Môn Quản Lý và Vận Hành Management and Operations

Tài liệu môn quản lý và vận hành Management and Operations bao gồm các phần: Giải thích các cách tiếp cận chính đối với quản lý hoạt động và vai trò của các nhà lãnh đạo và quản lý Explain the key approaches to operations management and the role that leaders and managers play. Six Sigma, Lean Production Explain different operations management approaches Giải thích các cách tiếp cận quản lý hoạt động khác nhau

TABLE OF CONTENTS

Introduction 3

LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization 3

P4 Explain the key approaches to operations management and the role that leaders and managers play 3

1 Discuss the key theories of operations and operations management including: six sigma, lean production and queuing theory 3

2 Explain different operations management approaches including 5

2.1 Principle of Total Quality Management 5

2.2 Just-in-time Inventory 6

2.3 The concept of continuous improvement (Kaizen) 8

3 Make appropriate application to the operations of your chosen company 6

P5 Explain the importance and value of operations management in achieving business objectives 7

1 Discuss the following operational functions of a business 7

1.1 Control and distribution systems 7

1.2 Transformation of raw materials into finished goods/services 8

1.3 Process design 8

1.4 Capacity management 8

1.5 Logistics and inventory management 8

1.6 Scheduling 8

2 Choose at least 3 functions to give specific application to your chosen company 9

3 Explain how the good management of these operational functions would help the company to obtain its business’ objectives 9

LO4 Demonstrate an understanding of the relationship between leadership and

management in a contemporary business environment 12

P6 Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers 12

1 Macro environment: 12

1.1 Define PESTEL model 12

1.2 Apply to external environment of your chosen company 13

2 Business environment (Industry analysis) 16

2.1 Define Porter’s Five Force Model 16

2.2 Apply to the specific business industry in which your chosen company has been operating 17

3 Pressures from stakeholders 18

3.1 Define the concept of stakeholder 18

A scandal of Vedan Company 21

Conclusion 22

Renferences 23

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Introduction

Nowadays, Management and Operations very significant in business environment and Companies Thisassignment will state that the concept is both a function and a process that all organizations must apply toconduct business Besides, this task also distinguishes clearly and specifically the application of leadership andmanagement in different contexts

LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization

P4 Explain the key approaches to operations management and the role that leaders and managers play.

production and queuing theory.

“First is the six sigma Six Sigma is a

statistically-based process

improvement method that minimizes

errors or defects to 3.4 errors per

million possibilities of errors by

identifying and eliminating sources of

tooling dynamic (unstable) in business

processes Six Sigma focuses on

establishing a thorough understanding

of customer requirements and therefore highly customer-oriented Six Sigma method system is based on theprocess called DMAIC: Define, Measure, Analyze, Improve and Control”

Inside: Define is a client definition, quality requirements that are important to products and services Identify core business processes that need to be improved Measure is to collect data, evaluate and identify issues that arise in the implementation of “Core Business Processes” Analyze is to analyze and find out the causes of the

problem, determine the gap between the planned goal and the results of the current work, and identify

opportunities for improvement Improve is seeking innovative solutions by applying technical technology to

overcome, prevent and improve quality Implementing innovative solutions Control is a

plan to monitor and control the goal of effective implementation, avoiding returning to the old direction

Six Sigma model: In the early 1980s, the US Motorola company initiated a rigorous management model

of production processes and began to introduce the Six Sigma concept The quality and financial success of thismanagement model at Motorola has created a movement of widespread deployment in a number of leadingcompanies such as IBM, DEC, Allied Signal, GE, etc So far, this model has not only been widely deployed in themanufacturing sector but also developed into the service sector with the aim of helping businesses improveservice quality with strict control of the stages , the processes provided under the Sigma model It is possible toname many reputable companies that have been successfully implementing 6 Sigma applications such asSiemens, Nokia, Navistar, Kodak, Sony, 3M, Polaroid, Citibank, ABB, Dupont, Lomega, Amex, Black & Decker, etc ( eduviet, n.d , viewed February 10, 2019)

For example: “Ford Vietnam has saved over $ 1 million thanks to 6 Sigma” In Vietnam, in 2000, Ford Vietnam

