ENHANCING THE EFFICIENCY OF THE QUALITY MANAGAMENT SYSTEM BY IMPROVING MANAGEMENT RESPONSIBILITY AND HUMAN RESOURCE MANAGEMENT AT VIET A PLASTIC AND COMPOSITE COMPANY

This report presents some restrictions in quality management system of Viet A plastic and composite company in terms of management responsibility and human resource management.

NATIONAL ECONOMICS UNIVERSITY

ENGLISH FOR BUSINESS DEPARTMENTFACULTY OF FOREIGN LANGUAGES

COMPOSITE COMPANY

Hanoi, 05/2010

ENGLISH FOR BUSINESS DEPARTMENTFACULTY OF FOREIGN LANGUAGES

Thank to the time studying and practicing in National Economic Universityand the time doing internship in Viet A plastic and composite company, I havelearned and collected much valuable knowledge as well as real experience to finish

my study It is a pleasure for me to thank the many people who spend their time andshared their knowledge for helping me to make this study with the best possibleresult

Firstly, I would like to express my deep and sincere gratitude to mysupervisor, Mrs Nguyen Phuong Hoai, teacher of Faculty of Foreign Languages, forher enthusiasm, inspiration, and great effort to explain things clearly and simply Inaddition, she provided encouragement, sound advice, good teaching, good company,and lots of good ideas throughout my thesis-writing period I would have been lostwithout her

I also wish to thank Mrs Tran Thi Thu Giang, Dean of the Faculty of ForeignLanguages, and all teachers in this department for impacting me the much neededknowledge to write this study

During this work I have collaborated with many colleagues for whom I havegreat regard, and I wish to extend my warmest thanks to all those who have helped

me with my work in the Sales Department in Viet A plastic and composite company.Their kind support and guidance have been great value in this study

Finally, I would like to wish the teachers in Faculty of Foreign Languages andthe colleagues in Viet A plastic and composite company health, happiness andsuccess in your work

There are still deficiencies although I have tried my best in the researchprocess, I hope to receive your comments to make this report more perfect

Thank you.!

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

EXECUTIVE SUMMARY iv

INTRODUCTION v

CHAPTER 1: INTRODUCTION OF VIET A PLASTIC AND COMPOSITE COMPANY AND ITS RELATED PROBLEM 1

1.1 Viet A plastic and composite background 1

1.2 Problem Discussion 2

1.3 Research question 3

1.4 Research Scope 3

1.5 Methodology and methods of data collection 4

1.6 Report structure 4

CHAPTER 2: THEORETICAL FRAMEWORK 5

2.1 General Theory 5

2.1.1 Quality Management 5

2.1.2 Quality Management System 5

2.1.3 The principle of quality management system 6

2.1.4 ISO 9001 9

2.1.5 ISO 9001:2000 Content 9

2.2 Management Responsibility 10

2.2.1 Establishing the quality policies focus on customer requirements 11

2.2.2 Planning quality management system 11

2.2.3 Defining responsibility, authority and communication 11

2.2.4 Reviewing performance of the quality management system 12

2.3 Human Resource Management 12

2.3.1 Selection 12

2.3.2 Performance 13

2.3.3 Development 13

2.3.4 Rewards 13

CHAPTER 3: ANALYSIS AND FINDINGS 13

3.1 Business result 14

3.3 Restrictions in management responsibility 15

3.3.1 Leader did not maintain management commitment 15

3.3.2 Leader did not carry out quality management system planning 16

3.3.3 Leader did not set up effective communication system 16

3.4 Restrictions in human resource management 17

3.4.1 Ineffective recruitment 17

3.4.2 Unscientific working-habit 17

3.4.3 Limited knowledge 18

CHAPTER 4 : RECOMMENDATIONS 18

4.1 Improving management responsibility 19

4.1.1 Maintaining management commitment 19

4.1.2 Planning quality management system 19

4.1.3 Setting up an effective system of communication 20

4.2 Improving human resource management 20

4.2.1 Creating effective method for recruitment 21

4.2.2 Changing working-habit 21

4.2.3 Raising awareness 23

4.3 Other recommendations 23

4.3.1 Internal audit 23

4.3.2 Quality control circle 24

CONCLUSION 24

REFERENCES 26

EXECUTIVE SUMMARY

This report presents some restrictions in quality management system of Viet

A plastic and composite company in terms of management responsibility and humanresource management

