Development of quality management system in accordance with ISO 9001 2000 for ben thanh tourist hanoi

vietnam national university, HANOI hanoi school of businessNguyen The Cuong DEVELOPMENT of QUALITY MANAGEMENT SYSTEM IN ACcORDANCE WITH ISO 9001:2000 FOR Ben THANH TOURIST – HANOI master

vietnam national university, HANOI hanoi school of business

Nguyen The Cuong

DEVELOPMENT of QUALITY MANAGEMENT SYSTEM IN ACcORDANCE WITH ISO

9001:2000 FOR Ben THANH TOURIST – HANOI

master of business administration thesis

vietnam national university, HANOI hanoi school of business

Nguyen The Cuong

Development of quality management system in accordance with iso 9001:2000 for Ben thanh

tourist - Hanoi

Major: Business Administration

Code : 60 34 05

Master of business administration thesis

SUPERVISOR: DR.TA NGOC CAU

TABLE OF CONTENT

ACKNOWLEDGEMENTS

ABSTRACT

ABSTRACT (Vietnamese)

TABLE OF TERMS DEFINITION

LIST OF ILLUSTRATIONS

LIST OF ABBREVIATIONS

INTRODUCTION ………

i ii iv IX XIV XV 1 1 The need for study ……… 1

2 The statement of the problem ……… 1

3 Aim and Purpose of study ……….3

4 Research questions ……… 3

5 Scope of work ……….4

6 Assumption ……… 4

7 ta sources and Processing ……… 4

8 Experiment Method ……… 5

9 Signification ……… 6

10 Limitations ……… 6

11 Expected results ……… 7

12 Short summary ……… 7

CHAPTER 1: THEORETICAL FOUNDATION … 8 1.1 What is ISO 9001:2000 ……… 8

1.2 Why we need to develop ISO 9001:2000 … 8 1.3 Aim of ISO9001:2000 standard ……… 10

1.4 The Standards ISO 9001:2000 analysis … 12

1.4.1 Quality management system requirements 13

1.4.2 Management responsibility ……… 13

1.4.3 Resource management ……… 13

1.4.4 Production realization ……… 14

1.4.5 Measurement, analysis and improvement … 14 1.5 Quality management principles ……… 16

1.6 Process approach ……… 26

CHAPTER 2: EXPERIMENTAL RESEARCH 29

2.1 Ben Thanh Tourist Hanoi Introduction 29 2.2 Methodology ……… 31

2.2.1 Research problem ……… 31

2.2.2 Research objectives ……… 31

2.2.3 Research method ……… 32

2.2.4 Researcher role ……… 32

2.2.5 Data collection procedures ……… 32

2.3 Research report ……… 35

CHAPTER 3:FINDINGS AND RECOMMENDATIONS …… 58

3.1 Research findings ……… 58

3.1.1 Quality management ……… 59

3.1.2 Management responsibility ……… 60

3.1.3 Resource Management ……… 61

3.1.4 Product realization ……… 62

3.1.5 Measurment analyses and improvement … 64

3.2 Recommendations ……… 66

CONCLUSION ……… 72 APPENDIX 1 : the company report of the year 2006

APPENDIX 2 financial report for the year 2006

APPENDIX 3 interview questions

REFERENCES

1 The need for study

Ben Thanh Tourist was founded in 1990 It provides all inbound and outboundtours to travelers Ben Thanh Tourist starts recognizing the importance of investing inquality and providing high quality services due to several reasons

First of all, international tourists have been increasingly visiting Vietnam over pastyears; foreign tourists are rousingly interested in Vietnam leading to a larger number ofinbound travelers

As Vietnam‘s economy is booming, thus standards of living are rising.Consequently the need to reach higher quality standards of tours is becoming moredemanding Travelers are increasingly expecting the high standards of service

The competition among tour companies in Hanoi is really strong In addition,travelers have a big choice of where to book their travel Some of them book via travelcompanies; others arrange all or part of their travel directly with service suppliers, i.e.airlines, hotels, car-rental companies The emergence of on-line booking tools, on-linebooking possibility via airline web pages where lower service charges are offered, alsopose a threat to tour companies Unless Ben Thanh found solutions how to retain thebiggest inbound market share and meet its needs, big part of business may be lost

Recently international travel agency have required Ben Thanh Tourist to apply aquality management system in accordance with ISO 9001: 2000 in order to ensureconsistent high quality of service to their customer

Therefore the manager board decided to apply ISO 9001:2000 for its touroperation business

