Luận văn development of quality management system in accordance with iso 9001

Recently international travel agency have required Ben Thanh Tourist to apply a quality management system in accordance with 1SO 9001; 2000 in order to ensure consistent high quality of

VIETNAM NATIONAL UNIVERSITY, HANOI

HANOI SCHOOL OF BUSINESS

Nguyen The Cuong

DEVELOPMENT OF QUALITY MANAGEMENT SYSTEM IN ACCORDANCE WITH ISO 9001:2000

FOR BEN THANH TOURIST — HANOI

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi - 2007

VIETNAM NATIONAL UNIVERSITY, HANOT

HANOI SCHOOL OF BUSINESS

Nguyen The Cuong

DEVELOPMENT OF QUALITY MANAGEMENT SYSTEM IN ACCORDANCE WITH ISO 9001:2000

FOR BEN THANII TOURIST - WANOT

‘Major: Business Administration

Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: DR.TA NGOC CAU

Hanoi - 2007

1 The need for study - 1

2 ‘The statement of the problem 1

3 Aim and Purpose of study 3

4 Research questions 3

5 Scope of work 4

6 Assumption ào cac

7 ta sources and Processing 4

12 Why we need fo develop ISO 9001:2000 8

1.4 the Standards LSO 9001:2000 analysis 2

1.41 Quality management syslem requirements 13

1.4.2 Managcment responsibility 13 1.43 Resource management 13

1.4.5 Measurement, analysis and improv 14

1,5 Quality management principles 0 000 lÓ

1.6 — Process approach 26

2.1 Ben Thanh Tourist Hanoi Introduction 29

2.3.5 Data collection procedies 32

2246 Trterview procedure and protocol 33

2.27 Dala analysis prooedures 34

REFERENCES

INTRODUCTION

1 The need for study

en Thanh Tourist was founded in 1990 It provides all inbound and outbound

tours to travelers Ben Thanh Tourist starts recognizing the importance of investing in quality and providing high quality services due to several reasons

First of all, intemational tourists have been increasingly visiting Vietnam over past

years; foreign tourists are rousingly interested in Viemnam leading to a larger mamber of

inbound travelers

As Vietnam’s economy is booming, thus standards of living are rising Conscruently the necd to reach bigher quality standards of tours is becoming more demanding ‘Lravelers are increasingly expecting the high standards of service

The competition among tour companies in Ilanoi is really strong In addition,

travelers have a big choice of where to book their travel Some of them book via travel

companies; others arrange all or part of their travel directly with service suppliers, ie

airlines hotels, car-rental compames The emergence of on-line booking tools, on-line

bonking possibilily via airline web pages whore lower service charges are offered, also pose a threat to tour companies Unless Ben Thanh found solutions how to retain the

dnggest mbound market share and meet ils needs, big part of business may be lost

Recently international travel agency have required Ben Thanh Tourist to apply

a quality management system in accordance with 1SO 9001; 2000 in order to ensure

consistent high quality of service lo their customer

‘Yherefore the manager board decided to apply ISO 9001:2000 for its tour operation business

2 The statement of the prablem

As a tour operator, Ben thanh tourist offer a number of service of tour packages,

making reservation, booking and other tour arrangement for tourist The company

yeport reveals that annually growth accounts for 10% in term of sale revenues ‘he

‘benefits achieve a round 12% The number of tourists increases 15% Ilowever some

key stafts decided to move from the company with tho reason of low salary Consequently, it takes company some time and money to train new staff's Furthermore,

the customer made complaint with the quality The reasons for most of complaints are

as follows:

® Staff make error because of i preparations

«Every does the job in his/ her way hence use varying quality level

¢ Various company departments do not speak to each other.»

¢ Staff does not feel responsible for quality.»

* When an error is made it is difficult to determine the cause, and the same errors

lend to repeat

In order to fulfill requirements or needs of customers and demonstrate the quality of its services to the outside world The Ben thanh Tourist decided to apply to implement

ISO $001:2000

Problem in implementing a quality management is to:

© Getall employees to know to the standard

© Pvaluate the current quality management syslem

© Set up documentation systems

In the past, the Ben Thanh Tourist runs its own quality management It seem be good so far But now, customers are more demanding, they expect consistent services and fully satisfaction by implementing a quality management system

As the result of that, this study shall demonstrate its quality service based on iSO

9001:2000 requirements

3 Aims and purpose of study

The overall purpose of the study is to

¢ Hvaluate Ben Thanh Tourist’s quality management

Identify the gap betwoen Ben Thanh Tourist tour operations with the slandards

requirements

* Work out some recommendation to Ben thanh Tourist quality management,

In other word, the purpose of the study is to evaluate how effective and efficient

Quality management, looking into their current status, and compare its performance

with the standard requirements in order to see how much of the quality process is

assured and managed

Moreover the study then develop an action plan to implement a Quality Management System based on ISO 9601:2000 as a tool to boost its performances in order Lo improve the quality ad efliciency of its travel services based on positive

current system

The aim of the study also helps sel up the steps of applying quality management

system compliance with ISO into tour operation business

4, Research questions

Many sludies show that there is a necd for efTective quality management sysiam implementation in tour operation business, but relevant research directly related to this need is limited The overall questions guiding this study ask: Ilow compliant the

quahty management system at, Ban Thanh Tourist is im the view of TSO 9001:2000.

