Quality improvement on installation and management of laboratory at vietnam energy inspection corporation

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM ĐỖ ĐỨC THÀNH QUALITY IMPROVEMENT ON INSTALLATION AND MANAGERMENT OF LABORATORY AT VIETNAM ENERGY INSPECTION CORPORATION MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2018) HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM ĐỖ ĐỨC THÀNH QUALITY IMPROVEMENT ON INSTALLATION AND MANAGERMENT OF LABORATORY AT VIETNAM ENERGY INSPECTION CORPORATION MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Tutor: Jacques Martin Ho Chi Minh City (2018) Authenticity I certify that the final project of Master of Business Quality and Performance Management titled “Quality Improvement on Installation and management of laboratory” is my own work and has not been present elsewhere for assessment except materials from other reference sources Do Duc Thanh 24 March 2018 Acknowledgement I would like to thanks all professors of MBQPM6 program, who taught much Quality Management Knowledge and inspired me of making this useful dissertation for my career TABLE OF CONTENTS INTRODUCTION: VIETNAM ENERGY INSPECTION CORPORATION WHY THIS INSTALLATION AND MANAGEMENT OF A LABORATORY IS IMPORTANCE Part 1: installation and management of the laboratory CHAPTER 1: IN THE INSTALLATION (SET UP) LABORATORY 1.1 Geographical location 1.2 Human resource management 12 1.3 Selection standard method of testing 13 1.4 Budget 15 CHAPTER 2: Laboratory Management (Lab operation) 19 2.1 Quality management in conformity with ISO 17025 19 2.2 Monitor the reliability of testing methods: repeatability, reproducibility 23 2.3 Applying Process manager tool to control repeatability & Reproducibility values of testing process 24 2.3.1 Monitoring repeatability for water determination in Diesel Oil 24 2.3.2 Sulphur in Gasoline 26 2.3.3 Calculation relative density for Liquefied Petroleum Gas 29 2.4 Some problems in managing laboratory 33 PART 2: THE LABORATORY PERFOMANCE 35 CHAPTER 1: MONITORING PERFOMANCE 35 3.1 Solving managing problems 35 3.2 Building Key Performance Indicators for Laboratory 36 3.2.1 Balance scorecard for laboratory 36 3.2.2 Key Performance Indicators for Laboratory Operation 39 CHAPTER 2: PERFORMANCE IMPROVEMENT 45 4.1 Implementing Lean Production in Laboratory 45 4.2 Applying Laboratory Information Management System Software – LIMS 46 4.3 Estimate the improvement in performance 47 CONCLUSION 48 REFERENCE 49 INTRODUCTION: VIETNAM ENERGY INSPECTION CORPORATION Vietnam Energy Inspection Corporation (EIC) - a member of Vietnam National Oil and Gas Group (Petro Vietnam) – founded in 2008, gathering hundreds experts and specialist, professional and qualified staff from the oil and gas and other industrial sectors Thanks to their expertise and diligence, EIC have successfully performed specialized service related to the project quality management, consultancy, quality control and assurance to ensure risk free and integrity of the Petro Vietnam assets as well as Health, Safety and Environment for all oil and gas activities covering up – mid and downstream; The name EIC have become familiar and close to the owners, operators and contractors working in oil and gas sector in Vietnam Also proved by the presence of EIC professional staff in most of oil and gas project, particularly for the important project of Petro Vietnam, namely Dung Quat Refinery, VietSo Petro, Offshore Oil and Gas Projects, Gas Thermal Power Plants, Oil and Gas Terminals, etc … Through its cooperation with global partners and corporate network EIC have focused in new technology to provide its clients with advanced solution and complete process equipment, technical service and specialty materials serving for their needs to develop a project in every stage from a conceptual design up to operation Base on Knowledge, Procedures and Laboratories we are confident to satisfy our Clients requirement where Quality- Health- Safety and Environment are vital This is also a mandate for EIC staff in building the core values of EIC Following the Petro Vietnam Energy Development Program in future, EIC have set its development target to meet the higher and more challenging requirements of our clients EIC now have six branches with a team of 200 qualified and professional senior managers, surveyors and staffs in various fields and industries Three petroleum analysis laboratories certified in conformity with the national standard (VILAS) alongside of the country Many services provided by EIC in variety of fields such as quality and quantity inspection of gasoline, diesel, jet A1, LPG, CNG, LNG and others petroleum products, chemical products; management and analysis sample; measurements and calibration; marine inspection and damage evaluation Customers of EIC are diverse and widely, from companies