Viet A plastic and composite company, a company of designing,manufacturing and trading plastic and composite products, pays much attention toquality management Thus, the company has carried out applying total qualitymanagement for its quality culture This application helps the company gain muchprofits and confirms its position in the market However, its recent business result isunstable because of implementing quality management inefficiently To be morespecific, they are weaknesses in management responsibility and human resourcemanagement Enhancing efficiency of the quality management system in Viet Aplastic and composite company is being the key feature to achieve better businessresult

The report will mention the way to improve management responsibility andhuman resource management In detail, it will focus on showing the problemsexisting in management responsibility in order to find recommendations to promotethe role of company leaders In addition, the research also points out some drawbacks

in human resource management that lead to resistances in implementing total qualitymanagement as well as suggests some solutions to make human resourcemanagement become strong feature for company quality management system

In the economic globalization trend, every Vietnamese business now alsohopes to find a stable position in the domestic market as well as expand market tooverseas Due to the constant change of business environment and the competition offoreign products, quality control is the most concern of each enterprise The goodquality management system is the basic foundation to create better products anddetermine the success of business

Throughout doing internship in Viet A plastic and composite company, Irealized that company leaders lacked attention to the application of qualitymanagement system, company employees were not aware of their role in carrying outand maintaining efficiency of quality management system Improving managementresponsibility and human resource management can bring many benefits for thecompany such as: enhancing efficiency of the quality management system,innovating the working way of top managers and employees, producing betterproducts, raising annual revenue, etc Thus, I decided to analyze some restrictions incompany quality management system in terms of management responsibility andhuman resource management from which I could suggest some recommendations tosolve the problem

In this report, I am going to find out two big questions First, why did qualitymanagement system of Viet A company operate less efficiently? Second, how canViet A company improve its quality management system?

The researcher employed observational, analytical and synthetic methods topoint out some drawbacks as well as suggest some recommendations to improve thequality management system of Viet A company

Data from primary sources was collected from company reports regardingfinance, quality management, etc Information from secondary sources has emanatedfrom published and unpublished books, magazines, the Internet ,etc

CHAPTER 1: INTRODUCTION OF VIET A PLASTIC AND COMPOSITE

COMPANY AND ITS RELATED PROBLEM

Chapter 1 sets the reasons for which the report is motivated It looks atbackground, structure, development, and problems involve in quality managementsystem of Viet A plastic and composite company It also presents research purpose,research scope and methodology that will be used to analyze and synthesize theproblem

1.1 Viet A plastic and composite background

Viet A plastic and composite company with abbreviated transaction VAPLASCOM, is a subsidiary of Viet A group holdings co., Establishing in October

name-20th, 2003 Viet A plastic and composite company is the company specializing indesigning, manufacturing and trading plastic and composite products The 36000m2factory of the company in Tan Quang Commune, Van Lam Dist, Hung Yen Province

is the wide and suitable place to manufacture Head office in No.20/2, 370 Alley, Cau

Director

Vice-director of

Technique

Administrative Department

Accounting Department

Vice-director of Business

Sales DepartmentQuality

management

Department

Factory

Giay Road, Hanoi is convenient place for its business Nowadays, the companyincreasingly develops with the management of the director, Vu Thi Thuy Hang Thestructure of the company is described in the above chart.

Like other subsidiaries, Viet A plastic and composite company also has themission, vision and business philosophy of Viet A group holdings co., The companywill supply the high-quality products It ensures an increase in benefits to its membersand community, enriches moral and physical life for all staff as well as contributesthe development of our country Viet A plastic and composite company is also known

as its vision: building the company to the top companies in Viet Nam in terms ofreliance, quality and efficiency, which supply high-quality products used world-wide Moreover, the company has obtained customer’s belief because of itsphilosophy of business: contented customer, satisfied supplier, happy healthyworkforce, total quality Today, its products are sold in the whole country with itsown channel including 54 major distributors and 130 distributed agents

To make the management system further perfect, improve the quality ofmanufacturing processes and products, Viet A plastic and composite company hascarried out applying ISO 9001:2000 for its quality management system Despitebeing received the certified success by the third organization, the company still hasinadequate knowledge in operating system Two mains aspects make companyquality management system less efficient are management responsibility and humanresource management They are also two aims I focus on studying to drawrecommendations to solve the situation

