ĐÁNH GIÁ VIỆC áp DỤNG ISO 9001 tại CÔNG TY điện lực NAM ĐỊNH e

EVALUATION OF THE APPLICATION OF ISO 9001
IN NAM DINH POWER COMPANY

3


COMMITMENT
I hereby commit that this thesis is my own study. The data and results mentioned in
the thesis are true and have never been published in any research.
Author
Tran Manh Sy

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TABLE OF CONTENTS
Preamble
Chapter 1: Overview of Quality and the Quality Management System
1.1 Basic issues on the quality and quality management:
1.1.1 Quality of products
1.1.2 Quality control
1.2 Quality Management Models
1.2.1 ISO 9000 –Based Quality Management System
1.2.2 Other Quality Management Models Apart From ISO 9000

7
9
9
9
12
15

15
25

Chapter 2: Analysis of Reality of Application of ISO 9001:2008 in Nam Dinh
Power Company
30
2.1 Special characteristics of power products:
30
2.1.1 Electricity products
30
2.1.2 Power supply stem and characteristics of power generation and
consumption process:
30
2.2. Features of Nam Dinh Power Company
33
2.2.1 General introduction about the Company
33
2.2.2 Development history of the Company
33
2.2.3 Some basic features of the Company
35
2.2.4 Organizational Chart of the Company
36
2.3 ISO 9001:2008 Standard-Based Quality Management System of Nam Dinh
Power Company
37
2.3.1 Overview on the ISO 9001:2008 related document system of the
Company
37
2.3.2 Structure of ISO 9001:2008 related documents of the Company:39

2.4 Evaluation of application of ISO 9001 in Nam Dinh Power Company: 47
2.4.1 Evaluation of maintaining effectiveness of the system:
47
2.4.2 Evaluation of quality of products and services
51
2.4.3 Evaluation of compliance and improvement of professional
procedures:
53
2.4.4 Evaluation of management work
53
2.4.5 Evaluation of the market and clients:
55
2.4.6 General remarks:
56
Chapter 3 Recommendations of some solutions to improve the results of the
Company’s quality management system application

58

3.1 Solutions to improving effectiveness of the Quality Management System 58
3.1.1 Training and re-training on quality
58
3.1.2 Intensifying internal evaluation work
60
3.1.3 Improvement of quality culture
60
3.2 Solutions to improve of quality of power products and services
61
3.2.1 Upgrading the medium-voltage from 10 kV to 22 KV
61

3.2.2. Minimizing power failures due to problem of power grids
61
3.2.3 Information technology application to recording power indices to
minimize errors
62
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3.3 Solutions to market expansion and development of customers
63
3.3.1 Minimizing power cut to increase power output:
63
3.3.2 Developing new power consumers:
63
3.4 Solutions to remaining and improvement of ISO procedures and process 64
3.4.1 Training and improvement of quality of compiled documents,
procedures and process
64
3.4.2 Application of ISO documents, process and procedures to practical
production and business
65
3.5 Improvement of effectiveness in ISO online – based management work 65
3.5.1 ISO online system
65
3.5.2 ISO Online implementation steps
66
3.6 Solutions to applying and supplementing 5S method in quality management
67
3.6.1 Necessity of application of 5S in Nam Dinh Power Company: 67
3.6.2 Recommendations on 5S plan implementation schedule in Nam

Dinh Power Company
67
Conclusions
70
Appendixes
71
Reference documents
76

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PREAMBLE
In the context of the market economy and currently deeper integration into the
world economy, Vietnam enterprises have to create products with high quality,
competitive price and meeting varied demands, which is more important, to survive
and develop.
Currently, many companies have chosen the ISO 9001-based quality
management model. If the companies seriously apply ISO standards to their business,
the quality management system shall effectively to reduce cost, increase their
competitiveness and other benefits. The improvement of quality management systems
would help to create the confidence in the market, build brands, and generate the key
driving force for the enterprises to grow.
Nam Dinh Power Company is a power company directly under Northern Power
Corporation – Vietnam Electricity. It is the unique company managing the power
transmission grid and selling power in Nam Dinh Province. The specific feature of the
electricity industry is that the State exclusively manages electrical products so there is
no competition in the retail electricity market. However, the power industry in general
and Nam Dinh Power Company have to complete higher and higher economic –
technical targets assigned by the State to improve their effectiveness in production and