2 The statement of the problem

As a tour operator, Ben thanh tourist offer a number of service of tour packages,making reservation, booking and other tour arrangement for tourist The company

report reveals that annually growth accounts for 10% in term of sale revenues Thebenefits achieve a round 12% The number of tourists increases 15% However somekey staffs decided to move from the company with the reason of low salary.Consequently, it takes company some time and money to train new staffs Furthermore,the customer made complaint with the quality The reasons for most of complaints are

as follows:

 Staff make error because of ill preparations

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

 Various company departments do not speak to each other.•

 Staff does not feel responsible for quality.•

 When an error is made it is difficult to determine the cause, and the same errors tend to repeat

In order to fulfill requirements or needs of customers and demonstrate the quality ofits services to the outside world The Ben thanh Tourist decided to apply to implementISO 9001:2000

Problem in implementing a quality management is to:

 Get all employees to know to the standard

 Evaluate the current quality management system

 Set up documentation systems

 Analysis nonconformities

 …etc

There are some handbooks showing the way how to implement a qualitymanagement system Unfortunately, all of them are intended to give advice to othersbusinesses than Tour Company Although ISO 9001:2000 is brought into Vietnam foralmost 10 years and thousands of others industries and services enterprises claimedthemselves to be compliant with ISO 9001:2000

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

As the result of that, this study shall demonstrate its quality service based on ISO9001:2000 requirements

3 Aims and purpose of study

The overall purpose of the study is to

 Evaluate Ben Thanh Tourist‘s quality management

 Identify the gap between Ben Thanh Tourist tour operations with the standards requirements

 Work out some recommendation to Ben thanh Tourist quality management

In other word, the purpose of the study is to evaluate how effective and efficientQuality management, looking into their current status, and compare its performancewith the standard requirements in order to see how much of the quality process isassured and managed

Moreover the study then develop an action plan to implement a QualityManagement System based on ISO 9001:2000 as a tool to boost its performances inorder to improve the quality and efficiency of its travel services based on positivecurrent system

The aim of the study also helps set up the steps of applying quality managementsystem compliance with ISO into tour operation business

4 Research questions

Many studies show that there is a need for effective quality management systemimplementation in tour operation business, but relevant research directly related to thisneed is limited The overall questions guiding this study ask: How compliant thequality management system at Ban Thanh Tourist is in the view of ISO 9001:2000

The ISO 9000:2000 standard requirements serve as the theoretical lens thatframes this study This approach creates confidence in implementing qualitymanagement system in accordance with ISO 9001; 2000 Research questions arerelating to:

a) Quality management system

6 Assumption

There was a commitment of the management board to applying ISO 9001:2000.The quality policy is in the line with the company policy Ben Thanh Touristmanagement prepare determine and provide enough resources for implement qualitymanagement system

7 Data Sources and Processing

Following the data collection and processing is explained In this study, primarydata was collected Methods used to collect primary data are interview, reviewdocument and reports, and observation An in-depth interview is characterized by itslength, depth and structure Therefore, it suited to the study which demands to seek abetter insight into Ben thanh Tourist operations to identify gaps between the standardISO 9000:2000 requirements with its performances

The formulation of the interview question plays a vital role in the structure ofthe study and in ensuring a successful result These interview questions are based onthe recommendations or requirements of ISO 9001-2000 In other word, all the ISO‘srequirements are transformed into the form of question PRAXIOM RESEARCHGROUP LIMITED has provided approach of interviewing referred as gap analysis:Each interview question has two possible answers: Yes, No A Yes answer means thatthe organization has already met one of ISO's requirements, a No answer points to aquestion No answers reveal gaps that exist between the ISO 9001 2000 Standard andthe organization's processes Whenever the answer No to a question, there are at leastone of the organization's processes fails to meet an ISO 9001 2000 requirement A Noanswer tells the organization that a process needs further development It tells that aprocess needs to be modified, improved, or created.

Therefore, whenever there is answer No to a question, that processes must beconsidered, and decided which ones need to be changed The interview questions arefound at the appendix 3

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

Choose the right interviewees who would be experts in business It was decided to contact the manager of Ben Thanh Tourist Hanoi Branch due to the fact that he has been a senior managers of Ben Thanh Tourist Hanoi Branch since its established in

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

information as well as brought to light different perspectives Consequently, the senior manager‘s answers reflects the true current status of the Ben thanh Tourist

8 Experiment Methods

Case Study approach is applied in this study With reference to primary data,case study approach was chosen due to several reasons First of all, a descriptive casestudy is the best method of providing the rich and complex details of the issue Yin(1994) defines a case study as ―an empirical inquiry that investigates a contemporary

phenomenon within its real-life context, especially when the boundaries betweenphenomenon and context are not clearly evident‖ (p.13) I chose case study research inorder to gather information of a greater depth than would be possible using anothermethodology such as survey data.