The LSO 9000:2000 standard requirements serve as the theoretical lens that

frames this study This approach creates confidence in implementing quality management system in accordance with ISO 9001; 2000 Rescarch questions are

The sludy only focused on quahty management system in Ben Thanh Tourist

Branch Hanoi so the findings of the study may not be related to for other management such as finacial, human resources management, and straegy management

6 Assumption

‘There was a commitment of the management board to applying 1SO 9001:2000

The quality policy is in the line with the company policy Ben Thanh Tourist Imanagement prepare determine and provide cnough resources for impleinent quality

management system

7 Data Sources and Processing

Following the data collection and processing is explained In this study, primary data was collected Methods used to collect primary data are interview, review dovument and reports, and observation, An in-depth inlerview is charaplerized by ils length, depth and structure Therefore, it suited to the study which demands to seek a better insight into Ben thanh Tourist operations to identify gaps between the standard ISO 9000: 2000 requirements with its performances

‘The formulation of the interview question plays a vital role in the structure of the study and in ensuring a successful result These interview questions are based on

the recommendations or requirements of ISO 9001-2000 In other word, all the ISO’s

requirements are transformed into the form of question PRAXIOM RUSEARCII

GROUP LIMITED has provided approach of interviewing referred as gap analysis:

Hach interview question has two possible answers: Yes, No A Yes answer means that the organization has already met one of ISO's requirements, a No answer points ta a

question No answers reveal gaps thal exist between the TSO 9001 2000 Standard and

the organization's processes Whenever the answer No to a question, there arc at least one of the organization's processes fails to meet an ISO 9001 2000 requirement A No answer tells the organizalion thal a process needs further develspment TL tells that a process needs to be modified, improved, or created

Therefore, whenever there is answer No to a question, thal processes must be

considered, and decided which ones need to be changed The interview questions are

found at the appendix 3

As the information to be provided had to be complex, it was important to

Choose the right interviewees who would be experts in business It was decided to

contact the manager of Ben Thanh Tourist Hanoi Branch due to the fact that he has

deen a senior managers of Ben Thanh Tourist, Hanoi Branch since ils established in

1990 and were contacted agreed to be interviewed and provided a wealth of

information as well as brought to light different perspectives Consequently, the senior

amanager’s answers reflects the truc current status of the Ben thanh Tourist

8 Experiment Methods

Case Study approach is applied m this study With reference 10 primary data, case study approach was chosen due to several reasons Kirst of all, a descriptive case study is the best methad of providing the rich and complex details of the issue Yin

(1994) defines a case study as “an empirical inquiry that investigates a contemporary

phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident” (p.13) I chose case study research in order to gather information of a greater depth than would be possible usmg another methodology such as survey data

Because case study researcher relies on multiple sources of data, I conducted

structured interviews asking, a set of yes-no questions With Yes/ no questions one can

only be answered with “yes” no” This form of question is important for confirmation,

in order to make sure thal cerlam action bas been correctly carried out

All interviews were direct and decp Numerous documents related to its

performance were also reviewed for this study Documents included, but were not

lnnited 10, policy manuals, records of operation, web sile information, and memos

Finally this allowed to documentation a chain of evidence throughout the study

Memo writing in the journal helped me to reflect on my thoughts and ideas as T wert

through the research process Another benefit of mamntaining a researcher’s journal was

to document any changes necessary in the study

9 Significance

Designed to provide systematic inquiry into the quality management system

compliant with ISO 9001:2000 in a tour company, this study contributes substantive

imlormation about how to build a quality management system im a Lour compary:

Results of this study could have implications for tour operators, travel agents In

response to the growing numbers of tour operators today and the limited amount of

research in the business , it is expected that this research will make a contribution to the

kmowledge base of current practices in supporting tour company to apply quality

Inanagement

10 Limitations

There are several limitations of this study that must be noted It was conducted

in a branch in Hanoi While this sctting may limit the applicability of this study to Ben

‘Thanh Tourist Branch Hanoi, it can also encourage others to conduct studies that add to

my findings In addition, with two-way textual commumication of interview it was

more complicated to gain detailed information Therefore, some of the relevant information was difficult to interpret and transcribe

Finally, it should be pointed out that the validity of the gathered information is

limited to the time of the current research Therefore, it should be taken into account

that there may be ongoing changes resulting in information updates

11, Expected Results

The oxpeoted results are intended to give some ideas on: what operations that

Ben Thanh has complied with the standard and been documented, what operations that

