Building quality management system at STYLE FASHION co , ltd

PART 2: THE PRESENT MANAGEMENT SYSTEM & PROLEMS 2.1 The present Management System: Rule: The management system of the company is based on family style.. When the business requires inc

SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT

MBQPM4 PHAN HONG YEN PHUONG

Building Quality Management System at STYLE

No other person’s work has been used without due acknowledgement in the main text of the project

Ho Chi Minh City, 01 June 2014

Phan Hong Yen Phuong

ACKNOWLEDGEMENTS

I would like to thanks:

All my Professors, especially Dr Jacques Martin, who gave me the inspiration about the wonderful things of quality management They are like my fathers They are the excellent Professors! I understand thoroughly the tutorial teaching background Master’s program helped me access to modern methods of management that I had actually applied at my company In addition, my Professors also gave me an objective view detail why quality management is important, to me it is an indispensable condition in the operating and development that my company needs to have My Professors have communicated to me the knowledge and experience which I can apply for my company These are very valuable knowledge which I believe is not only useful for my current job but also for my future Classmates have shared the books with me so I can refer to and complete this assignment They also join me to discuss requirements of the assignment so that we can complete this final project in the best way

My director gave me the chance to be shown and taught me how to look at as a real manager to be able to figure out the problem from deep inside She is also one of those who have a strong influence on me so I have to always learn and develop myself She believes I can do everything that I wish, if I always strive and learn

My family has been enabling me to participate this course and access the knowledge’s about quality management that is extremely useful Since learning to do the work and have business trips quite often so sometimes I feel a lot of pressure and limited time At such times the family was always there to support me and motivate their best

COMMENTS OF GUIDE PROFESSOR(S)

Part 2: The present management system and problems 14 – 16

2.2: Evaluation of the present management system 16

II Building quality management system 17 – 29

III Conclusion and further developments 30 – 36

References & Appendices 37 – 42

Starting from 2013, YES 'S has introduced a new product line for children called YES'S KIDS, its aim to serve the infinity potential customer in Vietnam To make the differences among the current extremely competitive kids fashion market, YES'S KIDS has launched an incredibly unique and impressive product of the collection of Mother & Baby with the appearance of mother and daughter in the same dress and the little girl holding a cute teddy bear which wearing the same outfit

In addition to these unique and innovative products to attract customers we are also one of the leading brands in reaching customers a friendly and approachable way through fashion shows, parties that for dedicated customers, competitions, the playing field for families with the opportunity to exchange and learn in parenting, and charity activities hold by our company with the participation of clients in visiting orphanage temples, orphanages, hospitals

But YES'S still feel like that is not enough to make the customer feel most satisfied

We also linked with business partners in a number of fields such as cosmetics, lingerie, cuisine to send gifts to special and loyal customers And this is also an opportunity to introduce more customers to the business partners in a WIN - WIN spirit of cooperation

We greatly appreciate one statement of Adam Khoo that deeply inspired us: "We all have the same starting point, but only 10% of the 90% who are likely to succeed Because they have creative ideas and turn ideas into reality." (Secret hand White millionaire, 2012)

Vision: Developing distribution channels into domestic and international markets with 100 franchised outlets to 2030

Mission: The desire to make Vietnamese fashion brand famous among international market in both quality and design

We now are investing development of 2 brands:

 : Lady fashion

 : Kids Fashion

1.2 Organizational Chart:

Founder: Ms Nguyen Thi Phuong Trang

 Place of Birth: Dong Nai Province

 Education: BA

 Experience: 20 years in the garment industry

 Participated in international tradeshows in many countries such as Myanmar, France…

 Participated in many charity activities in the local and international

Product’s features:

 Lady fashion:

+ Standard form design, hiding body defects + Diversified models more suitable to customers + Excellent quality product, color fastness and high product life

 Kids Fashion:

+ Fabric material is carefully chosen so as not to irritate baby's sensitive skin + Designs to fit the rich kid can go to school, walk around, and the party + All products are 100% cotton lining helps wicking sweat while playing baby Public Relation Activities:

 Thoi Trang Tre Magazine usually introduces new collections of YES’S every month And they receive good feedback from customer

 Many television stations such as VTV3, HTV7, HTV9, and VTC1 use YES’S dresses as uniform for MC of many hot programs (news morning, 60 second, 24 hour, news world…)

 Phong Cach Tre media usually organize many fashion show, and YES’S is one of the best grand name for this program

Business objectives:

 YES’S Turn-over increasing 100% the year after

 The 25 Domestic Distribution Outlets will be launched to 2015

+ United State

Showrooms:

Our company has 19 showrooms covering most of the big centers in Vietnam such as:

Ho Chi Minh City, Dong Nai Province, Binh Duong Province, Vung Tau City, Ha Noi Capital, Hai Duong, Thanh Hoa, Hai Phong, Nam Dinh, Vinh Phuc, Ninh Binh, Viet Tri…

Showroom’s facilities:

 Displayed images

 Couches, drinks served, candy and cake for waiting guests

 Audio systems are installed in every store so clients can also be relaxed while choosing products

