Midterm$Report$ course $operation$management$

Ajinomoto through the years 1907 * 21968 Saburosuke Suzuki founds Letter complaining of “Chinese company Restaurant Syndrome” published in New England 1908 + Journal of Medicine Kiku

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Table$of$Contents$

L#INTRODUCTION#AJINOMOTO# c2 Hee #4#

1 $ATINOMOTO$CORPORATIONG ccccscsssessessstecsessesseeseeseessesseeseseasecseesecsecsssseesecseaeeseeseeass $4$

2.$AIINOMOTO$VIETNAMSCOMPANYẨ 00 2 22H re $5$

2.1 SFORMATION$AND$DEV ELOPMENT L cccscccsessessecseeseesesseeseesesseseeseeceseesssareseesseersareseenseenss 5!

2.2$VISION$MISSION$AND$CORE$VALUE$OF$AJIMOMOTO$VIET$NAM:! 5!

ĐcP53.(09)00601 00 -“.+H HẬĂẬHẬH 7!

TE QUESTIONS 0017 5ã4HBHB )H,),HA #7#

1.$ Describe$ the$ operations$ management$ of$ the$ company,$ including$ input,$ transformation$ process OUtDUtG $7$

I1 — 7!

IAXÌc 300196) 12011 110!

`0 141

3.$Compare$the$resources$and$competencies$of$the$company$to$other$competitorsg $17$

3.1$Ajinomoto$Venus$Masggi Ì nàn HH HH HH rưkt 17! 3.2$Ajinomoto$Venus$Vedanl ch rệt 20! in$increasing$the$productivityŸ - sec nh Hee rie ®1$ A.ASSixPSi gti se 121!

4.2$Lean$Manut v0 0n 122!

CA oi ]h)6)1TnaA3/i i01 0n D2! 4.5$Cause$and$effect$diagraml! ccntrénHhHrr Hee D3! IIE.®9)i0 0513/90) 2115 120#

3$

As! a! Japanese! food! and! Amino! Science! corporation! with! strengths! in! amino! acid! production! technolo technological! innovation! development! ability,! Ajinomoto! Corporation! currently! conducts! business! activities! in! three! main! areas: ! products! Food,! Biological! products! and! Pure! Chemicals,! Pharmaceutical !and! Health! products! with! thousands!of!diverse! products !Currently,!the!A jinomoto!Group!has!123 !factories!and!representative!offices,! and! a! staff! of! more! than! 34,000! employees! worldwide.! Ajinomoto! Corporation's! diverse! products! are!

distributed!to!more!than!130!countries.!

Ajinomoto through the years

1907 * 21968 Saburosuke Suzuki founds Letter complaining of “Chinese

company Restaurant Syndrome”

published in New England

1908 + Journal of Medicine Kikunae Ikeda isolates MSG

from sea kelp, proposes calling it umami, meaning

“tasty”

1909 + Suzuki Chemical Company begins marketing MSG under brand name Aji-no-moto, meaning “essence of taste”

1914¢

MSG released in China

1917 ¢ U.S sales begin

1927 ¢ Company becomes purveyor

to Imperial household

1946 + Changes name to Ajinomoto Co

1949 6 Lists on the Tokyo Stock Exchange

1958 ¢ U.S FDA classifies MSG as

“generally recognized as safe”

1960 ¢ Opens factory in Thailand

21969 Jean Mayer, chairman of the White House Conference on banned in baby foods

21970 Sales of MSG fall for the first time in company’s history + 1980

FDA again states that MSG is generally recognized as safe

21987 Joint Expert Committee on Food Additives says MSG is safe for infants

* 2002 Journal Nature reports discovery of amino-acid receptors that trigger lip-smacking umami taste

«2018 Company launches three-year

$10 million campaign to promote MSG as safe

Ị

Figure$1.$Timeline$of$A jinomoto$Development$(IMAHASHI,$2019)$

Originating!from! the! aspiration! of! Dr.! Kikunae! Ikeda! to! contribute! to! the!improvement! of !human! life’s! quality! through !food!nutrition!over!100!years!ago,!Ajinomoto!Group!was!established !in Japan !in!1909!with!the!first!Umami! Seasoning! AJI-NO-MOTO®.! The! great! ambition! of! Dr.! Kikunae! Ikeda! has! been! developed! into! 4e!

strongly !developed!since! 1907! until !now.!Here!are!the!stages!of!development!of!the!A jinomoto.!

to!nearly!2,300!people.!

2.2#VISION#MISSION#AND#CORE#VALUE#OF#AJIMOMOTOZ#VTET#NAM:#

In! association! with! the! Group! Philosophy,! Ajinomoto! Vietnam! Company! is! conducting! a! significant! t principle!that!is!to!create! Ajinomoto! Shared! Value!-!“ASV ”!through! business!activities !It!helps!not!only!to!create Economic!values!for!the!company!but!also!to!create!Social!values!to!resolve!social !issues!and!promote! happiness! and'health!of!people!in! Vietnam,!which!enables!our! Company !to!achieve!sustainable!growth.!

Eat Well, Live Well

Purpose Contributing to the well-being of all human beings, our society and our planet with AminoScience,

ASV ASV Initiatives Ajinomoto Group Co-creation of social and economic

Creating Shared Value value through our business

Values Create new value, Pioneer spirit, Social contribution, Value people

Figure$3.$Corporate$Philosophy$Structure$of$A jinomoto$Group$(A jinomoto,$n.d.)$

Ajinomoto!created!the!AS V!Management!Cycle!and!established!a!four-step!process!aimed!at!enhancing employee! engagement! with!ASV !by!encouraging!employees!to!make!ASV !as!one’s!own!initiative,!an!indispensable!element of!value!creation.!

Management cycle for ASV results creation

Engagement survey Dialogue with CEO and

General Managers of each division

Execution Personal goal

Resonance

Sharing of case studies Accelerator program

(A-STARTERS : program for Participatory

openly recruiting new business ideas) training events

Figure$4 $AS V$Management$Cycle$(A jinomoto,$n.d.)$

2.3.4PRODUCTS#

From!the! first! product, MSG! AJI-NO-MOTO®, !over!30! years,! Ajinomoto! Vietnam!has!more!than!35! types! of !foc products! that!are! widely!introduced!across!the! country! with! well-known!brands.!Use!favorite!foods!such!as! AJI- NO-MOTO®!MSG,!Aji-ngon®!Seasoning,!Aji-Quick® !Pre-Seasoning!Seasoning,!Aji-mayo® !Mayonnaise!Sauce,!" Soy! Sauce,! Ajinomoto! Fermented! Rice! Vinegar,! Flour! Ready-to-drink! donuts,! Blendy®! Instant! Drinks, Canned!Coffee,!VITAL!™ !Amino! Drinks! ,!“Mam!Ma”!Micronutrient!Supplements !

1.1#Input#

AJIT-NO-MOTO!MSGTIin†Vietnam!is†produced!mainly!from† natural!materials! such†as!tapioca!(cassava) lan

Two! factories! including! Ajinomoto! Bien! Hoa! Factory! operating! since! 1991! and! Long! Thanh! A) Factory! operating! since! 2008! and! the! third! factory! in! Long! Thanh! started! construction! in! 2016.! Ajir factories!are!all!located!in!the! southern!region,! partly !because!of!their! proximity!to! the!source!of!raw !sugarcane! (which!is!grown!mainly!in!Tay!Ninh!and!Long!An)!to!reduce!transportation!costs!and!facilitate!the!procurement!of raw!materials.!

+! Each! year! consumes! 120,000! tons! of! tapioca! starch,! equivalent! to! 5.5%! of! the! total! national! production! of! tapioca!and!60000!tons!of!molasses,!equivalent!to! 10%!of!the!entire!South'’s!sugarcane!output.!

+!Plastic!packaging: !replace!products!from!multi-material !to!single-use! plastic!that!can'!be!recycled!to!achieve'zero! waste!by!practical!actions!such!as:!improving!all!packaging!materials!for!products!such!as! packaging! ,!labels,!lids, etc !even!packaging!containing! production!materials!are!required! to! be!converted!to!recyclable! materials !

-$Infrastructure!

With!diversified!and!modern!facilities,!A jinomoto! Vietnam! Company! was! established!as!a! 100%! foreign- invested! company! under! Ajinomoto! Group,! Japan! with! an! initial !investment! value! of ! more! than! US$8! million.! With!sufficient!facilities!to!meet!the!operation!and!production!of!a! variety!of!products 'In!addition!to!equipment,! machines!are!used!to!manufacture! products,!towards!zero!emissions,!energy!efficiency!and!business! promotion! based!on!biological!cycles.!

wastewater! treatment! applying! biological! nitrogen! technology.! Applying! new !technolosy,! the†company! built!al cooling!tower!system!with!its!own!water!reservoir,!using!circulating! water !from!the!lakes!for!cooling.!Particularly! for! the! wastewater! treatment! system,! the! company! invested! 100! billion! VND.! Advanced! biological! ni treatment!system!from!Japan!and!has!a!treatment!capacity!of!3 400m3!of!wastewater! per'day.!

