improving quality performance management at leo co ,ltd ninh khuong hand embroidery fashion

TRƯỜNG ĐẠI HỌC MỞ TP.HCM

UNIVERSITÉ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN

SOLVAY BRUSSELS SCHOOL OF

UNIVERSITY

ECONOMICS & MANAGEMENT

MBQPM5

PHẠM THỊ XUÂN HỒNG

IMPROVING QUALITY
PERFORMANCE MANAGEMENT
at LEO.Co.,Ltd _ NINH KHUONG Hand Embroidery Fashion

MASTER PROJECT
MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

Ho Chi Minh City
(2016)


STATEMENT OF AUTHENTICATION
This statement is to indicate that all of the work in this final project has been
done by Pham Thi Xuan Hong under guiding of Jacques Martin professor. The
information presented in below is accurate in my mind. These are collected from

my knowledge that I understand from education program "Master Business Quality
Performance Management" at Solvay Brussels School and the experience in my
work at Ninh Khuong organization.
I tried my best to finish my assignment and I hope this project will be
implemented in my company. And the last, in order to optimize the results, I need
recommendation of the Judges for my project better.
Thank you so much!
Signature of student

Pham Thi Xuan Hong


ACKNOWLEDGEMENT
I express my deep sense of gratitude to Dr. Jacques Martin (Academic Director
MBQPM program) for encouraging and guiding me to finish this final project.
I am very much thanks full to lecturers of during program "Master Business
Quality Performance Management" has trained and shared a lot of value knowledge
to my class. I feel that the sharing of lectures does not stop at the task of trainers,
but also more than on the professional values and enthusiasm of professors.
I would like to say big thanks to Ms. Ngoc Hien (Program Coordinator – Solvay
Brussels School) and Ms. Viet Ha (Program Coordinator – Open University)
supported a lot of during this program, all activities and their advice helped us
completed course successfully.
Besides, if don't have the supporting of my boss, my staffs and my family also,
I couldn't do that. I acknowledge with big thanks to them.

The last, in my presentation time, the attention and recommendation of the
judge will be helped me optimize the results final report and implementation
behind. I'm truly grateful for discussing today, thanks for your value advices.

ACADEMIC TUTOR’S COMMENTS
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
Signature of Academic tutor


PRACTICAL TUTOR’S COMMENTS
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................

..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
Signature of Practical tutor


TABLE OF CONTENTS:
STATEMENT OF AUTHENTICATION ............................................................ 1
ACKNOWLEDGEMENT..................................................................................... 2
ACADEMIC TUTOR’S COMMENTS ................................................................ 3
PRACTICAL TUTOR’S COMMENTS ............................................................... 4
INTRODUCTION: ................................................................................................ 1
1. Company information: ................................................................................ 1
2. Objectives of the report. .............................................................................. 7
3. Methodology: ............................................................................................... 7
4. The company’s development plan”: ........................................................... 8
PART 1: ANALYSIS AND EVALUATION OF THE KEY PROCESSES. ....... 9
Chapter 1: Process mapping & identify the critical points of each process........ 9
1. The Process mapping of the Ninh Khuong organization: .......................... 9
2. Identify the critical points of key processes:............................................. 13
2. 1 Production process mapping and critical points: ................................. 13
2.2

The Sales process mapping and critical points: ................................. 15

2.3

The customer satisfaction process mapping and critical points: ...... 17

Chapter 2: Process evaluation. ........................................................................... 19

1. Identify the factors affected on each key process  conclusion the main
factors affected on three key processes. .......................................................... 19
1.1 The factors affected on critical points of production process: .............. 20
1.2 The factors affected on critical points of Sale Process: ......................... 22
1.3 The factors affected on critical points of Customer satisfaction process:
....................................................................................................................... 24
2. Analysis the root cause/RISK of main factors above by Fishbone
diagram. ............................................................................................................ 27
3. Evaluation effectiveness key process by data and dashboard. ................ 29
3.1