business. In addition, a company is inclined to serve the society so satisfying
customers’ needs is one of the most urgent requirements now. Suitable application and
operation of an effective quality management system help the Company solve the
issue.
ISO 9001 standard-based quality management system has beeing applied by
Nam Dinh Power Company since 2007. The system has been applied effectively for 6
years, significantly contributing to construction of the working manner, improvement
of effectiveness in production and business as well as better meeting varied demands.
However, operations of the electricity industry are not concentrated so the
company’s units do work in the fence like many other business models. They often
work in the system of power transmission line and stations throughout the province.
Most of the workers, employees regularly meet clients directly. Therefore, there are
shortcomings during the process of quality management system application to be
corrected, completed to promote and improve effectiveness of the quality management
system.
Due to above mentioned reality, I, as a leader of Nam Dinh Power Company,
select the topic “Evaluation of application of ISO 9001 in Nam Dinh Power
Company” for my study and apply directly in my Company.
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The objectives of the this study is to investigate ISO 9001:2008 Standard-based
Quality Management System of Nam Dinh Power Company.
The specific objectives of the study are:
- To review the theoretical basis of quality and quality management systems,
- To analyze the application reality of ISO 9001 Standard-based Quality
Management System in Nam Dinh Power Company
- To propose some solutions to improve and complete the outcomes of the
Company’s application of ISO 9001:2008
The main methodologies in this study are: observation, data collection via

interviews, questionnaires, statistics, comparisons, analysis, generalizations.
The data analysis will be based on the data collected during past 5 years, from
2008 to 2012.
Thesis structure:
Apart from the preamble, conclusion, appendixes, list of references, this thesis
consists of 03 chapters:
Chapter 1: Overview of Quality and the Quality Management System.
This Chapter review the basic issues on quality and quality management,
summary of current quality management models, then focus on the ISO 9000 Standard
– based Quality Management System.
Chapter 2: Analysis of reality of application of ISO 9001 in Nam Dinh Power
Company
This Chapter presents some special features of power products and Nam Dinh
Power Company, descriptions of ISO 9001 Standard-based Quality Management
System which have been applied in the Company, evaluation of ISO application in the
Company
Chapter 3: Recommendations of some solutions to improving the ISO 9001
Standard-based Quality Management System in Nam Dinh Power Company.
As countermeasures for shortcomings in application of the ISO in the
Company, this chapter proposes the recommendation on some solutions to complete
and improve the Company’s ISO 9001:2008 Standard-based Quality Management
System
Although my study is limited and incomplete, I do believe that the thesis has
reached basic targets by my efforts and enthusiastic assistance of the Teacher, Dr.
Phan Chi Anh.
Tran Manh Sy
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Chapter 1

OVERVIEW OF QUALITY AND THE QUALITY MANAGEMENT SYSTEM
1.1Basic issues on the quality and quality management:
1.1.1Quality of products:
1.1.1.1 Concepts of the quality:
Quality is a relatively broad and complicated concept, reflecting the
combination of technical contents, economic and social factors. Quality is defined by
varied authors in different aspects with different concepts.
For producers, quality is the achieved assurance and remaining collection of
standards, specifications or requirements which have been pointed out before. The
created products have suitable criteria and measurer to the standard system for high
quality products.
For customers, quality is the appropriateness of the products to their intended
use or in other words, quality is the satisfaction of customers' needs. “Quality is to
meet requirements” defined Philip Crosby, or according to Dr. Eward Deming
“Quality is consistent with the purpose or use of customer satisfaction” [ 10 , p.37 ]
In the aspect of the value, quality is measured by the relationship between the
benefits from product consumption and the cost to reach such benefits. According to
Kaoru Ishikawa “Quality is satisfaction to the needs of the market with the lowest
cost” [ 10 , p. 37 ]
The above mentioned concepts show the fact that quality is always considered in
relationship and closely dependent on market factors. The definitions of quality of
products and services are toward customers’ satisfaction in certain specific conditions.
International Organization for Standardization (ISO) provides a definition of
quality in its set of ISO 9000 standards as follows: "Quality is the degree to which a
set of characteristics of an entity is able to satisfy the raised or potential demands”.
Due to its practical impacts, this definition is widely accepted in the international
business today. This definition ensures consistency between meeting external demands
and actual internal capacity of each company in the certain socio-economic
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conditions. In fact, this concept of product quality reflects the combination of the
above definitions and quality generalization in higher level.
1.1.1.2 Factors reflecting product quality:
Functions of products, which is the ability of these products to perform their
functions and activities to meet the desired purpose of use of the products. This group
characterizes the specifications to determine effects of primary functions of the
products.
Safety of products. The safety norms in the use and operation of products,
safety for the consumers’ health and the environment are essential elements for the
products in current consumption conditions.
Durability of products. This is the characteristic element for the products to
keep them to work normally under the design standards in a certain time. Durability is
an important factor in deciding to buy goods of consumers.
Reliability of products. This is the characteristic element of the products,
constantly maintaining the ability to work without error or malfunctions in a certain
time period.
Aesthetics of products. This is the characteristic element for inspiration, the
reasonableness in term of formality, appearance, texture, perfect sizes, balance, color,
decoration, and fashionableness.
Brand of products has become an important part of product quality today.
Convenience reflects the demands of availability, easier transportation, storage
and user- friendliness of the products
1.1.1.3 Features of quality:
Product quality is both objective and subjective. The subjectivity of products is
shown through customer awareness and depending on the design solutions, tests,
employees, etc and the entire system. The objectivity of products is expressed through
the intrinsic characteristics of each product shown in the process of forming and using
the product.
Product quality is relative. A product can be rated as high quality in a period

