Luận văn improving the efficiency of quality management system iso 9001

Hanoi - Nghean Beer Joint Stock Company Hanoi - Quangbinh Beer Joint Stock Company Hanoi - Quangiri Rect Joint Slock Company Hanoi - Namdinh Beer Joint Stock Company 'Thanhhoa Beer Joint

DAT HOC QUOC GIA HA NOT

KHOA QUAN TRI VA KINH DOANH

DƯƠNG THỊ VIỆT NGA

IMPROVING THE EFFICIENCY OF QUALITY MANAGEMENT

SYSTEM ISO 9001:2015 IN ILABECO BREWERIES

NÂNG CAO HIỆU QUA CUA IIE THONG QUAN LY CHAT LUGNG ISO 9001:2015

GO CAC CONG TY SAN XUAT BIA THUỘC HABECO

LUẬN VĂN THẠC SĨ QUẦN TRI KINIT DOANII

TIÀ NỘI - 2019

ĐẠI HỌC QUỐC GIA HA NOT

KHOA QUAN TRI VA KINH DOANE

DUONG TIT VIET NGA

IMPROVING TIE EFFICIENCY OF QUALITY MANAGEMENT

SYSTEM ISO 9001:2015 LN HABECO BREWERIES

NANG CAO HIEU QUA CUA HE THONG QUẢN LÝ CHÁT LƯỢNG ISO 9001:2015

O CAC CONG TY SAN XUẤT BIA THUỘC IABECO

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUAN VAN THAC ST QUAN TRI KINH DOANH

NGƯỜI HƯỚNG DẪN KIIOA HỌC: TS TRẦN HUY PIIƯƠNG

HẢ NỘI -2019

DECLARATION

‘The author confizms that the research outcome in the thesis is the result of author's independent work during study and research period and it is not yet published in other’s research and article

The olhter’s rescarch result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in fiont of the Thesis Assessment Committee, Hanoi

School of Business and Management, and the laws for above-mentioned declaration

Tale

Author

Duong Thi Vict Nga

1 also sincerely thank all leaders, managers, employees in Ulanoi Beer Alcohol

Beverage Joint Stock Corporation, Haheco member companizs, especially my ISO

departinent colleagues for all kindly helps in providing information, ercating conditions

and spending their precious time for me to complete my research work

Furthermore, completion of my master thesis was possible with the constant support

of my ISO specialists, especially Mr Mai Huu Tuyen, for their practical adviccs and

comments at any time | need helps I would like to express my sincere gratitude to all of

them

Finally, would like to give my thanks and love to my parents, husband and children

for their lave, support and sacrifices during my study and doing my master thesis

With the help from many sides, | have made great efforts to complete the thesis on

fime and in the best way However, duc to limitations in information and knowledge, my

CHAPTER 1: THEORETICAL BACKGROUND ON IMPROVEMENT OF THE

EFFICIENCY OF QUALITY MANAGEMENT SYSTEM ISO 9001:2015

1.1 Concepts of ISO systems and TSO 900 £:2015

LAL.L Overview of ISO sysLeIS àSoocSioccev

1.1.2 Principles of 9001:2015 ISO system

1.1.3 Expected benefits of ISO 9001:2015 system - - 17 1.3 Efficicncy of applying ISO 9001:2015 in cnerprisos .18

2.2 Evaluation of (he ISO 9001:2015 eflieisney in Habeco breweries 27 2.2.1 The context of Habeco head quarter and its breweries .37 2.2.2 The real situation of applying ISO 9001: 2015 in some Habsco brewrcrics 29 2.2.3 kvaluation of factors affecting ISO 9001 performance „4L

CHAPTER 3: SOLUTIONS FOR IMPROVING THE EFFICH CY OF ISO 9001

TN HABECO BREWERIE

3.2 Solutions for improving the efficiency of ISO 9001:2015 in Llabeco group 50 3.2.1 Organization af training courses for Habceo group - wu SH

3.2.2 Establishment of a common 1SO 9001:2015 system for Habeco Corporation 53

3.2.3 Establishment of a software to control Llabeco [SO 9001:2015 system - 60)

Hanoi - Nghean Beer Joint Stock Company Hanoi - Quangbinh Beer Joint Stock Company Hanoi - Quangiri Rect Joint Slock Company Hanoi - Namdinh Beer Joint Stock Company 'Thanhhoa Beer Joint Stock Company

Hanoi - Haiphong Beer Joint Stock Company Hanoi - Llongha Beer Joint Stock Company Hanoi - Haiduong Beer Joint Stock Company Trading 89 Beer Joint Slack Company

Department Management Quality Management Representative

LIST OF FIGURES

Figure 1.1: Representation of the structure of ISO 9001:2015 in the PDCA cycle

Figure 1.2: QMS 9001:2015 levels af documentation 15

Figure 2.1: Labor productivity in Habeco groups - - - _ 31 Figure 2.2: Number of customer complaints on earmed and bottled boors 32 Figure 2.3: Companson of returned product ratios in Habeco companies 33 Figure 2.4: Assessment of satisfaction in 10 9001 application 34 Figure 2.5: ISO system struelures in Hubevo group - S35

Figure 2.6: The use of ouldated decuments in Habeco member

Figure 2.7: Time for giving out solutions for non-conformities and prevention actions 38 Figure 2.8: Documented non-conformities in Ilabeco group - 3o

Figure 2.9; Types of documented non-confonmitics in Habeco Head quarter

Figure 2.10: The general evaluation of ISO 9001 efficiency in Habeco group

Figure 2.12: Top management conunitment zvaluation in Habeco gronp 43 +igtưe 2.13: Evaluatiơn of doeuments relating on cuslomer foeus 44

‡igure 2.14: lvaluation of context umdersfanding in member companies 44 Figare 2.15: Continuous ituprovernznts in Habeco group - 46

Figwe 2.16: Infernal anditor composition in Habeoo gz0up à so

LIST OF TABLES

“rable 1.1: POCA application in ISO 9001

Table 1.2: Risk matrix based on ISO 31010 (ISO 31010, 2009) 14

Table 1.3: The differences between ISO 9001:2015 to ISO 9001:2008 16

Table 2.1: ISO slandards in Habeco member compamas - 38 Table 2.2: Time needed for giving out solutions for preventive actions 37

‘Table 2.3: ‘Time needed for giving out solutions for non-conformities 38 Table 2.4: Consullants af TSO 9001 im Habeco group - - 6