Because case study researcher relies on multiple sources of data, I conductedstructured interviews asking a set of yes-no questions With Yes/ no questions one canonly be answered with ―yes‖ no‖ This form of question is important for confirmation,

in order to make sure that certain action has been correctly carried out

All interviews were direct and deep Numerous documents related to itsperformance were also reviewed for this study Documents included, but were notlimited to, policy manuals, records of operation, web site information, and memos.Finally this allowed to documentation a chain of evidence throughout the study

Memo writing in the journal helped me to reflect on my thoughts and ideas as I wentthrough the research process Another benefit of maintaining a researcher‘s journal was

to document any changes necessary in the study

9 Significance

Designed to provide systematic inquiry into the quality management systemcompliant with ISO 9001:2000 in a tour company, this study contributes substantiveinformation about how to build a quality management system in a tour company.Results of this study could have implications for tour operators, travel agents… Inresponse to the growing numbers of tour operators today and the limited amount ofresearch in the business , it is expected that this research will make a contribution to theknowledge base of current practices in supporting tour company to apply qualitymanagement

10 Limitations

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

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

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

my findings In addition, with two-way textual communication of interview it wasmore complicated to gain detailed information Therefore, some of the relevantinformation was difficult to interpret and transcribe

Finally, it should be pointed out that the validity of the gathered information islimited to the time of the current research Therefore, it should be taken into accountthat there may be ongoing changes resulting in information updates

11 Expected Results

The expected results are intended to give some ideas on: what operations thatBen Thanh has complied with the standard and been documented, what operations thatBen Thanh has complied with the standard and not been documented, what operationthat Ben Thanh has not complied with the standard and not been documented Base onthis finding, an action plan will be developed to implement ISO in Ben thanh TouristHanoi

12 Short summary

This study provides a detailed look Ben Thanh Tourist‗s current status, andcompare its performance with the standard requirements in order to see how much ofthe quality process is assured and managed and then develop a plan to implement aQuality Management System based on ISO 9001:2000 as a tool to boost itsperformances in order to improve the quality and efficiency of its travel services.Introduction part begins with purpose of the study, research questions, data sources andprocess, methodology, limitations of the study, significance of the study, and shortintroduction Chapter One contains theoretical foundation –the framework for thisstudy Chapter Two contains Empirical research identifying the procedures forcollecting and analyzing the data Findings are presented in Chapter Three, andimplications for practice included in Conclusion

CHAPTER 1 THEORETICAL FOUNDATION

In order to achieve research aim and objectives, the standard ISO 9000 family,particular 9001:2000 will be used to analyze in order to understand: What are theindividual recommendations or requirements of the standard? What action must betaken in order to follow the recommendations or to fulfill the requirements? In thischapter, each clause of the standard will be presented in detail

1.1 What is ISO 9000 family

ISO 9000 family form a coherent set of quality management system standardsfacilitating mutual understanding within national and international trade The ISO 9000family has been in existence for over 20 years and is applied all over the world

The origin of the standards and their first application was to be found withindustrial companies where generally products were manufactured in accordance withcustomer specifications With increase use of the standards and the certification based

on them, application within various sectors of industry and commerce increased- both

in industrial companies and service providers The ISO 9000 standards have beenrevised 2 times : 1994 version & 2000 version, each version have updated newachievement in Quality Management

Quality management systems in accordance with the ISO 9000 family havebecome extremely widespread over the last few years It can be assumed that a greatmany companies have built up quality management systems in accordance with thisfamily of standards

1.2 Why we need to apply ISO 900

The reason for this is that for several years now important companies have setrequirements for their suppliers with regard to creation and form of qualitymanagement system As a result, whole sector, for example the automotive industry to

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

Many suppliers with customers in different sectors of economy had to adapttheir company management system to different requirements with a considerableexpenditure of time and effort National standards offered suppliers the possibility oforientating themselves toward standards requirements at least within one country[DGQ]

As the global economy progressed, it becomes necessary to set uniformrequirements as regards quality system which would be accepted worldwide

With the ISO 9000 family, for first time company management system have beendescribed in standards At beginning, many were doubtful, as company managementsystems must be suited to the specific characteristics of individual companies and forthis reason cannot be standardized The standards organizations recognized thisproblem and limited themselves to standardizing the requirements as regards companyand quality management system, but not their actual concrete form