but it is not at another time.
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1.1.1.4 Factors impacting quality
* Quality is impacted by external factors
- Market situation: the quality has to be improved consecutively to timely meet
more diversified, quicker changing demands.
- Scientific- technological advances: Scientific- technological advances are
unlimited to constantly improve product quality. Thanks to scientific advances, new
better and cheaper resources are created. Quality of the created products is suitable to
the more and more improved economic – engineering targets to better meet the needs
of consumers.
- The State’s mechanism and policies: The appropriate policies and
mechanisms will stimulate companies to promote investments and create an
environment of healthy competition to improve quality of their products and services.
- Cultural - social factors of localities: cultural, moral, social factors and those
related to traditional practices, consumer habits, etc have a direct impact on the quality
attributes of a product, requiring each product to match them and product quality to
depend on them.
* Quality is impacted by internal factors:
- Quality of human resources of the companies: People are the direct factors to
create and make decisions on product quality. The quality depends on the expertise,
skills, experience, sense of responsibility, the cooperation between the members and
departments in a company.
- Technology-based production lines: modern level of machinery, equipment,
and technology-based production lines affects product quality greatly.
- Input materials: They are the factor forming attributes of the product quality .
- Corporate management capacity: proper combination in exploitation of the
available resources to create products depends on awareness, understanding of quality

and quality management, construction capacity and instructions to follow quality
policies and quality targets of the managerial officers.
1.1.1.5 Importance in improvement of product quality
Improvement of product - service quality is an important solution consistently
combining benefits to create incentives for the development of each company.
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Creation, remaining and improvement of quality bring practical benefits to companies,
consumers, workers and entire society. In particular, companies improve their
competitiveness, the market is more expanded, production is more enhanced; workers
have employment and their income is improved, the consumers’ demands are met with
affordable cost; the State increases the budget and handles the social issues.
1.1.2

Quality management:

1.1.2.1 Concept of quality management:
Currently, there are many different definitions of quality management.
According to GOST 15,467-70, quality management is to build, ensure and
maintain the essential quality of products in design, manufacture, circulation and
consumption. [ 10 ]
According to AG Robertson, quality management is a management system to
build programs and to combine efforts of varied units to maintain and enhance quality
of design organizations and producers to secure to approach the most efficient
production and to fully satisfy the requirements of consumers.[10]
According to Prof. Dr. Kaoru Isikawa, a Japanese expert, quality management
is the process of research and development, design of production and maintenance of
some high quality products with the most economic cost and most benefits to provide
to the customers and constantly meet their needs. [10]

According to the JIS (Japanese Industrial Standards), quality management is the
system of production methods to create products with the highest quality or to offer
the best services in order to satisfy increasing demands of consumers. [10]
In the ISO 9000’s definition of quality management, quality management is the
general managerial operation to set quality objectives, quality policies and it is
implemented by such methods as quality planning, quality control, quality assurance
and quality improvement in the formwork of a certain quality management system.
This definition ensures almost all of the required contents.
The above definitions show that the quality management is combination of
managerial operations to identify targets, quality standards, contents, methods and
responsibilities to carry out norms and standards which are determined by the