Data and dashboard:........................................................................... 29

3.2

Shortcomings:...................................................................................... 33


PART 2: IMPROVING QUALITY PERFORMANCE MANAGEMENT
SYSTEM: ............................................................................................................. 34
Chapter 1: Building the Quality Performance Management System (PMS) at
Ninh Khuong organization: ................................................................................ 34
1. Identify the type of performance at Ninh Khuong organization. ............ 34
2. Building

Performance

Management

System

at

Ninh

Khuong

organization. ..................................................................................................... 35
2.1

Step 1: Identify customer requirements and score strategy of

company: ....................................................................................................... 35
2.2

Step 2: Set Planning: Strategic goals in roadmap, main objectives

and link them together to reach score strategy and company goals. .......... 37
2.3

Step 3: Set targets for each objective, measurement method and re-

coordinate resources for activities to achieve targets and action to
implement to achieve objectives: .................................................................. 43
2.4

Step 4: Execution for implementation: Combine the key process,

coordinate the human resources to achieve the objectives company. ......... 46
Chapter 2: Implementation and improving Quality Performance Management

system. .................................................................................................................. 47
1. The

road

map implementation and

improvement

Performance

Management System at Ninh Khuong organization. ...................................... 47
2. Improving quality performance management system at Ninh Khuong. . 48
3. Sustained improvement quality performance management: ................... 50
CONCLUSION: .................................................................................................. 54
REFERENCE LIST ............................................................................................ 56


1

INTRODUCTION:
1. Company information:
New Logo:

Slogan: Embroidery love for life.
Business type: Manufacturing, trade, service about hand-embroidered
children's fashion industry.
Founder: Mr. Duong Hoan Tuyen (MSc)
Human resources: 150 employees.
Vision:

– Commit to a sustainable development
– 2020, become the leading brand in the embroidery fashion industry in
Asia
– 2030, Ninh Khuong products will be presented all over the world.
Mission:
– Produce the high quality embroidery fashion products: healthy for the
consumer; the product is not harmful to the environment.
– Improving the best customer service for customer's satisfaction.
– Enrich employee knowledge & prosperity.
History’s company:
– Ninh Khuong has been boldly exploring the application of the hand
embroidery art into the daily life in order to make the children’s fashion
products, household items, decorative items, etc. as well as contributing
to the wider promotion of this unique art form of the nation, creating a
magical interference between Eastern and Western culture.


2

– Ninh Khuong was established in 2001 at 40 Le Loi, District 1, Ho Chi
Minh City and has moved to 42 Le Loi, District 1 as in current. The
company mostly sells the accessories cotton for home decor, such as:
table clothes, runner, graph, many kinds of bag, tissues box cover, paper
roll,… to foreigners customer and tourists.
– In 2003, Ninh Khuong started expanding domestic brand through retail’s
stores by children’s clothes, focus to European and Asian markets by
exporting.
– Since 2009, Ninh Khuong has built Quality management system for
development.
– 2013, has been become the Number one in Viet Nam in the field kid

fashion embroidery with 21 stores in Viet Nam.
– 2014, received ISO 9001-2008 Certification.
– 2015, opened 6 stores in Ho Chi Minh City and Da Nang City.
– Now, Ninh Khuong has 17 stores in Ho Chi Minh City and many
provinces in Viet Nam, exporting to European area.
Feature product: Unit product.
– Core value of product: Hand embroidery, traditional cultural value of the
hand-embroidery pattern.
– Materials & other materials: 100% cotton, linen; natural color.
– Threads: 100% cotton, dyed with natural color without chemicals.
– Utilities: good sweat absorbent, soft for the skin, luxurious model, high
quality (no shrinkage, fabric color no down).
Ninh Khuong has 3 brand products (3 line products):
– Nkid: kid fashions, kid bedding & accessories: dress, T-shirt, pant,
hat,…)
– Kolala: premium kid fashions.
– Klinen: accessories for home decor: tablecloth, napkin, bed sheet, duvet
cover, pillowcase, tissues box cover, bread cover, bags, souvenir,…


3

Products of Nkid brand:

Products of Klinen brand:

Target customers:
– Vietnamese female, officer from 25 to 45 years old; knowledge, mostly
in middle and high class (Family income ≥1000 USD/month).

4

– Foreigner: Tourists from all over the world such as: Japan, Australia, France, America, New Zealand, etc.
– Abroad partners: Australian, American, French, Malaysian, Singaporean, etc.
The competitors:
Replacement
Item

Ninh Khuong

Direct competitors
(Indirect competitors)

Brand name

Ninh Khuong

DLS

Tiki. A

Kiko

Disney

Hikosen Cara

Number of shops

17

07

09

26

06

20

_ Kid fashion (casual,
party, at home.
Kid fashion:
Product category _ Accessories for
Outside, at home,
home (runner, graph, warm clothing.

Kid fashion:
Party/Outside

Casual,
Casual, comfortable outside/ at home,
comfortable wear,
wear, smart wear
warm clothing
smart wear

Same as Ninh

Khuong

High quality

Higher

Higher

table cloth,…).

Quality

High quality

Same as Ninh
Khuong

Same quality
Brand longer

Brand longer
Price

Medium and high

Higher

Medium

Higher

Lower


5

Type of Industry

Made in

Total hand
embroidery

Hand embroidery & Hand embroidery in
Machine industry Machine industry
by machine
some designs

Machine industry

Vietnam

Vietnam

Vietnam

Malaysia

Thailand

Vietnam

Hi-end

Hi-end

Hi-end

Hi-end

Middle

Party dresses

Imported products
Good design
Imported product
Various design
High quality
material

Target customer Hi-end

USP (Unique
Selling
Proposition)

_ Truly hand
embroidery.
_ 100% cotton &

linen.

Crocodile symbol
on the product
Only produce 40
pieces per size

_European style.

_European style.

Twin design for
mother and kid

-Anti-bacteria
cotton
-Cute Kitty symbol
on the products
-Brand from Japan


6

Ninh Khuong is the number one in embroidery children's fashion industry in Viet Nam.
– We have the competitive advantage in the quantity of chain stores and have good location of stores also.
Organization chart:


7

The Ninh Khuong company has three big departments:
 Manufactory: produce the products. Manage the out-sourcing stages
(embroidery, sewing, laundry), not management the production workers.
 Chain stores: selling directly to customers and implement customer care
operations.
 Back office: supporting everything for all departments.
The method of management at Ninh Khuong of company is management by
objectives (MBO) and management by processes (MBP). Interactive vertically and
horizontally are the interaction between of all departments in organization. This
method makes the interaction is tight, increasing control and the system reach the
self-control better, help to reduce time and cost of management.

2. Objectives of the report.
- Continuous improvement the quality performance system (QMS) after 5
years in building QMS. To get internal benefits for organization and people.
To get external benefits for the customer (best price of products, good
service, value of products added, peace of mind also, the healthy for baby,…)
and society.
- Sustainable success in the future and could be reached the mission, vision in
2030.
- Maintain ISO 9001-2008 certification in the company.

3. Methodology:
- In the current context, the first, we improve Economic Performance: that’s
mean focus on turnover/sales and profit, profitability/return on investment
indicators and then focus on targets social to maximize profit by classical
approach performance.
- We measure effectiveness and efficiency of performance key activities of
organization such as: production, process, motivation HR, service, operation.

8

- And then, in order 2030 we’ll be presented in over the word and sustainable
development performance we improve Global performance: focus on
strategic, environmental, organizational, human, finance to improve
sustainable development by Modern approach.
- Modern approaches tend to reinforce rather than weaken the traditional
approaches to management (Mullins, 2005). For instance, the scientific
method focuses on efficiency of production processes, the motivation of the
employees through the offering of performance based pay and the observance
of strict principles. This view is reinforced by the modern approach to
strategic management which emphasizes the importance of focusing on
internal processes in order to remain competitive in the increasingly
competitive

business

environment

(Sheldrake,

2003).”

(Reference

/>4. The company’s development plan”:
- Now - up to 2020: we will improve Economic performance.
Build the quality management system on standard ISO 9001– 2008 
and then set standards quality performance for company and all departments

in order to increasing the performance each individual and department to
reached control the system, everything and every process will be measured
and controlled the performance in order to reduce the time and the cost of
operation management.
Standardized quality management system at LEO in 2016: overcoming
the inconsistencies, building the missing quality requirements; training for
all top manager about the quality management system knowledge for
implementing and maintenance QMS; regular evaluation, management
review and improvement performance.
- From 2020 – 2030: improve Global performance.


9

PART 1: ANALYSIS AND EVALUATION OF THE KEY PROCESSES.
Chapter 1: Process mapping & identify the critical points of each process
1. The Process mapping of the Ninh Khuong organization:


10

Explain Ninh Khuong’s process mapping:
The input: customer expectations/requirements.
The output: customer satisfactions.
After the factory receive the input customer requirements data and idea of new
product from R & D department, the manufactory department analysis warehouse
data and then make forecast planning production. The next step, the factory design
product according to customer requirements; select supplier providing raw materials
(fabrics cotton); making sample product to browse and then outsourcing suppliers
(sewing, hand embroidery and laundry) to finish the products. After next 2 – 3

months, the manufactory will receive the orders, manufactory conducting product
quality inspection of suppliers, calculate costs and selling price, make barcode and
delivery for all stores.
Marketing department PR the new products one month ago when finished
product and launching new products to the all shop of sale departments to selling.
And then, Sale department and Marketing department must to follow up and
measure to control new collection during 12 months by promotion program,
customer care, training selling, display product and collect customer feedback to
improve& develop product.
Primary process, beside the main departments above (R&D, Production,
Marketing, Sale), need some support departments also such as HR, engineering,
finance, account departments to finish the process of company.

Summary: Ninh Khuong process mapping includes procedures bellow to
understand requirements of customers and how to satisfy customer requirements.


11

 Management Process: Strategy, Policy and Tools/Method process.
 Four main process: deployment of production - trade and services
P.1/ R&D process:
- Idea and design the new product
- Making sample process
P.2/ Production process:
- Purchasing raw material.
- Outsourcing sewing & hand embroidery process.
- Product finishing process
P.3/ Product launching process:
P.3.1 PR product & promotion plan

- Sales training
- Check & control lifecycle product
P.4/ Selling process:
P.4.1 Direct marketing to customer
- Check & training selling
- Selling & customer service & feedback.
 Supporting process: Human resource process; Finance process; Design
process; IT process; Accounting process; Quality process.


12

The responsibility of main departments relevant to the process mapping of LEO_Ninh Khuong organization:
feedback

R&D

_Collecting/ Measuring
and analysis customer
requirements and
satisfactions.
_ Research products.
_ Research competitor.
_ Development products.
(lack of R&D – production
Director concurrently)

Manufacturing
_ Design
_ Forecast & purchasing: raw

materials, stock, facility,...
_ Producing: outsourcing
sewing & embroidery. Buy
product finished.
_ Control warehouse.
_ Suppliers selection.
_ Suppliers performance
management.
_ Supplier conferences.
_ Delivery to
contributors/retail stores.
_ Quality control products.

Marketing

Selling/after sale service

_ Selling.
_ Sales forecasts: revenue,
_ PR the products.
goods, stock,…;
_ Make promotion
_ Evaluate product
planning.
_ Collect feedback data of
_ Customer service
customers
management.
_ Make to orders for
_ Manage product

manufacturing.
lifecycle (12 months).
_ Delivery to customers
_ Engineering/ software.
_ Statistic, analysis of goods
sold send to manufacturing.
_ After sale service

We have 3 main processes that base on the interaction of all departments gained the benefit for our company:
production process, sale process, customer satisfaction process:


13

2. Identify the critical points of key processes:
2. 1 Production process mapping and critical points:
The PRODUCTION PROCESS of Ninh Khuong organization:
Management
review

MANAGEMENT RESPONSIBILITY

Data
analysis

Prevention/ Improving

PLANNING QUALITY MANAGEMENT
SYSTEM

POLICY - QUALITY OBJECTIVES
RESPONSIBILITY – COMPETENCE, RESOURCE MANAGEMENT, INTERNAL INFORMATION, DOCUMENT
CONTROL
Estimate
Supplier

Recognite
product

Import - Export
- preserved
products

Monitoring measurement
products

Control
products are
not suitable

control production
measurement
equipment

Control customer’s property
Estimate
Suppliers

Recognize
product

Import - Export
- preserved
products

Monitoring measurement
products

Control
products are
not suitable

control production
measurement
equipment

Monitoring measurement processes; customer satisfaction and internal audits

Satisfy customer demands

Laundry
(out sourcing)

Delivery, Order finished

(out sourcing)

The warehousing

Sewing

Barcode, cost, price product

(out sourcing)

Quality Product Control

Hand embroidery

Produce management

Determine, make plan & prepare

R&D Reports

Requirements of customer

Purchase products (materials, supplies, services and sub -contractors)


14

The critical points of production process: Base on the customer expectations
of this process:
o Customer will receive the quality product with the best price.
o Diversified products, good design, fashion, bright colors, quality of
material good for health.
o The customer satisfaction about quality product.
So the critical points of the production process:
o The rate of customer complaint about the product and service (design,

price, quality, color,…).
o The rate of customer to return the product.
o The rate of product defect.
o Product finished on time (delivery to sale department or customer on
time).


15

1.2 The Sales process mapping and critical points:
Production plan

PR production

Prepare Selling
(Selling plan)

No
Approve

Yes
Selling direct to
customers

Check – control and
measure the selling

Record feedback of
customers

Report and suggest
solutions

The critical points of sale process: Base on the customer expectations of this
process to reach target the revenue of the company:
o Reached the 100% revenue target.
o The revenue, the rate of customer complaint,… all of them are measured.
o The customer will receive the information of new product and promotion
program on time (effectiveness of PR activities).
o The customer satisfaction about quality service and product.


16

So the critical points of the sale process:
o The rate of customer complaint about the product and service (design,
price, quality, color,…).
o The rate of customer comeback for buying product.
o Delivery on time


17

1.3 The customer satisfaction process mapping and critical points:
The Orders need
selling

Repair & welcome
the customers

Consulting products
(quality, promotion)

The customer
decide buy product

No
Yes/ no

Yes
Thanks customer-continuous
consulting the others.

Guiding the cashier

Record information
of customers

After sale service

Record feedback of
customers


18

The critical points of customer satisfaction process: Base on the customer
expectations of this process:
o Receive the good service.
o Receive the good consultants for the product comfortable that they need.

o The low price and good promotion for them.
So the critical points of customer satisfaction process:
o Man power: the sale man understand product features, understand the
process satisfy customer, they know how to display products and how to
sale or consulting each product impossible to customer requirements.
o The rate of customer complaint about the service.
o The rate of customer to be recorded the information in the software
(CRM).
o Delivery on time.
Summary the critical points of three processes above (production process,
sale process, customer satisfaction process) are:
 Understanding customer requirements.
 The customer satisfaction about product and service.
 The product: good quality, best price, quantity, delivery on time.
 The rate of defect product lowest.
 The man power: understand product features, process selling and
service, good competencies,...
 Operate management:

good interaction of all departments, operate

quality management system, software support, measurement tools,
management review,…