Figure$7.$Biological$boiler$system$

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into! monosodium! glutamate! (MSG),! all! stages! of! the! MSG! production! process! are! rigorously! tested! to! ensure! quality!assurance!at!each!stage! of !production!in!accordance! with! the!quality!management!system.!

MSG is produced by fermentation

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FERMENTATION a

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Figure$9.$ProducWon$process$of$MSG$A jinomoto$

¥ !Tapioca!starch!will!be!processed!with!enzymes,!also!known!as!probiotics,!to!create!a!simple!sugar!solution,! the!sugar!solution!is used !for!fermentation,'!producing!glutamic!acid,!which!is!similar'to!the!process !similar! to!the! process! of !fermenting!yogurt,!vinegar,!cheese!or!using!microbial chains !

¥ !This! microorganism! series! is! supplied! by! Japan! Ajinomoto! Corporation! which! has! undergone! rigorous! testing!and! assurance! from! the! laboratory! to! prepare !for!fermentation,! the!fermentation! specifications! are! automatically! adjusted.! Dynamic! and! strict! control! create! a! central! control! room! to! ensure fermentation! stage! has! a! stable! performance,! Acid! glutamide! is! recovered! by! adjusting! the! PH! solution!and!then!neutralized!with!soda!to!make!MSG!liquid.!

Glutamic acid to monosodium glutamate (MSG) by neutralization

standard !hygiene!operations!including: !wearing!masks,'hats ,!changing'clothes,!etc !shoes,!wash!hands!with! antiseptic! solution,! finally! enter! the! air-blowing! room! before! entering! the! packing! area,! the! packing! is! done!entirely!by!automatic!lines.!

¥ Ajinomoto!MSG!is!packaged!in!bags! of !different!sizes!to!serve!the!diverse!needs! of !consumers !here! MSG packages! will! be! quality! checked! again! to! ensure! all! MSG! packages! reaching! consumers! are! t products.!

The! production! model! "closed! biological! cycle"! applied! by! Ajinomoto! Vietnam! can! be! shown! production! procedure! of! mono-sodium! glutamate! (MSG).! Accordingly,! the! Company! uses! raw! materia agricultural !origin from !tapioca!to!produce!mono-sodium!glutamate !During!the!production!process,'the'Company! develops! by-products! such!as! bio-fertilizers,! which! help! to! provide! an!abundant! source! of! nutrients! back! to! the! soil,!bring !about!sustainable!bountiful !crops,!and!support!the natural !balance!to!move!the!Vietnamese!agricultural! sector!forward.!

The! mono-sodium! glutamate! production! model! at! Ajinomoto! Vietnam! is! demonstrated! through! | biological !cycles!as!follows:!

Ajinomoto! Vietnam !has!been!applying!a!strict!quality!assurance!system !from!the!selection!of!raw !materials!to!the! production! process! in! accordance! with! ISO! 9001:2015! Quality! Management! System,! Hazard! Analysi Destination! Control! System.! HACCP! to! ensure! food! safety! and! hygiene! Food! Defense! management! system! to! control! intentional! risks! to! product! quality! environmental! management! system! ISO! 14001:2015! occupati health!and!safety!management!system !industry!OHSAS!18001:2007!energy!management!system!ISO!50001:2011.! The!company!also!applies!some!special! standards! “ASQUA”!of! Ajinomoto! group.!

Ị

of the Ajinomoto Group P.4

Figure$13.$ASQUA$components$(Ajinomoto)$

The! Ajinomoto! Corporation! Quality! Standards! are! designed! to! ensure! that! products! meet! the! quality! expected! of ! the! Ajinomoto! Group! brand! and! are! rigorous! standards! that! cover! many! areas! including! labeling! training.!packaging!and!traceability!etc!

Ajinomoto$System$of$Quality$A ssurance$(ASQUA)!

Ajinomoto! Corporation! applies!its! own! quality!assurance! system! Ajinomoto! Quality! Assurance! System! (ASQUA to!all!of!its! products! and! services.!This! ensures! strict! quality!from! raw! material! procurement! to! product! sales.! Besides,!it!also! helps!customers! know! the! origin! of! the! product's! standard! ingredients ,!and! thus! can! feel! more!