This means that every company retains the opportunity of creating its qualitymanagement system in an individual way which is suited to its own individualrequirements The ISO 9000 family of standards lay down what should be regulatedwithin the framework of a quality management system, but do not specify how this has

to happen

Figure1.1: Concept relating to quality [source: ISO 9001:2000]

1.3 Aim of ISO 9000 family of standards

Industrial, commercial supply products, service with the intention of fulfillingrequirements or needs of customers Increasing competition with regards to quality hasled continuous rise customer expectations In order to be competitive and to maintaingood economic performance, companies have to make use of more and more effectiveand efficient system

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

— ISO 9004 provides guidelines that consider both the effectiveness and efficiency ofthe quality management system The aim of this standard is improvement of theperformance of the organization and satisfaction of customers and other interestedparties

— ISO 19011 provides guidance on auditing quality and environmental management systems

Together they form a coherent set of quality management standards facilitatingmutual understanding within national and international trade.

Figure 1.2: Concept relating to organization [sources ISO 9000:2000]

1.4 The Standards ISO 9001:2000 analysis

ISO 9001:2000 is the latest version of a quality management standard which hasbeen in existence for many years and which has been applied by more than 300,000organizations world-wide It specifies minimum requirements for a qualitymanagement system where an organization needs to:

• Demonstrate its ability to provide consistently a product that meets customer and applicable regulatory requirements and to:

• Address/enhance customer satisfaction through the effective application of thesystem, developing processes for continual improvement and the prevention of errors andmistakes

The ISO 9001: 2000 contains five requirements sections, each dealing with one

of the fundamental building blocks required by any process These are:

1.4.1 Quality management system:

This section details the general requirement for QUALITY MANAGEMENTSYSTEM and documentation requirements that are the foundation of the managementsystem The general requirements ask the organizations to look at the processes of themanagement system, how they interact with each other, and what resources are needed

to run the processes; and how the processes will be measured and monitored and actionplan will be implemented The second part of the section then sets out the requirementsfor the documentation needed to operate the system effectively, including qualitymanuals, procedures, records and how the documentation should be controlled

1.4.2 Management responsibility:

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

a strategic level in the organization The "top management" must know it‘scommitment to develop QUALITY MANAGEMENT SYSTEM , make the staffsawareness of customers' requirements at a strategic level and make a commitment tomeeting these as well as statutory and regulatory requirements Set up quality policy,objectives, "Top management" must set policies; and to achieve these policies setobjectives through planning how the objectives will be met "Top management" shouldalso ensure that there are clear internal communications and that the managementsystem is regularly reviewed

1.4.3 Resource management:

This covers the people and physical resources needed to carry out the process.People should be competent to carry out their tasks and the physical resources andwork environment need to be capable of ensuring that the customers' requirements aremet

be the process of take tourists on tour throughout the country.

1.4.5 Measurement, analysis and improvement:

These are the measurements to enable the systems to be monitored to provideinformation on how the systems are performing with respect to the customer, themanagement systems themselves through internal audits, the processes and the product.Analyzing these, including any defect or shortfall in performance, will providevaluable information for use in improving the systems and products where this isrequired

Each of these five fundamental building blocks is required for any processbecause, if one is missing, a controlled process does not occur This is recognized inthe new standard and represents a shift to viewing the quality system as a series ofprocesses

In order to carry out a "process analysis" the inputs will be started, thenfollowed by the process through its various stages to examine how it is controlled andverify that the output meet what is required

Such a process may be, for example, the actions required by the organization onreceipt of a customer order, and the steps taken to convert that order into somethingthat will allow a reservation to be provided The input here would be the customerorder, and the output, the organization‘s internal documents, resources and servicesthat allow the provision of the service

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

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

an examination of mechanisms other than documented procedures

Such control mechanisms could be by, for example, control charts, process flowdiagrams or by training of operatives to ensure they are competent Whatever themeans by which the organization decides to control the process, evidence will besought that the control mechanism is indeed effective The ultimate test ofeffectiveness is an examination of whether the end result of the process is inaccordance with the inputs

Thus, during research of the process, process output would be determined if itmet the requirements of the organization and the process for obtaining them wasoperating under the controlled conditions that the organization had defined

Research of processes should result in a logical research of the activities incarrying out the various functions required to supply customers with a product orservice which meets their needs

1.4.6 Exclusion of requirement

In order that each organization may have the opportunity of demonstrating theconformity of its quality management system with ISO 9001:2000, exception arepermitted in clause7 According to ISO 9001:2000, clause 1.2 only those requirementmay be excluded ―where exclusions are limited to requirements within clause7, andsuch exclusions do not affect the organization‘s ability, or responsibility to provideproduct that meets customer and applicable regulatory requirements‖[ISO]

Such exclusion may find their justification in:

 The character of the organization

 The character of the product

If more exceptions are made than are permitted, conformity with ISO 9001:2000may not be claimed This includes situations where the fulfillment of regulatoryrequirements allows exceptions, which go beyond the exceptions permitted by ISO9001:2000.