1.2 Problem Discussion

In the past of twenty years, Vietnamese economy has a great developed stepbecause of new changeable policies We have gradually integrated with regional andglobal economy Vietnamese businesses have tried their best to have stable position

in this trend However, it is difficult to achieve which they want without good qualitymanagement system The good quality management system is the key feature tocreate best products and determine the success of each business

According to the appreciation of economic experts and scientists, the ISOstandards are the key factors to create best quality management system for allorganizations Its requirement in quality management system, especially in term of

management responsibility and human resource management helps enterprisesenhance efficiency of the management system, determine clearly the function andresponsibility of top manager as well as employee in organizations, and plan essentialstrategies to reach the principle “Do right at the beginning and right at all times”.

Like other companies, Viet A plastic and composite company takes qualitymanagement into high consideration Thus, the company applied ISO 9001:2000 forits quality culture However, the company quality management system operates lessefficiently because its leaders did not fulfill their roles and its employees lack ofknowledge, skill and experience in quality management Enhancing the efficiency ofthe quality management system through improving management responsibility andhuman resource management following the ISO standards are key elements for thecompany to attain high profits and develop stably

This report focuses on the improvement of the quality management system atViet A plastic and composite company In term of theory, it explores the theoryinvolving in the management responsibility and human resource managementfollowing ISO standards to promote the role of leader as well as define the effect ofhuman resource in applying these standard In term of practical aspect, it studies realsituation of maintaining the efficiency of the quality management system at Viet Aplastic and composite company, then suggesting some recommendations to improvethe efficiency and effectiveness of management responsibility and human resourcemanagement in the company quality management system

1.3 Research question

This report is going to answer two big questions First, why qualitymanagement system of Viet A company operate less efficiently? Second, how canViet A company improve its quality management system? The answer for twoquestion will be found out through four chapters of the report

1.4 Research Scope

There are many problems existing in the quality management system of Viet Aplastic and composite company need to be solve, however, the researcher onlymentions issues that affect directly to annual revenue result They are restrictions inmanagement responsibility and human resource management These aspects are twomain reasons why company quality management system operate less efficiently

Thus, they are discussed at length throughout theoretical framework, analysis andrecommendation chapters.

1.5 Methodology and methods of data collection

Observational, analytical and synthetic method is methodology that the researcheremployed to point out some drawbacks as well as suggest some recommendations toimprove the quality management system of Viet A company In addition, data fromprimary and secondary sources are also used to analyze and synthesize problem Datafrom primary sources was collected from company reports related to finance, qualitymanagement, etc Information from secondary sources has emanated from publishedand unpublished books, magazines, the Internet ,etc

1.6 Report structure

This writing report includes four main chapters :

Chapter 1: Introduction of Viet A plastic and composite company and its relatedproblem

Chapter 2: Theoretical Framework

Chapter 3: Analysis and Findings

Chapter 4: Recommendations

CHAPTER 2: THEORETICAL FRAMEWORK

This chapter presents theories involve in quality management system in term

of management responsibility and human resource management It is not only thebasic framework for my analyses and arguments in next chapter but also the guide tosuggest recommendations for effective quality management system

2.1 General Theory

To improve management responsibility and human resource management in companyquality management system, we must understand clearly the definition of the termsrelated to quality concepts such as: quality management, quality management system,principle of quality management system, ISO 9001,etc

2.1.1 Quality Management

Quality Management is basic theory to build a good management system It is

an aspect of managing function to determine and implement quality policy Qualitymanagement activity in quality field are known as quality management Qualitymanagement includes both quality control and quality assurance, as well as theadditional concepts of quality policy, quality planning, and quality improvement

According to ISO (International Organization for Standard)

“Quality Management is the integrated measures to enable organization supplying stable products to meet the demand of customer and regulatory requirements Through applying Quality Management System efficiently combines with innovating process of the system, the quality of products and services will be improve to satisfy high demand of customer, ensure the long-term development of organization.”

2.1.2 Quality Management System

Quality Management System (QMS) is seen as necessary tools to performquality management functions It attaches to the operations of the process and is built

in accordance with the characteristics of the products and services in the organization

According to ISO (International Organization for Standard)

“Quality management system is defined as all activity of the overall management function that determine the quality policy, objectives and responsibilities, and implement

them by means such as quality planning, quality control, quality assurance and quality improvement within the quality system”.