Ben Thanh has comphed with the standard and not been documented, what, operation

that Ben ‘Thanh has not complied with the standard and not been documented Base on

this Gincing, an action plan will be developed to implement TSO in Ben tharh Tourist

Hanoi

12 Short summary

This study provides a detailed look Ben Thanh Tourist‘s current status, and

compare its performance with the standard requirements in order to see how much of the quality process is assured and managed and then develop a plan to implement a Qualily Management System based on ISO 9001:2000 as a tool lo boosh ils performances in order to improve the quality and efficiency of its travel services

Tntroduction part begins with purpose of the study, research questions, data sources and

process, methodology, limitations of the study, significance of the study, and short

introduction Chapter One contains theoretical foundation the framework for this

study Chapicr Two conlains Empirical research identifying the procedures Cor collecting and analyzing the data Eindings are presented in Chapter Three, and

implications for practice included in Conclusion.

CHAPTER 1 THEORETICAL FOUNDATION

In order to achieve research aim and objectives, the standard [80 9000 family,

particular 9001:2000 will be used to analyze in order to understand: Whal are the

individual recommendations or requirements of the standard? What action must be taken in order to follow the recommendations or to fulfill the requirements? In this

chapter, cach clause of the slandard will be presented in detait

1.1 What is ISO 9000 family

180 9000 family form a coherent set of quality management system standards

facililaling mutual understanding within ruational and iersational trade The TSO 9000

family has been in existence for over 20 years and is applied all over the world

The origin of the standards and their first application was to be found with

industrial companics where generally products wore manufactured in accordance with

customer specifications With increase use of the standards and the certification based

on ther, application within various seclors of indusiry and commerce incrcased- both

in industrial companies and service providers ‘The [SO 9000 standards have been

revised 2 times : 1994 version & 2000 version, each version have updated new

achicvement in Quality Management

Quality management systems in accordance with the ISO 9000 family have

become extremely widespread over the last few years It can be assumed that a great

many companies have built up quality management systems in accordance with this family of standards

1.2 Why we need to apply ISO 900

The reason for this is that for several ycars now important companies have set

requirements for their suppliers with regard to creation and form of quality matagement system, As a resull, whole sector, for example the automotive industry ta

service, have laid down requirements as regards the quality management system of their supplier [DGQ]

Many supplicrs with customers in different scotors of economy had to adapt their company management system to different requirements with a considerable

expenditure of time and effort National standards offered suppliers the possibility of

orientating themselves toward standards requirements at least within one county [DGQ]

As the global economy progressed, it becomes necessary to set uniform

sequirements as regards quality system which would be accepted worldwide

With the ISO 9000 family, for first time company management system have been

described in slandards At bogirming, many were doubtful, as company management systems must be suited to the specific characteristics of individual companies and for

this reason cammot be standardized The standards organizations recogmyed Lhis

problem and limited themselves to standardizing the requirements as regards company and quality management system, but not their actual concrete form

This means that every company retains the opportunity of creating its quality

management system in an individual way which is suited to its own individual requirements The ISO 9000 family of standards lay down what should be regulated wilhin the framework ol'a quality management system, bul do nol speeily how this has

to happen.

requfrement (312: grade (3.1.3)

same funcdenal use

competence (9.1.8)

requlremanis

capability (3.1.5)

abilty of en argenizatian, system or process to realize @ product that wll “ft the fequlremesits far that product

customer satisfaction (31.4)

customers perception of the degree te

‘which the customer's raquirements have

been fulfilled

Vigure1.1; Concept relating to quality [source: ISO 9001: 2000]

1.3 Aim of ISO 9000 family of standards

Trdustrial, commercial supply products, service with the intention of fulfifling requirements or needs of customers Increasing competition with regards to quality has

led continuous rise customer expectations In order to be competitive and to maintain

gond economic performance, companies have to make use of more and more elleclive

and efficient system

10

“The ISO 9000 family of standards has been developed to assist organizations, of all types and sizes, to implement and operate effective quality management systems

USO 9000-2000

18O 9000 describes fundamentals of quality management systems and specifies the

terminology for quality management systems

L8O 9001 specifies requirements for a quality management system where an

organization needs to demonstrate its ability to provide products that fulfill customer

and applicable regulatory requirements and aims to enhance customer salisfachon

— 180 9004 provides guidelines that consider both the ctfcctiveness and cfficicney of

the quality management system The aim of this standard is improvement of the

performance of the organization and salisiaction of customers and other interested

‘Together they form a coherent set of quality management standards facilitating mutual understanding within national and international trade

‘organization (33.4)

‘group of peer amangernent of responatiities, euinarties

interested party 3.37) persovor group having an

arrangement of meaponsibiities, authortios

and relationships between

amaemization or parson that recelves:

eaulgment and semleee «WOK environment

ceeded forthe aperation of G44) contract 192.9)

an owganzatien set ofcondtions under toning agresenant

which work ts performed

Figure 1.2: Concept relating ta organization [sources ISO 9004:2000]

1.4 The Standards ISO 9001:2000 analysis

8O 9001:2000 is the latest version of a quality management standard which has

‘deen in existence for many years and which has been applied by more than 300,000 organizations world-wide, Tl specifies minimum requiremenis for a quality

management system where an organization needs to:

+ Demonstrate its ability to provide consistently a product that meets customer

and applicable regulatory requirements and to:

* Address/oriance customer salisfaclion Uough the cffeetive application of the system, developing processes for continual improvement and the prevention of

errors and mistakes

12

The [SO $001: 2000 contains five requirements sections, each dealing with one

of the fundamental building blocks required by any process These are

1.4.1 Quality management system:

‘this section details the general requirement for QUALITY MANAGUMUNT

SYSTEM and documentation requirements that are the foundation of the management

system ‘the general requirements ask the organizations to look at the processes of the management system, how they interact with each other, and what resources are needed

to run he processes; and how the processes will be measured and monitored and action

plan will be implemented The seeond part of the scction then sets out the requirements

for the documentation needed to operate the system effectively, including quality

manuals, procedures, records and how the decumenlation should be controlled

1.4.2 Management responsibility

The management of the systems is the responsibility of lhe "top management" at

a strategic level in the organization, The “top management” must know it’s

commitment to develop QUALITY MANAGEMENT SYSTEM , make the staffs

awareness of customers' requirements at a strategic level and make a commitment to

meeting these as well as statutory and regulatory requirements Set up quality policy,

abjectives “Top management" must set policies; and to achieve these policies set objectives through planing hew the abjeclives will be met "Top managemenl" should

also ensure that there are clear internal communications and that the management

system is regularly reviewed

1.4.3 Resource management:

‘this covers the people and physical resources needed to carry out the process

People should be competent to carry oul Iheir tasks and the physical resources and

work environment need to be capable of ensuring that the customers’ requirements are met

13

1.4.4 Product/Service realization:

These are the processes necessary to produce the product or to provide the service Determine the quality & objectives for the products, requirements of customers

; Monitor ,validate the product, communicate with customers This is the act of

converting the input of the process to the output Far a service organization, this may

be the process of take towtists on tour throughout the country

1.4.5 Measurement, analysis and improvement:

These are the measurements to enable the syslems to be monitored Lo provide

information on how the systems are performing with respect to the customer, the

management systems themselves through internal audits, the processes and the product

Analyzing (hese, including any defect or shortfall im performance, will provide valuable information for use in improving the systems and products where this is

verify thal the output ricet whal is required

Such a process may be, for example, the actions required by the organization on receipt of a customer order, and the steps taken to convert that order into something, that will allow a reservation to be provided The input here would be the customer order, and the output, the organization's internal documents, resources and services

that allow the provision of the service

14

‘Thus the process will need be looked, the inputs be determined, examined how

it is controlled, and look at the outputs The way the process is controlled may require

an cxanuination of echanisms other than documented procedures

Such control mechanisms could be by, for example, control charts, process flow diagrams or by training of operatives to ensure they are competent Whatever the means by which the organization decides to control the process, evidence will be sought that dhe conlrol mechamism is imdeed cleelivc The ultumate test of effectiveness is an examination of whether the end result of the process is in

accordance with the inpuls

Thus, during research of the process, process oulpul would be delermined if it met the requirements of the organization and the process for obtaining them was operating under the controlled conditions that the organization had defined

Research of processes should result in a logical research of the activities in

carymg out the various functions required lo supply custamers wilh a product or

service which meets their needs

1.4.6 Exclusion of requirement

Tn order thal each organization may have the opporlunity of demonstrating the

conformity of its quality management system with ISO 9001:2000, exception are

permitted in clause? According to [SO 9001:2000, clause 1.2 only those requirement

aay be excluded “where exclusions are limited to requirements within clause?, and

such exclusions do not affect the organization’s ability, or responsibility to provide product that meets customer and applicable regulatory requirements”[ISO]

Such exclusion may firul (hei justification in:

© The character of the organization

® The character of the product

15

If more exceptions are made than are permitted, conformity with 1SO 9001:2000

may not be claimed This inchides situations where the fulfillment of regulatory sequirements allows exceptions, which go beyond the exceptions penmitted by ISO

9001:2000

1.5 Quality management principles

1.5.1 Introduction

The ISO 9000 Family of standards will be based on these Quality Management

Phnciples With growing global competition, qualily management is becoming

increasingly important to the leadership and management of all organizations

The Quality Management Principles apply universally to all user groups This

dovument focuses ơn the needs of excvulive managers The Quality Management Principles may be incorporated into new or existing documents to satisfy the needs of

other user groups

By applying the following eight Quality Management Principles, organizations will produce benefits for customers, owners, people, suppliers, local communities and

society at large

16

ality management quality management ay Beal

SYS (3.2.5) agp coordinated actiios to direct

and control an organization vwith regard ts quality

who directs and aanrole an organization, a he highest

lor

quality policy (32.4) vera Ìntdnieg suử direction of an organization related ta ually a9 formeaty

syeclym ieesssary Xeijolieihanl walle

the qualty objective

effectiveness (2.2.14)