Rules and requirements

of the Ajinomoto Group

Manufacturing management standards

The international quality management system standard

ISO 9001

Figure$14.$ASQUA $framework$(A jinomoto,$2023)$

The!ASQUA!system!was! established !in! 1997!by!Ajinomoto!Corporation!as!their!unique!system!of !quality !assurance standards !Based!on!ISO!9001 ,!the!international !quality!management!system!standard,!in!addition!to!production! management! standards! such! as! Hazard! Analysis! and! Critical! Control! Points!( HACCP)! and! hygiene! management standards !food!and!good!manufacturing! practices!(GMP).!

The! above! standard! systems! are! combined! with! the! Group's! general! policies! on! quality,! the! quality! assurance! regulations! of! Ajinomoto! and! the! quality! standards! established! by! other! corporations.! Since! then! ASQUA! was! formed! with! the!purpose!of!carrying!out! rigorous! product!quality!assurance!activities!in!the! world.!Starting!from! the! selection! of! raw! materials! to! the! step! of !bringing! products! to! consumers,! always! aiming! to! develop! even! higher! product! quality !Record!customer!experience!feedback!to!improve! product! quality!and!better!service.!

Product control divisions

[ All affiliated companies ) [ All affiliated companies }

Figure$15.$$ASQUA $implementaWon$system$(A jinomoto,$2023)$ Ajinomoto$Group's$Quality$Standards$(examples)!

GMP'!Standard!for! Pharmaceutical !Drug! Products!

Standard !for!Food!Safety! Management! System !({including!HACCP)!

Standard !for! Quality !Control !of!Subcontracted!and!Procured!Products!

3.$Compare$the $resources$and$competencies$of$the$company$to$other$com petitors$

Working!in!the!same! field,!Ajinomoto!faces!a! wide!range! of! competitors !However,!in!the! case!of!resources!and! competencies,'there!are!two! pioneer! companies! which!can!be!compared! with! Ajinomoto !In!this!report,!we! will! choose!Maggi!and!Vedan!as!an!example.!

Vedan! Enterprises,! established! in! 1954! in! Taiwan,! has! more! than! 30! years! of! operating! in! Vietnam.! Similar! to! Ajinomoto,! Vedan! is! also! a! giant! in! the! field! of! seasoning! and! flavor! products.! The! firm! itself! has numerous!international!standard!certifications,!including!'ISO!9001 ,!1SO!14001 ISO/IEC! 17025: !2005,!et!cetera.! Maggi!is! an! international! brand! of! seasonings,! instant! soups,! and! noodles! that! originated!in! Switzerland!and! it! was! acquired! by! Nestlé! in! 1947.! Maggi! products! are! popular! in! many! regions! of! the! world,! especially! in! Asia Africa,!and! Latin! America.!The! firm !itself!has!achieved! numerous! international! standard!certifications,! including! ISO!22’000:2005/ISO!22002-1,!SLS,!et!cetera.!

and! chemical! sectors.! It! has! various! divisi

as! Food! AminoScien such! Products,!

Corporate,! and! Sustainability! an

Communications.! Companies! in! the! Ajinome

Group! encourage! all! of !their!employees!to! keep!

advancing!their!knowledge!and!abilities!in!order

to!contribute!to!society! while!giving!them! equal

opportunities! to! grow! personally! and! use! their!

potential.!| Additionally,! it! is! the! duty!

employees! to! seize! these! chances! to! advar

their!professional !competence.!Additionally,!the!

business! values! diversity,! individuality! a

character! in! its! workers! and! encourages! th] !

continued! professional! development.! The

Ajinomoto! Group! evaluates! each! company

employees’! qualities,!aptitudes,! and! motivation!

Maggi! company! is! a! brand! of! Nestlé, world's!largest!food!and!beverage!company.! It!does!notthave!its!own!personnel !but!rather! relies!on!the!management!and!employees!of! Nestlé !Nestlé!has!five!zones!for!its!food!and beverage! business! —! North! America,! L¿ America,! Europe,! Asia,! Oceania! and! Aj (AOA),! plus! Greater! China.! Maggi! talented! individuals! who! are! driven! al capable,! who! uphold! Maggi's! values,! w give! all! employees! an! equal! chance! advance,! and! respect! everyone's! right! privacy.! Maggi! will! take! enforcement!action| against! unfair!practices.!