Company started deploying 6 Sigma, implementing process improvement in all production and business areaswith 200 6 Sigma projects As a result, in 7 years of implementation, Ford saved 1.2 million USD and achievedcustomer satisfaction index of over 90% each year Among the 6 Sigma projects that Ford Vietnam hasimplemented, there is a fairly typical project of applying 6 Sigma to reduce the number of containers ofimported components in 2005 Notice of car parts containers in containers Importing into Vietnam has a lot ofgaps, Ford has rearranged the space in each container to better suit the 6-sigma improvement method Theresults show that saving space is also a way to save costs and contribute to increased profits From this spacesavings, Ford Vietnam has saved $ 150,000 in 2005

Secondly is Lean Production Lean Production is often called the lean name Lean It is one of the modern

management methods to streamline production, reduce waste in businesses, and increase business efficiency.Besides, Lean is also a system of tools and methods that continuously eliminate all irrelevant things in theproduction process The streamlined implementation process consists of 5 steps: determining the value from thecustomer's point of view, determining the value chain process, making the value chain work smoothly, attractingcustomers and striving for excellence “The main benefit of this system is to reduce production costs, increaseproduction and shorten production time, thereby providing higher competitiveness for manufacturers Most ofLean's applications make businesses achieve the goal of reducing production costs For example, the use ofequipment and more efficient premises leads to lower depreciation costs per unit of product, more efficient use

of labor leads to labor costs per unit of product lower and lower number of unused

products will reduce the cost of goods sold”

Lean and Six Sigma combinations:

Combining Lean and Six Sigma In order to maximize the efficiency of production and business, there are nowmany businesses that combine Lean and Six Sigma in a way or method called Lean 6 Sigma This methodprovides businesses with a richer structure and toolkit to solve problems, especially with problems that thesolution is still new and never done before When the goal is to design the process, organize the workshoppremises, reduce waste and how to achieve the goals that are already known, Lean's tools and methods will beproposed In contrast, to improve problems that are not yet available, Six Sigma should be used Because thecomprehensive improvement system includes projects with known solutions that have been implementedthrough, or have solutions that are not known So both 6-Sigma and Lean will have a place in this integratedgovernance model The integrated management model of Lean and 6 Sigma is proposed as a more flexibleapproach for businesses We will not go into the analysis of the technical aspects of this management model,but mainly highlight the benefits that each model can bring In terms of corporate management, the ultimatebenefit is the most important when it is possible to harmonize the benefits of these two methods together

Finally is the queuing theory : “Queueing theory is the mathematical study of waiting lines, or queues A

queueing model is constructed so that queue lengths and waiting time can be predicted Queueing theory isgenerally considered a branch of operations research because the results are often used when making businessdecisions about the resources needed to provide a service”

2.1 Principle of Total Quality Management:

Total Quality Management (TQM) is a combination of activities to guide and control an organization in quality.Quality orientation and control generally includes quality policy and quality goals, quality planning, qualitycontrol, quality assurance and quality improvement Total Quality Management has now been applied in everyindustry, not only in manufacturing but in all areas, in all types of organizations, from large scale to small scale,even if involved international market or not Quality management ensures that organizations do the right thingsand important things, following the "work right" philosophy and "do the right thing", "do it right at thebeginning" and "do it right at all times point"

6 CS of Total Quality Management:

The 6 Cs of TQM process are depicted in thefollowing image (Source: KALYAN CITY LIFE, April 19,

2012, viewed February 12, 2019)

First is the Commitment from Employees In

an organization, comprehensive Total QualityManagement (TQM) will be developed Thesepolicies will be binding on all employees of theorganization Therefore, improving quality willbecome an essential part of everyone's work.Moreover, this will ensure a commitment to improving the quality from all employees for the work deployed for

them Secondly is Quality Improvement Culture There will be a quality improvement culture within the

organization Following culture needs to be modernized continuously to encourage staff feedback This will

ensure the comfort of employees for effective management of assigned jobs Thirdly is Continuous

Improvement in Process Total Quality Management (TQM) is a continuous process and not a program This

requires continuous improvement in all relevant policies, procedures and controls set by management Aconstant search for proficiency is required to perform a better task This will always lead to scope for

improvement, although that improvement may be small Next is Cooperation from Employees The application

of Total Quality Management (TQM) is directly related to the total number of staff involved and afterimplementation The experience and cooperation of employees is used in developing improved strategies and

measures Fifthly is Focus on Customer Requirements Total Quality Management (TQM) process will be

prepared by focusing on customer requirements and their expectations from products and services In today'smarket, customers have demand and expect perfect goods and services without defect Focusing on customer

requirements is critical to long-term survival and building excellent relationships with customers Finally is

Effective Control shall be laid down Controls will be put in place to monitor and measure the performance of

your business Controls also help overcome shortcomings, if any, in the business process The checklist of controlpolicies will include all documents or instructions on the best current business activities

to make mistakes to find ways to overcome and improve.

The Purpose of JIT

“Ordering inventory on an as-needed basis means that the company does not hold any safe stock and it operateswith a continuous low inventory level This strategy helps companies reduce costs of carrying inventory,increasing efficiency and reducing waste JIT requires manufacturers to be very accurate in their productdemand forecasts” Just-in-time inventory management is a powerful cost-cutting inventory managementstrategy, although it can also lead to inventory The goal of JIT is to improve the return on investment of acompany by reducing unnecessary costs The JIT inventory system represents a change from the older "just in

case" strategy, in which producers carry larger inventory and raw goods, in case they

need to produce more units because of higher demand

2.3 The concept of continuous improvement (Kaizen)

In business, kaizen means continuous improvement activities for all employees' jobs, from CEO to workers in theassembly chain It also applies to processes, such as purchases or logistics, that make them cross organizationalboundaries to contribute to the supply chain It also applies in the areas of health care, psychotherapy, training,politics and banking (scielo, n.d, viewed February 12, 2019)

Samsung Group is a Korean multinational corporation with headquarters located inSamsung Town, Seoul The Group owns many subsidiaries, most of which operateunder the Samsung brand, the largest corporation in Korea Samsung was founded

by Lee Byung-chul i n 1938, starting as a small trading company After 3 decades, Samsung Group diversifiesindustries including food processing, textile, insurance, securities and retail Samsung entered the electronicsindustry in the late 1960s, building and shipbuilding industry in the mid-1970s After Lee Byung-chu died in

1987, Samsung split into 4 corporations - Samsung, Shinsegae , CJ, Hansol From the 1990s, Samsung expandedits operations on a global scale, focusing on electronics, specifically mobile phones and semiconductors thatcontributed significantly to the group's revenue As of 2017, Samsung has the sixth largest global brand value.( Storyblocks, n.d, viewed February 14, 2019)

“Six Sigma: Secret process helps Samsung products to achieve top quality At Samsung, Six Sigma is deployed to

all management levels as well as employees across all departments Within three years after deployment, thenumber of “Master Black Belts”, “Black Belts” and “Green Belts” reached nearly 15,000, equivalent to nearlyone-third of their employees In 2004, Samsung set a goal of training 6 Sigma training for its entire workforce,with about 49,000 people in 89 offices in 47 different countries It's easy to see the change in Samsung productsafter years of applying changes to them management process So far, Samsung is ranked 7th among 25 leadingcompanies in the world in terms of supply chain efficiency, an important part of the company's productioncapacity In addition, this quality management process also helps Samsung determine the cause behindunsuccessful products and can recover very quickly some time later For example, the great success of Galaxy S6has truly undermined Samsung's flagship line After that, following the success, Samsung Galaxy S7 and S7 edge

reached number 1 in the smartphone market Just in time of Samsung (JIT ) In order to "just in time", Samsung understands that in each operation must be coordinated carefully, while productionschedules must be fixed for each time period In addition, in order to avoid a shortage of goods in the system,good forecasts are required and specific schedules must be developed Therefore, Samsung has conductedproduction on the following principles: Ensuring the quality of each production batch is kept from the beginning

to the end in the production process, maintaining the number of stable products required by each shipment,planning the quantity forecast exist once a week to ensure not passive when there is a shortage”

In order to save space and costs, Samsung has always advocated to minimize the inventory of components andsemi-finished products in its production line The whole process of operating from purchasing, importingcomponents to manufacturing, assembling and distributing product lines (mobile phones, TVs, refrigerators, air-conditioners, washing machines, MP3 players , ) is closed in strict control and minimized inventory Even insome common parts produced domestically, the level of inventory can be zero, receiving parts only before 5o'clock when the production is conducted After the end of each production, the amount of inventory of thesecomponents will return to zero As for semi-finished products, there is no inventory of any semi-finishedproducts when the production process ends This requirement aims to achieve specific benefits: Cost savings forSamsung because the Company is not stagnant in capital due to inventory components and semi-finishedproducts Saving space: space and warehousing issues are now very important for units that use a lot ofmaterials and components like Samsung Minimizing the amount of component and semi-finished inventory as

an effective measure helps the Company save necessary space for other activities at the Company Besides,motivating managers in the whole chain to try to overcome the problems in production with all existing creativecapabilities It is the JIT method that helps reduce inventory to the lowest possible level, thereby helpingmanagers find and solvedifficulties arise

P5 Explain the importance and value of operations management in achieving business objectives.

