add Comment add Comment add 3.4 Enhance FSI (Footwear Sustainability Index) process: The solution was mentioned above, which get clear the Role and Responsibility each department Here is the proposal in term of performance management: (1) 100% on time (2) 100% meet Target Table 20: Project Timeline Tracking Report Project Timeline Tracking Report Model name: A Stage Factory name: B Seasonally (4 seasons), example Spring 18 FSI Component main cause Low FSI scores 46 FSI FSI Meet Meet Material Waste Solvent Energy Incentive Score Deadline Target (Yes/No) (Yes/No) CA No Yes x PRO Yes Yes GTM Yes Yes RFC No Yes x MBOM* Yes Yes Percentage 60 100 meet (%) Summary Add comment for Action Source: The proposal template by Tung Duong, 3/2018 As the description for each main cause above, if the FSI low score because Material for example The developer should look at the BOM (Bill of Material) to discuss and found out a solution such as change materials with better MSI (Material Sustainability Index) As the waste, it can be increased score by Pattern Efficiency which should review with an Engineer This report support for Vietnam general in term of Brand Image Learning and Growth 4.1 Enhance NLO footwear development skill: According to SWOT analysis, one of the weaknesses is “Inconsistency and Limitation of the understanding the Footwear Development Competencies for Developers” My recommendation is working with HR Management to build the individual developer Skill Matrix Target: Minimum trainings/ Quarter/each developer Table 21: Development Skill Matrix Development Skill Matrix Plan Developer Name: Duong Ngoc Tung Position: Developer Category: Young Athlete Fiscal Year: 2018 Development Skill Quarter Quarter Quarter Quarter Communication Influence Time Management Project Management Technology Exchange Program (Costing, Planning, Tooling, Engineer, ect…) Source: The proposal template by Tung Duong, 3/2018 47 4.2 Maximize the Vietnam Development Community According to SWOT analysis, “Opportunity to make the world smaller” is to connect footwear developer talents: Table 22: Vietnam Development Community Matrix Vietnam Development Community Matrix Plan Target: minimum activities / Quarter Imitative: Self-assessment by survey Quarterly Fiscal Year: 2018 Activity Quarter Quarter Quarter Quarter Exchange Role Benchmark Development workshop New Technology Sharing Development Skill Exchange (Product Creation Immerse Training – PCI) Source: The proposal template by Tung Duong, 3/2018 Applying the SECI model (Socialization, Externalization, Combination, Internalization) in Knowledge management to the Footwear Product Creation Immerse (PCI) Training with World Head Quarter (5 months) • • • • Tacit to Tacit (Socialization): Developer is sent to WHQ, daily working with triad team, learn how they work Based on the experience working with abroad, they can develop tacit knowledge for themselves Tacit to Explicit (Externalization): After successful this abroad trip, these developers can share what they have learned to their fellow Vietnamese colleagues to become their basis of new knowledge Explicit to Explicit (Combination): Based on the WHQ knowledge that has been shared, the other Vietnam developers can deliver better documents (such as training programs, best practice instructions) that suit their activities The new explicit knowledge is then disseminated among the members of the organization Explicit to Tacit (Internalization): explicit knowledge created and shared throughout development, then converted into tacit knowledge by individuals Each footwear developer can compile a development manual as a standard procedure for future references and to train new employees Table 23: Vietnam Development Community Indicator Indicator Target A number of the manual is Minimum one manual/ built, trained to the Year employee Source: The proposal template by Tung Duong, 3/2018 Timeline After graduation 48 4.3 Commitment to CFE (Coach for Excellent): Goal setting with Individual Development Plan tracking twice a year with line manager At the end of the year, the Target level are set such as Exceptional (120%), Highly Successful (110%), Successful (100%), Inconsistent (60%), Reject (under 50%) If any member is Inconsistent (60%) or Reject (under 50%), they will have 90 days to perform before Leadership make the decision It also helps each team focus on their goals and seek the support as needed 4.4 Leadership Skill: The senior leadership team will work with the HR director to create the Leadership Skill matrix I will leave this part because of the time limitation However, here are recommendations for footwear development: Table 24: Leadership Skill Matrix Leadership Skill Matrix Plan Developer Name: Duong Ngoc Tung Position: Developer Category: Young Athlete Fiscal Year: 2018 Indicators Description Target Timeline Leadership To get a baseline of the leader’s current skill time Per skills by levels based on input from everyone around (set up in Fiscal Conduct the leader and generate information and May Year 360degree reports that summarize the leader’s current annually) assessments performance level in footwear project management L.E.A.D Create the L.E.A.D project, which is designed time Per Project to support the Footwear Development (set up in Fiscal Excellent strategy It can take 90 days and December Year present to the Nike Vietnam Leadership Team annually) Source: The proposal template by Tung Duong, 3/2018 III Footwear Development Excellent in Vietnam with Key Performance Indicator (KPI) system Assumption the result below to simulate the proposal KPI system, they are under discussion with Nike Vietnam Leadership before implementing Table 25: Footwear Development Excellent in Vietnam with Key Performance Indicator (KPI) system No Financial KPI Freq Q1 Q2 Q3 Q4 Target The seasonally Opportunity Cost ($) Tracking Q 1 Ranking #1 Asia 49 Consumer Process 10 11 The seasonal Pattern Efficiency (%) meet Target Tracking The seasonal Process Optimization Project Tracking (Number) Annual Market Trip Recap The Sample delivery tracking report The Quality Product Return Report The Seasonal Footwear Sustainability Index (FSI), The Project Timeline Tracking Report (4 seasons) The Project Costing Tracking Report (4 seasons) The Proven and Tested Project Tracking Report (4 seasons) The Footwear Sustainability Index Tracking Report (4 seasons) Q 1 Ranking #1 Asia Q 1 1 Ranking #1 Asia Combination via Online, Offline survey It is more related to marketing role Y Q 0 0 Late Q 0.615 0.515 0.400 0.51 Minimum 0.01% reduce Q 2 #1 Asia Q 10.02% 8.01% 7.12% 8.12% Average Late =4 activities 110% *Exceptional (120%) *Highly Successful (110%) *Successful (100%) *Inconsistent (60%) *Reject (under 50%) 15 CFE Tool 16 SECI model (Socialization, Externalization, Combination, Internalization) People 17 Leadership skill matrix Times per Year - 100% Y Y Y Source: The proposal template by Tung Duong, 3/2018 Acronym: Freq Frequency Y Yearly Q Quarterly - >=1 manual sharing/ graduated developer 360degree assessments L.E.A.D Project Assignment 51 CONCLUSION During the analysis the current problems of Vietnam Footwear Development in Nike, I have found that all development stages need the Key Performance Index (KPI) to monitor processes, activities I have applied some Quality tools and Knowledge gained during the course trainings to support the proposal strategy “Leading country in Asia to be the Footwear Development Excellent in Vietnam”, The most challenging here is that capturing proposal performance management reports into one system and continuously monitor them Quarterly The next steps are going to present to the Nike Vietnam Leadership to get green line and commitment in Fiscal Year 2019 (starting from June 2018) 52 REFERENCE Strategy and Business Environment, Dr Jacques Martin, Solvay Brussels School Of Economics & Management- Chapter 2: Business Environment Process management course, Professor Michel Brotto, Solvay Brussels School Of Economics & Management- Chapter 3: Data collection, ranking and decision making tools; Chapter 6: Quality Risk Prevention; Performance evaluation and continuous improvement, Dr Antigoni Papadimitriou, , Solvay Brussels School Of Economics & Management- Chapter 3: Measurement of performance Nonaka, I (1991), The knowledge Creating Company, Harvard Business Review Publisher Some websites: http://openarchive.cbs.dk/bitstream/handle/10398/7101/wp58%20doing%20business% 20in%20vietnam.pdf?sequence=1 https://bia.ca/5-key-factors-to-successful-strategic-planning-2/ https://help-en-us.nike.com/app/answer/a_id/113 https://www.investopedia.com/terms/b/balancedscorecard.asp https://www.isixsigma.com/tools-templates/fmea/avoid-failure-when-using-failuremodes-and-effects-analysis-fmea/ https://www.tutorialspoint.com/knowledge_management/knowledge_management_met rics.htm 53 ANNEXES Some Costing basic calculation information should know as below: (Material Base Price + Upcharge + Landed Cost) × Freight Exchange = Factory Landed $ Cost Net + Waste = Gross Factory Landed $ Cost × Gross = Gross Cost Gross Cost + Defective Loss Cost = $ Cost Source: From Internal Nike document Footwear Product Brief: Source: https://andykomara.com/2014/10/26/nike-zoom-kyrie-i-footwear-design-productbrief/) ... 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