Table 3.1: Steps for improving the efficiency of ISO 9001:2015 in Habeco grougs Šl Table 3.2: Abbreviations of documents and method of usages - “4 Tablc 3.3: Arnendients of head quarter [SO documents

‘Table 3.4: Abbreviations of compilation breweries/companies/departments in Habeco

Table 3.5: Document issuance in Habeco head quarter 58

‘Yable 3.6: Document issuance in Hanoi — Melinh and Hoanghoatham Breweries 58

‘Table 3.7: Document issuance in member companies sơ

Table 3.9: Functions of departments in head quarter, breweries and companies .62

TITLE CHAPTER

Name of the thesis in Vietnamese: “Ning cao hiệu quả của hệ thống quản lý chất lượng

TSO 9001:2015 ở các công ty sản xual bia thuộc TIARICƠ”

Nane of the thesis in English: “Improving the Efficiency of Quality Management System

TRO 9001:2015 in Habeco Brewerles””

1 Raflonale

Hanoi Beer Alcohol Beverage Joint Stock Corporation (Habeco) is the third largest

beer company in Vietnam Being fully aware of the important role of ISO 9001 in

production and ‘business, the head quarler has đevzloped and applied the quality management system ISO 9001 since January 2002 This can be cousidered as an "ontry visa" for the company's products to penetrate, affirm its position in the market However, Iabeco currently has approximately 13 member companies, producing a variety of produets like Bia Hoi Ha Noi (draught beer), bottle and can beers Each company has built

its own ISO 9001 system suitable for its company Of all 13 companies, 10 companies have being applied ISO 9001 both version 9001:2008 and 9001-2015; 2 companies applied

ISO 9001 but did not get certificate, 1 company obtained ISO 9001 certification in 2012 but did not go through surveillance and recertification audits

It is stated that getting an 1SO certificate is not a difficult task, but maintaining and

promoting the cffect, its officieney are very difficult Il is more and more difficult to integrate 13 ISO 9001 systems into head quarter to better the quality management of the same products, It requires a lot of effort ftom all members of not only Llabeco head quarter but also every member companies Belaws are some drawbacks of the I$ 9001 systems

of member companies

* Diversified ISO sysiem siructares due to differences in hiring consullant and certification companies: ‘the 4 lsvel system (Handbook — Procedures — Operational Documents — Records) is curently uscd in Habeco head quarler and some member companies, However, some others have built systems with the integrated level 2 and 3 documents, The unsirailarity m 1SO systems make it difficult for the ISO department in Habeco head quarter to control and integrate all separated systems

© Different ways of ISO 9001 contruction causes the use of outdated documents:

Some companies in Habceo group considered Habsco issued documents as external

documents that they hav to follow Some have converted these documents into

their intemal documents by rewriting and adding some small changes ‘Uhis leads to

chances of using out of date information because of untimely modification when the head quarter make amendment or renewal of documents

Different organization context, leaders and leadership commitment and unequal

level of ISO staffs and internal auditors: Based on its own context, the company should determine, momilor and regularly review external and internal issues [hai are

relevant to its purposes and its strategic directions, affecting its ability to achieve

the intended results of its quality management systems ‘I'he leaders of the company

and the ISO training programs play an important rolc in leadership commitment and

the qualifications of intemal auditors, respectively It is the fact that higher leadership commitment and higher qualifications of auditors lead to higher

efficicney of the 1SO system Most of the member companies arc lack of cdueation

on the role of applying ISO systems in management Theretore, some leaders, ISO staffs and internal auditors attach less importance to it, they even consider ISO as

the adornments of their companies

Difficulty and waste of time to solve unconformable raw materials and products:

When finding unsatisficd goods fram nominated supplicrs or having non-

conformities in processing, member companies should report to the head quarter Tlowever, due to lack of specific procedures, this pracess can take long time sa thal

some companies handled by themselves, even skipped It might result in the risks of

Tmiseonfrol of the product quality and loss of Habeco market share

For purposes of contributing to the maintenance and enhancement of the eficiency

of the TSO 9001-2015, I chose the topic: “Improving the Hificiency of Quality Management System ISO 90012015 in Habeco Breweries”

2, Literature review

Promas (2010) studied the factors that influence the effective implernentation of ISO

9001 in small and medium service companies The purpose of this study is to investigate the critical factors for the effective implementation of the ISO 9001 standard in small and mediwn enterprises (SMEs) operating in the services sector The author used primary data

obtained by a questionnaire survey attentive to the managers who are responsible for

quality in each of the 93 ISO 9001:2000-certified service companies in Greece Individual critical favlors for ISO 9001-2000 implementation are assessed for importance by simple descriptive statistics (Sampaio et al, 2009) Furthermore, exploratory factor analysis is then applied to refine these individual critical factors into five latent constructs (Fotopoulos

et al., 2009), All of the individual critical tictors examined in the study are assessed with Tegard to their contribution to [SO 9001 efficiency The five latent constructs of the underlying structure of these critical faclors are Gin descending order of importance):

“intemal motivation of company”, “attributes of company”

“yequirements of the quality system”, and “attributes of the extemal environment” ‘These

“employee attributes”,

findings were similarity with the study of Williams (2004) and Magd (2006) who studied

‘the manufacturing companies This study provides practical guidance for SME service

companies that wish to implement the ISO 9001:2008 standard effectively by focusing its

effort on these 5 latent factors that impacl efficiency Despite its important findings, the

linmtation of the study lics in ils small sample size of SMEs Fulure rescarch could utilize

a broader sample of private SME service companies,

Zeng (2007) tried to explore barriers in the implementation of ISO 9001 in China,

and identify how to overcome these bamicts By using a stiuctural qucstionnaixe survey, the author highlighted the problems in implementing the standard, which determines the sustainable implementation, including: shorl-sighted goal for “gelling carlified”, over- expectation on the [SO 9001 standard, mandatory requirement (not wholehearted commitment) in some industries; and following others (the trend) in certification, With regard to the effective audit of the ISO 9001 standard which plays an important for sustainable implementation of the ISO 9001 standard (Rajendran and Devadasan, 2005), the main problems were explored, including: lack of conunitment fiom some certifying bodies, excessive competition between certifying bodies, and offering of a total packaged service from consultancy to cctiification by certifying bodies

Me Adam (2002) assessed the body of knowledge relating to ISO 9000 and Total Quality Management (TQM) interrelationships, with specific reference to the UK and Irish brewing scctor The author decided to usc sectoral study method (Ramenyl ct al., 1998)

for further investigation of the [SO-QM continuum Based on data obtained by a

gnestionnairs survey of the 90 Isading UK and trish brewing companies, the research indicated that, ISO may be used as a foundation an which to develop TQM ISO has mixed success as a continuous improvement approach, with its bureaucratic nature being considered restrictive linrthermore, ISO was found as having a limited impact on customer satisfaction, while this was one of the key bonefils of TQM The implanentation of customer satisfaction measures was found to be a major differentiating factor for ISO and TQM; relatively few ISO-only companies had adopted such measures However, the study

is limited by the small size of the UK and Irist brewing companies Future research could utilize a broader sample of other breweries all over the world, especially breweries in large corporation

Although these topics have pointed barriers to the poor performance and indicated

ways to improve the efficiency of the ISO 9001 system, researches were done in small and modium-sized service businesses in breweries in the UK and Trish They ware also linsited

to ong or some individual businesses However, there is no study on the ISO system for a beer corporation like Labeco ‘Therefore, the author found the topic “Improving the Efficiency of Quality Management System ISO 9001:2015 in Habeco Breweries” is a new one and is not duplicaled with other rescareh topics which have been dene before

3 Aims of research

The purpose of this study is finding the best ways to improve the efficiency of quality management system ISO 9001:2015 for Habcco breweries This will contribute to the maintenance and enhancement of the efficiency of the ISO 9001:2015, resulting in the increase of Hanoi beer quality for the customers

well as giving solutions for incrcass the efficiency of ISO 9001 systems Besides,

internal audits were also made in all breweries in order to get the overall picture of

1SO 9001 implementation in all member companies

» ‘The secondary data: Periodical and annual reports on non-conformities of raw materials, by-products and products, data on labor productivity and product

quality were taken from TSQ Department, Human Resoures Department and

Quality Management Department of Habeco head quarter and member companies,

7, Thesis structure

In addition to the title chapter, conclusion, references, appendices, The content of the thesis is divided into three main chapters:

© Chapter I: Literature seviews on improvement of the efticiency of ISO 9001 system

© Chapler 2: The real situation of ISO 9001:2015 systems in some Habcco breweries

© Chapler 3: Future directions (or improving the efficiency of ISO 9001 in Tlaheca

breweries.

CHAPTER 1: THEORETICAL BACKGROUND ON IMPROVEMENT OF THE

EFFICIENCY OF QUALITY MANAGEMENT SYSTEM ISO 9001:2015

1.1 Cancepts of ISO systems and TSO 9001:2015

1.L.L Overview of ISO systems

‘The Intemational Organization for Standardization (ISO) is an international standard- selling body founded on 23 February 1947 Io promote the develapment af intemational manufacturing, trade, and communication standards The ISO story began in 1946 when delegates from 25 countries met at the Institute of Civil Engineers in London and decided

to ereaic a new international organization “lo favililale the imternalional coordination and

committees ISO memibers can choose whether they war Lo be part

of a particular technical committee, and their (Cascio, 1996) Nommally, the development

of an international standard is a multi-stage process: Proposal — Preparatory — Committee — Enquiry - Approval — Publication

Tatil now, TSO bas published over 22,208 Intemational Standards covering almost all aspects of technology and manufacturing (ISO, 2018), Therefore, it takes time to find and understand which ones are the most suitable for our business While some are industry-specific, many of the mos! popular standards arc generic und can be implemented into an organization no matter what sector it is in Below are some most popular standards LLL LISO 9000

It is the most popular standard that can be applicd in any organization in any sector

‘There are fourteen members in a family of quality management standards It was first published in 1987, last in 2015, and has been updated ahout every 7 years Nowadays, ISO 9001-2015 is the only ons Mma can be certified 18 (SO 9000) Over 1,100,000 180 certifications have been given out in over 170 countries (Chatlet, 2017)

‘the standard details how to put a Quality Management System (QMS) in place to

beller prepare your organization to produc quality produets and services TL is customer focused, and places an emphasis on continuous improvement, risk management and top management processes that extended throughout the organization

The ISO 9000 is new made up of three main standards, It is highly recommended to

‘use [SO 9000 to became familiar with the fundamental concepts, principles and normative vocabulary of « quality maragemen! system before adopting ISO 9001 to achizve an effective Ievel of parfoumance The practices described in ISO 9004 may then be implemented to make your quality management system more efficient in achieving your business goals and objectives

Although it is a voluntary standard, put in place by companies who want to improve their processes, it is now very popular, with nearly 350,000 certifications in 171 countries worldwids (CharleL 2017)

1.1.1.3 15O 22000

It is focused on the development and implementation of a food safety management system, and is a requirement for any organization that works in the food chain With multiple standards including 22001 for food and drink, 22002 far food mumufieturing, and more, this family is used in a variety of organizations directly or indirectly involved with food such as restaurants food manufacturers, food transportation services (SO 22000)

Te can be applied on ils own or integrated with I8O 9001 Over 32,000 TSO 22000 certifications has been given out all over the world (Charlet, 2017)

1.1.1.4 1SO 50007

One of the newest standards which is Relcased in 2011, the energy standard ISO 50001:2011 is nevertheless becoming increasingly important (ISO 50001) It is meant for companies to put in place an Energy Management System (EnMS) dedicated to improving cnorgy usage and efficioney This includes reducing an organivation’s energy footprint by reducing greenhouse gas emissions as well as energy cost

Although it is not required, but with over 20,000 certifications and a 69%

certification increase in 2016 compared to 2015, iL is elsar thai cơmpsnies arc finding benefits and think the standard improves their business processes (Chatlet, 2017)

1.1.1.5 18O 45001

It was developed by a committee of occupational health and safety experts It will take inlo account ather Inlernational Standards in this area such as OFSAS 18001, the Intemational Labour Organization's ILO-OSH Guidelines, various national standards and the JLO's international labour standards and conventions

TSO ASOOT, Occupational health and safety mammgememl sysloms -

Requirements, that will help organizations reduce this burden by providing a framework to improve employee safety, reduce workplace risks and create better, safer working

conditions (ISO 45001)

1.1.2, Principles of 9001: 2015 ISO system

1.1.2.1 Seven principles of 9001:2015 ISO system

180 9001 standard sets out ths principles for a quality management system which is

a way of defining how an organization can mect the requizcments of its customers and other stakeholders affected by its work It does not specify what the objectives relating to

“qualily” or “meeting customer needs” should be, bul requires organivalions lo define these objectives themselves and continually improve their processes in order to reach them