1.1 Control and distribution systems

“The controlling and the distribution function is a very important factor in operations management as it is

responsible in controlling the production process and ensuring proper distribution of the products in order tofulfil the objectives of the organization It fulfils that the objective of the organization which is proper utilization

of resources is followed The efficiency of the control and distribution system can be improved by adopting astrong control system and to improve the logistics infrastructure of the company in order to meet the business

objectives of the company The control and distribution system is concerned with the

proper control of resources and distribution of the resources accordingly to the various processes in a calculativemanner so that the misuse and wastage of resource is ensured by the organization and the products areeffectively distributed in the markets”

1.2 Transformation of raw materials into finished goods/services

“Transformation of raw materials into finished goods/service: One important function ofoperations

management is to transform raw materials and component parts into finished products By performing thisfunction, managers ensure right production processes areused and right employees are assigned to executethese processes”

1.3 Process design

“Process design: Process design- The designing of the process of production is a vital function of operations

management as by specifying the process in the production process the production is carried out of the product

of the company in order to meet the demands of the customers and to make profits from it which will in turnfulfil the business objective of the organization It fulfils the organization objective of designing the productsaccording to the needs of the customers The efficiency in the process design helps the company to gain moreproductivity by applying the right process for production by utilizing the least possible resources Theorganization make sure that the process which is involved in the production process of the products comply withthe standard of the production process and it produces quality materials which complies with the benchmark ofquality of the organization”

1.4 Capacity management

“Capacity Management:Producing more than demand increases inventory costs and a waste ofmaterials and

products On the other hand, producing less than demand causes customer’sdissatisfaction Operationsmanagement manages organization’s capacity to produce the rightamount of products at the right timeaccording to market demand”.

1.5 Logistics and inventory management

“Logistics and inventory management:Logistics and inventory management is the essentialtask of operations

management because the logistical drivers play the vital role in deliveringproducts in the market These

functions include warehousing, transporting, procurement andother activities to make

the product available to customers”

1.6 Scheduling

“Scheduling is a very important function of operations management as it helps in the proper scheduling and

distribution of the tasks according to the skills of the employees, the resources of the organization and the timeavailable for completion of the task Before starting a task scheduling is a very important process for everyorganization as it creates the entire framework of the task to be done in a given period of time It is veryimportant from a business point of view in achieving its objectives as it helps in completion of the process withinthe shortest possible time limit in order to gain a competitive advantage It fulfils the organization’s objective ofdesigning the right product at the right time by following the right process The efficiency of the schedulingprocess will help the company to complete a given task or objective in the given span of time and it will also help

in the prioritization of the tasks by the company according to the needs and requirements of the company whichwill help the company to accomplish their business goals The scheduling process also helps the organization toproperly organize the production process of the product so that the entire production cycle continues in asmooth manner and the market process do not hamper the schedule”

Process design of Samsung Samsung always designs environmentally friendly products Samsung is committed

to minimizing the environmental impact of innovative products including smartphones, TVs and more As part ofthis commitment, Samsung has developed many eco-friendly, unique and diverse design processes On theoccasion of the World Environment Day celebration, this is a closer look at Samsung's comprehensive efforts.The key to designing environmentally friendly products is simply three principles: minimizing, reusing andrecycling Samsung applies these basic principles to product design using a circular resource managementsystem Or is it to draw a life cycle of devices To sum up, Samsung aims to minimize the environmental impact

of products by maximizing the efficiency of resources from assembly to final processing This requires the reuse

of parts, the use of recycled packaging and plastics, and the ability to recycle new components of the product forlater use In the future, Samsung will continue to design and develop environmentally friendly initiatives,demonstrating the success of product design, and will ultimately help protect our planet for generations future

Logistics and inventory management of Samsung In recent times, inventories in Samsung have considerable

changes in value, proportion and composition of inventory Raw materials at Samsung are divided into severalmain categories and have specialized departments to buy and manage those materials The value of raw