 LCD for show many fashion show programs of YES’S

 Make up table and mini studio for free services

 VIPs lists are managed with software

Services:

 Door to door delivery as required

 Special free service as make up and studio

 Advising clients combinations of accessories to go to work or to a party

 Consulting and repairing clothing for free

 Money refunded for dislike products

 Products’ information is updated through media

 Feedback to customers periodically with customer care

 Free coupons to customers frequently

1.3 Production process:

Qual ty  c c ontrol  

Before a perfect product is introduced to the consumers, we must undergo a complex manufacturing process, requiring professional and quality standards

Firstly, we will have a design department to draw the samples After samples are approved, fabrics will be chosen to fit that designs Next, the most important step in that process is Whether the designs of the dresses are nice, elegant, and whether the finished garments are the same as the original approved designs, all of which depend

on the confection stage The main seamstresses will be in charge of sewing samples Sample products are made only one for each sample A series of approved designs will undergo this manufacturing process to create product samples These sample products will be used by the marketing department to conduct promotional photo-shoot Any sample products worn by models look beautiful and with no defects will

be selected to put into mass production The final products will be transferred to the stage of laundry before being transferred to the stage of product quality control and product packaging When products are ready to deliver to the consumers, it will definitely be a product that meets the quality standards which are set up by the company

PART 2: THE PRESENT MANAGEMENT SYSTEM & PROLEMS

2.1 The present Management System:

Rule:

The management system of the company is based on family style

The business started from small and based on the family relationship This can have some advantages: mutual trust, flexible working time, liveable wages

When the business requires increasing market shares in tough and competitive time, the family style management cannot meet the need of development and management

Cause:

The skilled professional people in the family do the management and take leadership They do not see fundamental differences between professional operation and people management and leadership This leads to the lack of vision

They use the family management style to apply to the company as follows:

 First, in difficult circumstances, they cannot recruit the right professional people

They do not know how to train, facilitate, encourage those who are relatives and employees go on management courses, facilitating their access to the new concepts and knowledge The owners themselves are not hard to learn from research, and do not have a role model for all staff to follow As for the above work, it is costly They are taking full advantage of each individual in the family

to save costs

 Second, the owners hug all responsibilities; do not know how to delegate to the

subordinates They focus on the details and do not know the global management Because of that, they do not know their real roles and have no time to learn and develop their management skills And this could be considered the biggest weakness of family management style Sometimes managers become their own staff

 Third, the assignment, job layout, licensing are not based on the capacity of each

person, but are primarily based on family ties This is not only wasted talent but also ruin the development of the business in the hands of bad manager

 Fourth, the capacity of management and leadership are not high because of the

authoritarian, patriarchal views The management refuses to hear the opinions of

subordinates Sometimes the subordinates depend on family relationships and they do not want to listen and work under the command of their superiors

 Fifth, the owners do not focus on the process of solving problem, conflict

resolution Their management are based on parentage and do not focus on people

At last, people do not care for company business The staffs that have no relationships with the siblings in the company can feel uncomfortable and seek jobs in other companies

 Sixth, when the owners found some lower-level skilled workers who are

respected by people in the company, the owners envy them This leads to the difficulty to recruit better people And usually these staffs will not be any long-term commitment with the company because of the pressures placed on their shoulder from manager

 Seventh, the company's work and the work of the individual owners are the same,

so they do not have the concept of the public properties, the business community

In fact, they do not have a sense of common property protection

 Eighth, the owners do not definitely distinguish the company and the family

business, they seem equivocal

 Ninth, a case of "director's director.” the husband tells one way and the wife tells

the different way, other people cannot know how to do! These staffs will arise anxious psychology When they received instructions, they do not dare implement immediately

Consequence:

 Health care: Due to the cost savings, even the senior staff will not be guarantee

of health such as health insurance In addition, medical equipment prepared in garment factories or offices are very sketchy Besides, the owners always have a fear and worry about losing their business in the hands of one person in their family, they work harder but mostly manual labor, thus, leading to poor health status

 Knowledge management: Because of focusing on the fear of losing company,

losing position and cost savings, the owners or department managers often do not invest in adding and updating knowledge management As a result, their knowledge is not enough to meet the requirements of economic management The incompetent will make businesses more stagnant, not following the trend of market economy, making businesses eventually go down

 Public Relation: The owners are very afraid of contact with state agencies for

fear of being taxed or penalized Besides the media also makes them feel anxious when exposed because they think their business if experiences any minor

mistakes, they will be fussed by the media, which affects their business image This way of thinking is a big mistake because the owner will not have any intimate relationship with the state agencies and the media They will face many difficulties in carrying out registration procedures and other forms of business promotion An inferior to the business of competitors

 Partners: Since the form of this family business, the owners always reckons that

they are number one, does not expand or create relationships with complementary partners for their business sector Lack of relationships with partners in such a fluctuate economy, they will forever be a lonely ship on the vast ocean, not knowing will sink at any time

2.2 Evaluation of the former management system:

 People perform work differently: because no standard operating procedure set

before for staff to follow

 We cannot control by process: different processes seem to be isolated with one

another

 The staff: cannot have enough information and instruction for their work because

of the lack of job descriptions

 The staff performance: cannot be evaluated exactly because of the lack of Key

Performance Indicators (KPI)