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appropriate means such as planning, quality control to ensure and improve quality
within the formwork of a quality system to determine the most efficiency.
1.1.2.2 Role of quality management:
The role of quality management is expressed specifically in the following areas:
- For companies: Quality management helps them produce and run business
most efficiently to remove unnecessary loss and damage. Provision of the best
products and services is aimed at continually meeting customers’ demands, which is
the key factor to help each company compete successfully in the market. Therefore,
quality control is one of the vital stages of a company.
- For the consumers: Quality management ensures to enhance product quality to
satisfy demands at best, contributing to improvement of the living quality of
consumers.
- For the economy - society: quality management contributes to saving
resources, labor force, capitals, and promoting productivity
1.1.2.3 Functions of quality management

Quality management functions can be concretized by the following specific
contents:
-Planning function: quality planning is an act to determine targets, means,
resources and measures to achieve the objectives of product quality
- Organization function: Each company must choose a suitable quality
management system. Organization and implementation of a determined plan include
conduct of economic, organizational, technical, political, thoughtful, administrative
measures to help people aware of their objectives and contents to be implemented and
training, fully equipping with the necessary resources at anytime, in anywhere.
- Testing and control function: is the process of control and evaluation of
professional acts via techniques, means, methods, and operations to secure to provide
the quality as required.

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- Adjustment and coordination function: is aimed at creating the synchronous
coordination to overcome shortcomings and pushing the products to the higher
position to reduce the gap of customers’ demands and actually achieved quality.
- Stimulation function: encourages the quality assurance and improvement
through the application of the sanctions regime for quality workers.
1.1.2.4 Quality management system
* Concept of quality management system:
According to ISO 9000:2000, "Quality Management System is a combination
of factors and interactions to identify directions and control the quality of an
organization”. The quality management system is the means to carry out objectives
and quality management functions. Therefore, it helps companies stably meet the
customers’ demands on quality of products and services, even beyond the customers’
expectations.
* Constitutional factors:

The quality management system consists of many constitutional factors and parts
with

close

relationship. According

to

the

International

Organization

for

Standardization, a quality management system includes the following elements:
1/Organizational Structure. 2/ The applied regulations. 3/ Processes
* Roles and functions of the quality management system:
-Quality Management System contributes to increasing income, profitability,
market share, brand reputation of the products and corporate reputation in the market.
-Quality Management System brings satisfaction to customers. The certified
systems are important basis for customer to evaluate the product quality.
* Classification of the quality management system:
- According to the International Organization for Standardization, ISO 9000 –
based quality management system is a quality management system with the most basic
requirements.
- A comprehensive quality management (Total Quality Management)
- The Q-Base Quality Management System for small and medium companies.

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-The systems of standards on food safety and quality: GMP, HACCP, SQF, ISO
22000.
- The quality management system for companies specialized in manufacture and
assembly of automobiles and car components: QS 9000.
- The quality management system based on meeting the criteria of quality awards
1.1.2.5 Quality culture
Currently there are many approaches to the concept of quality culture.
However, they share such points as quality culture is a part of corporate culture. In
fact, quality culture is a combination of advances and consecutive reforms of quality
of products and services, which are consistent by all members in the Company from
the manner to action to continually meet the increasing needs of its customers.
Quality culture is formed in the process of survival and development of
enterprises, which is accepted and shared by all members of a company. It dominates
all emotional thoughts and behaviors of its members in the quality issues. It creates a
favorable environment for continuous improvement of quality, assisting the company
continuously satisfying its customers. Accordingly, quality culture makes a valuable
difference, its competitive advantage to ensure the sustainable development of the
company.
Quality culture, in a narrow scope, has two components: external expression of
quality control and internal values, beliefs of quality. The external expressions of
quality culture in an organization may be the workflow, self -discipline, concentration
of production workers, the cleanliness and tidiness in the factory, attitude of workers
to the extraordinary events, the organizations’ responds to customers’ feedback, etc.
The external expressions shall directly contribute to quality improvement of products
and services. However, the internal factors of quality culture with perceptions, beliefs
and new values are core issue to ensure the sustainable existence of the above external
expressions.