1.5 Quality management principles

1.5.1 Introduction

The ISO 9000 Family of standards will be based on these Quality ManagementPrinciples With growing global competition, quality management is becomingincreasingly important to the leadership and management of all organizations

The Quality Management Principles apply universally to all user groups Thisdocument focuses on the needs of executive managers The Quality ManagementPrinciples may be incorporated into new or existing documents to satisfy the needs ofother user groups

By applying the following eight Quality Management Principles, organizations willproduce benefits for customers, owners, people, suppliers, local communities andsociety at large

Figure 1.3: Concept relating to quality management [sources ISO 9000:2000]

1.5.2 Quality Management Principles

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

of all other stakeholders

1.5.2.1 Principle 1 - Customer-Focused Organization

"Organizations depend on their customers and therefore should understandcurrent and future customer needs, meet customer requirements and strive to exceedcustomer expectations".[ISO 9001:2000]

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

 Understanding the whole range of customer needs and expectations for products, delivery, price, dependability, etc

 Ensuring a balanced approach among customers and other stakeholders(owners, people, suppliers, local communities and society at large) needs and expectations

 Communicating these needs and expectations throughout theorganization measuring customer satisfaction and acting on results, and managing customerrelationships

• For policy and strategy formulation, making customer needs and the needs

of other stakeholders understood throughout the organization;

• For goal and target setting, ensuring that relevant goals and targets are directly linked to customer needs and expectations;

• For operational management, improving the performance of the

organization to meet customer needs;

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

and skills required to satisfy the organization‘s customers

1.5.2.2Principle 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."[ISO 9001:2000]

Applying the principle of leadership leads to the following actions:

• being proactive and leading by example,

• Understanding and responding to changes in the external environment,

• considering the needs of all stakeholders including customers, owners,

people, suppliers, local communities and society at large,

• establishing a clear vision of the organization‘s future,

• establishing shared values and ethical role models at all levels of the organization,

• building trust and eliminating fear,

• providing people with the required resources and freedom to act with

responsibility and accountability,

• Inspiring, encouraging and recognizing people's contributions,

• promoting open and honest communication,

• Educating, training and coaching people,

• setting challenging goals and targets, and

• implementing strategy to achieve these goals and targets

• For policy and strategy formulation, establishing and communicating a

clear vision of the organization‘s future;

• For goal and target setting, translating the vision of the organization into

measurable goals and targets;

• For operational management, empowered and involved people achieve the

organization‘s objectives;

• For human resource management, having an empowered, motivated, well

informed and stable workforce

"People at all levels are the essence of an organization and their fullinvolvement enables their abilities to be used for the organization‘s benefit".[ISO9001:2000] Applying the principle of involvement of people leads to the followingactions by the people:

• accepting ownership and responsibility to solve problems,

• Actively seeking opportunities to make improvements,

• Actively seeking opportunities to enhance their competencies,

knowledge and experience,

• Freely sharing knowledge and experience in teams and groups,

• focusing on the creation of value for customers,

• being innovative and creative in furthering the organizations objectives,

• Better representing the organization to customers, local communities

and society at large,

• deriving satisfaction from their work, and

• be enthusiastic and proud to be part of the organization Beneficial applications of this principle include:

• For policy and strategy formulation, people effectively contributing to improvement of the policy and strategies of the organization;

• For goal and target setting, people sharing ownership of the

organization‘s goals;

• For operational management, people being involved in appropriate

decisions and process improvements;

• For human resource management, people being more satisfied withtheir jobs and being actively involved in their personal growth and

development, for the organization‘s benefit

1.5.2.4 Principle 4 - Process Approach

"A desired result is achieved more efficiently when related resources and

activities are managed as a process."[ISO 9001:2000]

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

• defining the process to achieve the desired result,

• identifying and measuring the inputs and outputs of the process,

• identifying the interfaces of the process with the functions of the

organization,

• evaluating possible risks, consequences and impacts of processes on customers, suppliers and other stakeholders of the process,

• establishing clear responsibility, authority, and accountability for

managing the process,

• identifying the internal and external customers, suppliers and other stakeholders of the process, and

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

activities, flows, control measures, training needs, equipment, methods, information, materials and other resources to achieve the desired result.Beneficial applications of this principle include:

• for policy and strategy formulation, utilizing defined processesthroughout the organization will lead to more predictable results, better use of resources,shorter, cycle times and lower costs;

• For goal and target setting, understanding the capability of processes

enables the creation of challenging goals and targets;

• for operational management, adopting the process approach for all

operations results in lower costs, prevention of errors, control of variation, shorter cycletimes and more predictable outputs;

• for human resource management establishing cost efficient processesfor human resource management, such as hiring, education and training, enables thealignment of these processes with the needs of the organization and produces a more capableworkforce

Figure1 4: Concept relating to process and product [sources ISO 9000:2000]

1.5.2.5 Principle 5 - System Approach to Management.

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

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

9001:2000].

Applying the principle of system approach to management leads to thefollowing actions:

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

• structuring the system to achieve the objective in the most efficient

• establishing resource constraints prior to action

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

• For goal and target setting, the goals and targets of individual processes

are aligned with the organization‘s key objectives;

• For operational management, a broader overview of the effectiveness of

processes which leads to understanding the causes of problems and timely improvementactions;

• for human resource management, provides a better understanding of

roles and responsibilities for achieving common objectives thereby reducing cross functionalbarriers and improving teamwork

"Continual improvement should be a permanent objective of theorganization."[ISO 9001:2000] Applying the principle of continual improvement leads

to the following actions:

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

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

• using periodic assessments against established criteria of excellence to identify areas for potential improvement,

• Continually improving the efficiency and effectiveness of all processes,

• promoting prevention based activities,

• providing every member of the organization with appropriate education

and training, on the methods and tools of continual improvement such as:

- The Plan-Do-Check-Act cycle,

• for policy and strategy formulation, creating and achieving more

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

• For goal and target setting, setting realistic and challenging

improvement goals and providing the resources to achieve them;

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

• For human resource management, providing all people in the

organization with the tools, opportunities, and encouragement to improve products,processes and systems

1.5.2.7 Principle 7 - Factual approach to decision making

"Effective decisions are based on the analysis of data and information."[ISO9001:2000] Applying the principle of factual approach to decision making leads to thefollowing actions:

• taking measurements and collecting data and information relevant to theobjective,

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

• analyzing the data and information using valid methods,

• understanding the value of appropriate statistical techniques, and

• making decisions and taking action based on the results of logical

analysis balance with experience and intuition

Beneficial applications of this principle include:

• For policy and strategy formulation, strategies based on relevant data and information is more realistic and more likely to be achieved;

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

information to set realistic and challenging goals and targets;

• For operational management, data and information are the basis for

understanding both process and system performance to guide improvements and preventfuture problems;

• for human resource management, analyzing data and information from

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

1.5.2.8 Principle 8 - Mutually beneficial supplier relationships

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

• identifying and selecting key suppliers,

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

• creating clear and open communications,

• initiating joint development and improvement of products and

processes,

• Jointly establishing a clear understanding of customers' needs,

• sharing information and future plans, and

• recognizing supplier improvements and achievements

• For policy and strategy formulation, creating competitive advantagethrough the development of strategic alliances or partnerships with suppliers;

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

• For operational management, creating and managing supplier

relationships to ensure reliable, on-time, defect-free delivery of supplies;

• For human resource management Developing and enhancing supplier

capabilities through supplier training, and joint improvement efforts

1.6 Process approach

This International Standard promotes the adoption of a process approach whendeveloping, implementing and improving the effectiveness of a quality managementsystem, to enhance customer satisfaction by meeting customer requirements.[ISO9001:2000]

For an organization to function effectively, it has to identify and managenumerous linked activities An activity using resources, and managed in order to enablethe transformation of inputs into outputs, can be considered as a process Often the

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

"process approach" An advantage of the process approach is the ongoing control that itprovides over the linkage between the individual processes within the system ofprocesses, as well as over their combination and interaction.[ISO 9001:2000]

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

a) Understanding and meeting requirements,

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

c) Obtaining results of process performance and effectiveness, and

d) Continual improvement of processes based on objective measurement

The model of "a process-based quality management system shown in Figure 1illustrates the process linkages presented in clauses 4 to 8 This illustration shows thatcustomers play a significant role in defining requirements as inputs Monitoring ofcustomer satisfaction requires the evaluation of information relating to customerperception as to whether the organization has met the customer requirements Themodel shown in Figure 1 covers all the requirements of this International Standard, butdoes not show processes at a detailed level.[ISO 9001:2000] In addition, themethodology known as "Plan-Do-Check-Act" (PDCA) can be applied to all processes.[ISO9001:2000] PDCA can be briefly described as follows Plan: establish theobjectives and processes necessary to deliver results in accordance with customerrequirements and the organization's policies Do: implement the processes Check:monitor and measure processes and product against policies, objectives andrequirements for the product and report the results Act: take actions to continuallyimprove process performance

Figure 1.5: Model of process–based quality management system

[sources ISO9000:2000]

CHAPTER 2 EXPERIMENTAL RESEARCH.

2.1 Ben Thanh Tourist Branch Hanoi Introductions

Founded in 1994 BenThanh Tourist Hanoi has been one of the best TourOperator in Vietnam, Laos and Cambodia It is a member of the major InternationalTravel Associations as JATA, PATA, ASTA, VNAT, VCCI and SATA Ben ThanhTourist Hanoi is proud of its professional, attentive and hard working staff It commits

to providing the unique, memorable holiday for its customers

Headquarter: Ben Thanh Tourist Service Company

4-6 Ho Huan Nghiep Street, District 1, Ho Chi Minh City, Vietnam

Tel: (84.8) 8220 258 – 8222 979

Fax: (84.8) 8295 060

Email: webmaster@benthanhtourist.com

www.benthanhtourist.com.vn ; www.benthanhtourist.com

Branch Office in Hanoi

79 Ba Trieu Street, Hai Ba Trung District, Hanoi

Tel: (84.4) 944 5122

Fax: (84.4) 944 5121

Email: sales@benthanh-tourist.com.vn

www.benthanh-tourist.com

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

Vietnam The market can be Vietnamese national, foreign tour wholesalers, individualtourists, business travelers There two kinds of distribution channels in Ben Thanh Tourist:

 Sell and distribute these tours direct through its customers

 Sell and distribute these tours through retail travel agents

Besides the main function of inbound tour operator, Ben Thanh Tourist also handling some service such as:

 Outbound and domestic tour

 Hiring out automobile and other tourist transportation

 Applying for entry and exit visa

 Travel agent for Vietnam airline

 Booking accommodation, hotel, restaurant, discotheque

As Vietnam‘s economy is booming, thus standards of living are rising.Consequently the need to reach higher quality standards of tours is becoming moredemanding Travelers are increasingly expecting the high standards of service

The competition among tour companies in Hanoi is really strong In addition,travelers have a big choice of where to book their travel Some of them book via travelcompanies; others arrange all or part of their travel directly with service suppliers, i.e.airlines, hotels, car-rental companies The emergence of on-line booking tools, on-linebooking possibility via airline web pages where lower service charges are offered, alsopose a threat to tour companies Unless Ben Thanh fined solutions how to retain thebiggest corporate market share and meet its needs, big part of business may be lost

Recently international travel agency have required Ben Thanh Tourist to apply aquality management system in accordance with ISO 9001: 2000 in order to ensureconsistent high quality of service to their customer

Therefore the manager board decided to apply ISO 9001:2000 for its touroperation business It was note that if Ben Thanh Tourist determine precise its currentstatus compared with ISO 9001:2000 requirements it would easily to implement aquality management system

2.2 Methodology

This chapter details the case study methodology used in this inquiry andexplains the choice of qualitative methods to examine the problem of Ben ThanhTourist‗s operation to assess related issues This chapter describes the type of designused in this study and the procedures used to collect data It also summarizes the dataanalysis procedure and documents the trustworthiness of the data

2.2.1 Research question

The problem appeared when develop a quality management in accordance withISO 9001:2000 is to compare the current performances with the standardsrequirements, and identify the gaps existing between its performances and standardsrequirements Therefore, a descriptive case study was employed in order to examinethe research questions relating to:

a) Quality management system

The objectives of research are to:

 Find out the evidence/ information that prove the Ben thanh tourist‘s quality management system is complient/uncomplient with the standard requirement

2.2.4 The Researchers Role

My role throughout this study was to reflect the truly and exactly activities andthe result that Ben thanh tourist have done This also include some obstacles occurredduring the research especially making report It is therefore the confidence, integrity,confidentiality and cooperation between the company and researcher play importantrole

2.2.5 Data Collection Procedures

Case study research relies on multiple sources of data to assure a completepicture of the issue being examined I utilized interviews, and document review andmaintained a researcher‘s journal in order to identify the gap and issues of itsoperations because Yin (1994) states, ―case study inquiry [should] rely on multiplesources of data and investigate a contemporary phenomenon within its real-life context‖(p 13) Multiple sources of data not only increase a study‘s dependability, they alsoprovide for analysis that involves systematic descriptive coding in order to identifythemes or categories within the data