‘extanl to which planned ctrrlas ara realized and planned rasuits achieved

efficiency 1.2.15) relationship betwao' result achieved end (630UI085 Used

igure 1.3: Concept relating to quality management |sourees 180 9000:2000]

1.5.2 Quality Management Principles

A quality management principle is a comprehensive and fundamental rule ot belicf, for leading and operating an organization, aimed at continually improving performance over the long term by focusing on customers while addressing the needs

of all other stakeholders

1.5.2.1 Principle 1 - Customer-Focused Organization

"Organizations depend on their customers and therefore should understand

current, and future customer needs, meel customer requirements and strive Lo exceed

customer expectations".| TSO 9001-2000]

Applying the principle of customer-focused organization leads to the following actions:

* Understanding the whole range of customer needs and expectations for

products, delivery, price, dependability, ete

© Pnsuring a balanced approach among customers and other stakeholders

(owners, people, supplicrs, local communitics and socicty at large) needs

and expectations

« Communicating the necds and cxpectations throughout the

organization measuring customer satisfaction and acting on results, and

managing customer relationships Beneficial applications of this principle include

» For policy and slalegy formulation, making customer needs and the needs

of other stakeholders understood throughout the organization;

+ For goal and target setting, ensuring that relevant goals and targets are directly Hinked to customer rieeds and expoelalions,

* For operational management, improving the performance of the

organization to meet customer needs,

+ For human resources management, ensuring the people has the knowledge

and skills required to satisfy the orgeuitzation’s customers

18

1.3.2.2Prineliple 2 - Leadership

"Leaders establish unity of purpose and direction of the organization They should create and maintain the internal environment in which people can become fully

involved in achieving the organization’s objectives."[SO 9001:2000]

Applying the principle of leadership leads to the following actions:

* being proactive and leading by example, + Understanding and responding to changes in the extemal environment,

»* considering the needs of all stakeholders including customers, owners,

people, suppliers, local communities and society at large,

+ establishing a clear vision of the arganization’s future,

+ establishing shared values and ethical role models af all levels of the organization,

» building trust and eliminating fear,

+ providing people with the required resources and freedom to act with responsibility and accountability,

» Inspiring, encouraging and recognizing people's contributions,

* promoting open and honest communucation,

+ Educating, training and coaching people,

+ setting challenging goals and targets, and

+ implementing strategy to achieve these goals and targets

Beneficial applications of this principle include:

+ For policy and strategy formulation, establishing and communicating a clear vision of the organization’s future;

+ For goal and target sclling, translating the vision of the organization mlo

measurable goals and targets, + Tor operational management, empowered and involved people achieve the

organization’s objectives,

19

* For human resource management, having an empowered, motivated, well informed and stable workforce

1.5.2.3 Principle 3 - Involvement of People

"People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit’ [ISO 9001:2000], Applying the principle of involvement of people leads to the following actions by the people

* accepling ownership and responsibilily lo solve problems,

* Actively sccking opportunities to make improvements, + Actively seeking opportunities to enhance their competencies,

knowledge and experience,

+ Freely sharing, knowledge and experience in teams and groups,

» fox

‘ing on the creation of value for cuslomers,

« being innovative and creative in furthering the organizations objectives, + Better representing the organization to customers, local communities

and society at large,

+ deriving satisfaction from their work, and + be enthusiastic and proud to be part of the organization

Beneficial applications of Uhis principle include

* For policy and strategy formulation, people effectively contributing to

improvement of the policy and strategies of the organization,

+ For goal and target setting, people sharing ownership of the organization's goals,

+ For opcratienal managorenl, people being involved in appropriate

decisions and process improvements,

20

+ For human resource management, people being more satisfied with their jobs and being actively involved in their personal growth and development, for the organization's benefit

1.5.2.4 Principle 4 - Process Approach

"A desired result is achieved more efficiently when related resources and activities are managed as a process."[ISO 9001:2000]

Applying the principle of process approach leads to the following actions:

« defining the process to achieve the desired result, + identifying and measuring, the inputs and outputs of the process, + identifying the interfaces of the process with the functions of the

* identifying the internal and extemal customers, suppliers and other

stakeholders of the process, and

« when designing processes, consideration is given to process steps,

aclivities, flows, conlrol measures, training needs, equipment, methods,

information, materials and other resources to achieve the desired result

Beneficial applications of this principle include:

+ for policy and stratcey formulation, utilizing defined processes throughout the organization will lead to more predictable results, better

use ol resources, shorter, cycle tmes and Tower costs;

+ For goal and target setting, understanding the capability of processes enables the oreation of challenging goals and targets:

