3.Ftu-Le Thi Van Dung-Tom Tat La_Tieng Anh.pdf

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY SUMMARY OF PHD THESIS RESEARCH THE APPLICATION OF LEAN MANAGEMENT MODEL IN EXPORT MANUFACTURING ENTERPRISES OF VIETNAM Major Business admini[.]

MINISTRY OF EDUCATION AND TRAINING

FOREIGN TRADE UNIVERSITY

The thesis is completed at:

Scientific instructors: Associate Prof PhD Pham Thu Huong

PhD Nguyen Thuy Anh

Reviewer 1:

Reviewer 2:

Reviewer 3:

The research shall be presented in front of the council meeting at

LIST OF PUBLISHED RESEARCHES RELATED TO THE THESIS

1 The impact of lean management practices on sustainable performance of handicraft enterprises in Vietnam, 8/2022

2 Thực trạng áp dụng quản trị tinh gọn tại các doanh ngiệp hàng xuất khẩu Việt Nam, Tạp chí Kế toán và Kiểm toán Việt Nam, 8/2022

3 Các yếu tố ảnh hưởng đến hiệu quả áp dụng quản trị tinh gọn tại doanh nghiệp sản xuất hàng xuất khẩu tại Việt Nam, Tạp chí Kế toán và Kiểm toán Việt Nam, 7/2022

4 Đề tài cấp Bộ: Nghiên cứu áp dụng mô hình quản trị tinh gọn cho các Ngân hàng thương mại Việt Nam sau khi thực hiện sáp nhập, Đề tài cấp Bộ, Đại học Ngoại thương, 6/2017 – 01/2019

5 Các nguyên tắc áp dụng quản trị tinh gọn trong ngân hàng, Kỷ yếu Hội thảo Quản trị tinh gọn trong Hoạt động Ngân hàng, 05.2018

PREFACE

1 Necessary of the research

Exports are an important part of any economy Over the years, import and export have made great contributions to the country's renovation For Vietnam, promoting the activities of export enterprises is

an important goal in the process of economic development For each enterprise doing business in the export sector, having to compete in the global environment makes these enterprises face pressure from both the global business environment and the domestic business environment The increase of globalization activities, the rapid development and daily changes of technology in the context of the industrial revolution 4.0 make these pressures increase The "lean management" method, which is a business operation method, has been applied by many businesses around the world and has reaped positive results in business activities since the 90s of the twentieth century However, in Vietnam, there are not many enterprises in general and export enterprises in particular that apply the model of world management Therefore, the author finds that World Trade Organization can bring many benefits in exporting enterprises In addition, the main export markets of Vietnamese enterprises are the US and Europe, which have many strict requirements on product quality, quality of production and supply operations, and social responsibility of the enterprise It is necessary to study the current status of applying world management and build an appropriate application model for Vietnamese exporters in the current context

Stemming from the above reasons, the author chooses the topic "Research the application of lean management model in export manufacturing enterprises of Vietnam" to deal with in doctoral thesis

2 Research objective and research questions

2.1 Research objective

The research objective of the thesis is to study lean management models and their influencing factors in order to propose deployment models and solutions as well as conditions to improve the applicability of the world management model in Vietnam enterprises producing goods for export in Vietnam

2.2 Research questions

- Question 1: Which popular lean management models are deloyed in enterprises today?

- Question 2: What factors affect the successful application of lean management?

- Question 3: How do the characteristics of enterprises producing export goods affect the application of the lean management model?

- Question 4: How to deploy and apply the lean management model in export manufacturing enterprises?

- Question 5: Solutions and conditions for applying the lean management model in Vietnam's export manufacturing enterprises?

3 Research methodology

- The thesis uses synthetic methods, compares theories of lean management to choose an appropriate lean management approach This method is also used together with the logical reasoning method to determine the evaluation criteria for the application of lean management as well as the factors affecting the application of lean management in enterprises

- The thesis uses the method of sociological investigation: collecting opinions of managers to assess the current status of management practices that Vietnamese export enterprises are applying In addition, the method of interviewing senior managers and experts was also conducted to explain the approach as well

as the process of applying lean management in Vietnamese export enterprises

- The survey method uses a 5-level Likert scale to investigate whether the criteria for evaluating the application of lean management and the factors affecting the application of lean management identified above are correct with reality in export enterprises or not

- Quantitative research methods are used to analyze survey results The data will be processed through

- Proposing the implementation of a lean management model in Vietnam's export manufacturing enterprises

- Proposing a number of solutions and recommendations to apply the lean management model in

Vietnam's export manufacturing enterprises

6 Thesis structure

- Chapter 1: Overview of research on applying lean management model

- Chapter 2: Some theoretical issues about applying lean management model in export goods manufacturing enterprises

- Chapter 3: Research process and methods

Chapter 4: The current situation of applying lean management model in Vietnam's export manufacturing enterprises