1.2 Quality Management Models
1.2.1 ISO 9000 –based Quality Management System
1.2.1.1 Introduction about ISO
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International Organization for Standardization – ISO is a non-governmental
organization which was founded in 1947. Its headquarter is located in Geneva Switzerland. ISO has more than 160 member countries, of which Vietnam is the
official member of ISO since 1977.
ISO is responsible for issuing the international standards (ISO) recommended
to be applied to facilitate global trade and protect safety, health and environment to the
community. ISO International Standards are issued after being approved under the
principle of voting majority of official members of ISO. All the standards set by ISO
are voluntary
1.2.1.2 ISO 9000 Standard
ISO published the ISO 9000 Standard in 1987. It is the international standard
on quality management systems applied to all kinds of organizations / enterprises to
ensure the ability to provide products meeting customers’ demands and laws stably
and regularly improving their satisfaction. ISO 9000 Standard is aimed at assisting the
applying organizations to operate with high efficiency in general rules to facilitate
trade exchange process easier
The latest version of ISO 9000 Standard includes the following basic criteria:
• ISO 9000:2005 on concepts and basic language of quality management;
• ISO 9001:2008 on requirements of a quality management system;
• ISO 9004:2009 guidance for implementation of a more effective quality
management system;
• ISO 19011:2011 guidance for assessment of management systems
In which, ISO 9001:2008 is the standard specifying requirements for the
construction and certification of a quality management system in the organizations /
enterprises as well as the basic principles for managing their activities in connection to

quality issues through the following five requirements :
• Quality Management System
• Responsibilities of Leadership
• Resource management
• Product creation
• Measurement, analysis and improvement
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Creation of ISO- 9000 is a breakthrough in activities of quality and standards in
the world thanks to its practical contents and wide, quick response of many countries,
especially their industry. In the 50 year establishment and development history of the
International Organization for Standardization, they are international standards with
the most popular application speed and the most general results.
ISO standards have been translated and issued by the Ministry of Science and
Technology into the Vietnamese Standards (TCVN) in the principles of acceptance of
entire contents and addition of TCVN symbol before that of the ISO standards.
1.2.1.3 Main philosophy of ISO 9000 Standard
- Construction of quality management system. ISO 9000 pays the first attention
to the quality- oriented management of companies. This philosophy is based on the
causal principle between product and management quality.
- Correct execution from beginning. To complete the philosophy, a company has
to accurately forecast the market to make the suitable business strategies and focus on
planning of entire business process throughout the lifecycle of a product. The planning
work must be carried out carefully to secure correction execution from beginning.
- Keeping the motto “prevention is the key”. Preventing the inconsistencies to
produce more suitable products to meet customers’ requirements; This motto must be
applied in all management activities, particularly in the planning and design steps to
secure correction execution from beginning.
- Process-based management. Taking processes to organize management. The

process-based management always mentions suppliers, consumers and process of
product creation. The process-based management emphasizes the importance of
understanding and meeting customers’ requirements, effectiveness and efficiency of
processes and continuous process improvement on basis of measuring objects.
Advantages of the process-based management are control of ongoing work, covering
the connection of single processes in the system of processes of companies.
- The prominent point throughout the ISO 9000 standard is the issues related to
human beings. If all people are not facilitated to be correctly aware of roles and
importance of quality which impacts directly their rights and to promote all of
capacities, the quality system will not achieve results as expected
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1.2.1.4 Eight quality management principles of ISO 9000
The ISO 9000 standard is based on eight quality management principles which
are learnt from the knowledge and experience of international experts.
The contents of each principle and its benefits are described as follows:
Principle 1: Customer- Oriented
Companies depend on their customers so they have to understand the current
and future needs of customers to meet requirements and supply products beyond their
expectations.
Compliance with this principle, the company can achieve a number of benefits
such as (1) increase in revenue and market share via flexible and quick reactions to
market opportunities, (2) increase in improving efficiency in the use of the
organizations’ resources to further satisfy customers, (3) increase in customers’
loyalty.
Principle 2: Leadership
The Leader has to match purposes and policies of the Company. In addition,
he/she has to create and maintain the entirely attractive internal environment for
everyone to achieve the Company’s objectives.