21

+ for operational management, adopting the process approach for all operations results in lower costs, prevention of errors, control of variation, shorter cycle times and more predictable outputs,

+ for human resource management establishing cost efficient processes for human resource management, such as hiring education and training, enables the alignment of these processes with the needs of the organization and produces a more capable workforce

speciled wey lo cany cụt “3 satet interrelated oc “€———_ Product :3.4.2)

án actinty of aprosess Interacting activiies which meatal aprocese

transforms inputs foto outputs

design and i development tun-que process, consisting of @ set of coordinated project 3.4.3)

and controlled activtias with start and linish dates, roqulremarts into specitad Uunwarlaket Ip aohiovs oo ebinctiva wrong We chargcialsfcs cr ko the spooiia toguthomarts, inading lo đ0ngbinls gỲ spocificatan 2 a product, pocess ‘ime, cost end resources

oreystern

satel processes tet vanstorms

Figure 4: Concept relating tu process and product [saurces ISO 9000:2000]

1.5.2.5 Principle 5 - System Approach to Management,

"Identifying, understanding and managing a system of interrelated processes for

a given objective improve the organization's effectiveness and efficiency "[ISO

9001 2000),

Applying the principle of system approach to management leads to the following actions

22

+ defining the system by identifying or developing, the processes that affect a given objective,

+ structuring the system to achicve the objective in the most efficient way,

+ understanding the interdependencies among the processes of the

system,

* Continually improving the system through measurement and evaluation, and

+ ostablishing resource constramts prior to action

Beneficial applications of this principle include:

+ For policy and strategy formulation, the creation of comprehensive and challenging plans that link functional and process inputs,

+ For goal and target selling, the goals and targets of incbyidual processes

are aligned with the organization’s key objectives;

* For operational management, a broader overview of the effectiveness of processes which leads to understanding the causes of problems and

timely improvement actions,

* for human resource management, provides a better understanding of roles and responsibilities for achieving common cbjectives thereby reducing cross functional barriers and improving teamwork,

1.5.2.6 Principle 6 - Continual Improvement

"Continual improvement should be a permanent objective of the organization."[ISO 9001:2000] Applying the principle of continual improvement leads 1o the following actions:

+ making continual improvement of products, processes and systems an objective for every individual in the organization,

23

+ applying the basic improvement concepts of incremental improvement and breakthrough improvement,

* using periodic assessments against ostablished criteria of excellence to identify areas for potential improvement,

* Continually improving the efficiency and effectiveness of all processes,

* promoting prevention based activities,

* providing every member of the organization with appropriate education

and Iraimng, ơn the methods and tools of continual improvement such as:

- The Plan-Do-Check-Act cycle,

Beneficial applications of this principle include

* for policy and strategy formulation, creating and achieving more

competitive business plans through the integration of continual improvement with strategic and business planning;

+ For goal end target setting, seling realistic and challenging

improvement goals and providing the resources to achieve them;

* For operational management, involving people in the organization in the continual improvement of processes;

+ Vor human resource management, providing all people in the

organization wilh the tools, opportunities, and cneouragement to improve

products, processes and systems

24

1.5.2.7 Principle 7 - Factual approach to decision making

"“Liffective decisions are based on the analysis of data and information."[ISO

9001:2000) Applying the principle of factual approach to decision making leads ta the following actions:

+ taking measurements and collecting data and information relevant to the

objective,

* ensuring the data and information are sufficiently accurate, reliable and accessible,

+ analyzing the data and information using valid methods,

«understanding the value of appropriate statistical techniques and

+ making decisions and taking action based on the results of logical analysis balance with experience and intuition

Beneficial applications of his principle include:

+ For policy and strategy formulation, strategies based on relevant data

and information is more realistic and more likely to be achieved;

* For goal and target setting, using relevant comparative data and

information to set realistic and challenging goals and targets;

* For operational management, data and information are the basis for understanding both process and system performance lo guide improvements and prevent future problems;

+ for human resource management, analyzing data and information from

sources such as people surveys, suggestions and focus groups to guide the formulation of human resource policies

1.5.2.8 Principle 8 - Mutually beneficial supplier relationships

"An organization and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value."Applying the principle of mutually beneficial supplicr relationships leads to the following actions:

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* identifying and selecting key suppliers,

* establishing supplier relationships that balance short-term gains with long-term considerations for the organization and socicty at large,

* creating clear and open communications,

+ initiating joint development and improvement of products and

processes,

* Jointly establishing a clear understanding of customers" needs,

« sharing information and future plans, and

* recognizing supplier improvements and achicyements

Beneficial applications of this principle include:

+ For policy and stralogy formulation, creating competitive advantage through the development of strategic alliances or partnerships with suppliers,

+ For goal and target setting, establishing more challenging goals and targets through early involvement and participation of suppliers;

* For operational management, creating and managing supplier

relationships to ensure reliable, on-time, defect-free delivery of supplies, + For human resource management Developing, and enhancing, supplier capabilities hrough supplicr training, and Jọml mprovernent elTorts