2.2.6 Interviews Procedures and Protocols

Interviews were the primary means of data collection in this study Stake (1995)explains that ―qualitative case study seldom proceeds as a survey with the samequestions asked of each respondent; rather, each interviewee is expected to have hadunique experiences, special stories to tell‖ (p 65) Procedures and protocols includedutilizing yes-no questions in semi structured interviews senior manager Appendix Coutlines the interview questions and prompts used to interview the manager

The list of questions were provided in advance and the manager were informedthat interviews would take approximately few hours to complete, that his responseswould remain confidential Interviews were held at Ben Thanh tourist Office Hanoi

A qualitative interview is different from everyday conversation in the followingways First it is a research tool and a good interviewer must prepare questions inadvance, and later analyze and report results The interviewer guides the questions andfocuses the study Good interview skills require practice and reflection Finally, beyondthe acquisition of interview skills, interviewing is a philosophy of learning Theinterviewer becomes a student and then tries to get people to describe their experiences

in their own terms The results are imposed obligations on both sides The qualitativeresearcher determines what is important, what is ethical, and the completeness andaccuracy of the results (Rubin & Rubin, 1995, p.2)

It was decided to contact the manager of Ben Thanh Tourist Hanoi Branch due

to the fact that he has been a senior managers of Ben Thanh Tourist Hanoi Branchsince its established in 1990 and were contacted agreed to be interviewed and provided

a wealth of information as well as brought to light different perspectives.Consequently, the senior manager‘s answers reflects the true current status of the Benthanh Tourist

2.2.7 Data Analysis Procedures

This descriptive case study evaluates how effective and efficient Qualitymanagement of Ben thanh Tourist, looking into their current status, and compare itsperformance with the standard requirements in order to see how much of the qualityprocess is assured and managed Data analysis involved systematic, descriptive coding

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

at least three times to immerse myself in the data Key phrases and thoughts werewritten in margins to assist me with developing themes, categories, and relationships inthe data

These procedures allowed me to become more familiar with the data

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

An in-depth interview is characterized by its length, depth and structure.Therefore, it suited to the study which demands to seek a better insight into Ben thanhTourist operations to identify gaps between the standard ISO 9000:2000 requirementswith its performances

The formulation of the interview question plays a vital role in the structure ofthe study and in ensuring a successful result These interview questions are based onthe recommendations or requirements of ISO 9001-2000 In other word, all the ISO‘srequirements are transformed into the form of question PRAXIOM RESEARCHGROUP LIMITED has provided approach of interviewing referred as gap analysis: Eachinterview question has two possible answers: Yes, No A Yes answer means that theorganization has already met one of ISO's requirements, a No answer points to a question

No answers reveal gaps that exist between the ISO 9001: 2000 Standard and theorganization's processes Whenever the answer No to a question, there are at least one ofthe organization's processes fails to meet an ISO 9001: 2000 requirement A No

answer tells the organization that a process needs further development It tells that aprocess needs to be modified, improved, or created.

Therefore, whenever there is answer No to a question, that processes must beconsidered, and decided which ones need to be changed The interview questions arefound at the appendix3

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

Choose the right interviewees who would be experts in business It was decided to contact the manager of Ben Thanh Tourist Hanoi Branch due to the fact that he has been a senior managers of Ben Thanh Tourist Hanoi Branch since its established in

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

information as well as brought to light different perspectives Consequently, the senior manager‘s answers reflects the true current status of the Ben thanh Tourist

2.3 Research report.

The responses made by senior manager were categorized and organized into data Documents related to its performance are also reviewed for this study Documentsincluded policy, manuals, and records of operation, web site information, and

memos… Finally, this allowed making a report with evidence throughout the study Information from the data collected and document review were used to develop

findings which later will be formed the foundation for the conclusions of this study

The research report is built up on the guide of the research questions.Consequently, it reveal‘s the company quality management system, managementresponsibility, resources management, product/service realization, measurment analysisand improvement

RESEARCH REPORT

Standard’s Requirements Current performance

4 Quality management system

4.1 General requirements

documented a QM system which corresponds

to the requirements of ISO 9001?

improve its effectiveness ?

4.1-3 Does identify the processes needed for v

the quality management system and their

application throughout the organization ?

4.1-4 Does the organization determine the v

sequence and interaction of these processes?

4.1-5 Does the organization determine criteria v Shall be

operation and control of these processes are

effective??

necessary to support the operation and

monitoring of these processes??

4.1-7 Are these processes monitored, measured v Shall be

4.1-8 Are the necessary actions implemented v

to achieve planned?

Results and continual improvement of these

processes ?

of ISO 9001 ?

outsources, if they affect product conformity

with requirements?