that need mediate organization to protect the asset value of their physical property and goods to insurance, transportation, financial corporations From recent years, with many success and achievements gained, EIC considered the most steady and fastest development company in the petroleum inspection section In the globalization context, there are a lot on competitions from international company like Intertek, SGS, but we confidence in competition and believe in making business progress SERVICES AND PRODUCTS INSPECTION, SURVEY AND ASSET EVALUATION EIC has been recognized and highly appreciated by its clients for enhanced quality and innovative services The survey, inspection, verification and asset evaluation services are performed in an independent and accurate manner: Oil, Gas and petrochemical Inspection Machinery and commodities Inspection Marine and Technical Property Surveys Ship & Terminal Vetting and Audit Technical inspection for safety of machinery, equipment material and substances with has strictly requirement as stipulate in the laws and regulations Lab & Analytical Services Construction Quality Inspection Industrial & Technical Services VISION To become one of the leading group in providing the clients in energy sector with expertise, quality services, creative technological solution in both local and global markets MISSION Innovating in advertising and marketing, after sale services and customer services Innovating in management, training and developing human resource Renewing equipment and devices, applying innovation of science and technology CORE VALUES Professional - Value Added - Efficient - Innovative - Cost Effective ORGANIZATION CHART Share Holders Board Directors Board Quang Ninh Branch Hai Phong Branch Energy Departmen t Analysis Center Financial Departmen t Marine Department HRM Department Dung Quat Branch Sale Department Da Nang Brand Can Tho Brand Vung Tau Brand LABORATORY NETWORK CHART LAB MANAGERS LAB HO CHI MINH LAB QUANG NINH LAB DUNG QUAT LAB VUNG ANG LAB TRA VINH WHY THIS INSTALLATION AND MANAGEMENT OF A LABORATORY IS IMPORTANCE Laboratory play an importance role for an inspection corporation With its own laboratory, Inspection Corporation have the active of delivery certification of quality and quantity, shortage the time of whole inspection process and cutting down the cost of sending test sample to a third party As the result, having laboratory is a key success and making advantage than other competitors Furthermore, managing a laboratory is a difficult and complicated task; we not only controlling all these operations right on track but also assure the laboratory is making revenue and profit to the company This require a strategic planning for installation or set up a laboratory and the art of managers skill of operating process On this graduation dissertation for Master in Business Quality & Performance Management Program, I will analyze some critical points for installation and management of laboratory, and making some suggestion for monitoring and improvement performance of laboratory operations PART 1: INSTALLATION AND MANAGEMENT OF THE LABORATORY CHAPTER 1: IN THE INSTALLATION (SET UP) LABORATORY In the quality point of view, setting up laboratory is very similar to preparation stage of project manager At this step, we taking care of elements that affect more or less to this phase All things must be analyzed and considered carefully This will help us adjust everything relevant to the circumstances and context On my opinion, one of the most important thing that will determine the project’s feasibility is the organization’s business strategy In the inspection field, we can make the outline plan base on company business conditions, by selecting some key factors that make our company go beyond other competitors 1.1 Geographical location Geographical location mean selecting the location for our laboratory We must take care many things about the location I only mention about key factors that make most advantage to the laboratory First, laboratory must be established near the sources of samples that are oil refinery plants, thermal or gas power plants, storage tanks at transportation hub or seaports Because if we that we can shorten the time of transferring sample form sources to the laboratory and it will decrease the cost of transfer too Finally, the cost of testing sample will be reduce also, that make our price more competitive and making attraction to the customer On the other hand, our lab’s location must be easy access by customer; I recommend that we should put our laboratory next to the source such as door-to-door EIC have experience of selecting the location of laboratory We did set up one of our petroleum laboratory very close to the Dung Quat Oil Refinery, just km away of the factory For this close distance, we just take minute for transferring sample from factory to our laboratory and none of our competitors can that This tactic was applied to all our next installation of laboratories except the Lab at Saigon and it gave us a huge step over competitors Besides that, according to national environment protection law, all laboratory must be located in industrial zone due to the worry about hazard waste Second, the square space of the laboratory must be considered The location must be enough space for all equipment, machines and tools and ready for expanding business in future Equipment and tools have to be arranged rationally and saving the workspace Working condition is following the Health-Safety-Environment policy of company As I mentioned before, our Lab network have five laboratories The most advance Lab located in Ho Chi Minh City, also keep the administrative role The rest are subsidiaries Managing job for this network is a big challenge, and we have seen too much difficult things Most of them come from suppling demand for maintain operating these Labs, information often came slow to headquarter and we paid a very high price lesson last year Our Lab in Vung Ang cannot maintain high volume of sample due to low capacity, and customer was very angry and make a lot of complains We decided to solve this problem by purchasing more two dry oven However, it took us three months for two new dry oven arrived at Ho Chi Minh lab, at this time we lost contract to the customer, Vung Ang Lab must shut down and in hibernation until now Because our Lab cannot purchased directly from supplier, but via HR & administration department, this delay also happen for our chemical and reagents need for testing PART 2: THE LABORATORY PERFOMANCE CHAPTER 1: MONITORING PERFOMANCE 3.1 Solving managing problems Throw many meeting and discussion with board of director, we turn out that for the complexity and high advance of development of Ho Chi Minh City Laboratory in current stage, the best way is purchasing land and building laboratory there This is a hard challenge because the real estate fever still in high temperature Nevertheless, if we look in long-term business, this also make benefit to both company and laboratory For the laboratory, there will be no nightmare about relocation and we can make plan to development and expand our Lab without limitation Of course, land will cost a lot of money but it will raise the company property value The department concept is not still suitable for a network of laboratories As I mentioned above, the lagging or low response to operation requirements is damaging Lab growth for business, and make request for creating new organizational type that more fit to its complexity Furthermore, if we go deeper in the Lab operation, we could find out that this operation is the same of a small factory business Hence, with considerations and research, we propose Laboratory should be work like a branch or company’s subsidiary With this more permission, Lab will operating more independent and make its own decision on development plan and strategy Lab can manage their own human resource, capital of investment and financial budget These changes not only give lab 35 more dynamic and quicker response to the market, but also bring more challenges for managing the whole Lab network and a harder mission is acquiring new customers 3.2 Building Key Performance Indicators for Laboratory 3.2.1 Balance scorecard for laboratory Strategy for petroleum laboratory business has been defined, aligned with company strategy Creating the balance scorecard is the first step to develop key performance indicators for Lab _ Increase the shareholder value by making growth revenue This is the basic principal for all business organization Vietnam Energy Inspection Corporation (EIC) made strong and stable business growth last year Although facing challenge for high competitive market, our company still keep expanding business to other section like food, medicine and construction _ Improve the customer’s satisfaction and loyalty, acquiring new customers Customer is the central point of our business They always require the most accurate test result in the shortest time If we adapted and satisfied these requirements, we can acquire more and more customers We also collect customer feedback and commitment, then put them into account for marketing strategy development and services quality improvement _ Improve the laboratory efficiency, development for new testing services The quality management bare bond of laboratory is the ISO 17025, we must pass the audit and get certificate each year Because company expand business, we must invest many new instruments for food, medicine and construction materials testing of quality These instruments must be supply from high reputation European or American firms _ Development high skill of engineering teams and high quality staff Because human resource is the key factor business success, we need to training and educating people and recruiting new employees 36 Objectives FINANCIAL Measures Targets Profit margin >10% Initiatives Cost & waste management Increase the shareholder value Improve business Lab management by making growth efficiency software Return on revenue >= 30% investment (ROI) Innovating instrument & equipment INTERNAL Raise test BUSINESS accuracy Precision Index >95% Good conditions and facilities for testing PROCESS Improve the laboratory Raise the analysis efficiency, efficiency Cost per test ratio 80% Applied Health development for new testing Maintenance & services calibration Safety Environment instrument, Policies equipment and tools CUSTOMER Meet stakeholders Improve the & customers’ s customer’s expectation Customer > 80% in satisfaction index satisfaction Customer feedback & surveys satisfaction and 37 loyalty, acquiring Acquire new new customers customer Keep turnaround Number of new new in customer minimum TAT Index 90%< reference time lower than Lab marketing Optimizing Lab processes reference time LEARNING & Increase employee Personal Key 100% employee GROWTH competency get > 85 score Performance Employee training Indicator Development high skill of Develop At least Specialize training engineering teams knowledge of Certified certified achieved courses and high quality experiment achievements per man a year staff methods Staff Personal Key All staff members Staff training improvement Performance get > 95 score Indicator Research & R&D Subjects >80% potential Workshop development Practical applying in Team research program evaluation practice engagement Table 12 Balance Scorecard for Laboratory _ Financial: We can improve the business efficiency by cutting cost of facilities and waste and using Lab management computer software for optimizing the operation of laboratory in procurement, time control of testing and delivery test results Profit margin is one aspect to evaluate lab performance, 10% is quite good number to archive 38 _ Internal business process: to avoid testing error we must have good instrument that have calibrate on time, maintenance in schedule and accordant testing condition All lab technicians must be trained for testing process, HSE We also practice lean production to reduce solvent, chemical or ingredient for testing procedure, and we can down the cost of testing per sample Our target is keep the error of testing below 0.1%, and reduce the cost lower than 75% in total experiment cost _Customer: Laboratory make customer feedback & survey every year collect costumer commitment We based on that and company business strategy to create quality target for lab operation Customer index depend on level of customer satisfaction, “8” mean that customer put their trust in our test result and continue using our services We also want to acquire new customer by joining conferences, participate in some inter-laboratory testing program and holding some evens to introducing our services _ Learning & growth: All lab members have chances to build their own competency by joining specialize experiment courses Personal KPI applied to staff and employee, and their salary monthly pay will reflect their performance (higher KPI score lead to higher salary) This will motivate people to work harder and improve their own skill, and then the Lab KPI will improve too All Lab employee are facilitated for R&D programs or subjects, this will help building their own competencies and enrich their knowledge Personal promote and financial reward can be given after evaluation on their R&D projects 3.2.2 Key Performance Indicators for Laboratory Operation Many organizations encourage the use of SMART (Specific, Measurable, Achievable, Relevant, Time-Based) goals There are many guides readily available, but they tend to be general, with no laboratory-specific examples Analytical laboratory key performance indicators typically include accuracy, precision, and turnaround time To support and motivate analysts to excel in all three, goals were developed using the QC (quality control) data generated daily: Accuracy – agreement of Certified Reference Material (CRM) Quality Control samples assay with CRM certificate of analysis Precision – Repeatability and reproducibility of test Turnaround – Percent compliance with required turnaround time 39 Economic efficiency (added) – Return on Investment and profit margin for time schedule Human (added) – Personal professional competence Combination of balance scorecard and SMART approaching of KPIs for Lab We suggest some KPIs those are most relevant to monitoring Lab performance, they are:  Return on investment – ROI ROI is a “performance measure used to evaluate the efficiency of an investment” It is calculating using the following general equation: ROI = 100* (Benefit – Cost) / Cost There are no universally accepted benchmarks for identifying a good ROI because the ROI is vary depending on what assumptions are used and, therefore, what values are entered into the equation However, an ROI of 20 percent would generally be considered a good result Today’s laboratories are under stress from many directions, and there is constant pressure to be more profitable However, we should not assume that the only way to be more profitable is to simply reduce existing expenses With continuing advances in laboratory technologies, it is possible to improve both time and expense costs by upgrading to more contemporary technologies or even just training your staff how to use them We not have to choose the most expensive, or even the most recent, option, but we should evaluate the potential benefits and costs by calculating ROI for the investment Year 2018 January February March ROI (in overall) 20% 19% 21% Table 13 Example of Return on investment in 2018 40  Profit margin – PM Profit margin is a profitability ratios calculated as net income divided by revenue, or net profits divided by sales Net income or net profit may be determined by subtracting all of a company’s expenses, including operating costs, material costs (including raw materials) and tax costs, from its total revenue Profit margins are expressed as a percentage and, in effect, measure how much out of every dollar of sales a company actually keeps in earnings The method of calculating profit margin when the term is used in this way can be represented with the following formula: Profit Margin = Net Income / Total revenue of Laboratory Profit margin measures how successful a company has been at the business of marking a profit on each dollar sales It is one of the most essential financial ratios Net margin includes all the factors that influence profitability whether under management control or not The higher the ratio, the more effective a company is at cost control Compared with industry average, it tells investors how well the management and operations of a company are performing against its competitors Compared with different industries, it tells investors which industries are relatively more profitable than others Net profit margin analysis is also used among many common methods for business valuation Year 2018 January February March PM (in overall) 12.3% 15.8% 16.5% Table 14 Example of Lab profit margin in 2017  Turnaround time – TAT In general, turnaround time (TAT) means the amount of time taken to fulfill a request Time cycle for sample from received at the lab door, analyzed and sending result to customer at finished TAT must be shorter than lead-time request by customer Because time for practicing experiment is variety for each sample, so we define an average TAT or reference of TAT for each sample 41 Turnaround time Result in 2018 No Sample type Test item quarter I Reference TAT January February March Coal Full spec test 24 working hours 99% 99% 98% LPG Full spec test working hours 100% 100% 100% DO Full spec test working hours 99% 99% 99% FO Full spec test working hours 98% 96% 97% MOGAS Full spec test working hours 99% 100% 98% Table 15 Example of Reference TAT for types of sample  Assurance Index – AI Lab creating a maintenance and calibration schedule for all instruments and equipment Maintenance job can be operated in house, calibration can performed by lab technician or third party After these activities, evaluate result by percent in compliance No Item name Calibration rate Calibration and maintenance type Assurance Index of 2018 quarter I February March 95% 95% 98% 99% 98% 99% 95% 96% 97% January Instrument: Gas Certified Chromatography weekly Distillation Reference Material Machine Equipment: Thermometer monthly In-house selfcleaning Hydrometer Tools: glass measuring tube monthly In-house selfcleaning Table 16 Example of Assurance Index for Lab instruments, equipment, tools 42  Precision Index – PI Applied for quantitative test methods that have repeatability in range required This number indicate how many in percent of precision can Lab perform during test procedures Number are based on data collecting during experiment process, recorded in document and evaluate at the end of each quarter Precision Index of 2018 quarter I No Sample type Test item January February March Coal Full spec 100% 100% 100% LPG Full spec 100% 100% 100% DO Full spec 100% 100% 100% FO Full spec 100% 100% 100% MOGAS Full spec 100% 100% 100% Table 17 Example of Precision Index for tested samples in 2017 quarters  Customer satisfaction index– CSI This number indicate satisfaction level for test service that customer perceived We collect score data survey from customers, and for each test result delivered to customers we encourage them to rated our service This score on the scale to 10 as follows: 1-2: Very unsatisfied 3-4: Unsatisfied 5-6: Neutral 7-8: Satisfied 9-10: Very satisfied The CSI is calculated as follow equation: (Total score / total customer response survey) x 100 = % CSI 43 No Sample type CSI Index of 2018 quarter I Test item January February March Coal Full spec 90% 80% 85% LPG Full spec 50% 60% 70% DO Full spec 90% 95% 96% FO Full spec 88% 76% 50% MOGAS Full spec 60% 55% 80% Table 18 Example of Customer satisfaction Index for tested samples in 2017 quarters Year 2018 Current Year-to Key Performance Accountable Indicators Current Date 20% 19% 21% 10 11 12 Performance Year goal Improve business efficiency ROI Manager PM Manager 20% 12.3% 15.8% 16.5% 10% Improve the laboratory efficiency (LPG) AI Manager 96% 96% 98% 90% PI Manager 100% 100% 100% 95% Improve the customer’s satisfaction (LPG) TAT Manager 100% 100% 100% 90% CSI Manager 50% 60% 70% 80% Color key: Planned Activity Off target, need improve On target Off target, cannot improve Table 19 Sample Data Presentation for Key Performance Indicators 44 CHAPTER 2: PERFORMANCE IMPROVEMENT 4.1 Implementing Lean Production in Laboratory Lean production, or simply “lean,” is a systematic method for eliminating waste and streamlining processes Laboratories have had to adapt and become more efficient Funding models have changed to emphasize customer outcomes over traditional fee-for-service models The need for operational efficiency comes at a time of shrinking budgets, escalating input costs, and tight resources Some laboratories have adopted lean principles in response to increased demand Lean is a systematic approach to process improvement, focusing on reducing variations and eliminating waste to balance the process or workflow In the laboratory, lean principles create an opportunity to revitalize processes and improve service delivery When improvements in turnaround times, costs, and the quality of test results are all captured, then enhanced operational performance can actually be proven Reducing errors and faulty results reduces retesting, lowers costs, improves safety for customers and employees, and minimizes wastage of reagents and work force However, this quantification requires built-in measurement of key performance indicators and cost drivers Accurate measurement proves to management and prove that interventions make the laboratory more efficient Furthermore, quantifying the actual cost, both fixed and variable, to perform tests enables better utilization of resources Managing stock for just-in-time ordering and reducing reagent costs contribute to lower overheads Otherwise, understanding the volume of tests and expected demand allows logistic planning and staff management Redesigning lab layout for Lean Production: The design, layout, and placement of laboratories have significant impact on lab processes, behaviors, and communications A good design will proactively support lean processes including flow, visual management, standard work, and excellence in workplace organization, whereas a bad design may actually create waste and make flow more difficult 45 Laboratory layout should be redesigned in order to: - Support leveling, flow, and standard work: Leveling, flow, and standard work are key lean lab principles Building design to proactively support them normally involves in fewer internal walls built and less separation of labs, this promotes flexible operations and the sharing of workloads and resources to level short interval workloads - Allowing space for visual management systems of laboratory performance such as daily and weekly meeting boards to allow visualization of work to be performed in the short term and of lab performance over time - Minimize space and equipment requirements, maximize future configurability: Space and equipment requirements should be calculated based on levelled demand rates rather than peaks There should be a move away from personal ownership of equipment, bench space, or desks; analysts should operate as true teams sharing resources and workloads Right time for Lab for implementing redesigned layout Because Lab operating in almost day including weekend, it is hard for making all change in just one or two days It should be better if we practice in small work by resorting instrument and equipment for the same sample type For the business strategy, we planning to build company headquarter including laboratory center in near future This is the right opportunity to implement lean production for the whole laboratory in Ho Chi Minh City 4.2 Applying Laboratory Information Management System Software – LIMS Although EIC lab have been established since 2010, developed and expanded for a network laboratory, staff still managing Lab operation in a very classical procedure All orders and determinate promulgation were delivered via paper documentation or faster way via email In the other side, complexity level of Lab network raise up every day, staff face more and more difficult challenges on tracking operation in satellite Lab Large geographical distance also make other serious obstacle for supplying material and technical support for far away unit Therefore, vital information just come when incident had happened, Lab manger cannot solved problem completely with most efficiency result due to limitation of reaction time This critical weakness damaged company reputation and business As a result, we may lost important customers in worst cases and our shareholders will concern deeply about these issues 46 For all these issues, LIMS is a key solution to improve the workflow of laboratory The primary purpose of a LIMS is to improve efficiency in lab operations by cutting down on manual tasks, LIMS automatically records information that would otherwise need to be typed in or written down, thereby saving time and reducing errors because LIMS have the power to automate processing data and tasks on a single platform This feature reduces laborious manual efforts, saves time and eliminate chances of human error in the lab Therefore, we can produce reliable results more quickly and can track data from sequencing runs over time and across experiments to improve accuracy and consistency With tons of benefits that LIMS brings to operation, it become the standard of all modern Laboratory Purchasing for LIMS will cost company a lot of money, but the advantages for long-term business is unquestionable 4.3 Estimate the improvement in performance By monitoring repeatability and reproducibility-two key quality points of process testing level in every day, we can reduce the risk of wrong processing result to lowest ability Building KPIs for laboratory help us following up Lab operation on time, and making right decision on right time LIMS improve information flow parallel with the workflow, increasing Lab efficiency in supply chain and more benefits Finally, lean production utilize Lab workspace, cutting cost and improving personal and team performance These entire things will drive us to success, not only for Lab but also for whole company Laboratory is considered the face of an inspection corporation An advance technology laboratory with solid and most reliable quality management system can satisfy all customer request I believe that my solutions and suggestions for performance management and improvement will raise the quality service, cost efficiency, and outstanding performance for our laboratory network As a result, for the huge progress will be archived, the first gains we will have are high growth of revenue and profit Second, we would have proven that quality is the key of bringing the best solution to customer The success in development and improve quality performance for laboratory will be the model that other departments can follow This will also bring prosper to all employees so that they can feed and support their family better Company will be the most beneficiaries by archiving new high level of market position, become an excellence model 47 CONCLUSION Laboratory in an inspection company is different from others for its unique and specified For that reason, put in practice knowledge from the MBQPM course need some modification and extension to fit the Lab working environment However, our persistence for pursue quality and performance improvement help me developing new solutions and creating suggestion for Lab daily working process and defining new business strategy Absolutely, our expected result never come immediately, but if we practicing, updating and improving day by day, step by step, working by all heart and brain we sure finally reach our goal 48 REFERENCE Jacoby, D (2009) Guide to supply chain management New York: Bloomberg Press Anderson E (2003).Supply Chain Strategy in the Oil and Gas Sector.Business Briefing: Exploration and Production Optimal Supply Chain Management in Oil, Gas and Power Generation by David Jacoby Penn Well Corporation, 2012 Laboratory Management: Principles and Processes 2nd Edition by Denise M Harmening, 2011 Laboratory Management - Quality in Laboratory Diagnosis by Candis A Kinkus, 2011 49 ... INSPECTION CORPORATION WHY THIS INSTALLATION AND MANAGEMENT OF A LABORATORY IS IMPORTANCE Part 1: installation and management of the laboratory CHAPTER 1: IN THE INSTALLATION. .. suggestion for monitoring and improvement performance of laboratory operations PART 1: INSTALLATION AND MANAGEMENT OF THE LABORATORY CHAPTER 1: IN THE INSTALLATION (SET UP) LABORATORY In the quality. .. INSTALLATION AND MANAGEMENT OF A LABORATORY IS IMPORTANCE Laboratory play an importance role for an inspection corporation With its own laboratory, Inspection Corporation have the active of delivery