1.6 Process approach

This International Standard promotes the adoption of a process approach when

developing, implementing and improving the effectiveness of a quality management

system, to enhance customer satisfaction by meeting customer requirements.[1SO

output from one process directly forms the input to the next The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management, can be referred to as the

"process approach" /An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction [ISO 9001.2000]

When used within a quality management system, such an approach emphasizes the importance of

a) Understanding and mecting requixements,

b) The need to consider processes in terms of added value,

2) Obtaining results of process performance and effectiveness, and

4) Continual improvement of processes based on objective measurement,

The model of “a process-based qualily management system shown in Figure 1

iNustrates the process linkages presented in clauses 4 to 8 This illustration shows that customers play a significant role in defining requirements as inputs Monitoring of

customer satisfaction requires the evaluation of information relating to customer

perception as to whether the organization has met the customer requirements ‘The

model shown in Figure 1 covers all the requirements of this International Standard, but

dovs uot show processes al a delailed Eevel [TSO 9001:2000] Tn addition, Lhe

methodology known as "Plan-Do-Check-Act" (PDCA) can be applied to all

processes [TSO9001:2000] POCA can be briefly described as follows Plan: establish

the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies Do: implement the processes Check: anenitor and measure processes and producl against policics, objectives and sequirements for the product and report the results Act: take actions to continually

improve process performance

CHAPTER 2 EXPERIMENTAL RESEARCH

2.1 Ben Thanh Tourist Branch Hanoi Introductions

Founded in 1994 BenThanh Tourist Hanoi has been one of the best Tour Operator in Viemam, Laos and Cambodia It is a member of the major Intemational Travel Associations as JATA, PATA, ASTA, VNAT, VCCT and SATA Ben Thanh

‘Lowiist Hanoi is proud of its professional, attentive and hard working staff It commits

to providing the unique, memorable holiday for its customers

Headquarter: Ben Thanh Tourist Service Company

4-6 Ilo ITuan Nghiep Street, District 1, Ilo Chi Minh City, Vietnam

Tel: (84.8) 8220 258 — 8222979

Fax: (84.8) 8295 060

Email: webmaster@benthanhtourist com

www benthanbtourist co.vn, www berithanbtourist.com

Branch Office in Hanoi

79 Ba Trisu Street, Hai Ba Trig District, Hanoi

Tel: (84.4) 944 5122

Vax: (84.4) 944 5121

Email: sales@benthanh-tourist com vn

www benthanh-tourist.com

As an inbound tour operator, Ben Thanh Tourist package and sell tours within

Vietnam The markel can be Vietnamese nalional, foreign tour wholesalers, individual tourists, business travelers There two kinds of distribution channels in Ben Thanh

Tourist:

® Sell and distribute these tours direct through its customers

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Sell and distribute these tours through retail travel agents

Resides the main function of inbound tour operator, Ben Thank Tounst also handling

some service such as:

* Outbound and domestic tour

© Hiring out automobile and other tourist transportation

¢ Applying for entry and oxit visa

e) Travel agent for Vietnam airline

¢ Booking accommodation, hotel, restaurant, discotheque

« Foreign exchange

Ben Thanh Tourist slarts recognizing ihe importance of itvesting in quality and

providing high quality services due to several reasons

First of all, international tourists have been increasingly visiting Vietnam over

past years; forcign tourists arc intorested in Victnam leading to a larger number of

inbound travelers

As Vietnam’s economy is booming, thus standards of living are rising

Consequently the need to reach higher quality standards of tours is becoming more demanding Travelers are increasingly expecting the high standards of service

The competition among our companies in Hanoi is really strong Tn addition,

travelers have a big choice of where to book their travel Some of them book via travel

companies: others arrange all or part of their travel directly with service suppliers, ie

airlines, hotels, car-rental compares The emergenes of on-line booking tools, on-line booking possibility via airline web pages where lower service charges are offered, also

pose a threal lo four companies Unless Ben Thanh fined solutions how lo relain the

Diggest corporate market share and meot its needs, big part of business may be lost

Recently international travel agency have required Ben ‘thank ‘Tourist to apply

a qualily management system in accordance with TSO 9001: 2000 in order 10 ensure

consistent high quality of service to their customer

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1Iherefore the manager board decided to apply {SO 9001:2000 for Hs tour

operation business It was note that if Ben Thanh Tourist determine precise its current status compared with ISO 9001:2000 requirements it would easily to implement a

quality management system

2.2 Methodology

his chapter details the case study methodology used in this inquiry and explains the choice of qualitative methods to examine the problem of Ben Thanh