« Customer focus: It is the top most items in 7 quality management principles that

creates a core base for businesses It highlights the potential benefits to an

lem (QMS), including: the ability to consistently provide products and services that meet customer and

organization of imptomenling a quality management sy:

applicable statutory and regulatory requirements and facilitating opportunities to cuhance customer sutisfhetion Below are some points thal an organization should

do to meet the customer focus in ISO 9001:2015 standard:

v Understand the needs of existing and future customers Align organizational objectives with customer necds and expectations Meet customer requirements

Measure customer satisfactions

Manage enstomer relationships

‘Aim to exceed customer expectations

«Leadership: ‘Yhe leadership iroportance of top management has always been in any TSO sys

ns A system is bound te run ino problems withoul ongoing management support There are many ways that top management needs to demonstrate his leadership and commitment with respect to the QMS, such as being accountable for

the Efficiency of the QMS, ensuring resources are available, promoting continual improvement, and ensuring the Quality Policy and objectives are in place and consistent with the goals of the organization and the OMS

Engagement of people: This is a new requixement in ISO 9001:2015 version tor top management to “engage” everyone who contributes to the efficiency of the qualily management sysiơm “Engagotrten” is dofined as “the invelvernent in, and contribution to activities to achieve shared objectives.” (SO 9000, 2015)

‘Therefore, the rationale for this principle is that the creation of unity of purpose,

direolion, aud engagement enable an organization (o align ils stralegics, policics, processes, and resources lo achieve ils objectives, In order lo do his, top management is required to:

Ensure that people’s abilities are used and valued

¥ Make people accountable

¥ Enable participation in continual improvement

~ Bvaluale individual performance

¥ Enable learning and knowledge sharing

¥ Enable open discussion of problems, constraints

Process approach: '‘Vhis process approach is one of the most important items in a

is a scl of inferclalzd or interacting

quality management syslam “A proc

activities that use inputs to deliver an intended result” (SO 9000, 2015) The process approach enhances an organization’s efficiency im achieving its defined objectives Tu telation to TSO 9001:2015, it means enhancing customer satisfaction

by meeting customer requirements,

Improvement: Rationale improvement is essential for an organization to maintain current levels of performance, to react to changes in its internal and cxtemal conditions and to create new opportunities Some actions that a successful organization always do to have an ongoing focus on improvement:

¥ Fslablish inmprovernant objectives al all Tevels of he orgunization

v Ensure and empower that people at each levels are competent to apply tools and methodologies to achieve improvement projects

¥ Inlegrale immprovement considerations inlo the development of new or

modified goods, services and processes

¥ Recognize and acknowledge improvements

+ Evidence-based decision making: Decision making can be a complex process, and

it always involves some uncertainty However, decisions based on the analysis and evaluation of facls, data and information: the undsrsianding of cause-and-eflect relationships are likely to produce more precise results with greater objectivity and confidence, In order to do that, some actions that an organization has to take such

¥ Make decisions and take actions bascd on cwidencc, balanced with

experience and intuition

© Relationship management: Por sustained suc

$4, all organization manages ils

relationships with all of interested parties such as suppliers, partners, customers, investors, employees, and society as a whole In order to optimize their impacts on its performance, an organization should:

¥ Determine and yriorifize interested parly relationships

¥ Establish selationships that balance shout and long-term considerations

Pool and share information, expertise and resources with relevant interested partis

W Measure performance and provide performance izedback to interested parties

¥ Establish collaborative development and improvement activities

v Encourage and recognize improvements and achievements by interested parties

1.2.2 ISO 9001:2015 process approach

Besides above 7 principles, new version ISO 9001:2015 is also a perfect employment

of the process approach, which incorporates the Plan-Do-Check-Act (POCA) eyele and

sk-bascd thinking

© PPCA eyele: Tt enables an organization to ensure that its processes are adequately

resourced and managed, and that opportunifics for improvement arc determined and

acted on In accordance with the requirements of ISO 9001:2015, the following table provides examples of how an organization could do to manage its quality management syslern (ISO 9000, 2015)

Table 1.1: PDCA application in ESO 9001

ensure continual understanding of their requirements, needs and

Fatablish objectives and policies Tho processes ineide management, Toesouess, operations, measurement, analysis and improvement,

Determine the

process sequence

Define and desoribe the process nctwork and their intoractions by

using tools such as modeling, diagrams, matrices and flowcharts

owners Ensure the competence for the effective definition, implementation,

maintenance and improvement of each process and its interactions

Use sisk- based thinking Define processes

Use documented methods, graphical representations, user stoiies, need to be

CIISÍOTIEES

Determine where and how monitoring and measuring should be applied

Identify the validation necessary to assure Efficiency and cfficicney

of the processes and system,

‘Steps in process

Guidance approach

Perform activities, monitoring, measures and contiols of defined

against its planned

action include identification and elimination of the rool

causes of the problems

* Risk-based thinking: Risk, “etfect of uncertainty” (ISO 9000, 2015) enables an

organization to determine the factors that could cause its processes and its quality

Tranagemenl systemm 1o đeviale from the planned results, to pul in place pre entive

Interested ppartien (4)

Figure 1.1: Representation of the structure of ISO 9001:2015 in the PDCA cycle

Table 1.2: Risk matrix based on ISO 31010 (ISO 31010, 2009)

Consequences Probability

Insignificant | Minor | Moderate | Major ‘Severe

Possible Low Medium Medium High Very High Unlikely Low Medium Medium Medium High

1.1.2.3 ISO 9001:2015 document structure

The QMS 9001:2015 international standard specifies levels of documentation that an

organization must observe to document its quality management system This structure (Figure 1.2) could be applied for all [SO standards such as ISO 9001, ISO 14001, and ISO

22000

14

Figure 1.2: QMS 9001:2015 levels of documentation

quality manual The standard recognizes that the structure and format of the manual

will depend on the size, culture and complexity of the organization

* Level 2: Quality Procedures: are required for the following six tasks: control of documents, records, internal audits, nonconforming products, corrective and preventive

actions

function, or activity It is similar to a procedure but is characterized by increased focus

and further detail on a particular task Work instruction is mandatory, and must be

subordinate to a procedure

instructions have been followed Records may be forms that are filled out, a stamp of

approval on a product, or a signature and date on some type of document, such as

routing sheet Records are used to provide traceability of actions taken on a specific product or batch of products They provide data for corrective actions and a way of recalling products, if necessary

1.1.2.4 Comparison between ISO 9001-2015 and ISO 9001: 2008

In 2015, a new version of the standard, ISO 9001:2015, has just been launched for replacing the previous version ISO 9001:2008 (ISO 9001, 2008), In fact, all ISO standards