Compliance with this principle, the company can achieve a number of benefits
such as (1) awareness of officers and employees who are motivated towards the
Company's goals; (2) the activities are evaluated, linked and implemented
consistently; (3) misunderstanding / errors in communication among levels of the
Company will be minimized.
Principle 3: Participation of people
The most important resource of a company is human resource and their
sufficient participation with the knowledge and experience which are very useful for
the Company.
Compliance with this principle, the company can achieve a number of benefits
such as (1) promoting the participation of people in its operations, (2) enhancing
innovation, creativity in its further objectives, (3) More responsibilities of the staff for
their performance; (4) desire to participate and contribute to the continuous
improvement.
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Principle 4: Process-based approach
Desired results will be achieved effectively when resources and related
activities are managed as a process.
Compliance with this principle, the company can achieve a number of benefits
such as (1) reducing costs and shortening the cycle time of operations through
efficient use of resources, (2) suitably improved and predictable results, (3) focus and
priority in improvement opportunities.
Principle 5: System-base approach
Identifying, understanding and managing a system of interrelated processes
contribute to the efficiency of the Company in achieving its objectives.
Compliance with this principle, the company can achieve a number of benefits
such as (1) integrating and connecting the best processes to achieve the desired results,
(2) the ability to focus their efforts on important processes, (3) assuring the interests of

concerned parties from consistency and efficiency of the company.
Principle 6: Continual improvements
Continual improvement is both the goal and the method of every company. A
company has to consider continual improvement as a long-term goal to get
competitiveness and the highest quality.
Compliance with this principle, the company can achieve a number of benefits
such as (1) the advantage of the performance via improving abilities of the company,
(2) connecting improvement activities in all levels towards its strategic goals, (3)
flexibility to react to opportunities quickly.
Principle 7: Actual approach as making decisions
All decisions and actions of effective business management systems must be
built on basis of analysis of data and information.
Compliance with this principle, the company can achieve a number of benefits
such as (1) making decisions on basis of awareness of information, (2) increasing
proved effectiveness of decisions in the past via actual reference documents, (3)
increasing ability to review, challenge and change opinions and decisions.
Principle 8: Mutually profitable cooperation relation with suppliers

19


Companies and supplies in the reciprocal relationship of mutual benefits will
improve their capacity to create values.
Compliance with this principle, the company can achieve a number of benefits
such as (1) increase in the ability to create values for the organizations and
stakeholders, (2) the flexible and rapid reaction to market changes, demands and
customers’ expectations, (3) optimizing the costs and resources

Figure 1.1 Continual Improvement Model of ISO 9000
1.2.1.5 Reasons for application of ISO 9000

Motivation for enterprises to adopt ISO 9000 standard can be classified under
two main categories: internal and external motivations
Internal motivation is primarily related to improvement of business objectives,
quality of products and services, internal processes, operational efficiency of the
company, knowledge, skills and capability of its staff and employees, etc.
External motivation is related to issues such as advertising and marketing,
enhancing the corporate image, improvement of customers’ satisfaction, seeking new
business opportunities, market expansion and increased market share, etc.
1.2.1.6 Benefits of ISO 9001:2008

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When a company implements ISO 9001: 2008, the benefits can be categorized
into internal and external benefits. External benefits are related to improvement of
advertising and marketing meanwhile internal benefits are related to organizational
improvements.
Table 1.2: The most common benefits of application of ISO 9001
External benefits
• Integration into new markets

Internal benefits
• Increase in productivity

• Improvement of the Company’s image

• Reduction of default product rate

• Increase in market share

• Raising quality awareness

• ISO Certificate is considered as a

• Definitions of obligations and

marketing tool

obligations of staffs

• Improvement of the relationships with

• Improvement of delivery time
• Improvement of internal

customers
• Better satisfying customers

organizations

• Improvement of communication with

• Delivery of inappropriate products
• Reduction of claims of customers

customers

• Improvement of internal
information
• Improvement of production quality

• Promotion of competitive
advantages
• Incentives to staff
Source: [12, P.40]
The group of authors Nguyen Hong Son and Phan Chi Anh mentioned the
judgment of majority of managers in the U.S. (in 105 interviewed companies) said
that, in their research (2013), ISO 9000 has a positive impact on improving product
quality among important benefits offered to companies. In addition, the researchers
Sousa and Voss (2002) thought that ISO 9000 has a strong impact on the quality and
business results [12, P. 41, 42]