Chapter 5: Proposing a lean management model and some solutions and recommendations to apply the model to Vietnam's export-producing enterprises

CHAPTER 1 OVERVIEW OF RESEARCH ON APPLYING LEAN MANAGEMENT MODEL 1.1 Researches on Lean Management model

1.1.1 Some Lean Management Models in the World

Toyota Production System (TPS House) is the first model of Toyota production system launched by Eiji Toyoda and Taiichi Ohno, 1988 This model consists of five elements including three foundation elements and two pillar element The three foundational factors are Heijunka, Standardized Work,

Continuous Improvement (Kaizen) and the two pillars of Right Time (JIT), Error Self Control (Jidoka)

Hình 1.1: TPS House Model

(Source: Ohno, 1988)

Mô hình Toyota Way 2001

Fuji Cho published the book "The Toyota Way 2001" to offer an alternative to the TPS House model The model consists of five principles outlined in two pillars With the pillar of continuous improvement, there are three principles: Challenge, Kaizen and Genchi Genbutsu With respect to others, there are two principles: Respect and Teamwork

Hình 1.2: Mô hình “Toyota way” (2001)

(J.K Liker, 2004) developed a 4P model to suggest the issues that businesses need to pay attention

to in order to successfully implement World Management The four P's stand for (1) Philosophy, (2) Process, (3) People and Partners, (4) Problem Solving The model of J K Liker is shown as shown in the figure:

Hình 1.3: Mô hình 4P của Liker (2004)

(Source: Liker, J.K (2004) The Toyota way: 14 Management Principles from the World’s Greatest

Manufacturer: Mc Graw Hill.)

Shook's Lean Transformation Model (2015)

John Shook, 2015) and experts at the Lean Enterprise Institute (LEAN Enterprise Institute) have developed a "Lean Transformation" model that suggests to businesses the factors to pay attention to when they want to apply world management successfully The model of John Shook is shown as shown

in the picture below:

Hình 1.4: Lean Transformation

(Source: Shook, J (2015) Lean Transformation Framework From

https://www.lean.org/explore-lean/what-is-lean/)

Hobbs.'s model of applying world management to enterprises (2004)

Hobbs (2004) proposed a step-by-step process of applying world management to all enterprises of any size This model outlines the seven implementation steps and the key lean principles in each of them (Table 1.1)

Table 1.1: Steps of implementing Lean management Hobbs (2004)

Bước 1 Set strategic vision

Bước 2 Define and set up working groups

Bước 6 Choose the right pull strategy Pull strategy

(Source: Hobbs, 2004)

1.1.2 Some models of Lean Management in Vietnam

Lean management models “Made in Vietnam” Nguyễn Đăng Minh (2015)

Figure 1.6: “Made in Vietnam”

(Source: Nguyen Dang Minh, & Nguyen Thi Van Ha (2016) “Made in Vietnam” Lean Management

Model for Sustainable Development of Vietnamese Enterprises Procedia CIRP, 40, 603-608)

Nguyễn Thị Đức Nguyên and Bùi Nguyên Hùng’s Model (2010)

Hình 1.7: Mô hình áp dụng Quản trị tinh gọn

(Nguồn: Nguyễn Thị Đức Nguyên và Bùi Nguyên Hùng, 2010)

Step 3:

Implementation

Step 4:

Complete transformation, continuous improvement

Mô hình của Phạm Minh Tuấn (2015)

Figure 1.8: Steps of applying lean tools

(Source: Phạm Minh Tuấn, 2015)

1.2 Overview of studies on factors affecting the application of lean management

1.2.1 Factors related to Leadership

1 Leaders have a long-term commitment to the

application of lean management

Worley (2006), Jeffrey (2013), Wong (2009), Achanga (2006), Drew (2004), Nitin (2010),

sự (2014); Alhuraish & cộng sự (2014)

2 Business leaders as well as stakeholders

understand the benefits of applying world

management

Drew (2004), Achanga (2006), Anna (2014), Womack (2003), Ohno (1988)

3 Effective internal communication from the

board of directors to employees

Achanga (2006), Tracey (2006), Worley (2006), Bhasin (2006)

4 Leadership has a clear vision and strategy for

the application of world management

Bhasin (2006), Mefford (2009), Czabke (2008), Emiliani (2005), Anna (2014)

5 The commitment and involvement of the

1.2.2 Factors related to human policy

1 There is a clear financial reward and punishment

policy to encourage employees to actively

participate in lean

Tracey (2006), Emiliami (2005), Bhasin (2006), Wong (2009), Ab Wahid & Corner

(2011)

2 Xây dựng hệ thống các tiêu chuẩn, tiêu chí đánh

giá kết quả triển khai QTTG trong mọi công

việc

Achanga (2006), Liker (2003), Melton (2005), Bakås & cộng sự (2011) Kundu &

Manohar (2012),

3 Have a training plan to ensure that all members

of the enterprise understand the ideas and

techniques of World Management

Womack & cộng sự (2003), Dennis (2007), Wilson (2010), Todd (2011), Jeffrey (2013),