15

are reviewed and revised regularly to make sure they remain relevant to the marketplace and take into account the different challenges that businesses in the globalization now face such as more comptex supply chains, increased customer expectations, etc The comparison of ISO 9001:2015 to IãO 9001:2008 was done in Table 13 (IQCS

9 Performance evaluation, 10 Tinprovernent

- Reorganization of clause order and content to better align with other standards (High level structure)

An organization must determine,

monitor and review internal and external issues as well as relevant

interested parly requirements

Document the ~=QMS_—_seapo,

information procedures objectives, quality policy and any

process the organization detenmines

needs to be documented

4 | Risk based Preventive achions Organizations must take actions lo

3 | Exclusions & Excluding @ standard Any requirement that cannot be

requirements requirement that was | applied may be excluded as long as it

specific lo product | is justified realization

6 | Objects, outputs, Process based only |The process model is expanded to

products and

include anything that affects quality

Na Tiems TSƠ 9001:2(408 TSO 9001:2015

s0vi

7 | Temninology - Pradnol - Produol and servieos

- Supplier - External provider

- Preventive action - Risks and opportunities

- Documents and | - Documented information

1.1.3 EApected benojits oƒ 1SO 9081:2015 sufem

18Q 9001:2015 certifioalion will provide maximum bencBl 1o any organization if iL approaches ISO 9001 implementation in a practical way, This will ensure that the Quality

Management Systems that are adopted, work to improve the business and are not just a set

of procedures thal the cmployces will find hard ta manage The benefits of TSO 9001:2015 which do not depend on how big or smal] of an organization could be gained as follows:

State clearly objectives and identify new business opportunities through overall context assessment of the organization (Dale, 1994);

Increase marketing opportunity: market expansion (some sectors and clients require ISO 9001 before doing business), old customer keeping and new customer attraction through the customer first policy (consistently mect their needs and enhance their satisfactions: improved quality and service, on-time and right first time delivery, fewer returned products and complams, etc.) (Su et al., 2015);

Enhance business performance: inerease productivity and efficiency, decrease intemal costs through more efficient ways of working (efficient management

clear responsibilily assigrments; well defined and documented procedures;

identification of

proce

improved resource management, deficiency highlights;

organizational risks and opportunities, continuous assessment and improvement); (Adanur and Allen, 1995)

Mcel the necessary stalulory and regulatory requirements (Ho, 1994),

Increase employees” job satisfaction motivation and participation (Date, 1994):

Better supplier and interested party relationships with greater confidence in what the organisition da through the reputation of TSO 9001 (Pan, 2003)

1.2 Efficieucy of applying ISO 9001:2015 im enterprises

LE Definition of efficiency

Tn realily, there are numerous definitions of efficiency in many kinds of dictionary to create a common understanding among people Below are some definitions:

© Longman Dictionary of Contsmporary English: “ificicney is the quatity of doing something well and effectively, without wasting time, money, or energy”(Longman

Dictionary of Contemporary iinglish, 2018)

© Cambridge Dictionary: “Efficiency is the good use of time and energy in a way that

does not waste any (Cambridge University Press, 2068)

© Business Dictionary: “Ufficiency is the comparison of what is actually produced or performed with whul can be achieved with the same consumplion of resources Gnoney, time, labor, ete.)” (WebFinance Ine, 2018)

Put simply, efficiency in ISQ 9000:2015 is “the relationship between the results achicved and the resources used” (ISO 9000, 2015)

1.2.3 Criteria to measure the efficiency of ISO 9001:2015 system

180 9001 is a system aiming to ensure that both external and internal customers’ requirements of an organization arc fully met at optimum cost through the efficient utilization of available resources Implementation of the systern would therefore need to access based on following criteria:

1.2.2.1, Labour produetivity

Labour productivity is concerned with the amount (volume) of output that ix obtained from each employee (Rogers, 1998) ising productivity implies either more output is produced with the same amount of employees, or that less imployees are required to produce the same level of output Labour productivity is ealeulated using this founula:

Labour Productivily = = Output per period (units)

Number of employees at work

In order to remain competitive, a business needs to keep its unit down Naveh and

Levene (Levene and Toffel, 2010; Naveh and Erez, 2006) deduced from their surveys thal 1$0 9001 adoption enhances worker productivity It was said that ISO 9001 certification

has a positive and significant effect on operational performance which directly related to

organisalions’internmal operations and labour productivity (Feng ct al., 2007) Achicving

higher labour productivity will become a simpler task when companies apply quality

management system ISO 9001 with detailed and complete work processes and guidelines.

1.2.2.2 Product quality

According to ISO 9000:2015, quality is a degree to which a set of inherent

charseteristics of an object fulfils needs or expectations that are stated, generally implied or

obligatory (SO 9000, 2015) The ISO 9001 standard provides guidances and tools for organizations wha want to make sure their products and services consistently meet

customer reqnirements and that quality and eustenor satisfaction arc consistently

improved Therefore, complying with ISO 9001 ensures customers get consistent, good

quality products and services (Adanur and Allen, 1995) On the other hands, improving produc! quality also mzans reducing the pereentage of returned defecls from customers,

which in tum brings both operational and business bencfils to organizations (Feng ct al,

2007)

1.2.2.3 Satisfaction of the implementing units

One important aspect of a successful business is the optimum balance among

organization objectives such as cost, quality, and productivity Laszlo’s concept

emphasized thal rather than concentrating on applying cost-calling measures to increase

the benefits of ISO 9000, management needed to review their own operations and

evaluated the satisfaction they individually provide to their internal customers (Laszlo,

1997) ‘Lhe full benefits of ISO 9000 could only be gained when the internal environment

to

of the company becomes more transparent TL was casicr for employees to ac

documents that detine their functions, tasks, processes and opzration manuals (Bradley, 1994; Penson, 1997) ‘he people using the ISO 9001 standard must have the right

anotivations of applying, mus! be communicated to fully understand the present and Sure

benefits of the standard (Conway, 1994) Thus, their integrated and positive attitude towards ISO 9000 was also central to the success of an organization

1.2.2.4 Uniformity of docimend svsiem

Uniformity of the [SO document system is extremely important and directly affects

the efficiency of an [SO system If a system is constructed without a framework that

explicitly defines document layers, types of documents in cach layer as well as relationship

among documents in the same layer and between layers, it will be very difficult to administrate and to ensure that ISO documents are not conflicted, causing confusion when

1.2.2.5 Processing time for quality issues

‘Time consuming for handling of non-conformities is also a factor in assessing the efficiency of an ISQ system If processing time is too long, procedures is tao complicated,

non-confomity related employees feel inconvenient to obey the procedures In order to

ensure himely production, instead of obeying preset procedures, the employees will snggesl solutions and make it verbally approved by their leaders This approach will salve

the problems immedietly but lead to the failwes to record the evidences of inappropriate

processes and products, causes and comective measures taken It later results in being unable to make a report on quality situation of raw materials, by-products and Gnal

products; as well as on cflicicney of managememt work

1.2.3, Factors influencing the efficiency of ISO 9001: 2015 system

Nowadays, ISO 9001 is widely implemented by the manufacturing as well as service

organizations in order to improve their product and service quality But, the ISO 9001

implementation initiatives are always confronted by the presence of numerous barriers

‘The organizations need to tackle these barriers for successfully inplementing the ISO 9001

standard The systematically analyzing factors affecting the successful implementation of

480 9001 will enable the managers of the organization to know the impact of different factors on ISO 9001 implementation (Gopal and Attri, 2017)

£2.31 Motivation factors (Driving force) towards ohtaining the ISO 9001 certification

Many researchers found a strong interdependence between the companies’ certification motivations and the results obtained According to Subba (Subba et al., 1997),

the success of ISO 9001 depended on the extent to whieh i addresses the original purpose

for which it was created Based on 28 surveys by the Science and Engineering Policy Studies Unit (SEPSUI, 199) and 272 Australian firm surveys by Jones (Jones et al, 1997),

companics that cited “customer pressure” as their main reason for pursuing certification experienced fewer benefits than those that had a “developmental view” When firms simply reacted to extemal pressures for getting certified (e.g using [SO 90UT certification

as 4 marketing Lol lo sign a significant number of contracts (Douglas ct al, 2003:

Polsinska et al., 2006), they might treat ISO 9000 certification as a prime goal, adopted a

minimalist approach to achieve it and thus achieved limited internal performance

improvements (Quavi and Jekobs, 2004) On the other hand, organizations that had strong

intemal motivation or willingness to improve quality, internal processes and systems rather

than merely seek to get a certificate on the wall would get broader positive results trom

20

180 9000 certification (Fotopoulos and Psomas, 2010; Llopis and Tari, 2003; Ruzevieius etal., 2004), Indeed, although the main reasons to start implementing a quality system are the pursuance of external advantages, the implementation generally results m an increase

in internal benetits of intangible nature such as more apparent working procedures, better employees” communication, lower degree of non-conformities, and higher efficiency

12.3.2 Top management commitment

It is the most important ctiteria affecting the implementation and performance

outcomes of ISO 9001 Lee et al (Lee et al., 2009) showed that managers in organizations

and systems to satisfy customer expectations and improve organization performance (Chin and Choi, 2003) The true value associated with this certifeation should be made

consistent with an organization’s strategic directions by top managers (Magd, 2008) The higher commitment of top management will lead to higher understanding of the ISO 9000 and higher the measurement of performance and communication (Ab Walid and Corner, 2009)

1.2.3.3 Customer focus

It is believed that customers” satisfaction will influence the future reactions toward any organization Gcadiness to repurchase, willingness to recommend 1o new customers, willingness to pay at the organization given price without seeking a lower-cost provider)

“Satisfaction is a customer's emotional response to his or her evaluation of the perceived discrepancy between his or her prior experionee with and expectations of our product and organization and the actual experienced performance as perceived after interacting with our organization and consuming our product” (Vavra, 2002) In order to meet this ISO 9001's

21

1.2.3.4 Dynamic and continuous quality improvement

itis actually important to reap the long term benefits of [SO 9001 system (Ab Wahid and Comer, 2009; Nanda, 2005) Inslead of merely asking “Are we working lo our system?”, the dynamic approach requires asking whether “Does our system work for the

organization and its customers?” (Penson, 1997) In order to do that, an organization

should look for opportunitics for continuous improvement afler ccrliGeation through

monitoring, review, internal and external audits It also demands understanding among the staffs that ISO 9000 is only a staging post in the way of attaining business excellence

1.2.3.5 Expert advice and uniqueness of the system

The ISO 9001 standard was built with the manufacturing sccter im mind, the expert advice of consultants who possess some background in the area where ISO 9001 is to be

implemented is, therefore, indispensable A proper interpretation of the standard and

development of a unique, casy-understanding system reflecting the nature of the

company’s operations is really crucial for ensuring the efficiency of ISO 9001 system (Mclz

have little experience in their field of activity may construct an impractical and informal

Han, 1996) (Conway, 1994) Compares thal hire consudlants who do nol have or

ISO system ‘he consequence is that both managers and employees in that company consider ISO as a cumbersome, boring and unnecessary system

1.2.3.6 Quality internal and external auditors

‘They are in a powerful position to increase the ability to unveil conformity and thus increase the value of certifications The main reason for conducting audits is to obtain

factual inpul for management decisions concerned with staf? development, technology

growth, product and processes, However, the vast majority of audits only produce data for

use in granting a certificate, for improving documentation or for enforcing conformity

Certification audits through the auditors’ cxpcriznecd suggestions help improve quality

management systems and increase the motivation for quality work, On the other band, at

the quality system maintenance stage, intemal quality audits must be used not merely to

verily the adherence to the defined quality management system but also lo oxplars opportunities for continuous improvement (Nanda, 2005) These audit and inspection processes help further the hemogenization and standardization of organizational processes (Power, 2003) which will add more values and benefits to the organization (Rei

‘There are a number of approaches generally used in conducting intemal and extemal

quality system audits:

22

Tlemsnl-based audilirys provides evidences thal an organization has introduced the elements of the standard into procedures

mbedded Deparlment-based auditing provides evidences that an organization bi

the standard in departmental responsibilities and procedures

Task-based auditing provides evidences that specific tasks have been accomplished

« Pro

pascil auditing is more cffective than three above approaches In this approach, the auditors seek to establish the results an organization desires to achieve, determine whether these results take imto account the needs of the customers and the interesled parties and then examine the way processes are managed to achieve these results and improve performance, Ifit is revealed that the onganization satisfies the customers and other interested parties and applies all

requirements of TSO 9007 standard in it

nonconformities (Kaziliunas, 2008)

Based on criteria and factors affecting the efficiency of ISO 9001, in chapter 2, the

Aivilies, there is no sound bas

fo report

jes would be invested

tual siluations of the application of ISO 9001 in some Habeco brow

in order to find out possible solutions to improve the efficiency of ISO 9001 system,

23

CHAPTER 2: THE REAL SITUATION OF ISO 9001:2015 SYSTEMS IN SOME

HABECO BREWERIES:

2.1 Introduction of Tabece Corporation

2.1.1 History of Habeco Corporation

‘The predecessor of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation

(Habcva) is Hommet Brewery which was buill in 1980 by the Franeh with an initial size of

30 employees for the purpose of serving the French Expeditionary Force In 1954, the North of Viemam was completely liberated Before retreating, the lirench troops destroyed all machines and equipments, and buried important technical documents lo cripple Hommel Brewery By 1957, according to the Vietnamese govermment's economic recovery policy, Hommel Brewery was restored and renamed Hanoi Brewery With the

wholehearted help of Czech beer experts, on 1* May 1958, the first wial beer was

successfully catricd out by Mr Vu Van Boo, a skilled worker of the old Hommel Brewery

On 15 August 1958, the 13% anniversary of the successful August Revolution and the

formation of the Provisional Democratic Republic as well as the 4” celebration of the capital’s complete liberation, the first Vietamese bottle beer named Truc Bach was bom

in the great joy of employees of Hanoi Brewery It is a product that asserted the ownership

of Vietnamese workers and served the essential needs of the Vietnam society at that time

From this milzstone, Hanoi Brewery entered a new cra - the period of brand affirmation in Vietnam beverage industry and become the pride of Hanoians From then on, August 15

is chosen as the traditional day of Llabsco

In 1993, Hanoi Brewory changed ils operation modst, renamed it Hanoi Beer Company The company has stepped up its investment expansion, accelerated the renovation of equipments, and increased capacity to 50 million liters per year In 2001, the capacity was raised to 100 million liters per year

On.6" May 2003, the Ministry of Industry (now the Ministry of Industry and Trade) issued Decision No 75/2003/QD-BCN to establish Hanoi Beer — Alcohol - Beverage Corporation (abbreviated as Habeco) From 16" June 2008, the corporation afficially changed fiom a state fo a joint stock corporation under the Decision No.1863 / QD-TT2 dated 28/12/2007 and Decision No 575/QD-I'Tg dated 16/5/2008 by the Prime Minister This is am important tuning point Ñw Hubeco lo affirm ils position in the integration

period

24

In 2010, the corporation completed and put into operation the project of building a new brewery in Melinh, Hanoi with the capacity of 200 million liters per year, it was the mmosl modern synchronous equipment brewery in the Soulheast Asia, Aller many years of continuous expansion, at present, Habeco has 2 main breweties, 17 subsidiaries and 6 associated companies, which scatter from the North to the Central provinces of Vietnam (Appendix 1) With a otal capacily of over 800 million Titers of boor, Habovo is always in the top tuee beer producers having largest market share in Vietnam

With more than hundred years of tradition and know-how of technology, modem

® International Asia Pacific Quality Award (IAPQa), 2006;

+ Golden Europe Award for Quality and Commercial Prestige 2005, Otherways

Management & Consulting Association, Paris, France;

® 29th Intemational Award for the Best Trade Name in Madhid, Spain in 2004;

«Gold Star Award of Vietnam, contimiously recived since 2003;

© Gold Slar Cup for “Brand and Trademark”

* National Brand Award

fision and mission of Haheco Corporation

Visiom: Hanoi Beer - Alcohol - Beverage Joint Stock Corporation is aiming to become a strong and leading company in Vietnam beer, alcohol and beverage industry

© Research and develop strategic, added-value brands to meet the increasing dsraand

of domestic and foreign consumers

2.1.3, Habeco product introduction

2.1.3.1 True Bach can and bottle beer

Troe Bach, the first domestic beor in Viehwm smoc 1958, is named according ta

‘True Bach Lake - a place associated with the millennial land of civihzation Thang Long - 1ianol

This high-grade beer of Habcco is made from the finest imported ingredients such

as Saaz, one of the world's four noble herbs, planted exclusively in the Zatec valley, the Crech Repnblic; and spring barley harvested from the famous raw materials of France and the Czech Republic

Truc Bach Beer is a piece of art with yellow and transparent beer like honey, white, thick, spongy and “smooth” foam; slightly bitter which gradually tumed to the sweet malt

taslo

2.1.3.2, Hanoi Premium can and botile beer

IJanoi Premium bottle beer was introduced in 2005 and is oriented im the premium

gment, With the compact and cloganee, this product is the ideal choice far parties,

quality and modcm design This high-class becr promises to be a unique product that brings new experiences to the young, the pioneering and trend-leading generation of Vietnam

2.1.3.3 Hanoi can beer

First introduced to Vietnamese beer Jovers in 1992, the quality and convenience of Hanoi can beer make il bscome an indispensable gift for Vieinamese Tel holiday ard other

important occasions

2.1.3.4, Hanoi bottle beer

This core product of Habeco is a familiar choice in family and friend gatherings of deer lovers in the country because of not only its stable quality, but also its prestigious brand name associated with Hanoi capital

26

2.1.3.5, Hanoi can and bottle beer with green label

With the desire to better meet the needs of consumers in all parts of the country, in

2014, Habsco has launched Ianoi Green Label Beer - ä product dedicates to beer lovers in the Central of Vietnam

‘The slogan of Hanoi Green Label Beer - "I'raditional Flavors - Central Lifestyle" expresses the cssonee combination of over 120 years of Hanoi Beor and typical boor taste

of the Central people Beer lovers will have an unforgettable experience when enjoying the mild flavor, excellent quality of Llanoi Green Label Beer and sceneries of white sandy seas

in the center region

21.3.6, Hanot draught beer (Bia Hoi Ha Noi)

Since 1960, Bia Hoi Ha Noi with a cool flavor has always been rated as a prestigious beer brand by beer lovers It is not only the first choice for intimate gatherings

of many domestic customers but also onc of the most attractions of intemational fiends whan visiting Hanoi capital ‘the reputation of this product along with the image of

enjoying Bia Toi Tia Noi al the pavements or the comers of Tanoi slraels fas long became

a popular culture only characterized by Hanoi capital

2.1.3.7 Uniaqua drinking water

With the goal of providing consumers a high quality drinking water, Uniaqna was introduced in carly 2015 Teis @ pure, frosh prodnet produced from natural groundwater throughout the modem production line using advanced technologies such as reverse

osmosis, membrane filtration, and UV sterilization

2.2, Evaluation of the ISO 9001:2015 efficiency In Ilabeco breweries

2.2.1 The context of Habeco head quurter ond its breweries

At present, based on its business strategy, Habeco applies Joint Stock company model for its management Through the process of development and improvement, the corporation has the following organizational structur

* The head quarter consists of 11 departments located at 183 Hoang Hoa Tham and a research institute located im Hanoi - Me Linh Brewery with the total employees of about 140 people

In 2009, Hanoi - Me Linh Brewery with a capacity of 200 million liters per year

was cslablished in Ticn Phong comme, Me Linh district, Hanoi This brewery

has 4 departments and 3 plants with the total zinployess oŸ about 290 people

7

© In 2017, the corporation established the Hanoi - ITang Hoa Tham brewery The brewery organizational structure includes 3 departments and 1 production plant with approximately 300 employees

* From the establishment of Hanoi Beer © Alcohol - Beverage Joint Stock Corporation in 2008, the corporation has 13 production sites which mn as both

subsidiaries and associated companies

Habeco has been constantly investing in improving production capacity and product quality, creating better canditions for production environment; enhancing the health of emptoyces, saving raw materials and onorgy, and improving the position of the Corporation Since 2001, Habeco head quarter and its two breweries have applied ISO

9001: 2000 and were certified in June 2002 Recognizing the importance of environmental

protection and social responsibilily, from 2004, the corporation has developed and appticd

the environmental memagement syslm according to TSO 14001: 2004

In line with the development trend, consumers are particularly concemed about food safety and health Thus, Habeco always pays much attention to produce hygiene and food safety products to gain the long-term trust of customers, It was done by the devclopment

and application of food safety management system ISO 22000: 2005 in 2006 Kor the

purpose of continuons impravernent of quatity and launch of new products, Teclmicat Institute of Brewing was established in 2007, In 2015, the institute with many modem new analytical instruments and pilot production system has moved to a new building in Melinh Brewery And in 2018, the Analysis Confer in the instilule was established and applied

Gonsral requirements for the comp

17025

Kor production sites in Llabeco group, at present, each company has its own

nee of Lesling and calibration laboratorics ISO/TEC

management syslem All companies have devctoped and been cetlificd food safety management system [SO 22000 which is mandatory for food producers For quahty management system ISO 9001, all companies have built up the system but some have not got the certification The ISO 14001 environmental management system has not been fully implemented Companies which are small and locate in the area that in low demanding for developing an environmental management system are lack of ISO 14001

Table 2.1: TSO starulards in Hubeco member cumpanies

Habeco Haiphong Beer Joint Stock | Invalid certification because of not

3

certification audits after 1" certification

audit in 2012

Hanoi Beer - Alcohol - Beverage

4 | Investment and Development Joint Stock x x x

Tlanoi - Namdinh Beer Joint Stock

Company

Hanoi - Haiphong Beer Joit Stock

3 Hanoi - Quanghi Beer Joint Stock | certification

2.2.2, The real situation of applying ISO 9001; 2015 in some Habeco breweries

‘The assessment of 180) application in Habeco head quarter and member companies is

based on the eniteria set oul in Chapter 1 Prirmary dala collection was danc as fallows:

29

« The in-depth well-planned interviews (Appendix 5) were made with senior

managers, ISO representatives of companies, heads of departments, staffs in

specialized departments and workers in production areas in Habeco group After that, each person received the questionnaire (Appendix 6) to evaluate the implementation of ISO 9001 in their own company based on scale of ten Tn total,

292 completed questionnaires in 310 distributed questionnaires were received which represented a response rate of 94.2% 18 other questionnaires were

climinated because of lacking information Of all 292 completed questionaires, 71

questionaires were delivered to high and middle managers of Habeco head quarters

and its member companies (Appendix 2) Based on the data collected, the mean values were found out and used for drawing bellowing charts to cvaluate cach critarion to understand how effective ISO systems are

* Internal andits were planned and done at each department, production plant in each company in Habeco group Each team comprised of 3 to 4 people from Habeco

head quarter (Appendix 4) After cach audits, intemal auditors were asked to fill in

the same questionaizs (Appendix 6) uscd for leaders and workers of member

companies to evaluate the ISO implementation and compare with the results

previously oblained

* ‘he expert interviews with senior ISO 9001 experts (Appendix 3) were conducted

to find the desited levels for zach crilerion The cfficiency of TSO 9061 implementation was fully understood by comparing this desired level with the

current scores assessed by internal audifars and companies by themselves

2.2.2.1 Labour productivity

Labor productivity plays an important role in determining labor wage policy,

especially for state-owned enterprises such as Habeco in order to improve labor wages, companies must demonstrate the increase in their productivity And the effect of ISO 9001

adoption on labour productivity is positive Rigorous adherence to written procedures,

cleat guidelines implies a fairly routinized workplace, avoids mistakes in the production (Lovine and Toffel, 2010) Well-defined yrovesses

also make it unnecessary for employees

to spend time asking how to solve a problem, thus increasing productivity On the other hand, “contirmous improvement” principle in ISO 9001 expects emloyees to perform discretionary tasks such as documenting new procedures and contributing quality

improvement ideas, it in tums increases the labor productivily

30

400000

350000

300000 2s0n0n

100000 2017 sonon

Figure 2.1: Labor productivity in Habeeo groups

* Source: Lluman Resource Department of HABECO

Labor productivity in Ilabeco is calculated as the number of liters of beer that @ labor could produce in a ycar The labor productivities of different companivs wore not the samc (Figure 2.1) HQ and LD were highly productive partly because they have applied 1SO

9001 system quite a long time and their ISO 9001 practice was rather good with

‘transparent procedures and work guidelines In contrast, relatively high labor productivities

in NA and HHP wes not meaning of good ISO 9001 application It came from high production volume with overtime work and more seasonal workers Companies which have many manual labors, nowly and unsthoroughly applied ISO 9601 tike ND, KB, QB had low labor productivity In addition, positively changes in labor productivity in Habeco

group from 2015 -2017 were not much due to the mumber of laborers in recent years was

almost stable but the production volume of beer increased only from 3 lo 5%,

22.2.2, Product quality

Froduct quality plays a very important role in any business’s survival and it is considered one of the top objectives of any business, Habeco abways commil to provide its customers with the best caretiully refined products However, evaluation of the product or service quality must be based on customer satisfaction, production output and number of

customer complaints In Haboco, during the 3-ycar period from 2015 to 2017, whon the

sales of beer has slowly grown from 3 to 5%, the comparison of yeally complaints could

be used for produet quality evaluation Looking on present Habeco’s context, all bottled and canned beers were sald by labeco head quarter while dranght beer and local beers by

31