 The effectiveness: of the management system cannot be measured

 No quality policy and quality objectives to lead people

 Some of the inputs and outputs cannot be controlled

2.3 Why do we need to build the QMS?

 Management by Processes can help us control product from the input to the output and all processes are realized at the same time

 Building QMS help us reasonably manage the business and people

 Building QMS help us develop the company size and image

 Building QMS is also a requirement of society

II BUILDING QUALITY MANAGEMENT SYSTEM:

1 The need of implementing the QMS:

 To standardize: all of the activities of the company following the Standard

Operating Procedures (SOP)

 To control the processes: Define the processes and the relationship between

them to know the correlation and interaction of the processes

 To provide enough information and instruction for people to promote their work

 To evaluate exactly people performance based on the KPIs

 To measure the effectiveness of the management system

 To lead people effectively by following quality policy and objectives

 To control all of the inputs and outputs

 To comply with the ISO 9001 as an economic and social requirement

 To create the sale skills professionally

2 Building the quality management system (QMS)

2.1 Defining processes and their correlation and interaction

 The processes in the company are not isolated and motionless They have the closed relationship between one another The outputs of a process can be the inputs of another one If we regard the processes under the separation,

we cannot control the processes effectively as expectation

 The following process mapping shows the correlation and interaction between the processes in the Style Fashion Co., Ltd

2.2 Quality policy

STYLE FASHION Company with the system of YES’S shops is committed to continual improvement of processes and services to achieve and exceed customer satisfaction It is therefore our policy to:

 Consistently provide diversified and quality product that conforms to customer and regulatory requirements

 Ensure that all personnel are competent and qualified for the tasks they perform, and that all personnel familiarize themselves with quality system documentation in order to implement the policies and procedures in their work

 Professionally and effectively perform our business in trading lady and kid fashion product

 Consistently comply with ISO 9001 to ensure product quality and trading services as well as to continually improve the effectiveness of the Quality Management System

2.3 Quality objectives

 Quality Management System accords with requires ISO 9001: 2008

 100% Staff absolutely understand their responsibilities and realize their businesses in accordance with standard processes and actions through information and training system

 Satisfy 100% trade agreements

 Defect Product Scale from inventory is not over 1%

2.4 Building Documentation System

Quality records provide evidence of compliance

QS Procedures

Who, what, when, where and how QMS and operational processes are performed

Work instructions

2.4.1.Quality Manual: Quality manual: refers to the ISO 9001:2008

 We based on the clauses of the ISO 9001:2008, Quality Management system-Requirements to develop the quality manual for my company

 The quality manual shows the relationship between the processes and contains quality policy statement, quality objectives, the documentation system, the written procedures (including 6 obligatory procedures and operational and technical procedures)

 The quality manual also defines the company’s scope and operation, the responsibility of management and employees

 If necessary, the review of Quality Manual will be carried out in compliance with change of Company’s structure, Policy or actual activities The change review or re-issuance will be described in the Manual

 The Quality Manual is distributed to Director Board, Managers of all Depts., the YES’S shops It also is distributed to Certification Body for certifying the quality system when needed The distributed documents are the controlled documents

 The distribution of controlled copies of Quality Manual is approved by Chief of ISO committee The Distribution List is kept at ISO committee

 When required, after having documented approval of QMR, the copies of this Manual can be distributed to our Customer These copies are uncontrolled It means that these documents are not subject to recall when changed

 The change/ amendment of documents will be carried out when there are some changes on organization structure, quality policy, or actual activities

of company The above changes must be approved by Managing Director

 Any change/amendment must be noted, numbered, and retained at ISO committee The revision and effective date of documents must be presented

on each changed/amended page The revision will be made one time more for each change /amendment

 Change/amend is clearly described in change/amend section of the quality manual The origin of document issued, included also first version, must be maintained for 3 years

2.4.2.The written procedures: Building the standard operating procedures (SOP) based on the 6 obligatory procedures and what needed for the operation of the company

2.4.2.1 Procedure for document control

 All document must be reviewed and approved before issuing

 All documents must be reviewed, updated and approved when out of validity or whenever there is any change in contents

 All documents must have name, identification number, issued date, for identifying the changes and the current status of documents

 The original of documents are kept at ISO committee and the copies of documents are kept at related sections The copied must have COPY stamp affixed for easily revoking when out of validity

 The expired documents are revoked and destroyed by ISO committee to prevent mistaken use ISO committee keeps one copy/ document for traceability

 The documents from outside the company must be identified and controlled

2.4.2.2 Procedure for record control

 All records must be reviewed and kept in 3 years from establishment

 All records must have name, date of establishment, name of preparer for easily identifying, keeping, protecting, using, and revoking

 Records are distributed to right places

 Records are kept as archives for traceability

2.4.2.3 Procedure for control of nonconforming product

 The product which is not met the planned requirements, shall be isolated and reported to head of department for handling

 Head of department shall review the nonconforming product and make decision

 According to the level and nature of nonconforming product, the following methods shall be applied: