Building quality management system at STYLE FASHION co , ltd

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL OF
ECONOMICS & MANAGEMENT

MBQPM4
PHAN HONG YEN PHUONG

Building Quality Management System at STYLE
FASHION Co., Ltd.

MASTER FINAL PROJECT
MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

Ho Chi Minh City
(2014)


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STATEMENT OF AUTHORSHIP

I certify that this project entitled “Building quality management system at STYLE
FASHION Co., Ltd” is my own work.

Except where reference is made in the text of the project, this project contains material
published elsewhere or extracted in whole or in part from a project by which I have
qualified for or been awarded another degree or diploma.

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

the project.

Ho Chi Minh City, 01 June 2014

Phan Hong Yen Phuong


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ACKNOWLEDGEMENTS
I would like to thanks:
All my Professors, especially Dr. Jacques Martin, who gave me the inspiration about the
wonderful things of quality management. They are like my fathers. They are the excellent
Professors! I understand thoroughly the tutorial teaching background. Master’s program
helped me access to modern methods of management that I had actually applied at my
company. In addition, my Professors also gave me an objective view detail why quality
management is important, to me it is an indispensable condition in the operating and
development that my company needs to have. My Professors have communicated to me the
knowledge and experience which I can apply for my company. These are very valuable
knowledge which I believe is not only useful for my current job but also for my future.
Classmates have shared the books with me so I can refer to and complete this assignment.
They also join me to discuss requirements of the assignment so that we can complete this
final project in the best way.
My director gave me the chance to be shown and taught me how to look at as a real
manager to be able to figure out the problem from deep inside. She is also one of those
who have a strong influence on me so I have to always learn and develop myself. She
believes I can do everything that I wish, if I always strive and learn.
My family has been enabling me to participate this course and access the knowledge’s
about quality management that is extremely useful. Since learning to do the work and have
business trips quite often so sometimes I feel a lot of pressure and limited time. At such

times the family was always there to support me and motivate their best.


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COMMENTS OF GUIDE PROFESSOR(S)


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TABLE OF CONTENTS
CONTENTS

Page

Statement of authorship

02

Acknowledgements

03

Comments of Guide Professor(s)

04

I. Introduction

06 – 16

Part 1: General introduction of STYLE FASHION Co., Ltd

06 – 13

1.1: Company profile

06

1.2: Organization Chart

09

1.3: Production process

12

Part 2: The present management system and problems

14 – 16

2.1: The present management system

14

2.2: Evaluation of the present management system

16

2.3: Why do we need to build the QMS?

16

II. Building quality management system

17 – 29

1. The need of implementing QMS

17

2. Building the QMS

17

3. The effectiveness of QMS

27

III. Conclusion and further developments

30 – 36

References & Appendices

37 – 42

 

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I.

INTRODUCTION:
PART 1: General introduction of STYLE FASHION Co. Ltd.
1.1 Company profile:
YES'S is a famous fashion brand name of official dress. It has a solid position on the
market for over 10 years and earned the favourite of most office female employees.
With a growing chain of 19 retail stores nationwide and the labour force
approximately 60s office staffs and 2500s workers, YES’S are going continuously to
expand into the international market to demonstrate Vietnamese brand name’s high
quality, especially in 02 main categories: Y type- normal product and R type –
luxury product. YES’S is not only the manufacturers, retailers but also the
distributors for supermarket channels nationwide. With the young, creative and
passionate range of staff to arouse customers desire to own the perfect product made
from the talent human of YES’S.
Starting from 2013, YES 'S has introduced a new product line for children called
YES'S KIDS, its aim to serve the infinity potential customer in Vietnam. To make the
differences among the current extremely competitive kids fashion market, YES'S
KIDS has launched an incredibly unique and impressive product of the collection of
Mother & Baby with the appearance of mother and daughter in the same dress and
the little girl holding a cute teddy bear which wearing the same outfit.
In addition to these unique and innovative products to attract customers we are also
one of the leading brands in reaching customers a friendly and approachable way
through fashion shows, parties that for dedicated customers, competitions, the playing
field for families with the opportunity to exchange and learn in parenting, and charity
activities hold by our company with the participation of clients in visiting orphanage
temples, orphanages, hospitals.
But YES'S still feel like that is not enough to make the customer feel most satisfied.

We also linked with business partners in a number of fields such as cosmetics,
lingerie, cuisine ... to send gifts to special and loyal customers. And this is also an
opportunity to introduce more customers to the business partners in a WIN - WIN
spirit of cooperation.
We greatly appreciate one statement of Adam Khoo that deeply inspired us: "We all
have the same starting point, but only 10% of the 90% who are likely to succeed.
Because they have creative ideas and turn ideas into reality." (Secret hand White
millionaire, 2012)
Vision: Developing distribution channels into domestic and international markets
with 100 franchised outlets to 2030.
Mission: The desire to make Vietnamese fashion brand famous among international
market in both quality and design.

 


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We now are investing development of 2 brands:



 

: Lady fashion


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

 

: Kids Fashion


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1.2 Organizational Chart:

Founder: Ms. Nguyen Thi Phuong Trang

 



Place of Birth: Dong Nai Province



Education: BA



Experience: 20 years in the garment industry



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



Participated in many charity activities in the local and international


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Product’s features:


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



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



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



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



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



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



The 25 Domestic Distribution Outlets will be launched to 2015.
Target Customers:



Successful 25 - 55 year-old Vietnamese women, whose income is more thyan
$1,000 per month.



Foreign customers have female fashion business in many country
+ Cambodia
+ Lao

+ Malaysia
+ Philippines
+ Japan
+ Australia
+ England

 


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+ United State
+ Dubai
Showrooms:
Our company has 19 showrooms covering most of the big centers in Vietnam such as:
Ho Chi Minh City, Dong Nai Province, Binh Duong Province, Vung Tau City, Ha
Noi Capital, Hai Duong, Thanh Hoa, Hai Phong, Nam Dinh, Vinh Phuc, Ninh Binh,
Viet Tri…

Showroom’s facilities:


Displayed images



Couches, drinks served, candy and cake for waiting guests



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



LCD for show many fashion show programs of YES’S



Make up table and mini studio for free services



VIPs lists are managed with software.

Services:

 



Door to door delivery as required.



Special free service as make up and studio



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



Consulting and repairing clothing for free



Money refunded for dislike products.



Products’ information is updated through media.



Feedback to customers periodically with customer care



Free coupons to customers frequently


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1.3

Production process:

Quality  ccontrol  

 


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Before a perfect product is introduced to the consumers, we must undergo a complex
manufacturing process, requiring professional and quality standards.
Firstly, we will have a design department to draw the samples. After samples are
approved, fabrics will be chosen to fit that designs. Next, the most important step in
that process is. Whether the designs of the dresses are nice, elegant, and whether the
finished garments are the same as the original approved designs, all of which depend
on the confection stage. The main seamstresses will be in charge of sewing samples.
Sample products are made only one for each sample. A series of approved designs
will undergo this manufacturing process to create product samples. These sample
products will be used by the marketing department to conduct promotional photoshoot. Any sample products worn by models look beautiful and with no defects will
be selected to put into mass production. The final products will be transferred to the
stage of laundry before being transferred to the stage of product quality control and
product packaging. When products are ready to deliver to the consumers, it will
definitely be a product that meets the quality standards which are set up by the
company.

 


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

The business started from small and based on the family relationship. This can have
some advantages: mutual trust, flexible working time, liveable wages...
When the business requires increasing market shares in tough and competitive time,
the family style management cannot meet the need of development and management.
Cause:
The skilled professional people in the family do the management and take leadership.
They do not see fundamental differences between professional operation and people
management and leadership. This leads to the lack of vision.
They use the family management style to apply to the company as follows:

 



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



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



Third, the assignment, job layout, licensing are not based on the capacity of each
person, but are primarily based on family ties. This is not only wasted talent but
also ruin the development of the business in the hands of bad manager.



Fourth, the capacity of management and leadership are not high because of the
authoritarian, patriarchal views. The management refuses to hear the opinions of


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

Fifth, the owners do not focus on the process of solving problem, conflict
resolution. Their management are based on parentage and do not focus on people.
At last, people do not care for company business. The staffs that have no
relationships with the siblings in the company can feel uncomfortable and seek
jobs in other companies.



Sixth, when the owners found some lower-level skilled workers who are
respected by people in the company, the owners envy them. This leads to the
difficulty to recruit better people. And usually these staffs will not be any longterm commitment with the company because of the pressures placed on their

shoulder from manager.



Seventh, the company's work and the work of the individual owners are the same,
so they do not have the concept of the public properties, the business community.
In fact, they do not have a sense of common property protection.



Eighth, the owners do not definitely distinguish the company and the family
business, they seem equivocal.



Ninth, a case of "director's director.” the husband tells one way and the wife tells
the different way, other people cannot know how to do! These staffs will arise
anxious psychology. When they received instructions, they do not dare
implement immediately.

Consequence:

 



Health care: Due to the cost savings, even the senior staff will not be guarantee
of health such as health insurance. In addition, medical equipment prepared in
garment factories or offices are very sketchy. Besides, the owners always have a
fear and worry about losing their business in the hands of one person in their

family, they work harder but mostly manual labor, thus, leading to poor health
status.



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



Public Relation: The owners are very afraid of contact with state agencies for
fear of being taxed or penalized. Besides the media also makes them feel anxious
when exposed because they think their business if experiences any minor


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

Partners: Since the form of this family business, the owners always reckons that
they are number one, does not expand or create relationships with complementary

partners for their business sector. Lack of relationships with partners in such a
fluctuate economy, they will forever be a lonely ship on the vast ocean, not
knowing will sink at any time.

2.2 Evaluation of the former management system:


People perform work differently: because no standard operating procedure set
before for staff to follow.



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



The staff: cannot have enough information and instruction for their work because
of the lack of job descriptions.



The staff performance: cannot be evaluated exactly because of the lack of Key
Performance Indicators (KPI).



The effectiveness: of the management system cannot be measured.



No quality policy and quality objectives to lead people.



Some of the inputs and outputs cannot be controlled.

 

2.3 Why do we need to build the QMS?

 



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



Building QMS help us reasonably manage the business and people.



Building QMS help us develop the company size and image



Building QMS is also a requirement of society.

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II.

BUILDING QUALITY MANAGEMENT SYSTEM:

1.

The need of implementing the QMS:

2.



To standardize: all of the activities of the company following the Standard
Operating Procedures (SOP).



To control the processes: Define the processes and the relationship between
them to know the correlation and interaction of the processes.



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



To evaluate exactly people performance based on the KPIs



To measure the effectiveness of the management system



To lead people effectively by following quality policy and objectives



To control all of the inputs and outputs



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



To create the sale skills professionally
Building the quality management system (QMS)
2.1. Defining processes and their correlation and interaction
 The processes in the company are not isolated and motionless. They have
the closed relationship between one another. The outputs of a process can be
the inputs of another one. If we regard the processes under the separation,
we cannot control the processes effectively as expectation.
 The following process mapping shows the correlation and interaction
between the processes in the Style Fashion Co., Ltd.

 

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2.2. Quality policy
STYLE FASHION Company with the system of YES’S shops is committed to
continual improvement of processes and services to achieve and exceed
customer satisfaction. It is therefore our policy to:
 Consistently provide diversified and quality product that conforms to
customer and regulatory requirements.
 Ensure that all personnel are competent and qualified for the tasks they
perform, and that all personnel familiarize themselves with quality system
documentation in order to implement the policies and procedures in their
work.
 Professionally and effectively perform our business in trading lady and kid
fashion product
 Consistently comply with ISO 9001 to ensure product quality and trading
services as well as to continually improve the effectiveness of the Quality
Management System.

 


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2.3. Quality objectives
 Quality Management System accords with requires ISO 9001: 2008
 100% Staff absolutely understand their responsibilities and realize their
businesses in accordance with standard processes and actions through
information and training system.

 Satisfy 100% trade agreements
 Defect Product Scale from inventory is not over 1%.

2.4. Building Documentation System

Quality Manual
Policies and statements of intent
for meeting applicable Standard
requirements
1
2
3

QS Procedures
Who, what, when, where and how
QMS and operational processes
are performed
Work instructions

4

Quality records provide evidence of compliance

 


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

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



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



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



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



The Quality Manual is distributed to Director Board, Managers of all Depts.,
the YES’S shops. It also is distributed to Certification Body for certifying
the quality system when needed. The distributed documents are the
controlled documents.
The distribution of controlled copies of Quality Manual is approved by
Chief of ISO committee. The Distribution List is kept at ISO committee.



 



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



The change/ amendment of documents will be carried out when there are
some changes on organization structure, quality policy, or actual activities
of company. The above changes must be approved by Managing Director



Any change/amendment must be noted, numbered, and retained at ISO
committee. The revision and effective date of documents must be presented
on each changed/amended page. The revision will be made one time more
for each change /amendment.



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

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2.4.2. The written procedures: Building the standard operating procedures (SOP)
based on the 6 obligatory procedures and what needed for the operation of the
company
2.4.2.1. Procedure for document control
 All document must be reviewed and approved before issuing
 All documents must be reviewed, updated and approved when out of
validity or whenever there is any change in contents
 All documents must have name, identification number, issued date, for
identifying the changes and the current status of documents
 The original of documents are kept at ISO committee and the copies of
documents are kept at related sections. The copied must have COPY stamp
affixed for easily revoking when out of validity
 The expired documents are revoked and destroyed by ISO committee to
prevent mistaken use. ISO committee keeps one copy/ document for
traceability
 The documents from outside the company must be identified and controlled.
2.4.2.2. Procedure for record control
 All records must be reviewed and kept in 3 years from establishment
 All records must have name, date of establishment, name of preparer for
easily identifying, keeping, protecting, using, and revoking
 Records are distributed to right places
 Records are kept as archives for traceability
2.4.2.3. Procedure for control of nonconforming product
 The product which is not met the planned requirements, shall be isolated
and reported to head of department for handling
 Head of department shall review the nonconforming product and make

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

 


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a) Take actions to eliminate the nonconformity by fixing, recovering the
nonconforming product by changing its components. The head of
department review the ultimate product and if it is in specification, the
product can be released.
b) Head of department can give permission to release or use
nonconforming product under concession by a relevant authority, and,
where applicable by customer or top management
c) Take action to preclude the original use or application of nonconforming
product
d) Take action appropriate to the effects, or potential effects, of the
nonconformity when nonconforming product is detected after delivery.
Records of the nature of nonconformities and any subsequent actions taken,
including concession obtained, shall be maintained
2.4.2.4. Procedure for internal audit
The company carries out internal audit one time/ 12 months or whenever
needed to define the compliance and effectiveness of quality management
system (QMS)

 

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Audit program management (ISO 19011: 2003)

Director delegates
responsibility for audit
program management
(ISO 19011,5.1) 

Setting audit program (ISO 19011/ 5.2, 5.3)
-

Scope and objectives
Responsibilities
Resources
Procedure

Implementing audit program (ISO 19011/5.4,5.5)
Improving
audit
program

-

Schedules for audit
Assessment of auditors
Selecting audit group
Directing audit
Maintaining records

Competence
of auditors
(clause 7) 

Audit
actions
(Clause 6)

Monitoring and reviewing audit program (ISO
19011/5.6)
-

 

Monitoring and reviewing
Defining needs for corrective and
preventive actions


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Audit activities
Start audit deployment


Appointing lead auditor



Defining scope, objectives and audit criteria



Determining the possibility of audit (information, time, resources, the cooperation
of auditees)



Selecting audit group (the auditors must not audit their own sections)



Initial communicating to the auditees

Carry out document review


Review documents of related management system, including records and its
sufficiency compared to audit criteria.

Prepare the on-site audit activities


Prepare audit plan



Assign tasks in audit team



Prepare working documents

Implement the audit activities on-site

 



Carry out the opening meeting



Inform during audit process



Role and responsibility of instructor and observer



Collect and check information



Establish findings during audit



Prepare for audit conclusion



Conduct the wrap-up meeting


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Prepare, approve and send audit report


Prepare audit report



Approve and send audit report

Finishing audit


Audit report and information collected during audit process need to be in security
as the auditee request



Carry out supplemental audit (if needed)

Methods for audit


Review records



Make questionnaire and interview



Observe



Check



Combine 2 or more of the above methods

2.4.2.5. Procedure for corrective action
When any employee/department finds the nonconformity (including customer
complaints), the following actions must be taken:
 Report to head of department/ top management depending on level of
conformity for reviewing the correction together as well as analyzing the
causes of nonconformity
 Determine the causes of the conformity found
 Take necessary actions to eliminate the causes of conformity found
 Maintain the records of corrective actions done
 Review the effectiveness of corrective actions done