Tourist's operalion Lo assess related issues This chapler describes the type of design

used in this study and the procedures used to collect data It also summarizes the data

analysis procedure and documents the trustworthiness of the data

2.2.1 Research question

‘the problem appeared when develop a quality management in accordance with TSO 9001:2000 is lo compare the current performances with the standards requirements, and identify the gaps existing between its performances and standards requirements Therefore, a descriptive case study was employed in order to examine

the research questions relating to:

a) Quality management system

‘The objectives of research are to:

« Kind out the evidence/ information that prove the Ben thanh tourist’s quality

Management system is complient/‘uncomplient with the standard requirement

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2.2.3 Research method

I selected qualitative research methods and case study for this study because they allowed me to provide rich detail into this particular problem

Case study research was utilized in this inquiry Creswell (1998) explains, “A

case study is an exploration of a “bounded system” or a case (or multiple cases) over

time through detailed, in-depth data collection involving multiple sources of information rich in context” (p GL) In this study, I explored what extent Ben Thanh

Tourist Hanoi Branch fulfills the requirements of standard Once access was gained for

the study, data were collected primarily through interviews with sonior manager I also

kept a researcher's journal because it provided me with a reflection of my own biases

acquired (hrough my experiences supervising paraprofessional

2.2.4 The Researchers Role

My role throughout this study was to reflect the iruly ard exavtly activities and

the result that Ben thanh tourist have done This also include some obstacles occurred

during the research especially making report It is therefore the confidence, integrity,

confidentiality and cooperation between the company and researcher play important

role

2.2.5 Data Collection Procedures

Case study research relies on mulliple sources of dala to assure a complete

picture of the issue being examined I utilized interviews, and document review and

maintained a researcher's journal in order to identify the gap and issues of its

operations because Yin (1994) states, “case study inquiry [should] rely on multiple sources of data and investigate a contemporary phenomenon within its real-life context” (p 13) Multiple sources of data nol only increase a siudy’s dependability, they also provide for analysis that involves systematic descriptive coding in order to

identify themes or categories within the data

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2.2.6 Interviews Procedures and Protocols

Interviews were the primary means of data collection in this study Stake (1995) explains that “qualitative case study seldom proceeds as a survey with the same questions asked of each respondent; rather, each interviewee is expected to have had

unique experiences, special stories to tell” (p 65) Procedures and protocols included

utilizing yes-no questions in semi structured interviews senior manager Appendix C

outlines the interview questions and prompts used to interview the manager

The list of questions were provided in advance and the manager were informed

that interviews would take approximately few hours to complete, that his responses

would remain confidential Interviews were held at Ben Thanh tourist Office Hanoi

A qualitative interview is different from everyday conversalion in the [bliowing

ways First it is a research tool and a good interviewer must prepare questions in

advance, and later analyze and reporl results The mlerviewer guides the questions and

focuses the study Good interview skills require practice and reflection Finally, beyond the acquisition of imterview skills, interviewing is a philosophy of leaming The

interviewer becomes a student and then tries to get people to describe their experiences

in their own terms ‘he results are imposed obligations on both sides ‘Ihe qualitative

researcher determines what is important, what is ethical, and the completeness and

accuracy of the resulis (Rubi & Rubin, 1995, p.2)

Tt was decided to contact the manager of Ben Thanh Tourist IIanci Branch due

to the fact that he has been a senior managers of Ben Thanh Tourist Hanoi Branch

since its established in 1990 and were contacted agreed to be interviewed and provided

a wealth of information as well as brought to light different perspectives Consoxuenily, the senior manager’s answers rellecls the trac curronl status of the Ben

thanh Tourist

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2.2.7 Data Analysis Pracedurew

This descriptive case study evaluates how effective and efficient Quality management of Ben thanh Tourist, looking into their curent status, and compare its performance with the standard requirements in order to see how much of the quality

process is assured and managed Data analysis involved systematic, descriptive coding

to identify themes or categories that emerged from the data collected I read through all the interview answer, observation notes, documentary analysis data, and journal notes

al least three limes {o immerse myself in the data Key phrases and thoughts were

written in margins to assist me with developing themes, categories, and relationships in

the data

These procedures allowed mec lo become more familiar with the data

In this study, primary data was collected Methods used to collect primary data are

interview

An indepth interview is characterized by its length, depth and structure

Therefore, it suited to the study which demands to seek a better insight into Ben thanh

Tourist operations to idemify gaps between the standard ISO 9000:2006 requirements

with its performances

The formulation of the interview question plays a vital role in the structure of the study and in ensuring a successful result These interview questions are based on

the recommendations or requirements of ISOC 9001-2000 In other word, all the ISO’s

requirements are transformed into the form of question PRAXTOM RESEARCII

GROUP LIMITED has provided approach of interviewing referred as gap analysis: Each

interview question has two possible answers: Yes, No A Yes answer means that the orgartivalion has already met one of 180's requirements, a No answer points lo a

question No answers reveal gaps that exist between the [SO 9001: 2000 Standard and

the organization's processes Whenever the answer No to a question, there are at least

one of the organization's processes fails to meet an ISO 9001; 2000 requirement A No

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