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1.2.1.7 Steps to construct the ISO 9001:2008 Standard-based Quality
Management System
The ISO 9001:2008 standard-based quality management system will be
constructed by the following steps:
- Step 1: To learn the standards and determine the scope of application: the
Company’s leader need to understand the meaning of ISO 9000 in organizational
development, orientation to activities, determining specific application goals and
conditions.
- Step 2: To make an ISO projects committee: The application of ISO
9001:2008 is a big project so one ISO 9000 steering committee, including
representatives of the Leadership and parts in the scope of ISO 9001:2008 application
is required. It is necessary to appoint the representative for Quality Manager to
represent him in instruction and application of ISO 9001:2008 standard-based
management system and bearing responsibilities to the leadership for quality
activities.
- Step 3: To evaluate the status of the Company in comparison with the

standard requirements: It is necessary to check the process- oriented activities and
consider which requirements are not applied and current satisfaction level of activities
in the Company. This assessment is the basis for determining the activities to be
changed or supplemented to construct the detailed action plan.
- Step 4: To design the system and prepare the documents on quality system:
The document system must be constructed and completed to meet the requirements of
the standard, the operating requirements of the Company, including: Quality
Handbook, concerned processes and procedures; manual, necessary rules and
regulations.
- Step 5: To apply quality systems subject to steps:
+ To popularize to all employees for correct and full awareness on ISO
9001:2008
+ To instruct staff to follow constructed guidance and procedure.
+ To clearly identify responsibilities and powers associated with each specific
process and procedure.
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-

Step 6: To make internal assessment and to prepare for evaluation and
certifying, including:

+ To organize internal evaluations to determine appropriateness of the system
and to carry out necessary remedial actions and precautions
+ To prepare for assessment and certification to determine the degree of
completion and the readiness of the system for assessing and certification.
- Step 7: To evaluate and certify appropriateness of the system under the
requirements of ISO 9001:2008 Standard and to issue the Certificate of Conformity
with the Standard issued by the Certifying Organization.

- Step 8: To maintain the quality system after certification: After overcoming
the problem which is discovered during the process of evaluation and certification, the
Company needs to maintain and improve operations to meet the requirements of
specific criteria as follows:
+ To publicize and instruct all employees to follow it.
+ To organize to facilitate staff to commit following instructions
+ To hold talks on quality
+ To organize internal evaluation of quality for officers and to provide
professional training to them.
+ To regularly review and adjust procedures, process, instructions and
evaluation.
1.2.1.8 Application of ISO 9000 in the world and in Vietnam
* Application of ISO 9000 in the world:
Today, ISO 9000 registration become a notable international phenomenon with
participation of many varied countries and organizations, enterprises. The extended
application of ISO was originated from Europe. The European enterprises cause
pressure on their suppliers around the world to force them to apply ISO 9000
standards. The supplies use ISO 9000 standards as an international trade barrier
imposed on organizations failing to achieve ISO 9000.
Wide application of ISO 9000 in countries is due to two main reasons: firstly,
to compete against each other, among companies and secondly, to meet the
requirements of customers in the global supply chain.
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According to the study of the group of authors Nguyen Hong Son and Phan Chi
Anh ( 2013 ), application of the ISO 9000 (ISO survey) in period 2000-2011 in the
world rose sharply. The Certificates of Conformity with ISO 9000:2000/2008
Standard in 2011 were 1,111,698. 10 nations with the largest Certificates of
Conformity with ISO Standards are Italy, Spain, France, Germany, UK, China, Japan,

India, Korea and Brazil. It is easy to aware that the nations with the largest
Certificates of Conformity with ISO 9000 Standard are developed ones. [12, P. 37]
Figure 1.3 Certificates of Conformity with ISO 9000 Standard in the World in
period of 2000 - 2011

Source: [12, P. 36]
* Application of ISO 9000 in Vietnam:
ISO 9000 was accepted and has been applied in Vietnam from the second half
of the 1990s. ISO 9000 has been specially interested by Vietnamese companies so its
growth rate in early 2000s was quite high.
According to the ISO organizations, Vietnam had 4779 Certificates of
Conformity with ISO 9000 Standard in 2011, ranking the 4 th of top ten Asian
countries. [12, P.46]
Figure 1.4: Certificates of Conformity with ISO 9000 Standard in Vietnam in Period
of 2000-2011

