3.Ftu-Le Thi Van Dung-Tom Tat La_Tieng Anh.pdf

MINISTRY OF EDUCATION AND TRAINING
FOREIGN TRADE UNIVERSITY
---------

SUMMARY OF PHD THESIS

RESEARCH THE APPLICATION OF LEAN MANAGEMENT
MODEL IN EXPORT MANUFACTURING ENTERPRISES OF
VIETNAM

Major: Business administration
Major Code: 934.01.01

LE THI VAN DUNG

Hà Nội, 2023


The thesis is completed at:

Scientific instructors:

Associate. Prof. PhD Pham Thu Huong
PhD Nguyen Thuy Anh

Reviewer 1: ................................................................................................
....................................................................................................................
Reviewer 2: . ...............................................................................................
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Reviewer 3: ...............................................................................................
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The research shall be presented in front of the council meeting at.............................


LIST OF PUBLISHED RESEARCHES RELATED TO THE THESIS

1 The impact of lean management practices on sustainable performance of handicraft
enterprises in Vietnam, 8/2022
2 Thực trạng áp dụng quản trị tinh gọn tại các doanh ngiệp hàng xuất khẩu Việt Nam, Tạp
chí Kế toán và Kiểm toán Việt Nam, 8/2022
3 Các yếu tố ảnh hưởng đến hiệu quả áp dụng quản trị tinh gọn tại doanh nghiệp sản xuất
hàng xuất khẩu tại Việt Nam, Tạp chí Kế tốn và Kiểm tốn Việt Nam, 7/2022
4 Đề tài cấp Bộ: Nghiên cứu áp dụng mơ hình quản trị tinh gọn cho các Ngân hàng thương
mại Việt Nam sau khi thực hiện sáp nhập, Đề tài cấp Bộ, Đại học Ngoại thương, 6/2017
– 01/2019
5 Các nguyên tắc áp dụng quản trị tinh gọn trong ngân hàng, Kỷ yếu Hội thảo Quản trị tinh
gọn trong Hoạt động Ngân hàng, 05.2018


1
PREFACE
1. Necessary of the research
Exports are an important part of any economy. Over the years, import and export have made great
contributions to the country's renovation. For Vietnam, promoting the activities of export enterprises is
an important goal in the process of economic development. For each enterprise doing business in the
export sector, having to compete in the global environment makes these enterprises face pressure from
both the global business environment and the domestic business environment. The increase of
globalization activities, the rapid development and daily changes of technology in the context of the
industrial revolution 4.0 make these pressures increase. The "lean management" method, which is a
business operation method, has been applied by many businesses around the world and has reaped

positive results in business activities since the 90s of the twentieth century. However, in Vietnam, there
are not many enterprises in general and export enterprises in particular that apply the model of world
management. Therefore, the author finds that World Trade Organization can bring many benefits in
exporting enterprises. In addition, the main export markets of Vietnamese enterprises are the US and
Europe, which have many strict requirements on product quality, quality of production and supply
operations, and social responsibility. of the enterprise. It is necessary to study the current status of
applying world management and build an appropriate application model for Vietnamese exporters in the
current context.
Stemming from the above reasons, the author chooses the topic "Research the application of lean
management model in export manufacturing enterprises of Vietnam" to deal with in doctoral thesis.
2. Research objective and research questions
2.1 Research objective
The research objective of the thesis is to study lean management models and their influencing factors in
order to propose deployment models and solutions as well as conditions to improve the applicability of
the world management model in Vietnam. enterprises producing goods for export in Vietnam.
2.2 Research questions
- Question 1: Which popular lean management models are deloyed in enterprises today?
- Question 2: What factors affect the successful application of lean management?
- Question 3: How do the characteristics of enterprises producing export goods affect the application of
the lean management model?
- Question 4: How to deploy and apply the lean management model in export manufacturing
enterprises?
- Question 5: Solutions and conditions for applying the lean management model in Vietnam's export
manufacturing enterprises?


2
3. Research methodology
- The thesis uses synthetic methods, compares theories of lean management to choose an appropriate
lean management approach. This method is also used together with the logical reasoning method to

determine the evaluation criteria for the application of lean management as well as the factors affecting
the application of lean management in enterprises.
- The thesis uses the method of sociological investigation: collecting opinions of managers to assess the
current status of management practices that Vietnamese export enterprises are applying. In addition, the
method of interviewing senior managers and experts was also conducted to explain the approach as well
as the process of applying lean management in Vietnamese export enterprises.
- The survey method uses a 5-level Likert scale to investigate whether the criteria for evaluating the
application of lean management and the factors affecting the application of lean management identified
above are correct with reality in export enterprises or not.
- Quantitative research methods are used to analyze survey results. The data will be processed through
SPSS software.
4. The research object and research scope
4.1 Research object
The object of the study is the implementation and application of the Lean Management model in
export manufacturing enterprises in Vietnam.
4.2 Research scope
The thesis focuses on researching and applying the lean management model in export manufacturing
enterprises in the period from 2016 to 2022.
5. New contributions of the thesis
Theoritical contributions
- Research and propose a number of new factors affecting the application of lean management in
accordance with the characteristics of Vietnamese export manufacturing enterprises.
- Conduct a survey and run the model to test the impact of factors on the application of lean
management in export manufacturing enterprises in Vietnam.
Practical contributions
- Investigate the current situation of applying Lean Management model in export processing
enterprises to identify the factors affecting the application process and analyze the causes of success
and failure from there as a basis for the proposal. Prove how to deploy and apply the Lean
Management model.
- Proposing the implementation of a lean management model in Vietnam's export manufacturing

enterprises.
- Proposing a number of solutions and recommendations to apply the lean management model in


3
Vietnam's export manufacturing enterprises.
6. Thesis structure
- Chapter 1: Overview of research on applying lean management model
- Chapter 2: Some theoretical issues about applying lean management model in export goods
manufacturing enterprises
- Chapter 3: Research process and methods
- Chapter 4: The current situation of applying lean management model in Vietnam's export manufacturing enterprises
- Chapter 5: Proposing a lean management model and some solutions and recommendations to apply
the model to Vietnam's export-producing enterprises


4
CHAPTER 1 OVERVIEW OF RESEARCH ON APPLYING LEAN MANAGEMENT MODEL
1.1 Researches on Lean Management model
1.1.1 Some Lean Management Models in the World
Toyota Production System (TPS House) is the first model of Toyota production system launched by Eiji
Toyoda and Taiichi Ohno, 1988. This model consists of five elements including three foundation
elements and two pillar element. The three foundational factors are Heijunka, Standardized Work,
Continuous Improvement (Kaizen) and the two pillars of Right Time (JIT), Error Self Control (Jidoka).

Hình 1.1: TPS House Model
(Source: Ohno, 1988)
Mơ hình Toyota Way 2001
Fuji Cho published the book "The Toyota Way 2001" to offer an alternative to the TPS House model.
The model consists of five principles outlined in two pillars. With the pillar of continuous improvement,

there are three principles: Challenge, Kaizen and Genchi Genbutsu. With respect to others, there are two
principles: Respect and Teamwork.

Hình 1.2: Mơ hình “Toyota way” (2001)


5
(J.K. Liker, 2004) developed a 4P model to suggest the issues that businesses need to pay attention
to in order to successfully implement World Management. The four P's stand for (1) Philosophy, (2)
Process, (3) People and Partners, (4) Problem Solving. . The model of J. K. Liker is shown as shown in
the figure:

Hình 1.3: Mơ hình 4P của Liker (2004)
(Source: Liker, J.K. (2004). The Toyota way: 14 Management Principles from the World’s Greatest
Manufacturer: Mc Graw Hill.)
Shook's Lean Transformation Model (2015)
John Shook, 2015) and experts at the Lean Enterprise Institute (LEAN Enterprise Institute) have
developed a "Lean Transformation" model that suggests to businesses the factors to pay attention to
when they want to apply world management successfully. The model of John Shook is shown as shown
in the picture below:

Hình 1.4: Lean Transformation
(Source: Shook, J. (2015). Lean Transformation Framework. From />

6
Hobbs.'s model of applying world management to enterprises (2004)
Hobbs (2004) proposed a step-by-step process of applying world management to all enterprises of
any size. This model outlines the seven implementation steps and the key lean principles in each of them
(Table 1.1).
Table 1.1: Steps of implementing Lean management Hobbs (2004)

Step
Bước 1
Bước 2
Bước 3
Bước 4
Bước 5
Bước 6
Bước 7

Content
Set strategic vision
Define and set up working groups
Product analysis
Process analysis
Factory site analysis
Choose the right pull strategy
Continuous improvement

Principle

Value
Value Chain
Product flow
Pull strategy
Focus on perfection
(Source: Hobbs, 2004).

1.1.2 Some models of Lean Management in Vietnam
Lean management models “Made in Vietnam” Nguyễn Đăng Minh (2015)

Figure 1.6: “Made in Vietnam”
(Source: Nguyen Dang Minh, & Nguyen Thi Van Ha. (2016). “Made in Vietnam” Lean Management
Model for Sustainable Development of Vietnamese Enterprises Procedia CIRP, 40, 603-608)
Nguyễn Thị Đức Nguyên and Bùi Nguyên Hùng’s Model (2010)

Step 1:
Identify
oppotunity

Step 2:
Design
solutions

Step 3:
Implementation

Step 4:
Complete
transformation
, continuous
improvement

Hình 1.7: Mơ hình áp dụng Quản trị tinh gọn
(Nguồn: Nguyễn Thị Đức Nguyên và Bùi Nguyên Hùng, 2010)


7
Mơ hình của Phạm Minh Tuấn (2015)

Figure 1.8: Steps of applying lean tools

(Source: Phạm Minh Tuấn, 2015)
1.2 Overview of studies on factors affecting the application of lean management
1.2.1 Factors related to Leadership
STT
Factor
Source
1
Leaders have a long-term commitment to the Worley (2006), Jeffrey (2013), Wong (2009),
application of lean management
Achanga (2006), Drew (2004), Nitin (2010),
Alaskari
&
cộng
sự (2014); Alhuraish & cộng sự (2014).
2
Business leaders as well as stakeholders
understand the benefits of applying world Drew (2004), Achanga (2006), Anna (2014),
management
Womack (2003), Ohno (1988)
3
Effective internal communication from the Achanga (2006), Tracey (2006), Worley
board of directors to employees
(2006), Bhasin (2006)
4
Leadership has a clear vision and strategy for Bhasin (2006), Mefford (2009), Czabke
the application of world management.
(2008), Emiliani (2005), Anna (2014)
5
The commitment and involvement of the
middle management team

Nguyễn Đạt Minh (2018)
1.2.2 Factors related to human policy
No
1

Factor
There is a clear financial reward and punishment
policy to encourage employees to actively
participate in lean
2
Xây dựng hệ thống các tiêu chuẩn, tiêu chí đánh
giá kết quả triển khai QTTG trong mọi công
việc.
3
Have a training plan to ensure that all members
of the enterprise understand the ideas and
techniques of World Management
1.2.3 Factors related to staff qualification

Source
Tracey (2006), Emiliami (2005), Bhasin
(2006), Wong (2009), Ab Wahid & Corner
(2011)
Achanga (2006), Liker (2003), Melton
(2005), Bakås & cộng sự (2011). Kundu &
Manohar (2012),
Womack & cộng sự (2003), Dennis (2007),
Wilson (2010), Todd (2011), Jeffrey (2013),
Sisson (2014)

No
1

Factor
Source
Employees consciously change the way Tracey (2006), Czabke (2008)
they work in a more positive direction
Staff are qualified and quick to learn.
Motwani (2003), Crute (2003), Kettinger (1995),
Nguyễn Đăng Minh (2013)
Staff are well trained.
Achanga (2006), Anna (2014), Wong (2009),
Jeffrey (2013), Bhasin (2006)

2
3


8
1.2.4 Factors related to corporate culture
No
Factors
Source
1
Enterprises have an open culture, Czabke, Hansen và Doolen (2008); Achanga và cộng
encouraging innovation and creativity sự (2006); Bhasin (2006), Alhuraish & cộng sự (2014);
Shook (2015), Crute và đồng nghiệp (2003)
2
Enterprises encourage employees to Kettinger và Grover (1995)
learn and share knowledge

3
Enterprises encourage teamwork
Tracey và Flinch (2006), Czabke, Hansen và Doolen
(2008)
4
Enterprises set up a specialized group Nguyễn Đạt Minh (2018)
to promote the implementation of lean
management
1.2.5 Factors related to external value chain management
No

Factor

1

Commitment to implement lean management
of the suppliers

2

Customer engagement, support, and feedback

Source
Alhuraish (2014); Coronado & Antony
(2002); Hibadullah
& cộng sự (2014); Kumar (2009); Sabry
(2014)
Al-Najem (2014) Coronado & Antony
(2002); Hibadullah
& cộng sự (2014); Kumar (2009); Rose &

cộng sự (2014);
Sabry (2014); Sisson (2014)

1.3 Studies on evaluation criteria for successful application of lean management
Include: Increase labor productivity
Improve product quality
Reduce production costs
Increase the ability to deliver on time
1.4 Research gap
Firstly, adding more factors to successfully apply Lean Management to Vietnamese export
manufacturing enterprises, including: The commitment of the leadership; Involvement of middle
management; join a specialized group; external value chain management
Second, research models often provide general formulas without providing specific conditions
affecting the practice of world management. Therefore, there should be a process and guidance for
businesses to ensure the success of each business model in practice.
Third, there is no specific model for Vietnamese export enterprises.


9
CHAPTER 2: SOME THEORETICAL ISSUES ON APPLICATION OF LEAN MANAGEMENT
MODEL IN EXPORT PRODUCTION ENTERPRISE
2.1 Definations
2.1.1. Lean management defination
Lean management includes both philosophies and practices. For enterprises applying Lean Management,
these two aspects need to be considered together, not separately. If only consider the philosophical
thinking, businesses may be unrealistic and delay in implementing lean management. If you only see
lean management as practices, businesses will stereotype the application of tools without getting the
appropriate effect, and may even be counterproductive. From a business perspective, it is necessary to
understand lean management in both directions: philosophy of thought and practice.
Therefore, in this thesis, the author uses the definition of Shah (2007). This author has synthesized the

above different aspects of World War II mentioned in previous studies. From there, the author
generalizes into the most general definition "Lean management is a socio-technical system integrated
into business activities whose main objective is to eliminate waste by minimizing instability related to
suppliers, customers and within the business”. This definition is not too specific to business practices
when implementing lean, but it is not too broad and abstract to cover all the activities and goals of an
enterprise.
2.1.2. Lean management Model
The lean management model is understood as the mapping of applied principles and tools of world
management to illustrate and explain how to apply world management in an enterprise.
2.1.3. Enterprises producing export goods
Based on the definition of the Foreign Investment Act 1991, Export production enterprises are
understood as enterprises that export sixty percent or more of sixty percent of the goods produced.
Thus, lean management in export manufacturing enterprises is understood as a system of tools and
methods to continuously eliminate all waste throughout the process of continuous improvement of
production and business activities. export business to meet customer requirements.
2.2 The role of lean management in export manufacturing enterprises
First, lean governance cuts down on errors and waste.
Second, lean management helps export-producing enterprises to exploit and use infrastructure more
efficiently.
Third, lean management improves the financial efficiency of export business.


10
2.3. Content of lean management in export manufacturing enterprises
2.3.1 Lean management awareness
Lean management awareness in export-producing enterprises is considered as the foundation for
applying lean management in business activities of enterprises. The foundational factor to apply lean
management in manufacturing enterprises is the awareness of management and employees about lean
management thinking.
2.3.2 Identifying waste in export-producing enterprises

Womack and Jones (1996) proposed five fundamental principles of lean management including (i)
creating value based on the customer's point of view, (ii) value chain identification, (iii) creating flow
continuous in the process of production and business, (iv) pulling the flow in the direction from the
customer, (v) continuous improvement towards perfection.
For the specifics of export business activities, the author gives the following types of waste:
- Procurement (production) of surplus exports
- Meantime
- Waste of shipping
- Waste in performing unnecessary and valueless activities
- Waste of storage
- Waste in manipulation
- Waste of aviation standards
2.3.3 Lean management tools
- Value Stream Mapping (VSM)
- Standardization of processes
- Preventing Mistakes - Poka-Yoke
- 5S Method and Visual Management
- Continuous improvement- Kaizen
- Cell model
- Just- in – Time (JIT)


11
2.4. The characteristics of enterprises producing export goods affect the application of the lean
management model
- Large and complex operating market
- High-risk activities
- Strict requirements on products
2.5. Principles of applying lean management model in export-producing enterprises

Figure 2.3: Principle of Lean management
Nguồn: Womack và Jones (1996)
2.6. Conditions for applying lean management model in export manufacturing enterprises
- Foundation of consciousness, discipline and culture of society towards lean management perspective
- Society's perception of lean management
- Team of consultants.


12
CHAPTER 3: RESEARCH PROCESS AND METHODS
3.1 Research process
Diagram 1.1: Research step-by-step process

Source: Author
3.2 Research hypothesis
H1: Leadership commitment has a positive impact on successful implementation of lean management.
H2: Human resource policy has a positive impact on the successful application of lean management
H3: Employee qualifications have a positive impact on the successful application of lean management.
H4: Corporate culture has a positive impact on the successful application of lean management.
H5: External value chain management has a positive impact on successful implementation of lean
management
3.3 Proposing a quantitative research model
Leadership commitment

Staff qualifications

Human policy

Corporate culture

External value chain
management

Successful application
lean mamagement


13
3.4 Research scale and designing the survey
Code Observed variables

Source

LD

Leadership commitment

LD1

Leaders have a long-term commitment to Worley (2006), Jeffrey (2013), Wong (2009),
the application of lean management

Achanga (2006), Drew (2004), Nitin (2010),
Alaskari

&

cộng

sự (2014); Alhuraish & cộng sự (2014).

LD2

Business leaders as well as stakeholders
understand the benefits of applying world Drew (2004), Achanga (2006), Anna (2014),
management

LD3

Womack (2003), Ohno (1988)

Effective internal communication from the Achanga (2006), Tracey (2006), Worley
board of directors to employees

LD4

(2006), Bhasin (2006)

Leadership has a clear vision and strategy Bhasin (2006), Mefford (2009), Czabke (2008),
for the application of lean management.

LD5

Emiliani (2005), Anna (2014)

The commitment and involvement of the
Nguyễn Đạt Minh (2018)

middle management team
NS

Human policy

NS1

Having a clear financial reward and Tracey (2006), Emiliami (2005), Bhasin (2006),
punishment policy to encourage employees Wong (2009), Ab Wahid & Corner (2011)
to actively participate in lean management

NS2

Develop a system of standards and criteria Achanga (2006), Liker (2003), Melton (2005),
for

evaluating

the

results

of

lean Bakås & cộng sự (2011). Kundu & Manohar

management implementation in all jobs.
NS3

(2012),

Having a training plan to ensure that all Womack & cộng sự (2003), Dennis (2007),
members of the enterprise understand the Wilson (2010), Todd (2011), Jeffrey (2013),

ideas and techniques of Lean Management

Sisson (2014)

NV

Staff qualifications

NV1

Employees consciously change the way Tracey (2006), Czabke (2008)
they work in a more positive direction.

NV2

Staff are qualified and quick to learn.

Motwani (2003), Crute (2003), Kettinger
(1995), Nguyễn Đăng Minh (2013)


14
NV3

Staff are well trained.

Achange (2006), Anna (2014), Wong (2009),
Jeffrey (2013), Bhasin (2006)

VH

Corporate culture

VH1

Enterprises

have

an

open

culture, Czabke, Hansen và Doolen (2008); Achanga và
cộng sự (2006); Bhasin (2006), Alhuraish &

encouraging innovation and creativity

cộng sự (2014); Shook (2015), Crute và đồng
nghiệp (2003)
VH2

Enterprises encourage employees to learn Kettinger và Grover (1995)
and share knowledge

VH3

Enterprises encourage teamwork

Tracey và Flinch (2006), Czabke, Hansen và

Doolen (2008)

VH4

Enterprises set up a specialized group to Nguyễn Đạt Minh (2018)
promote

the

implementation

of

lean

management
QL

Managing external value chain

QL1

Have a good suppliers’ capacity

QL2

Suppliers are committed to providing goods
at the right time and in the right quantity.

QL3

Have a close, long-term relationship with

Alhuraish (2014); Coronado & Antony (2002);
Hibadullah
and partner (2014); Kumar (2009); Sabry
(2014)

the supplier.
QL4

Customers are always committed to their Al-Najem (2014) Coronado & Antony (2002);
orders

QL5

Hibadullah

Information exchanged with customers is and partner (2014); Kumar (2009); Rose &
partner
(2014);
shared fully and timely.
Sabry (2014); Sisson (2014)

HQ

Successful

application

of

Lean

management
HQ1

Increase labor productivity

HQ2

Improve product quality

HQ3

Reduce production costs

HQ4

Increase the ability to deliver on time

Dennis (2007); Naor and partner (2014)


15
3.4. Method of collecting data
Data collected through paper survey and online survey on google forms will be analyzed by quantitative
research method. After collecting data, the author conducts testing and analysis using SPSS 20.0
software by descriptive statistics tools, testing the scale by Cronbach's Alpha coefficient, exploratory
factor analysis EFA, analysis. multiple regression.

3.6. Research & Data processing method
After collecting data, the author conducts testing and analysis using SPSS 20.0 software by descriptive
statistics tools, testing the scale by Cronbach's Alpha coefficient, exploratory factor analysis EFA,
analysis. multiple regression.
Evaluation of the reliability of the scale Crobach's Alpha
EFA . exploratory factor analysis
Regression model analysis and hypothesis testing
3.7. Sampling
Classification of enterprises in the sample

Bảng 3.1: Business scale
Business scale

No

%

Small

32

16.5%

Medium

103

53.0%

Large

60

35.5%

Total

195

100%
Source: Author’s survey

Education level of survey respondents

Bảng 3.2: Education level of survey respondents
Education level

No

%

Intermediate college

24

12%

Undergraduate

93

48%

Graduate

78

40%

Total

195

100%
Source: Author’s survey


16
Working position of survey respondents
Bảng 3.3: Working position of survey respondents
Position

No

%

CEO

13

6.7%

Managers

103

52.8%

Staff

79

40.5%

Total

195

100%
Source: Author’s survey


17
CHAPTER 4: SITUATION OF APPLICATION OF LEAN MANAGEMENT MODEL IN
VIETNAM'S EXPORT MANUFACTURING ENTERPRISE
4.1 Overview of Vietnamese export manufacturing enterprises
Exports recorded a strong growth in size, from 176.6 billion USD in 2016 to 336.3 billion USD in 2021
(equivalent to an increase of 90.4% within 5 years).
400

336.3

300
214
200

264.2

244.7

282.7

176.6

100
0

2016

2017

2018

Series 1

2019

2020

2021

Hình 4.1: Vietnam's exports in the period from 2016 – 2021
4.2 Analysis of the current state of applying lean management in Vietnam's export manufacturing
enterprises
4.2.1 Current status of awareness and application of the Lean management
The survey results show that 12% of enterprises in the survey group do not know about world
management. This is a not too large number, reflecting the increased awareness of enterprises on world
management compared to the past. However, a percentage of 18% of enterprises have known about
World Management but have not applied it due to reasons such as insufficient resources and not
considered necessary. This number also shows that enterprises' reluctance and barriers to world
management are still relatively high.
4.2.2 The current situation of waste identification

Hình 4.4: The level of identification of wastes in enterprises
(Source: Author’s survey)


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4.2.3 Current situation of using Lean tools
100%
84%

90%

88%

82%

80%
65%

70%

57%

60%

53%

50%
40%
30%
20%
10%
0%
Sơ đồ chuỗi giá trị

5S

Quản trị trực quan Ngăn ngừa sai lỗi Sản xuất đúng thời
điểm

Cải tiến liên tục
Kaizen

4.3 Factors affecting the application of lean management in export manufacturing enterprises of
Vietnam
4.3.1 Evaluate the reliability of the scale
Scale testing with Cronbach's Alpha coefficient is conducted in turn with the factors in the research
model

The test of Cronbach's Alpha gauge with dependent and independent variables gave satisfactory results
and all variables were kept for further analysis.
4.3.2 Exploratory factor analysis (EFA)
Perform KMO and Bartlett tests; After the results of factor analysis, it shows that the proposed author's
model is suitable, after conducting the above analysis, it shows that the data is suitable for testing the
regression model.
4.3.3. Regression analysis
The normalized Beta coefficients are: LD=0.034, NS=0.045, NV=0.039, VH=0.031, QL=0.031,
respectively; shows that these 5 independent factors have the same impact on the factor of successful
application of world management. In which, the level of impact in order from the highest is: human
resources policy, employees, commitment of leaders, external value chain management, corporate
culture.


19
4.4. Practical application of lean management model in Vietnamese export manufacturing
enterprises
4.4.1 Midway Metals Vietnam Co., Ltd

The implementation of the application of world management at Midway Metals Co., Ltd. is evaluated
as successful by the author. In particular, people are the key factor determining this success.
Limitations: The system of standardization and continuous evaluation of processes is in place but is still
fragmented by department. The training process at Midway mainly focused on key staff. The frequency
of training for employees at the company is still low. The current employee bonus activities at Midway
are still based on the company's revenue, not associated with employee benefits.
4.4.2. Phong Nam Joint Stock Company
Phong Nam Co., Ltd (referred to as Folin) was established in 1995 in the field of manufacturing plastic
products and packaging products..

The results of the implementation of the application of world management at Phong Nam Co., Ltd. are

assessed by the author as a continued success thanks to the daily progress reporting and the KPIs
performance measurement system for each employee.
Limitations: The leadership team at Phong Nam, although committed to implementing the World Bank,
has not invested much in financial terms; The management board at Phong Nam is currently also in
charge of 5S implementation, lacking a dedicated team; The training program is not deep enough for


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workers to understand the goals and great benefits of lean management, so employees have not fully
cooperated.
4.4.3 Ha Yen Joint Stock Company
Ha Yen Joint Stock Company was established in December 1993, manufacturing and supplying
industrial kitchens and industrial laundry..

The implementation of the application of lean management in Ha Yen Joint Stock Company was
unsuccessful and stopped.
Limitations: The biggest problem leading to the failure in the implementation of the application of world
management in Ha Yen Joint Stock Company comes from the human factor: Senior management lacks
long-term commitment; there is no dedicated group to put it into practice; staff have not been properly
trained to understand Lean.
4.5. Conclusions drawn from the application of Lean Management model in research enterprises
4.5.1. Summary of the application of the lean management model in research enterprises
Firstly, enterprises that apply the Lean Management model have achieved certain successful results,
although to different degrees.
Secondly, enterprises in the process of applying the lean management model have encountered certain
difficulties and limitations related to: the long-term commitment of the company's leadership to the
implementation of lean management; Staff attitude is not cooperative and staff level is not high; There
is no process and standard to evaluate the implementation of lean management, no clear roadmap has
been developed for each step of implementation.
4.5.2. Some problems need to consider when applying lean management model

Firstly, enterprises need to rely on the general principle model in lean management to build a specific
deployment model for their business;
Second, the implementation process needs to be carefully designed. Businesses need to have two forms
of testing on the theory and performance of employees to ensure that each employee has a clear
understanding of the job and is doing it well. Only then should the following steps be continued.
Third, special attention should be paid to people, including from leaders to employees, because this is a
decisive factor for the success or failure of the business.


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CHAPTER 5: PROPOSED LEAN MANAGEMENT MODEL AND SOLUTIONS,
RECOMMENDATIONS FOR APPLICATION OF LEAN MANAGEMENT MODEL FOR
VIETNAMESE MANUFACTURING ENTERPRISES
5.1 Orientation to apply lean management model in export manufacturing enterprises of Vietnam
- Applying lean management in export-producing enterprises must be implemented on the basis of
not inhibiting innovative ideas in enterprises.
- Applying lean management in enterprises producing export goods must be done on the basis of
cost saving and effective application of information technology.
- The application of lean management in enterprises producing export goods must be done on the
basis that the benefits obtained must be higher than the costs of implementing lean management.

5.2 Proposing a lean management model in Vietnamese manufacturing enterprises

The detailed lean management model integrated the tools of lean


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Lean governance deployment model:

Note:
: Điểm > 85%

: Điểm < 50%
: Mức độ học tập
của nhân viên
: Mức độ học tập
của nhà lãnh đạo

5.3 Some solutions to apply lean management model in Vietnamese export manufacturing
enterprises
- Solution on leadership factor
- Communication solutions
- Solutions on HR policy
- Financial solutions