Business operations management group 04

MINISTRY OF EDUCATION & TRAINING
HOA SEN UNIVERSITY
FACULTY OF ECONOMICS & BUSINESS

⁃⁃⁃⁃⁃⁃⁃⁃⁃⁃

REPORT

BUSINESS OPERATIONS MANAGEMENT
Topic:

Layout of production site at Japan
Joint Stock Company
Group:

04

Class:

0100

Grade code:

BA304DE01

Instructor:

PHAN VÕ MINH THẮNG

Ho Chi Minh City December 2022

MINISTRY OF EDUCATION & TRAINING
HOA SEN UNIVERSITY
FACULTY OF ECONOMICS & BUSINESS

⁃⁃⁃⁃⁃⁃⁃⁃⁃⁃

REPORT


BUSINESS OPERATIONS MANAGEMENT
Topic:

Layout of production site at Japan
Joint Stock Company
WORK ASSIGNMENT

Member’s name

Mission

Com
plete

Trương Thăng Kiệm – 2193766

Chapter 1

100%

Trần Thành – 2193720

Chapter 2

100%

Võ Tấn Hùng – 2192012

Chapter 3

100%

Sign

Ho Chi Minh City December 2022

2


ACKNOWLEDGEMENT
First of all, Hoa Sen University gave us the opportunity to make a complete report,
let's learn together about the topic we are working on. In addition, we also have the
opportunity to practice applying the knowledge we have received from schools and
teachers to understand the topic we have chosen.
I would also like to thank the Faculty of Management Economics for including the
subject Business Operation Management in the training program, this is a subject that
provides us with a lot of practical application knowledge to create a knowledge base
for students. . ourselves, especially for business administration students like us,
through this, we grasp the core and importance of change.
We would also like to thank Mr.Phan Vo Minh Thang, a teacher who is always
devoted to his students, with the knowledge he imparted and conveyed with the

enthusiasm of a teacher who helped us understand the lesson better. Regarding the
subject, it is hoped that with the efforts of Mr. Phan Vo Minh Thang and my team, we
will gain more knowledge about the reality of organizational change.
Knowledge is limitless and human understanding is limited, in the process of finding
information, if there is a mistake, we hope to receive the guidance of teacher Phan Vo
Minh Thang so that we can improve our knowledge more and more.
Once again, our team would like to thank you.

3


SUMMARY
Today's economic globalization has become a common trend of the times that cannot
be ignored by countries and nations. The globalization process has a strong impact on
the economies of other countries, especially for Vietnamese businesses as our country
increasingly participates in international economic integration. International market
opportunities will be increasingly open to businesses along with the process of
Vietnam's international economic integration. In addition to the opportunities, there
are also many challenges that businesses must strive to overcome in order to survive
and develop. The big problem is that Vietnamese businesses must know how to
overcome challenges and take advantage of opportunities that Vietnam's international
economic integration process brings.
In order to solve the above problems, each Vietnamese enterprise needs to build for
themselves a complete and compact organizational structure, so that they can manage
their production and business activities well. necessary and important for Vietnamese
businesses.
In recent years, Japanese joint stock company has constantly strived and developed,
achieved many important achievements, contributing to the development of the
country. The company has made many changes in the layout of production premises.
However, the production ground still has many shortcomings and limitations. During

my internship at the company, I realized that the layout of the production site was not
reasonable, the safety for employees was not tightened, affecting the efficiency of
production activities. With the unreasonable arrangement of production premises, it
has limited the capacity and ability of workers and employees in the company. In
order to meet the goals and tasks in the new period, it is necessary to perfect the layout
of the production site of the Japanese joint stock company. Therefore, my group
decided to choose the topic "Layout of production premises of Japanese joint stock
companies" as their subject report.

4


PLEDGE
“We have read and understand the violations of academic integrity.We
pledge with personal honor that this work is done by ourselves and not
violate academic integrity.”