Sisson (2014)

1.2.3 Factors related to staff qualification

1 Employees consciously change the way

they work in a more positive direction

Tracey (2006), Czabke (2008)

2 Staff are qualified and quick to learn Motwani (2003), Crute (2003), Kettinger (1995),

Nguyễn Đăng Minh (2013)

3 Staff are well trained Achanga (2006), Anna (2014), Wong (2009),

Jeffrey (2013), Bhasin (2006)

1.2.4 Factors related to corporate culture

1 Enterprises have an open culture,

encouraging innovation and creativity

Czabke, Hansen và Doolen (2008); Achanga và cộng

sự (2006); Bhasin (2006), Alhuraish & cộng sự (2014); Shook (2015), Crute và đồng nghiệp (2003)

2 Enterprises encourage employees to

learn and share knowledge

Kettinger và Grover (1995)

3 Enterprises encourage teamwork Tracey và Flinch (2006), Czabke, Hansen và Doolen

(2008)

4 Enterprises set up a specialized group

to promote the implementation of lean

2 Customer engagement, support, and feedback

Al-Najem (2014) Coronado & Antony (2002); Hibadullah

& cộng sự (2014); Kumar (2009); Rose & cộng sự (2014);

Sabry (2014); Sisson (2014)

1.3 Studies on evaluation criteria for successful application of lean management

Include: Increase labor productivity

Improve product quality

Reduce production costs

Increase the ability to deliver on time

1.4 Research gap

Firstly, adding more factors to successfully apply Lean Management to Vietnamese export manufacturing enterprises, including: The commitment of the leadership; Involvement of middle management; join a specialized group; external value chain management

Second, research models often provide general formulas without providing specific conditions affecting the practice of world management Therefore, there should be a process and guidance for businesses to ensure the success of each business model in practice

Third, there is no specific model for Vietnamese export enterprises

CHAPTER 2: SOME THEORETICAL ISSUES ON APPLICATION OF LEAN MANAGEMENT

MODEL IN EXPORT PRODUCTION ENTERPRISE 2.1 Definations

2.1.1 Lean management defination

Lean management includes both philosophies and practices For enterprises applying Lean Management, these two aspects need to be considered together, not separately If only consider the philosophical thinking, businesses may be unrealistic and delay in implementing lean management If you only see lean management as practices, businesses will stereotype the application of tools without getting the appropriate effect, and may even be counterproductive From a business perspective, it is necessary to understand lean management in both directions: philosophy of thought and practice

Therefore, in this thesis, the author uses the definition of Shah (2007) This author has synthesized the above different aspects of World War II mentioned in previous studies From there, the author

generalizes into the most general definition "Lean management is a socio-technical system integrated into business activities whose main objective is to eliminate waste by minimizing instability related to suppliers, customers and within the business” This definition is not too specific to business practices

when implementing lean, but it is not too broad and abstract to cover all the activities and goals of an enterprise

2.1.2 Lean management Model

The lean management model is understood as the mapping of applied principles and tools of world management to illustrate and explain how to apply world management in an enterprise

2.1.3 Enterprises producing export goods

Based on the definition of the Foreign Investment Act 1991, Export production enterprises are understood as enterprises that export sixty percent or more of sixty percent of the goods produced Thus, lean management in export manufacturing enterprises is understood as a system of tools and methods to continuously eliminate all waste throughout the process of continuous improvement of production and business activities export business to meet customer requirements

2.2 The role of lean management in export manufacturing enterprises

First, lean governance cuts down on errors and waste

Second, lean management helps export-producing enterprises to exploit and use infrastructure more efficiently

Third, lean management improves the financial efficiency of export business

2.3 Content of lean management in export manufacturing enterprises

2.3.1 Lean management awareness

Lean management awareness in export-producing enterprises is considered as the foundation for applying lean management in business activities of enterprises The foundational factor to apply lean management in manufacturing enterprises is the awareness of management and employees about lean management thinking

2.3.2 Identifying waste in export-producing enterprises

Womack and Jones (1996) proposed five fundamental principles of lean management including (i) creating value based on the customer's point of view, (ii) value chain identification, (iii) creating flow continuous in the process of production and business, (iv) pulling the flow in the direction from the customer, (v) continuous improvement towards perfection

For the specifics of export business activities, the author gives the following types of waste:

- Procurement (production) of surplus exports

- Waste of aviation standards

2.3.3 Lean management tools

- Value Stream Mapping (VSM)

- Standardization of processes

- Preventing Mistakes - Poka-Yoke

- 5S Method and Visual Management

- Continuous improvement- Kaizen

- Cell model

- Just- in – Time (JIT)