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Source: [12, P.46]
The researchers often use the "density of ISO 9000 application" to review and
compare level of importance of ISO 9000 in ASEAN area (Franceschini et al. (2004),
as follows:
Certificates of ISO 9000 State / GDP state
Density of application of ISO 9000 quốc gia =
Certìicaté of ISO 9000 in region/ GDP region

The analysis results show that the density of ISO 9000 application is the highest in
Vietnam ASEAN area I using GDP for making comparisons. In other words, the level
of importance of ISO 9000 in Vietnam is higher than other ASEAN countries with

similar levels of development [12, P.46].
1.2.2 Other quality management models apart from ISO 9000
1.2.2.1 Quality test:
This is the most common method to ensure product quality in line with
regulations by testing products and parts to select and remove any dissatisfactory parts
in terms of standards or specifications.
According to definitions, quality control is activities such as measuring,
reviewing, testing, calibration of one or more characteristics of the object and
comparing the results with specified requirements to determine the suitability of each
property. Therefore, test is just classification of manufactured products or the
countermeasure as “it already happens”.
1.2.2.2 Quality Control (QC)
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Quality control is the applied operational techniques and activities to meet the
quality requirements. To control quality, the enterprises must control all factors
directly affecting the quality creation the process. This control prevents from of
creation of defect products. In general, quality control is to control the following
elements: human beings, methods and process, inputs, equipment and environment.
The companies should construct an appropriate organizational structure with
clear assignment of responsibilities among the departments to secure to approach an
effective quality control process. The quality control is implemented under the
following cycle: P (Plan) – D (Do) – C (Check) – A (Action).
1.2.2.3 Total Quality Management System (TQM)
TQM is defined as a quality-oriented management method of one organization
on basis of participation of all members to bring the long-term success via customers’
satisfaction and benefits of all members of the Company and the society.
The goals of TQM are to improve product quality and to satisfy customers in
the best level. The prominent feature of TQM in comparison with previous quality

control methods is that it provides a comprehensive system for the management and
improvement in all aspects related to quality and mobilizes participation of all
departments and individuals to achieve set quality targets.
1.2.2.4 5 S Method
5S is a tool to improve productivity and quality, originated from Japan. The
purpose of 5S is to create and maintain a convenient, fast, accurate and efficient work
environment in every work place. 5S is an activity for everyone in the company. 5S
method has 5 following main contents:
- Sorting - S1 (Seiri): unrelated, unnecessary everything (supplies, equipment,
materials, broken furniture, etc) for activities in one region shall be separated from
necessary ones, then they are removed or taken out of the production area. Only
necessary items are kept in the workplace. S1 is usually carried out by periodic
frequency.
- Setting in order - S2 (Seiton): setting in order is the layout of work items,
semi-finished products, raw materials, goods, etc in the proper positions for easy
identification, approach and return. The general rule of S2 is that any necessary
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objects have their own positions and clear identification. S2 is an activity to be
complied comprehensively.
- Systematic cleaning - S3 (Seiso): systematic clean refers to cleaning the
workplace, work equipment or the surrounding areas, etc. S3 is also an activity to be
conducted periodically.
- Standardizing - S4 (Sheiketsu): Standardizing refers to periodically
maintaining and standardizing the first 3S in a systematic way. It is possible to
specify the standards defining scope of 3S responsibility, manner and frequency of
each individual in each position to secure maintain 3S. S4 is a process in which the
employees’ awareness on compliance in an organization are practiced and developed.
- Sustaining - S5 (Shitsuke): Sustaining is shown in the self-consciousness of

workers for 5S activities. The members are aware of the importance of 5S standards,
voluntary and active combination of 5S standards with the works to secure the
individual performance and general output of the Company to be higher.
* Benefits of application of 5S method:
- 5S helps to create a convenient and comfortable working environment in all
positions
- 5S helps to reduce / eliminate waste in work processes in a process such as
shortening the transit time, seeking time, eliminating the subjective faults
caused by human beings, etc.
- 5S helps minimize operating costs to improve competitive advantage
- 5S helps improve production safety and actively prevent from risks by the
open and scientific work environment.
- Full awareness and improvement of sense of working for collective benefits;
enhancing unity and close relations between the leadership and employees and
among employees.
- Encouraging creativity and innovation of employees through 5S
- Building, strengthening and enhancing the professional image of the company
to its customers
1.2.2.5Kaizen method

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