Date __15__ month __12__ year __2022__
(Full name and signature of all students)

5


CONTENTS

LIST OF IMAGES

6

LIST OF TABLES

7


CHAPTER 1
THEORETICAL BASIS

1.1 Related concepts
1.1.1 Production concept
Production is the process of transforming inputs into outputs. The purpose of this
transformation is to create added value to provide to customers. Inputs to the
transformation process include human resources, capital, technology, raw materials,
land, energy, and information. The outputs of the transition are products, services,
wages, and environmental impacts.

1.1.2 The concept of production premises
Production premises are spaces that include factories, workshops, material storage
areas and production facilities, and from there form the production line according to a
certain scale and arrangement. .With a reasonable production ground will help the
production process take place more smoothly.

8


1.1.3 The concept of layout of production premises in the enterprise
+ Is the process of organizing, arranging, spatially formatting machines, equipment,
working areas, parts for production and service provision.
+ Is the process of organizing, arranging and formatting in terms of space reflecting
the content of the layout of the production site. In other words, Layout is the

organization and arrangement of objects according to a certain structure to serve
production and business activities of an enterprise.
+ Objects of arrangement: Machines and equipment, working areas, parts for
production and service provision...
+ Arrange the premises according to the above contents and objects to ensure that the
production and business activities of the enterprise take place smoothly and with high
efficiency.

1.2 Contents of the layout of the premises
1.2.1 The role of production layout in enterprises
As an important content of production management, directly affecting the efficiency
of production and business activities of enterprises, if the layout of production
premises is reasonable, it will have the following specific roles:
+ Reduce unnecessary production costs and time, thereby increasing labor
productivity, saving production costs, and improving production efficiency of
enterprises.
+ Make the most of resources in production to fulfill the business goals of the
enterprise
+ Create a stable and favorable working environment for production and thereby
create a good working mentality for employees.
+ Make an important contribution to the implementation of technological processes of
production and business of enterprises, implementation of regulations on working
regimes and labor safety.
1.2.2 Forms of layout of production premises
 Layout of production space by product
The product-oriented layout is designed to accommodate several types of products,
and the material flow is arranged through the factory. This type of layout uses

9

specialized machinery and equipment to perform special operations over a long period
of time for a product, changing these machines for new product designs is costly and
time consuming. large arrangement. Machinery and equipment are often arranged into
production departments, in each production department, there are many production
lines. Workers in the product-oriented layout perform a narrow sequence of
movements on several product designs over and over.
In this production layout the premises can be arranged in a straight line or a U-shaped
line as follows:

Ingredient

2

1

3

3

4

2

1

6

7

5

Product

Ingredient

4
 Advantages:
-

5

Figure 1 Layout plan of production space by product

Product

Fast product production speed;
Low unit cost of product;
Specializing in labor, reducing costs, training time and increasing productivity;
The movement of materials and products is easy;
High level of equipment and labor usage;
Forming habits, experiences and having a stable production schedule;
Easy in accounting, quality control, inventory and high controllability of

production.
 Limit:
- The production system is not flexible with changes in volume, product type,
product design;
- The production system can be interrupted (stopped) when there is a failure in a
process;

- High cost of maintaining machinery and equipment;
- The incentive regime to increase individual labor productivity cannot be applied.
 Layout of production space according to the process
Process layout, also called functional layout or technology layout, is essentially
grouping similar jobs into parts that have the same process or function. Products in the

10


manufacturing process move from one part to another according to the sequence of
steps to be performed on it.

 Advantages :
- Highly flexible in terms of equipment and people.
- Small initial equipment investment
- Enhancing professional qualifications
- Diverse work makes workers not bored
 Limit:
- High unit production cost.
- Inefficient transportation
- Unstable production planning and scheduling
- Difficult to check and control the work.
- Low productivity because the jobs are not the same, each time a worker changes, it
takes effort to learn a new job.
- The level of equipment usage is not high.
- Low unit cost of product;
1.2.3 Layout of production premises according to fixed position
 Advantages:
- Reduce transportation to reduce damage and transportation costs;
- Products do not move so there is more continuity in the assigned workforce without

having to re-plan and redeploy every time a new activity starts.
 Limit:
- Requires highly skilled workers;
- Transporting workers, machinery and equipment to the workplace can be costly
- Low use of machinery and equipment.
1.2.4 Layout of production premises in mixed form
In practice, it is common to use mixed layout forms with a combination of those forms
in different degrees and forms. This type of layout will promote the advantages and at
the same time limit the disadvantages of each type of layout above.
The ideal is to choose a layout system that is both flexible and low in production
costs. Mixed layouts:
- Mixed layout between process layout and product layout
- Producer cells
- Arranged by technology group
- Flexible production system

1.3 Factors affecting the layout of production premises
The choice of production site location and layout is determined by many factors such
as:

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+ Characteristics of the product: The product has a decisive factor in the selection of
the production site, from the product to the selection of an appropriate storage
environment, and from the selection of a reasonable process to produce the product,
from That estimates the required area and layout of production premises.
+ Production volume and speed: The volume of products will make decisions about
machines in the production process, about fuel sources, from which to design
production areas and from production speed to arrange workers. , determine the

amount of finished product to arrange storage and transportation areas, thereby
forming the finished production process.
+ Characteristics of equipment: Production equipment also determines the storage
space and floor area. And with each device having its own use, classify and arrange
into production processes.
+ Ground area: Based on the selected area to divide the area and form the most
reasonable layout with the inherent area.
+ Ensuring safety in production: When arranging production premises, it is always
necessary to uphold safety issues in production, ensuring that the production process
with machinery and equipment does not affect health and safety. workers' lives, and
avoid technical errors that cause fires, explosions, etc.
+ Functions, tasks and relationships in the work of departments and production areas
of the enterprise.

CHAPTER 2

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CURRENT SITUATION OF WORKING FACILITIES WITH PRODUCTION
AT JAPAN JOINT STOCK COMPANY
2.1 Overview of Japan Joint Stock Company
2.1.1 The process of formation and development
- Company name written in Vietnamese: Công ty Cổ phần Nhật Bản.
- Company name written in foreign language: JAPAN JOINT STOCK COMPANY
- Abbreviated company name: JAPAN.,JSC
- Tax code: 0108159807
- Address: House 83, Lot D6, Dai Kim - Dinh Cong new urban area, Dai Kim ward,
Hoang Mai district, Hanoi city, Vietnam
- Phone: 091 639 8929

- Fax: 04.35400900
- Website:
- Email: jepcomvn@jep/com/vn

• The process of formation and development:
The ten-year development journey of Japan Joint Stock Company started in the 2000s
of the last decade. From the start by Tran Minh Import-Export & Technical Services
Joint Stock Company founded by Mr. Tran Tuan Duong with the close cooperation of
Katsura - Japan. Lock products provided by Katsura are distributed by Tran Minh
Company on the Vietnamese market with the brand Alpha.
After a period of sales, the Company's Board of Directors realized the potential
market and customers' confidence in the locking products, floor hinges manufactured
in Japan. Besides, in order to solve problems about warranty work and overcome the
policy of high import prices, Tran Minh Company asked Katsura to cooperate in
production in Vietnam.
In 2005, to meet the needs of the market and expand production, Japan Co., Ltd built a
factory in Kim Dong - Hung Yen industrial park with an area of 15,000 m2, adjacent
to Hung Yen city and convenient for transportation. connected with National Highway
1A. And in order to actively transfer technology, trade with customers, import raw
materials... In December 2005, the Company established a member unit, Duc Thinh

13


Trading & Technical Services Co., Ltd. to manage production activities. manufactured
at the factory.
With a modern and synchronous production line, absorbing Japanese production
technology and a team of 300 employees including managers; As a mold research
engineer and skilled mechanic, Japan Co., Ltd. has launched high-quality locking
products, floor hinges, diverse designs under the JEP brand, to meet the needs of

customers. strict requirements of project owners.
Up to this point, the Company has successfully implemented the goal of "Japanese
Quality" and continued to implement the principle of "Real Price, Best Warranty" by
expanding and establishing a product distribution system across the country. through
agents and member units.
And in the context of the world economic crisis affecting Vietnam, the Board of
Directors of the Company outlined a new direction: continue to expand production,
invest in infrastructure and develop distribution network. ; take advantage of highquality human resources from businesses that are cutting costs and supply of raw
materials in the market.
In 2011, Japan Joint Stock Company built a large distribution system, spreading
across all regions of the country such as:

 FACTORY
- Branch of JAPAN JOINT STOCK COMPANY IN DA NANG
- Branch of JAPAN JOINT STOCK COMPANY IN THAI NGUYEN
- Branch of JAPAN JOINT STOCK COMPANY IN BAC GIANG
- Branch of JAPAN JOINT STOCK COMPANY (Hanoi City)
- Branch of JAPAN JOINT STOCK COMPANY IN HAI PHONG
- Branch of JAPAN JOINT STOCK COMPANY IN HAN AN
The Company's quality management system, which has operated for many years, has
been certified by BSI in accordance with ISO 9001:2000 standard.
Since then, Japan Joint Stock Company has affirmed itself to be one of the leading
enterprises in Door Locks and High-class Floor Hinges with the brands JEP,
NAWAKI, OSHIO, YAKOMI, FUSHIKA; All kinds of interior and exterior paints are
present at large construction projects, meeting the development needs of society,
pioneering in the field of creative research and industrial design on domestic lock
products.
2.1.2 Function and misson
• Function

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Japan Joint Stock Company Manufacturing and supplying of door locks, floor hinges,
water-based paint, electrical equipment, sanitary equipment... of all kinds to meet
customer needs.

• Misson
 Research, accumulate experience, train and improve the knowledge of technical
staff
 Complete the machinery system to improve the quality and productivity of
products to meet the strict demands of customers and markets.
 Planning business strategies, development strategies effectively, suitable for the
business.
 Conduct business within the framework of the law and fulfill obligations to the
State, society and employees of the company.

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2.1.3 Organizational structure

Figure 2 Organizational structure

2.2 Analysis and assessment of the actual situation of the layout of the production
site of the Japanese Joint Stock Company
2.2.1 Form of layout of production premises of Japan Joint Stock Company
Synthesized from the images on the company's web site, my group got the results of
the evaluation of the production site layout in the company and some other
information. Based on those results to have the most general assessment of the layout

of production premises in Japan Joint Stock Company.

• Layout of production premises in mixed form
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Japan Joint Stock Company is a company specializing in the production and
distribution of products such as locks, hinges and paints, etc. From those products, the
company has chosen to arrange the production premises in the form of a mixture. .
More specifically, a mixed layout between process layout and product layout.
The company arranges production premises according to production areas, and from
there, sets up workshops for the production of products.

 Lock production area:
Divided into workshops dividing stages to complete products, using specialized
machines and equipment of drilling and cutting to perform long-term operations for
making locks. Divided into 5 areas divided into 2 opposite sides.
Raw material warehouse

Foundry workshop

Drilling workshop

Store
Assembly workshop
Figure 3 Model of the layout of the lock factory of a Japanese joint stock company

Figure 4 Layout model of production equipment in JEP's foundry workshop

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Figure 5 Layout model of production equipment in JEP's foundry workshop 2

- Material warehouse: Located at the beginning of the entrance, convenient for
transportation, is a place to store steel, metal, titanium materials.. to serve the lock
production process.
- Foundry workshop: It is located next to the raw material warehouse. The foundry
section is the area to receive input materials, use equipment to cast steel to form
molds.
- Drilling workshop: Located right next to the foundry workshop. After receiving the
products from the casting workshop, workers continue the process of making keys,
inserting molds for drilling and cutting, creating details of the products. Products

- Assembly workshop: Opposite the drilling workshop.It is the place to receive
product details from the drilling workshop..And this workshop is arranged near the
warehouse for convenient transportation and storage.
- Warehouse: Located next to the assembly workshop, is a place to store finished and
carefully packaged locked products. In addition, in the warehouse, there is an
additional storage area for defective and damaged products, which are stored to be
returned to the foundry. The company pays special attention to warning systems,
fire fighting, preservation of components and products.

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 Paint production workshop

Water storage area
Material storage

area
Paint preparation
and production area
Packed paint
storage
Packaging and
sterilization area

Figure 6 The layout model of the paint factory of a Japanese joint stock company

All production processes are located in a workshop, located adjacent to and clearly
divided into areas.

- Material storage area: It is a place to store input materials to transfer to the
preparation and paint production area. Here raw materials are kept in a dry place,
carefully preserved, at a suitable temperature.

Figure 7 Area for storing paint materials and packing after paint warehouse of a Japanese joint stock
company

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- Water storage area: Placed in a high position and right near the paint preparation
area to facilitate the production process, there are a large number of source water
tanks, accompanied by filtration technology. modern water and directly filtered
when water is put into the tank.
- Paint preparation and production area: Fully equipped with equipment near the
warehouse to meet the requirements of the nature of work, here the machinery and
equipment are imported from Japan with modern advanced technology, the

preparation process is flexible and quality is guaranteed. The dispensing line is
automated, so this process does not require many employees, mainly to check the
operation of the machine.
- Packaging and sterilization area: Receiving paint after mixing and packing directly
into the box. Is a place to pack and use sterilization methods to ensure hygiene and
keep products clean and quality.

- Research area: A separate area, where the most advanced and modern
equipment imported from Italy is used to research and check product quality.
A place to give new recipes, a place to create unique and latest paint samples.
There are 2 engineers specializing in research and implementation.
2.2.2 Advantages and disadvantages of mixed layout of production premises
 Advantages
- The mixed layout of the production space helps the company to clearly divide the
paint and lock production areas.
- For each workshop, there is a logical arrangement from the input stage to the
production stage and the storage and preservation stage.
- Keeping safe in labor, in transportation, in production.
- Overcome the disadvantages and take full advantage of the advantages of process
and product layouts, speeding up productivity and saving costs, making production
easier And shipping.
 Defect:
- The arrangement of production premises according to the type of mixture requires a
large area in the arrangement of production premises.

2.2.3 Factors affecting the layout of production premises by type of mixture
- Product characteristics: The company manufactures a variety of products with
different production models, so the layout is also different, and designed to be the
most reasonable.

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- Product volume and production schedule: Depending on the volume of each type of
product to arrange the production area of each product reasonably and ensure the

-

smooth production process.
Characteristics of machinery and equipment: Each use of a machine is arranged to

-

ensure the process in production.
Production area and capacity: Because there are many production workshops, the
company arranges production space so that it is simple and saves space to meet

-

production ground for each area.
Regulations on hygiene and safety in labor and production: In each production
activity, the company must always focus on keeping the safety of workers,

-

production and transportation.
Functions, duties and relationships in the work of departments, production areas of
the enterprise.
 To evaluate the extent of factors affecting the layout of production premises.
First, our team assigns a scale of 1 to 5 that assess the likelihood of a risk

occurring in turn:
+ It's bound to happen
+ Happens often
+ Sometimes happens
+ Rarely happens
+ Hard to happen
Table 1 Determine the probability

Leve
l
1
2
3
4
5

Possibility
I sure that it will happen
Usually happen
Happens from time to time
Rarely happens
Unlikely

Next, from the probability table above, we combine 5 levels and probability to see
what severity the risks lie. Then our team split into 4 different levels:
- Low level: 1 point to 4 points => Level 1
- Average level: 5 points to 9 points => Level 2

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- High level: 10 points to 14 points => Level 3
- Very high level: 15 points to 25 points => Level 4
Table 2 Determine the level of risk

I sure
that it
will
happen

Ability
Severity

1
2
3
4
5

Very low
Low
Average
High
Very high

Usually
happen

Happens
from

Rarely
time to happens
time

2
4
6
8
10

3
6
9
12
15

4
8
12
16
20

Unlikely
5
10
15
20
25

From the risk assessment along with the risk level, our team will create a risk level,

these levels are based entirely on 47 reviews found online.
Table 3 Assess the level of risk factors influencing

Influence factor

Possibility

Severity

Risk level

Feature of product

2

1

2

3

3

9

2

2

4

Area and volume of
production premises

3

4

12

Regulations on hygiene and
safety in labor and
production

4

5

20

Functions, duties and
relationships at work

4

5

20

Product volume and

production schedule
Features of machinery and
equipment

Although among those 47 questionnaires there were different opinions on the
rationality of the arrangement, the number of workshops, the number of employees in

22


the workshop or the operational efficiency of the organizational apparatus, but 100 %
of respondents said that the company's layout model is a mixed type layout.

CHAPTER 3
PROPOSES AND RECOMMENDATIONS TO FINISH THE PLACEMENT WORK
FACILITIES MANUFACTURED IN JAPANESE JOINT STOCK COMPANY

3.1 Perspectives on solving the actual situation of production site layout of Japan
Joint Stock Company
3.1.1 Completing the layout of production premises on the basis of compactness and
suitable for the size of the company
A compact, scientific and reasonable layout makes the operation and management of
the company easy, thereby improving the operational efficiency of the company.
According to this view, the layout is formed to ensure the focus and unification of
direction, to ensure the clear division of functions and tasks to avoid overlapping, and
the smooth cooperation of the workshops. In addition to that feature, this structure
also ensures business efficiency with commensurate operating costs.
3.1.2 Completing the layout of production premises on the basis of reasonable
arrangement and use of machinery and equipment corresponding to the current
number of employees

The arrangement of production premises must be built on the basis of the Company's
resources, especially human resources and the company's material and technical bases
so that it is reasonable. Arranging the use of labor force according to the number of
such important equipment should be based on certain bases when conducting. Such as:

23


- For employees: it should be based on the point of view of assigning jobs and tasks
suitable to their expertise and capacity, creating conditions for them to promote
their abilities and complete assigned tasks in the most effective way.
- For production premises: Make the most of current equipment, repair and
maintain to improve the operation of machines, put into a mold making process to
serve production.
With the strategic direction that the company has set out in the coming time, it is to
expand the scope of operations across the country, increase the growth rate and
achieve the goal of positive profit after tax. Requires the company to expand the
premises to expand the production process, promote labor productivity in accordance
with the scale that the company wants to develop.
3.2 Request
• Recommendations to the state
- Business activities of enterprises in general as well as the work of completing the
arrangement of production premises will be more effective when there is support
from State agencies.
- Strengthen macroeconomic stability in order to create an equal environment for
competition and development cooperation among businesses through appropriate
strategies, planning, and policy plans.
- To step up administrative reform in order to build a clean, strong, professional,
modern, effective and efficient administration, meeting the requirements of a
socialist-oriented market economy, serving people, businesses and society.

- Invest in building infrastructure, financial and banking communication systems to
create favorable conditions for business activities of enterprises.
- Implement many support measures for businesses to timely grasp information,
access the market, grasp opportunities and challenges in the process of
international integration: Issue decrees and resolutions to guide enterprises new
law enforcement; Access to new technology…
• Recommendations to the company
- In order to mobilize all the energy and enthusiasm of officials, workers,
employees, the company needs to have good remuneration policies. In order to
achieve business efficiency as well as higher service quality, the company should

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launch a monthly and quarterly emulation movement for workers to emulate labor
and increase productivity.
- In addition, the company should pay attention to keeping workers safe during the
layout of the production site to ensure the safest working environment for
workers.

CONCLUSION
Through group research, I came up with the current situation of the company. The
advantages that the company has gained: The company has chosen a suitable
production layout model and started to pay more attention to this field; Starting to
have the coordination of activities between the workshops together. In the
arrangement of production premises of the company, there are still many limitations:
The layout of the company's production premises is still not reasonable; The
workshops are not really linked together, there is no clear division between the parts.
From the current situation of the company, and at the same time based on the theories
of the layout of the production premises, the points of view of completing the layout

of the production premises, I have proposed some solutions to improve the layout of
the premises. by the company's production as follows:
From the current situation of the company, and at the same time, based on the theories
of the layout of the production premises, the points of view of perfecting the layout of
the production premises, the group has proposed a number of solutions to improve the
layout of the premises. by the company's production as follows:
-

Improve the quality of the arrangement and use of human resources in the

-

company.
Education and training work.

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