Most organizations now consider quality more as a process rather than aproduct To be more specific, it is a continuously improving process where lessonslearned are used to enhance efficiency of management in order to produce goodproducts and serve customer Therefore, companies have tendency to improve qualitymanagement system following ISO standards in term of management responsibilityand human resource management

2.1.3 The principle of quality management system

There are eight quality management principles on which the qualitymanagement system standards of the ISO series are based These principles havebeen identified to facilitate the achievement of quality objectives and form thefoundation for effective quality management They can be used by seniormanagement as a framework to guide their organizations towards improvedperformance The principles are derived from the collective experience andknowledge of the international experts who participate in ISO Technical Committee

developing and maintaining the ISO standards

Applying the eight principles of quality management can help Viet A plasticand composite company take advantages of the experience of the leading topmanagers as well as improve efficiency of the quality management system In thisreport, I only presents some principles which affect management responsibility andresource management:

Principle 1: Customer focus

“Organizations depend on their customers and therefore should understand currentand future customer needs, should meet customer requirements and strive to exceedcustomer expectations.”

Key benefits of this principle:

Increased revenue and market share obtained through flexible and fast responses tomarket opportunities

Increased effectiveness in the use of the organization's resources to enhance customersatisfaction

Improved customer loyalty leading to repeat business

Applying the principle of customer focus typically could lead to:

Researching and understanding customer needs and expectations

Ensuring that the objectives of the organization are linked to customer needs andexpectations

Communicating customer needs and expectations throughout the organization

Measuring customer satisfaction and acting on the results

Systematically managing customer relationships

Ensuring a balanced approach between satisfying customers and other interestedparties (such as owners, employees, suppliers, financiers, local communities andsociety as a whole)

Principle 2: Leadership

“Leaders establish unity of purpose and direction of the organization They shouldcreate and maintain the internal environment in which people can become fullyinvolved in achieving the organization's objectives.”

Key benefits of this principle:

People will understand and be motivated towards the organization's goals andobjectives

Activities are evaluated, aligned and implemented in a unified way

Miscommunication between levels of an organization will be minimized

Applying the principle of leadership typically could lead to:

Considering the needs of all interested parties including customers, owners,employees, suppliers, financiers, local communities and society as a whole

Establishing a clear vision of the organization's future

Setting challenging goals and targets

Creating and sustaining shared values, fairness and ethical role models at all levels ofthe organization

Establishing trust and eliminating fear

Providing people with the required resources, training and freedom to act withresponsibility and accountability

Inspiring, encouraging and recognizing people's contributions

Principle 3: Involvement of people

“People at all levels are the essence of an organization and their full involvementenables their abilities to be used for the organization's benefit.”

Key benefits of this principle:

Motivated, committed and involved people within the organization

Innovation and creativity in furthering the organization's objectives

People being accountable for their own performance

People eager to participate in and contribute to continual improvement

Applying the principle of involvement of people typically leads to:

People understanding the importance of their contribution and role in theorganization

People identifying constraints to their performance

People accepting ownership of problems and their responsibility for solving them People evaluating their performance against their personal goals and objectives People actively seeking opportunities to enhance their competence, knowledge andexperience

People freely sharing knowledge and experience

People openly discussing problems and issues

2.1.4 ISO 9001

ISO 9001 is one of family of standards for quality management systems It ismaintained by ISO, the International Organization for Standardization (ISO), based inGeneva, Switzerland ISO 9001 was initially published in 1987 and specifies, inbroad terms, the necessary components of a quality management system and, indetail, the basic requirements of the quality function for all industries It wasconsidered as an internationally-accepted quality management certification system todefine, identify, and confirm quality benchmarks within organizations Today, ISO

9001 is helping thousands of companies worldwide manage their processes tobecome more efficient and cost-effective Progressive companies are finding the ISO

9001 process can offer real strategic value, especially if it is aligned with corporategoals and objectives

2.1.5 ISO 9001:2000 Content

ISO 9001:2000 Quality Management System is tended to apply for anyorganizations that design, develop, manufacture, provide any product or service Itwill bring requested requirements for organizations complete if it satisfies customerexpectation through perfect products and service expectation

ISO 9001:2000 provides 4 requirement standards that organization has to follow:Management Responsibility

Resource Management

Product Realization

Measurement Analysis and Improvement

4 requirements are described in the following chart: