ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Ta Nhat Phuong Student ID GBC18073

Class GBC0702 Assessor name Nguyen Thi Tham

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature:

Grading grid

P4 P5 P6 M4 M5 D2
Summative Feedbacks: Resubmission Feedbacks:
2.1

2.2 2.3
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:

Signature & Date:

Assignment Brief 2 (RQF)
Higher National Certificate/Diploma in Business
Student Name/ID
Ta Nhat Phuong/GBC18073
Number:

Unit Number and Title: Unit 4: Management and Operations (488)

Academic Year: 2019

Unit Assessor:

Assignment Title: ASSIGNMENT 2- Managing Business Operations

Issue Date:

Submission Date:

Internal Verifier Name:

Date:

Submission Format:

Format:

• This assignment is an Individual report and specifically.

• You must use font Calibri size 12, set number of the pages and use multiple line spacing at 1.5.
Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm.
• You should use in text references and a list of all cited sources at the end of the essay by applying
Harvard referencing style.
• The recommended word limit is 2000-2500 words (+/-10%), excluding the tables, graphs,
diagrams, appendixes and references. You will not be penalized for exceeding the total word
limit.
• The cover page of the report has to be the Assignment front sheet 2 (to be attached with this
assignment brief).

Submission

• Students are compulsory to submit the assignment in due date (slot 38) and in a way requested
by the Tutor.
 • The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
• Remember to convert the word file into PDF file before the submission on CMS.

Note:

• The individual Assignment must be your own work, and not copied by or from another student.
• If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you
must reference your sources, using the Harvard style.
• Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to comply
this requirement will result in a failed assignment.

Unit Learning Outcomes:

LO3. Demonstrate an appreciation of the role of leaders and managers play in the operations function of
an organization.
LO4. Demonstrate an understanding of the relationship between leadership and management in a
contemporary business environment.

Assignment Brief and Guidance:

*This assignment guidance is for reference only and can be customized by the tutor to meet specific
needs

Assignment scenario.

You are the head of Operations Management Department of a company in a particular industry (which
will be specified by your course tutor). You have been assigned by the managing director to carry out
an evaluation on the current operational activities and the role of management and leadership in various
contexts. This report will enhance the decision making of BOD in the Annual General Meeting with
regards to adjusting the operations activities to meet the future objectives and expectations of
stakeholders.

N.B. The course tutor will choose different industries which manufacture different physical
commodities for different classes studying this module. For instance, car manufacturing, food and
beverage, pharmaceuticals, mobile phones, computers and laptops, etc.)

You are free to choose the company operating in the specified sector.

Structure of the Report:

General introduction: main purposes and structure of the work.

Main contents of the report:

1. Explain the operations and operations management theories and approaches and the role that
leaders and managers play. In specific:

Discuss the key theories of operations and operations management including six sigma, lean
production and queuing theory.

Explain different operations management approaches including MBO & SMART criteria,
TQM, Kaizen, JIT production. Find out whether your chosen company is currently applying
any TQM techniques and JIT production or not with evidences to justify your answer. Besides,
propose a SMART objective for your company to aim for in the future.

In addition to that, critically evaluate the importance of different operations management

approaches in contemporary business environment to help obtain and maintain business
competitive advantages.

2. Explain the importance and value of operations management in achieving business objectives.
In specific:

Discuss the key operational functions of a business (e.g. product and process design,
scheduling, transformation process, control and distribution systems, logistics and inventory
management, capacity management). Find out how your company is currently operating these
functions in practice (at least 3 applications must be provided).

Explain how managing these operational functions would help your company to achieve the
targeted SMART objective (which has been proposed by you previously). Which operational
function(s) is the most important one to obtain that objective?

To enhance your discussion, evaluate in general whether management or leadership role is

more appreciated in the work of managing a business’ operations once the objective is already
specified.

3. Assess the factors within the business environment that impact upon operational management
and decision-making by leaders and managers. In specific:

Briefly carry out an industry analysis by using Porter’s model to identify the key forces
affecting the operations of the chosen company.
 Identify a recent scandal (should be relating to CSR, organizational values, ethics and
sustainability) of the chosen company or other company(ies) in the specified sector and discuss
the relevant stakeholder pressures on the chosen company.

Discuss how leaders and managers can resolve the chosen scandal and meet the key
stakeholders ‘expectations and reduce the pressure by becoming a corporate entrepreneur and
encouraging intrapreneurship.

Evaluate whether management or leadership role if more appreciated in the work of managing
operations to fulfil organizational stakeholders’ expectations and pressures.

To further enhance the work, critically explain how the pressures and expectations of different
stakeholder groups can impact significantly and shape a company’s strategy and operations in
general.

A conclusion to summarize all the key findings and analysis must be presented. Plus, you can carry out
a self-criticism on your own work (in terms of strengths and weaknesses).

Unit assessment criteria

Pass Merit Distinction

LO3. Demonstrate an appreciation of the role leaders and managers
play in the operations function of an organization.
P4. Explain the key
approaches to operations
management and the role M.4. Evaluate how leaders and
that leaders and managers managers can improve efficiencies of
play. operational management to
P5. Explain the importance successfully meet business
LO3 & 4
and value of operations objectives.
D.2. Critically evaluate
management in achieving
application of operations
business objectives.
management and factors
LO4. Demonstrate an understanding of the relationship between
that impact on the wider
leadership and management in a contemporary business
business environment.
environment.
P.6. Assess the factors
within the business
environment that impact M.5 Analyze how these different
upon operational factors affect the business
management and decision- environment and wider community.
making by leaders and
managers.
Table of Contents
I. Introduction ..................................................................................................................... 8
II. Basic information about Vinfast ...................................................................................... 9
III. The operations, operations management theories, approaches, and the role ............. 10
1. Six sigma theory......................................................................................................... 10
2. Lean production theory ............................................................................................. 11
3. Queuing theory.......................................................................................................... 12
4. MBO and SMART criteria ........................................................................................... 13
5. TQM production ........................................................................................................ 18
6. Kaizen ........................................................................................................................ 22
7. JIT (Just in time) ......................................................................................................... 24
8. SMART goal of Vinfast ............................................................................................... 26
IV. Important function of operation management ............................................................ 27
1. Process and Product Design ....................................................................................... 27
2. Scheduling ................................................................................................................. 29
3. Logistics and Inventory Management ........................................................................ 29
4. Conversion Processes ................................................................................................ 30
5. Function of Vinfast organization management .......................................................... 31
6. Functions in SMART operation management ............................................................. 34
V. Factors affecting business management environment and management's decisions ... 37
1. The Vinfast Force Five ................................................................................................ 37
2. Scandal of Vinfast ...................................................................................................... 40
3. Go green .................................................................................................................... 41
VI. Conclusion ................................................................................................................... 42
I. Introduction
Currently, companies in the manufacturing sector are developing strongly from domestic and
foreign companies. Moreover, the industry of manufacturing automobile and motorcycle technology is
growing more and more due to the need for people to move more and more. For this reason, Vingroup
has begun to deploy the field of manufacturing cars and motorcycles under the Vinfast brand. Vinfast is
bringing them a brand that is popular with customers and the product is gaining a certain reputation
(Vinfast, 2018). For a breakthrough of Vingroup to create success for Vingroup, it is impossible not to
mention the internal management of a business. As an operations manager, I will conduct a review of
current operations and management leadership in different contexts. This report will enhance the Board's
decision making during the Annual General Meeting to regulate activities to meet the goals and future
expectations of stakeholders.

This article will be divided into six main sections. The first section provides an overview of the main
objectives and characteristics of the report. In the second part, Vinfast will introduce the location and
production line of automobile and motorbike technology in Vietnam. In the next section, the article will
highlight six sigma, lean manufacturing, queuing theory and explain various business management
strategies such as MBO & SMART, TQM, Kaizen, and JIT production. Find out if your preferred company is
currently using some of the TQM and JIT manufacturing techniques. In the fourth part, the report will
describe the functions related to the company. In the fifth part, the report will discuss the business
environment factors affecting management and decision making. More precisely, Porter's Time Model will
be used to identify the main forces that affect the selected company. Moreover, an assessment of the role
of a manager or leader will also be addressed. In the final section, the report will conclude with important
analysis and findings so that we can know the weaknesses and strengths of corporate governance to help
the company grow.
II. Basic information about Vinfast
Vinfast is the first car and electric motorbike manufacturing company in Vietnam. Vinfast is a
startup in the automotive sector with the support of Vingroup, Mr. Pham Nhat Vuong owns the largest
private enterprise and is one of the leading technology, industry, and service groups in Vietnam. Male.
With the mission, "For a better life, there are Vietnamese people", Vinfast wants to build for the country
an automobile brand full of pride, style, and Vietnamese spirit, with the ambition to go beyond Vietnam,
to reach the world (Vinfast, 2018). Moreover, Vinfast aims to create cars that become a representative
image of Vietnam and can compete in the market of automobile and motorbike production in the world.
VinFast officially launched the first consumer electric motorcycle product in November 2018 with Klara.
So far, the company has produced three new lines of electric motorcycles, including Ludo, Impes, and Klara
S - upgraded versions to replace the Klara line. Total orders received by VinFast for all 4 models Klara, Klara
S, Impes, and Ludo were 50,000, of which 45,118 vehicles were produced. Currently all VinFast cars -
electric motorbikes are produced at a 335-hectare factory complex located in Dinh Vu Industrial Park (Cat
Hai, Hai Phong). The designed capacity of VinFast automobile factory in phase 1 is 250,000 vehicles/year;
the Electric motorbike factory is 500,000 vehicles/year (Vinfast, 2018).

Figure 1: Logo Vinfast

(Source:vi.org.)
III. The operations, operations management theories,
approaches, and the role
In this section, we will discuss six sigma, lean production, and queuing theory. Management
approach: MBO & SMART criteria, TQM, Kaizen, JIT production. Moreover, SMART goals will be provided
with the criteria to help the company achieve future success. In addition, this section will assess the
importance of important management methods in a modern business environment and maintain the
advantages of competitors.

1. Six sigma theory

Six Sigma theory is a system of processes with many innovative methods to minimize errors, costs,
and improve customer satisfaction. Six Sigma is based on highly structured and innovative approaches.
Under a strategy and a discipline - DMAIC consists of five steps: D - Define, M - Measure, A - Analyze, I -
Improve, and C – Control (Slides).

• Step 1. D - Define: It is the first step in the DMAIC method. This is an essential phase in determining
the goals through the development and transformation process. This is important for companies
to define the basic elements of clients, consumer needs, operating procedures, problems to be
addressed and the tools available to enable changes.
• Step 2. M - Measure: This is the appraisal level, focused on the organizational capability of the unit.
Via this stage, businesses must determine the degree to which the industry works in Sigma. In
specific, businesses need to define and quantify the explanatory variables of problems that may
trigger variations and impacts on the operating cycle.
• Step 3. A - Analysis: The purpose of this move is to recognize the difference between the intended
target and the outcomes of the actual job, and to find openings for profit. The remedies are
presented from that now, so that they are specifically checked and include prevention steps.
• Step 4. I - Improve: Next move would concentrate on designing approaches to resolve the cause of
oscillation, validate and standardize approaches. In this phase, businesses need to carry out certain
realistic testing to determine the anticipated progress effects.
 • Step 5. C - Control: In this stage, organizations must establish basic measurement criteria in order
to preserve performance and, where possible, to resolve issues, including issues with the
measurement method (Slack, 2010).

In short, Six Sigma is a set of techniques focused on systematic progress with the goal of reducing
the mistake or failure rate to the most optimal point by finding and removing root causes in the process.
The Six Sigma approach focuses on defining and documenting consumer needs and thereby stresses
consumer-based orientation. Nevertheless, the effective execution and application of Six Sigma involves a
great deal of diverse tools and thorough planning and thought. Furthermore, Six Sigma Implementation is
based on five key criteria that highlight the disadvantages per million opportunities as a standard metric,
provide extensive training, focusing on supporting corporate sponsors, creating more process
improvement steps, setting long-term goals. All of the information just provided contributes to the step-
by-step improvement process that helps Vinfast develop strongly in the field of manufacturing
automobiles and electric motorcycles because these are the outstanding improvements in the
management cycle to reduce errors, reduce costs, and help improve customer satisfaction.

2. Lean production theory

The Lean Production or Sustainable Development Model is one of the new management
techniques for streamlining output, reducing duplication in manufacturing, and growing company
performance. In terms of the concept of pollution, there are causes that raise the cost of manufacturing
without growing the benefit of the commodity (Slides). Waste processes are practices that can be
expensive in terms of expense, manufacturing quality, productivity, and market credibility. Within the less
is more efficient concept, i.e. to stay profitable, companies are expected to provide higher quality goods
and services with less capital. Eliminating this duplication, companies can reduce money and build more
sustainable benefits for themselves. In addition to the advantages that have simplified production, there
are also risks involved with the introduction of this model. Applying lean manufacturing efficiently needs
a number of market criteria. First of all, companies must have a team of dedicated, professional, and highly
driven workers. Businesses will always maintain trust in management and workers. Second, companies
tend to establish a strong partnership with vendors. Third, companies must maintain a philosophy of
excellence, constantly develop and be willing to undergo improvements in order to progress.
 Moreover, Lean production is also a summary in helping to promote the development of the
company. Thanks to Lean production, everything is simpler, motivated to do better, hiring employees in
the company to improve on the continuous process, and as a result, avoid wasting a lot of waste. Why
waste removal? Because waste is the company's redundant expenses, contributing to not wasting too
much on jobs is not the company's goal.

3. Queuing theory
In addition, we experience other queuing phenomena, such as operation queuing, shopping or
math. This trend is very growing and is also a question that company manufacturers need to measure and
recognize. Queue theory is a math-based philosophy that was created and used to evaluate a variety of
queue-related systems (Slides). The queue model is structured such that the length of the line and the
waiting period can be estimated. The queue layout is an essential feature of the queue as it demonstrates
the consistency of the queue, i.e. the sequence in which the client is chosen from the service list.
Specifically, the way consumers are picked from the business standing queues is seen by the queue system.

Customers may be picked from the queues in various forms such as FCFS, LCFS, Siro and PS. The
first involves FCFS (First-Come-First-Served), where utilities are delivered to consumers in the order in
which they enter, consumers may first be served. The second is for LCFS (Last-Come-FirstServed), which
would be the reverse of the incoming request, implying that the next user should be served first. The third
is for Siro (Service-in-Random-Order), the customer's delivery date is totally unrelated to the customer's
preference. Specifically, consumers are picked uniformly for the company and so all consumers are
expected to be picked similarly. At the end of the day, on PS (First-Service), consumers should be treated
as VIPs on a first basis.

The actual long queues mechanism is relevant due to the current comparison between the various
service distribution costs and the costs of standing for resources. Quick quality service is costly, but the
expense of waiting for the client in the line is negligible. Conversely, lengthy lines can cost a fortune, and
if the consumer becomes so busy and the system doesn't function as the consumer waits, the client will
leave or switch to another line. For this purpose, in order to automate this typical issue, every company
needs to implement the correct device software on its own.
4. MBO and SMART criteria
a. MBO Process cycle

MBO is a performance improvement approach that aims to create a compromise between the
interests of workers and the goals of the company. Targeted management is meant to define specific goals
and offer input on performance. Creating demanding yet attainable expectations can improve morale and
inspire workers. Through engagement, executives have the ability to concentrate on innovative concepts
and developments that lead to the institution's growth and goals. The MBO cycle involves elements such
as set corporate objectives, set and align employee objectives, monitor performance, evaluate
performance, and reward employees.

Figure 2: MBO Process Cycle

(Source: ashk1614.blogspot.com)

• Set Corporate Objective – The organizational institution's goal is to establish a point of departure for focused
management. Such goals derive from the purpose and mission of the organization.
• Set and Align Employee Objective – The next thing to do after establishing the priorities of the
company is to learn the expectations of every employee. In fact, administrators are liable for
 informing workers regarding the current targets they will attain within such a given timeline and
what tools they can need to attain their goals.
• Monitor Performance – The MBO mechanism is not only set up to create incremental efficiency
improvements for managers around the enterprise, but it is also essential to continually track
employee success and efficiency.
• Evaluate Performance – Memorization assessment, success appraisal is one of the most critical
aspects within an enterprise and will help you accomplish those tasks seamlessly.
• Reward Employee – This is a step in measuring and encouraging the success of workers. This move
provides truthful input about what has been accomplished and has missed for each employee
(Slack, 2010).

To sum up, effective management includes establishing goals for increasing particular operations
and ensuring that such expectations are met for the whole enterprise. MBO not only helps establish
priorities, but it also maintains a compromise between objectives and money. Targeted scheduling
encourages executives to worry about preparing outcomes rather than simply organizing events or
employment. Managers must come up with forms and methods to accomplish their goals. Objectives often
serve as principles of management and efficiency. MBO is also very effective in enhancing performance.

b. SMART criteria

Each effective company must set simple and precise goals. Nonetheless, much of the world has
ever known small companies often lack the target to concentrate on. Any CEO will be excluded from the
owners' committee even though he has given an ambiguous response. If a corporation of 100 workers or
an army of a nation, the economic performance of a firm relies on much of the capacity to set and
accomplish the goals. SMART is one of the most common and successful methods to accomplish achievable
targets and to accomplish rapid progress. SMART Objectives is a concept focused on the MBO method.
SMART is often a term that describes a structure for the development of specific, measurable, achievable,
realistic, and time-bound (Slides).
 Figure 3: SMART goals

(Source: orangescrum.com)

S - Specific

When setting goals, be specific about what you want to accomplish. Think of this as a mission
statement for your company goals. This is a detailed list of how Vinfast will achieve your company goal,
but it should include an answer to common questions of:

• Who - Considering the people who need to get involved to achieve the goals the company has set
for this is especially important when you work on a team project or to accomplish the company's
goals.
• What - Think about exactly what the company is gradually developing, trying to accomplish, and
don't be afraid to get very detailed motivating the development of the company.
• When - Vinfast will receive more specific information on this question in the Target Time Defining
section of the target SMART, but at least the company should set a time frame.
 • Where - This question may not always apply, especially if the company sets an individual goal, but
if there is a relevant position or event, identify it here.
• Which - Identify any obstacles or related requirements. This question can be beneficial in deciding
if the company's goals are realistic. For example, our business currently produces the first
automobile and electric motorbike in Vietnam, but the company has never tried anything before,
which could be a problem. Therefore, the company can refine the specifics of the target to find out
how to produce the most modern way to expand the business market.
• Why - What is the reason for the goal? When it comes to using this method for employees, the
answer will likely lie along the company's progress line or career development (Slack, 2010).

M – Measurable

What metrics are your company going to use to determine if you meet the goal? This makes a goal
more tangible because it provides a way to measure progress. If it’s a project that’s going to take a few
months to complete, then set some milestones by considering specific tasks to accomplish. Milestones are
a series of steps along the way that when added up will result in the completion of your company main
goal.

• As the “M” in SMART states, there should be a source of information to measure or determine
whether a goal has been achieved.
• The M is a direct (or possibly indirect) indicator of what success for a particular goal will look like.
• Sometimes measurement is difficult and managers and employees will need to work together to
identify the most relevant and feasible data sources and collection methods.
• Data collection efforts needed to measure a goal can be included in that goal’s action plan.
• Even if a perfect, direct measurement source is not immediately feasible for a given goal, the
discussion about the desired end result (why this goal is important) and what the measurement
options are (what success might look like) is an important and valuable part of performance
planning.
• Measurement methods can be both quantitative (productivity results, money saved or earned,
etc.) and qualitative (client testimonials, surveys, etc.).
A – Achievable

It reflects on how essential a target is to the company and what Vinfast will do to make it workable,
which can include the learning of new abilities which shifting attitudes. The aim is to encourage inspiration,
not discouragement.

Think about how to accomplish the goal, if you have the tools/skills needed, if not, consider what
it would take to attain them.

R – Realistic

Realistic refers to focusing on something that makes sense with the broader business goals. For
example, if the goal is to launch a new product, it should be something that’s in alignment with the overall
business objectives. Your team may be able to launch a new consumer product, but if the company is a
B2B that is not expanding into the consumer market, then the goal wouldn’t be relevant. For Vinfast, a
company that manufactures cars and electric scooters, it is necessary to have qualified employees who
can improve the production process or raise the level to apply new technology.

T – Time-Bound

Anyone can set targets, but if you don't have a reasonable timeline, odds are you won't achieve.
This is important to have a specific date for deliverables. Ask detailed questions regarding the target date
and what should be done during the timeline. When it takes three months to finish, it is helpful to identify
what will be done halfway through the method. The introduction of time limits often induces a sense of
urgency.

SMART goals may be incorporated into activities that administrators delegate to staff, mission
schedules, company strategies, and communication campaigns. SMART may also be used for time frames.
It is quite good for hitting weekly goals, seasonal results, or periodic objectives. Often goals are not
necessarily realistic, but they operate under the same rules to help companies remain centered.
5. TQM production
TQM is a management theory that aims to combine all corporate responsibilities (marketing,
accounting, architecture, innovation, development, customer support, etc.) with a view to satisfying
consumer demands and managerial goals. This views an enterprise as a set of processes. TQM was created
by William Deming, a financial analyst where research has had a considerable influence on Japanese
development. While TQM has something in association with the method of strengthening Six Sigma, that's
not the same as Six Sigma. TQM works on ensuring that organizational protocols and procedure
requirements minimize errors, while Six Sigma calls the elimination of errors. The basic aim of TQM: do
the right stuff, right at the first moment, every moment!

Figure 4: TQM

(Source: deposiphotos.com)
• Consumer-Focused – The price of the goods and services is taken into consideration by the
consumer. Customer-oriented service is a competitive element contributing to the potential to
control, retain, and draw consumers (Slides).
• Total Employee Empowerment – Employees are the most valuable human capital in a company, so
maximum cooperation of their skills and expertise should be utilized for the good of a company.
Performance in enhancing the standard of employment relies strongly on expertise and passion for
the job of the workers. Corporations ought to build the opportunities for staff to understand,
enhance their experience, and acquire new skills (Slides).
• Quality at the source – The cycle is a series of similar operations that are carried out in a sequential
order to generate useful results/products for the company. To order to be competitive to quality,
the company must recognize the main mechanisms that will enable the enterprise to gain
consumer service. The insistence on project control impacts everybody in the company as all
activities are carried out (Gupta, 2008).
• Integrated system – Micro operations connect to the broader systems and both systems contribute
to the market processes required to define and execute the plan (Gupta, 2008).
• Strategic and systematic approach – A pragmatic and organized approach to fulfilling the goal,
purpose, and goals of the company is an integral aspect of quality control. This strategy involves
the creation of a business plan that incorporates consistency as a main component (Gupta, 2008).
• Continuous Improvement – One of the most critical challenges for any organization, in order to
satisfy the increasing needs of consumers, staff, and community, is to continually develop and
enhance the operations in such a manner that they become really successful. The final norm cannot
be a management system or a normal. As a consequence, development measures are carried out
on a daily basis in the quality control program to increase the performance and efficacy of the
whole method (Gupta, 2008).
• Fact-based decision making – Any judgment and behavior in a quality control organization that
wishes to be successful must be focused on reliable facts and evidence interpretation, not on
inference (Gupta, 2008).
 • Team approach – Institutions and vendors are interconnected, mutually advantageous
partnerships that make it possible for both parties to strengthen their capacity to generate value
(Gupta, 2008).

The features of TQM rely on the obligation of each individual and division within the organization.
TQM is a collaborative practice that needs the joint actions of all. To order to efficiently handle all phases
of work in the TQM project, the usage of the PDCA model is known to be a simple method that has been
thoroughly researched and developed. PDCA provides for Planning, Doing, Testing, and Acting.

• Planning – Planning is the most fundamental and necessary phase as strategic strategies are
required to anticipate the risks involved in the implementation of prevention steps. Strong initial
strategy, the target can be accomplished quickly and successfully by the organization.
• Doing – In order for the program to be executed effectively, the reference implementation must
recognize the priorities and the requirement for a task.
• Testing – That is a move ahead for companies to allow a link with the expected program.
• Acting – Which are punitive and protective acts.

To summarise, TQM is not a method that should be enforced, but a continuum of logic that requires
to be integrated into the structure and community. Practice has established that there are a variety of
simple principles that lead to the general effectiveness of quality control within the enterprise.

VinFast - the automobile brand "made in Vietnam" has officially announced the first 3 models of
the company in Vietnam, including 1 SUV, 1 sedan and 1 urban car of size A, the corresponding name is
LUX SA2.0, LUX A2.0, and Fadil. The first 2 models were developed by Pininfarina design firm, possessing
both traditional and modern styles. Sedans and SUVs are the winning designs in VinFast's list of 20
potential cars (Oto, 2020). With a draft from ItalDesign, two cars were completed commercial version by
Pininfarina. Remaining class A car named VinFast Fadil will be a product inherited from Opel Karl, the
predecessor car of Chevrolet Spark. Currently, all three models have announced the official price at the
event in Thong Nhat Park, Hanoi on November 20, 2018 (Oto, 2020). At that time, LUX SA2.0, LUX A2.0,
and Fadil had 2 prices, ie official prices, and promotional prices in the new sale period to encourage the
psychology of Vietnamese car buyers. However, VinFast recently announced a plan to adjust car prices in
stages. Specifically, from January 1, 2019 - September 2019, VinFast 2019 car prices will have 3
adjustments to progress toward the "3 No" level, including the January - May milestones and return to the
price. Listed in September 2019. However, at the last minute, VinFast decided to extend the preferential
period for its models (Oto, 2020).

From February 12, 2020, VinFast continues to increase car prices according to the 3 no-plus policy,
specifically VinFast Fadil models increased by 20 million, VinFast Lux A2.0 increased by 30 million, VinFast
Lux SA2.0 increased by 50. million on each version (Oto, 2020). It can be seen that Vinfast is only present
in producing big cars and electric motorcycles that are only nearly two years old, but not inferior to the
car manufacturers that have been produced for a long time. A month after its commencement, the
fledgling car company announced its first models designed by four renowned design companies. Finally,
VinFast closed two models of Pininfarina, an Italian designer who contributed significantly to the creation
of many supercars of Rolls-Royce, Ferrari, and BMW ... (Forbes, 2019). In August 2018, VinFast completed
construction. factory. In October 2018 at the Paris Motor Show, the manufacturer from Vietnam surprised
the international media with two models introduced with the impressive appearance of former football
player David Beckham. long-term rivals, the car's distribution system is less than two years old, a new
formation is proved to be inferior. In early March, Hyundai Thanh Cong, which assembled 63,526 cars last
year, showed that the company is operating 70 distribution agents. Meanwhile, Toyota Vietnam, a car
manufacturer after 23 years of presence in Vietnam, has 56 dealers, last year sold 65,856 vehicles (not
including Lexus) (Oto, 2020). Japanese manufacturers are currently leading the market considering
individual sales of each brand. As for Thaco, the car assembling company led by billionaire Tran Ba Duong
sold 96,127 cars bearing the brands KIA, Mazda, Peugeot ... with 38, 36, and 11 dealers respectively.
Currently, VinFast is also conducting surveys to make quick service repair stations in remote provinces
without an authorized dealer (Forbes, 2019).

What is the secret for VinFast to build its own product in a record short time? “As a newly re-
established enterprise, choosing a difficult field, which requires a high level of gray matter, to manufacture
automobiles and electric motorcycles, VinFast has to face many challenges. The biggest of these is the
issue of experience and understanding of industries, products, and technology, ”said VinFast president
(Forbes, 2019). Historically, before VinFast was born, world-renowned car companies had spent tens of
billions of US dollars, spent years of research and development on products, even sometimes paying for
many failures to get be experienced. VinFast realizes the ambition of making “made in Vietnam” cars:
Vingroup cooperates with Bosch, the world's largest supplier of automotive technology and components,
applying the world's leading advanced technologies. manufacturing. Taking a leap forward, speeding up
production but the product is still of international quality, VinFast purchased the intellectual property
rights of BMW, a famous engine manufacturer of Germany, a well-known engine manufacturer gas and
machinery. The list of well-known partners cooperating with VinFast extends Schler AG - stamping line,
Eisenmann - technology, assembly line, Durr AG - supplying paint line, LG Chem, LG Group, manufacturing
supply, and supply international standard batteries (Forbes, 2019).

All of this information is in a TQM management approach to promote the development and take
Vinfast to produce automobiles and electric motorcycles to a new level.

6. Kaizen
Kaizen is a Japanese economic ideology with the sense of a communication method used to
facilitate quality improvement. The Kaizen theory is the implementation of incremental changes to large-
scale results, based on problem detection, problem-solving, and structural reform to ensure that the issue
is fixed at its source. Furthermore, Kaizen is nothing than a constant cycle of change, assuming that human
imagination is limitless. In fact, all representatives of the organization, from the executives to the staff, are
allowed to make small change ideas arising from daily activities (Slides)

In reality, it's hard to get something that can maintain a steady state. One of Parkinson's most
popular laws is that "an organization that has established a foundation is often the moment that an
institution begins to decay." This indicates that, in order to develop or sustain an organization, constant
and steady work is required. Entrepreneurship and KAIZEN ought to be implemented in addition to the
procedure in order to increase performance. In order to start progressing, all new developments for
KAIZEN practices should be retained. When introducing Kaizen, no regardless of size and age, companies
need to adopt the ten timeless essence of what makes Kaizen a brand.
• Must rely on the consumer – the business position of the product lines/service providers so they
will satisfy the requirements of the client. Businesses ought to concentrate on enhancing and
maintaining product efficiency, growing client value in order to improve consumer loyalty.
• Constantly progressing – The idea of accomplishment does not imply completing a job, but only
completing one stage before going on to the next. The latest quality development plan saves a lot
more resources and works much more effectively than the creation of more fresh goods.
• A consistent and continuous execution plan is required for this strategy. Develop a community of
no-fault – People accountable for carrying out their assigned duties will not be punished for
unreasonable motives. Every person is properly liable for making bad decisions.
• Learn the sense of order and self-discipline – Workers will conform and obey the laws of the
company in special and of society at large. Employees must surrender their personal desires in
order to reconcile themselves with the company's dream, purpose, and core values. In addition,
workers will offer preference to their job needs, often find themselves to be limited by specific
vulnerabilities.
• Promote competitiveness and performance – Companies should incorporate a variety of internal
training strategies for their workers, improve the capacity of each worker to be constructive and
conscience-determined, enable employees to give input and suggestions, identify successes and
award them promptly.
• Information to all workers – Workers cannot produce high performance without understanding the
current position of the business. Knowledge is the most significant insight into the current market
and development cycle. Maintaining knowledge exchange is also a growing means of
communicating problems and concerns for all workers.
• Encourage cooperation – Companies can create a workforce hierarchy in order to set up successful
work teams. Strong coordination inside the organization: team leader requires guidance,
participants need to organize and develop themselves.
• Build the best partnership – Domestic companies should not establish harmful partnerships
(confrontation or enemies). Businesses ought to engage in organizational skills training systems for
the whole organization, including staff and managers. Businesses will also create EVP (Employee
 Value Proposition) to develop the confidence, engagement, and long-term dedication of
employees.
• Promote an accessible corporate culture – Creating an accessible corporate culture, workers tend
to look directly at failures, pointed out flaws, and call for guidance from subordinates and
supervisors.
• Combine several functional units in the same project – Companies can organize a mix of human
capital from branches and corporate units in order to carry out initiatives, where possible, and
allow firms and maximize the use of external resources.

The functional importance of Kaizen is immense, but not everybody understands how to
implement it properly. Kaizen allows us to bear in mind the core guiding values, not to be totally lost in
life, not to neglect certain essential things. The feeling of handling science and reasonable research is one
of the obvious advantages of Kaizen's use. Most specifically, employees would be more committed and
enthusiastic for jobs, thereby growing workforce efficiency. In the organization, production line staff
continue to strive to produce the ideal vehicle. It may be complicated, but the findings can allow each
individual to be more inspired. Kaizen is only a minor change or set of adjustments to make their job
smoother, simpler, quicker, and more effective. Kaizen operations typically depend on minor
improvements, and the expense of introducing them in certain situations is insignificant. The best thing
about Kaizen is the opportunity to create a ton of concepts without needing to invest capital. Kaizen is
recommended by employment professionals all over the world to strengthen the workplace environment
as well as being an easy-to-use method for each individual to study.

7. JIT (Just in time)

Currently, businesses have to deal with others on an unprecedented and difficult basis. That's why
it's so necessary to save money by eliminating waste in the company cycle. A lean management program
helps businesses to create more money by reducing duplication in the number of products. JIT is part of
both the Lean manufacturing strategy which encourages the delivery of raw materials, manufactured
goods which semi-finished items at the right period, and in the appropriate quantities. JIT is an expression
for Just-In-Time and is also defined as making the best commodity in the right position and at the right
moment. Throughout manufacturing or operation, each step of the development cycle generates a
quantity equivalent to the volume needed for the next step of output. Processes that do not generate
interest ought to be eliminated. The same refers to the final step of the manufacturing cycle, i.e. the
machine just generates the goods that the consumer needs. On the other side, JIT is a manufacturing
machine in which the movements of resources, commodities, and transport items in the development and
delivery cycle are described at each point such that the next step can be carried out. As long as the present
cycle is finished. Specifically, none of the products drops to nil, when delivery is ongoing, no staff or
machines will wait for the feedback to run (Slides).

JIT functions on the basis of a friction framework and perhaps a towing program focused on the
desires of consumers for everyday use. The drug should be developed and introduced directly as soon as
the consumer takes the food away (it is widely found in broad supermarkets). If the consumer will not
need the commodity in storage (lowest possible quantity), the commodity would not be imported or
included. The client here is known in a wider sense: he seems to be the person during the next level of the
line, the manufacturer, the seller, and the beginning-user.

The latest JIT approach is commonly adopted worldwide by offering advantages such as lowering
demand and idle capital; decreasing manufacturing costs; eliminating faulty products; helping to adjust
the development cycle rapidly and easily; raising efficiency by decreasing turnaround time, and constantly
enhancing product quality. In addition to the advantages that JIT provides, JIT often has certain drawbacks,
such as the deployment of JIT is complex, costly and can include several hazards because just one
connection of the supply chain issue allows the whole network to stagnate.

In order to effectively execute the JIT plan, organizations need to integrate several steps.
Specifically, the commodity is delivered according to the manufacturing cycle rather than by the specialist
team in order to reduce shipping costs. This calculation is related to a single thread flow (One Component
Movement). If properly implemented, the JIT approach can allow businesses to manufacture goods at a
reasonable cost, making it easier to adjust the procedure while producing innovative items.

For Vinfast, time is everything, from car manufacturing time, testing time and now the most
concerned time is how long a Vinfast product can fire. With the 22.8 Ah Klara Lithium-ion Battery version,
it is expected that the 4-hour charge time will reach 90% and the full charge takes 6 hours while the 20 Ah
lead-acid battery will be shorter. If you use fast charging, it takes 15 minutes to charge and will go from
30-50km, Lithium-ion Battery life reaches more than 1,000 full charges equivalent to taking 6-8 years after
which customers can buy instead of the price. supposedly not tall. Vinfast's mid-range electric motorcycles
will use lithium-ion battery packs manufactured by LG or Bosch, with a maximum range of 80-120 km when
fully charged (Techbike, 2020).

Vinfast will set up 30,000 - 50,000 charging stations and battery leasing stations nationwide by
2020, according to three models: normal charging stations, battery hire stations, and fast-charging
stations. Present in the most convenient locations such as parking lots, VinMart Plus convenience stores,
basements of high-rise apartments, school gates, school dormitories, traffic hubs, etc (Techbike, 2020).
VinFast charger, battery charger ensures to meet the power source quickly and most conveniently for
customers. Therefore, this is considered the most reasonable and convenient time for customers to use
Vinfast products.

8. SMART goal of Vinfast

It is expected that in 2020, VinFast will launch Lux V8 high-performance luxury cars and two class
B and C crossovers, with petrol and electric variants. In addition, the company will also launch electric
buses to cover all market segments, to meet the diverse needs of customers Vin. From 2021, VinFast plans
to export electric cars to the US market. But from May 30, 2019, VinFast began deploying a program to
recall 7,584 cars of two Chevrolet Cruze and Chevrolet Orlando models to test and replace the driver's
airbag system (Tuan, 2019). Through the test showed that, in the event of a collision, the airbag system
accident on the vehicles in the recall area is activated, depending on the circumstances of the release of
inert gas that can create too much pressure. inside the pump assembly and lead to the possibility that the
pump assembly will crack. Metal fragments of a broken air pump assembly can be splashed through the
inflated airbag. This leads to the risk of serious injury to drivers and passengers. This million buds will be
deployed until May 30, 2022 (Tuan, 2019). This is an error that Vinfast did not expect but it happened that
consumed a lot of time and human resources to repair the defective product. Therefore, the first thing
that Vinfast places is that all VinFast cars - electric motorbikes are manufactured at a 335-hectare factory
complex located in Dinh Vu Industrial Park (Cat Hai, Hai Phong) (Vinfast, 2018). The designed capacity of
VinFast automobile factory in phase 1 is 250,000 cars/year, electric motorbike plants are 500,000
vehicles/year and only about 5% of products have defective 12,500 cars and 25,000 electric motorcycles
or will Restricting the products to the lowest level by December 31, 2021. Because Vinfast employees set
a high target, they need to be qualified and need more courses on advanced production skills. know how
to recognize core products like. For the production process, we will improve and apply new technologies
from the copyrights of other cars and motorbikes. The time limit here is the end of December 31, 2021,
not too long and not too fast so Vinfast needs to achieve this goal to assert itself in the market advanced
cars and motorcycles around the world. At the end of the day, corporate management always creates the
basis for creativity by establishing a stable framework of processes and expertise. In fact, financial
management will often reduce the amount of money used to manufacture services and products in an
effective and creative form of managing resources. This is the final reason for the growth of Vinfast to
become stronger and more breakthrough.

IV. Important function of operation management

This segment would address the core operating roles of the organization.

1. Process and Product Design

The aim of business process management is to enable companies to allow better use of internal
capital to drive development and generate more revenue. The method itself must be carefully structured
to help companies react rapidly to consumer and customer demands and adjustments. If the mechanism
is not well planned, such as a major issue-solving environment, resulting in the loss of coordination through
the organization.

Brand creation is the method of making a new product marketed by a corporation to its consumers.
Designing products/services and systems through the collaboration of several administrators and
professionals in a broad variety of fields. It is carried out in a set of phases in a specified sequence. System
concept materials include engineering sketches, layout descriptions, elements and economic-financial
properties of goods. Every form of product/service needs an acceptable production system and operation.
Product/service specifications would also be an essential framework for the nature and choice of the
production process.
 Technology Push and Market Pull

Figure 5: Technology push and Market pull

(Source: en.wikipedia.org)

• Technology Push

Pulling the business is a customer-specific strategy focused on strong contact with the marketing
department and consumers. This cycle was begun by telling the R&D team regarding the needs of the
consumer. R&D also develops and prototypes innovative items, accompanied by final development, and
sells them (Slides).

• Market Pull

Tech marketing is a tech-based strategy in which evolving innovations or a revolutionary mix of

applied innovations offer a catalyst for creative innovation and issue solving on the market (Slides).

To sum up, process and product design are important to the market. Effective product design has
to satisfy consumer demands, be cost-efficient, and produce a reliable product that satisfies the
distribution, markets, and supports the enterprise. The company will achieve a competitive advantage by
introducing innovative concepts rapidly, better fulfilling consumer demands, make it fast, simple to use,
and simpler to fix than current goods.

2. Scheduling
Scheduling is the method of managing, maximizing, and coordinating jobs or workloads throughout
the development cycle. Scheduling is a significant resource in production and has a huge effect on the
efficiency of the operation. The role of scheduling operations allows enterprises to assign capital, to ensure
that the demands of capital are optimum, to optimize plant usage at the highest possible expense. In fact,
it also allows companies to schedule resources for each task, track details on different products, supplies,
production period, or shipping periods. The primary goal in preparation is to reduce development time
and expense. The goal of scheduling is to help the company enable the most possible use of its employees,
along with ensuring the most use of the resources available inside the company. Profitability, efficiency,
and quality of operation for enterprises should, therefore, increase and strengthen. Scheduling, on the
other side, lets companies optimize distribution efficiency, decrease inventory, reduced processing time,
reduce manufacturing costs, and decrease labor costs.

3. Logistics and Inventory Management

The encyclopedia describes logistics as the thorough organization of complicated operations
comprising several individuals, equipment, or materials. While this concept is valid, logistics has gained a
new sense in today's social media environment. Logistics may be defined as a thorough arrangement of
knowledge, content, and economic flows into and out of the business partners and customers. Growing
organization requires specific support and staffing operations to carry out such tasks, but could not
function without someone else.

Inventory control is certainly a feature of logistics, but those who have an impact on inventories go
outside the transportation network. Inventories include capital expenditure to develop and store end
products. Furthermore, inventory is important as the period that customers are able to wait on a
commodity will be considerably less than the period it requires to manufacture a commodity and then
send the commodity to the place that the customer wants. Inventory management explores a multitude
of different quantities, includes risk, leading time, expense, venue, shipping, and quality of service.
 Inbound Logistics and Purchasing

As in other corporate enterprises, recruitment administration includes staff, procedures, and

technologies. Procurement includes the processing, billing, and delivery of products and services that a
client needs in terms of manufacturing and market operations. Procurement is an important process in
the chain of operations. Impact of transportation and supply chains.

Maintaining a successful and appropriate distribution network relies on the efficiency of the
logistics. Supplier connections and plans to identify logistics activities and encourage the Logistics Team to
execute cost-effective and quite well-planned procedures. Logistics operations typically rely on the
strategic position of distributors of the form of manufacturing and airline products, as well as on
operational issues.

Coordination of logistical operations must be carried out in order to optimize the usage of
equipment to minimize running time, disruption, and the transfer of inaccurate items. Collaborative efforts
include the exchanging of knowledge and the dissemination of information between international and
domestic organizations, and collaboration strategies should be assumed to include strong-quality
information distribution.

Many major companies have confronted the implications of narrowing the gap between customers
and sellers and raising the difficulty of transport infrastructure. The buying agency serves as an
independent coordination entity that will help start-up and beginning-activities in order to improve the
precision of the prediction and to create a precise and practical timetable.

4. Conversion Processes
Transformation seems to be the act or method of turning this into a further structure or shape. A
transformation is any process or process category which has several and sometimes more sources,
converts and adds meaning to them, and produces products to the client or the company. For example,
when importing materials that are only detailed components of cars and electric scooters, Vinfast will have
to convert from parts, components, and assemblies to complete a car.
 Typically, all three forms of inputs for the manufactured goods, details, and the consumer transfer
phase should be processed by the same company. For instance, withdrawing funds from a checking
account encompasses documentation about the need for a client's credit card, papers such as verifications
and commodities, and a consumer's acct. In fact, care of clinicians in healthcare is not only linked to both
the health problem of people, but also to the records used for diagnosis and personal details.

The need for corporate restructuring may be induced by external developments in the sector, such
as obsolete goods or services of the enterprise, changed funding or income, legislation. In turn, or market
rivalry may become more severe. This management strategy is often related to the re-engineering of
corporate operations and is commonly used to boost revenue or market share, enhance consumer loyalty,
or decrease costs.

5. Function of Vinfast organization management

Production Process of Vinfast

This procedure describes the production process of a car at Vinfast from preparation to completion
of a car.

Step 1: VinFast applies technology 4.0 in factories, helping equipment and a part / whole line in a
factory to be connected to each other through sensors connected via a network and/or computer. cloud.

Step 2: The most important part is the machines, production equipment, and goods manufactured
in the factory, and the workers, technicians, and managers are connected and constantly interacting for
self-inspection and self-regulation. Therefore, it will continuously improve efficiency, increase
productivity, and quality in production.

Step 3: The enterprise has chosen leading companies in the industry of designing and
manufacturing automobile production lines - machinery and equipment from Europe, mainly from
Germany, to design and install. the whole 5 workshops: Stamping; body welding; paint; engine and
assembly. In addition, there is an auxiliary workshop.
 Step 4: Body weld shop is designed and supplied by leading partners such as FFT, EBZ, HIROTEC,
equipped with about 1200 robots manufactured by ABB. When in operation, this is a fully-automatic, fully-
welded body welding factory in Vietnam and Southeast Asia.

Step 5: The body welding factory is a manufacturing workshop with many applications of
technology 4.0 in many different areas, from equipment monitoring, evaluation and process optimization,
efficiency utilization. equipment to improve productivity and product quality, to preventive management,
maintenance work for the production line according to digital, high flexibility when changing product lines.

Step 6: 100% of the body welding process is performed by robotic arms to ensure absolute
accuracy.

Step 7: After welding and assembling, the body will undergo rigorous quality control.

Step 8: When the quality of the welds meets the standard, the car body is passed through a 25,000
m2 paint workshop.

Step 9: The painting workshop is equipped with Dürr's EcoSmart VEC intelligent air management
system, which operates automatically and provides power through the recording of real parameters in
production. This technology significantly reduces the amount of gas and power consumed when drying
newly painted vehicles.

Step 10: The car is then taken to the engine factory for assembly. The workshop is designed and
supplied by the leading partners such as GROB, Thyssenkrupp, AVL, MAG, using the latest precision
mechanical technology to process engine heads, engine bodies, and crankshaft of the engine. muscle.

Step 11: In addition, the workshop also has a motor quality inspection line (hot and cold inspection)
to ensure 100% of products are quality controlled from the source.

All of the above steps are a process to help Vinfast production be more smooth and follow the
production schedule. Promote the development of the company.
 Important operational functions help Vinfast achieve its goals

With the goal to December 31, 2021, Vinfast will produce 250,000 cars/year, the electric motorbike
factory is 500,000 cars/year and only about 5% of the products have defective 12,500 cars and 25,000
electric motorcycles or will limit the product to the lowest level for defective products.

The first is Proprietary Delivery. The usage of direct marketing allows it easier for consumers to
locate goods and reduces indirect costs. In addition, collaboration with exclusive distributors will establish
long-term relationships on the grounds of dedication to collaboration and objective exchange.
Cooperating on the principle of shared interest and the good of all parties. In fact, this also includes other
advantages such as prompt intelligence exchange and prompt assistance, equal and rational service
practices around the delivery chain, and a dedication to full security for you. Act with business volatility
and competitors. Last, simultaneous revenues will be growing. Though administrators only deal on it and
are mostly involved in transforming into a specific organizational entity. In brief, the management of a
person's social position is more important than the management of a company.

Inbound Logistics and Purchasing of Vinfast

Vietnamese carmaker VinFast is now in the third month to May 31, 2019, of production at its $3.5
billion assembly plant in the northern port city of Hai Phong, with two models now being distributed to
the domestic market: the Lux A2.0 saloon and an SUV called the LUX SA2.0. The OEM is using integrated
production software and hardware supplied by Siemens and says that the entire value chain has been
integrated and digitalized with Siemens’ Digital Enterprise portfolio.

The A2.0 saloon began production in June and was followed by the LUX SA2.0 in July. The vehicles
are derived from the BMW 5-Series and X5 platform following an agreement between parent company
Vingroup and the German OEM, while contract manufacturer Magna Steyr is acting as a consultant to
Vingroup on vehicle technology. An electric vehicle (EV) is expected to follow by the end of this year, but
the plant is also already producing e-scooters. VinFast set up a joint venture with battery specialist LG
Chem earlier this year for the production of lithium-ion batteries for the forthcoming EV and is building a
facility adjacent to the main assembly plant.
 The Siemens portfolio it is using includes Teamcenter software to develop a digital twin of the
production process. Digital twins are replicas of physical systems that allow data to be transmitted
seamlessly to optimize manufacturing. VinFast said it was initially aiming at an annual production of
250,000 vehicles, a high target given that Vietnam’s total vehicle sales last year reached roughly the same
number. However, parent company VinGroup said it wanted to double that production number in the long
term by producing 12 vehicles and motorbikes, despite not having previously been involved in the car
industry. According to a spokesperson for the carmaker, this would include exports to other ASEAN
markets.

VinFast also has an agreement with GM, signed in June 2018, to exclusively distribute the Chevrolet
brand in Vietnam. According to GM, VinFast has taken ownership of the GM Hanoi factory and is investing
in a new global small car licensed from GM and manufactured and sold under the VinFast brand.
Production of the vehicle will begin this year. While VinGroup has no previous vehicle production
experience – having focused on technology, industrial, and property services – it has put together a
management team of former talent from top carmakers, including FCA, Ford, GM, and Tata. VinFast is led
by CEO Jim Deluca, who spent more than 16 years at GM in a range of manufacturing roles, his last one
being executive vice-president – global manufacturing, manufacturing engineering, and labor relations.
Shaun Calvert was GM’s vice-president of manufacturing and Sam Casabene was Ford’s vice-president of
purchasing (Vinfast, 2018).

For Vinfast, these are extremely convenient functional conditions for the development of the
company. And thus entering the market of automobiles and electric motorbikes in the world to further
promote the name of the automobile industry in Vietnam. Gaining profits from developing countries that
tend to develop imports of cars and electric cars.

6. Functions in SMART operation management

Inbound Logistics and Purchasing function are considered as one of the important functions to help
the company accomplish the goals set out in the SMART part of Vinfasr, which is to produce VinFast cars
of 250,000 cars/year and electric motorcycles are 500,000 vehicles/year and only about 5% of the products
are defective, ie 12,500 cars and 25,000 electric motorcycles or will limit the defective products to the
lowest level on December 31, 2021. Why choose the function Inbound Logistics and Purchasing can meet
the goal of SMART because of bringing the full information of the company to domestic and foreign
consumers as quickly as possible. Moreover, Vinfast also achieved the most targets in the field of
manufacturing automobiles and electric motorcycles.

First, Vinfast is the first "Made in Vietnam" automobile brand, Vinfast's goal is to become the
leading automobile manufacturer in Southeast Asia with a design capacity of a car manufacturing complex
of up to 250,000 vehicles. / year and of the complex of producing electric motorbikes up to 500,000
vehicles/year by 2021. The main products of Vinfast are internal combustion cars, cars using an electric
motor and eco-friendly electric motorbikes. School (Vinfast, 2018).

The second is the "fast pace" of the Vietnamese automobile village, from the time Vingroup
announced the information until September 2018, just one year, the group has built a modern and large
scale factory complex in Hai Phong, implementing a series of cooperation contracts with major partners in
the world and launching two sedans and SUVs completed quickly.

Thirdly, Vinfast has a connection with automobile production with the world's leading brand car
manufacturers.

Design background: VinFast gives Vietnamese the opportunity to decide the direction of shaping
the car right from the beginning of the design process through a public vote. Then, from ItalDesign's
winning prototypes (October 2017), Pininfarina developed and perfected the vehicle design.

Quality platform: VinFast aims to develop two world-class cars in a time span of only half that of
normal. Therefore, to save time without compromising on quality, the first models of VinFast were set up
by more than 400 engineers from the leading car engineering consulting company - Magna Steyr. In
addition, the consulting firm from Austria is responsible for integrating newly developed vehicle systems,
the latest ECU technologies from Bosch, and a modern electrical system.

Gearbox engine platform: VinFast has signed a cooperation agreement with Austria's AVL so that
the company leads the world in powertrain engineering designing a new 2-liter turbocharged four-cylinder
petrol engine for both car model (Vinfast). At the same time, the new VinFast engine, combined with ZF's
famous 8-speed automatic transmission, is considered one of the best in the world.
 Fourth, Vinfast had the battle to use the function as a springboard to buy the rights to manufacture
cars. By negotiating the acquisition of GM Vietnam, VinFast once again shows an understanding of how to
play in the global supply chain when participating in the chain as quickly as possible by acquisitions. VinFast
has chosen the best time to buy GM. The deal comes just two months after GM's subsidiary has been on
the verge of bankruptcy in South Korea. Timing the agreement for a successful agreement between a new
entrant into the industry in need of operational improvement, and the other being a unit of the GM Group
that is continually implementing a strategy to withdraw. investment in international markets, in order to
simplify and streamline the apparatus.

Finally, Vinfast factory has a large capacity and Vinfast also has Vintech's support. VinFast
automobile factory complex with an area of 335 hectares is located in Dinh Vu, Cat Hai, and Hai Phong
industrial parks(Vinfast, 2018). After just over a year since the commencement, the VinFast factory
complex has formed, most factories have been completed and are assembling production lines. VinFast
factory is designed and installed by foreign partners, many automated production steps do not require
much labor. To meet this task, VinTech has established itself two research institutes, Big Data Research
Institute and Vin Hi-Tech High Technology Research Institute. So in the future, it is likely that Vinfast
models will be integrated with software developed by VinTech and partners in charge of development.
With a clear orientation on goals and development directions, we believe that VinTech's Supply Chain will
conquer the Vietnamese market and quickly 'spread' to many markets in the region and internationally
(Techbike, 2020).

In general, the Inbound Logistics and Purchasing function meets all the requirements in the SMART
section from specific, measurable, achievable, realistic, and time-bound. From this, it can be considered
as an important factor in operation management to take Vinfast to a new level in the field of automobile
and electric motorbike manufacturing.
V. Factors affecting business management environment and
management's decisions
This segment briefly addresses the study of the market utilizing the Porter Time framework and
the key factors influencing Vinfast's business transactions. According to Porter (2004), the sustainability
analysis of the sector is very relevant for all companies as competition is the main factor in deciding the
positives and negatives of each enterprise. At around the same time, he also offers a market paradigm and
assumes that any company is influenced by these five competitive powers. This concept is also referred to
as Porter's Five Powers and is known to be a valuable and efficient method for good comprehension of the
sources of income (Porter,2020). Five Competitive Forces will be used to analyze the competitive
environment of businesses. Five Competitive Forces analyzes current competitors, potential competitors,
customers, subtitles, and suppliers.

1. The Vinfast Force Five

Current Competitors

Established rivals are firms competing in the same market, which are causing intense stresses and
direct risks to businesses. These stresses and risks can be reflected by the right to obtain materials, utter
cost strengths, model specifics, proprietary goods, or regulatory requirements. Competitiveness among
the existing players in the sector is high, resulting in lower costs and increased productivity of the business.
This rivalry directly impacts the long-term profitability of firms in the sector in order to capture market
penetration. Accordingly, when it comes to the Vietnam market, it is likely that VinFast sedan will fight in
the D-segment segment, in line with rivals such as Toyota Camry, Nissan Teana, Hyundai Sonata, Honda
Accord, Mazda6, and Kia. Optima ... And the rival series of VinFast SUV will be familiar names such as
Honda CR-V, Mazda CX-5, Nissan X-trail, Hyundai Santa Fe and Mitsubishi Outlander. Vinfast is a newly
established automobile and electric car manufacturing company that has to face other manufacturing
plants and has a long history of difficulties in development. But Vinfast did not show that he was afraid
but also proved that he was a formidable opponent in the production of cars and electric motorcycles.

Customers
 Customers are buyers of company facilities and goods which have a significant effect on the
competitiveness of the sector. Customers put a lot of pressure on businesses on the price and nature of
associated goods or services and will be the engines of competitiveness in the market through buying
decisions. Vinfast launched two models at the 2018 Paris Motor Show, positioned as a luxury vehicle, in
terms of communication with high efficiency. However, sales performance is another story. Obviously,
Vinfast cars are not aimed at middle-class customers, at least in the short term. But do rich customers
choose Vinfast because of their "Vietnamese brand" pride instead of buying luxury brand cars that just
need to hear their names? Some comments that Vinfast wants to be a brand first. They have impressed
the brand so well so far.

Subtitles

Alternative goods or utilities are what should be met, fulfilling the needs of the customer as well
as the old one. Considerations of demand, value, or the social, political, and logistical climate of
replacement products may reduce the future profits of the enterprise. Firstly, in the field of cars and cars,
there are many sources from factories and houses around the world such as Toyota Camry, Nissan Teana,
Hyundai Sonata, Honda Accord, Mazda6, and Kia. Optima. Moreover, Vinfast has just been built so it is still
weak to compete in many fields. Secondly, in Vietnam, there are many means to make substitutes for cars
and electric motorcycles such as taxis, motorbikes, buses, and a variety of other means to help people
travel. without the need for private vehicles. In order to reduce the difficulties of substitute products to
Vinfast products, a specific goal is to protect the environment and the family to use environmental
protection materials and electric fuel. Therefore, it is advisable to attract more customers who are
interested in the community and society. This is a separate breakthrough for Vinfast.

Potential Competitors

Potential rivals involve others that have not yet entered the business or are planning to compete
in the business. Obviously, future entrants would be immediately next to the firms that first entered the
market. Moreover, should these future competitors make dramatic advancements, the income, skills,
capital and competitive share of companies on a global scale would be challenged. Fresh competitors must
add competition to the market. Why update and place pressure on current players in the market by means
of a reduced pricing policy, rising prices, and allow innovative and useful ideas to consumers. The gap in
goods would render consumers interested since the competition in the market is the quest for consumers.
This is among the risks that organizations ought to be mindful of. On the other side, the resource demand
in the sector is very increased, making it impossible for new participants to start a company due to the
current massive expense. As Vinfast is only one of the new entrants in the field of automobile and electric
motorbike production, the potential competitors to be confirmed for Vinfast are very low. In addition, it
is the manufacturers that see Vinfast as one of the formidable potential competitors and need to be wary.

Suppliers

Many specific sectors need a great deal of expenditure in machinery or labor force, and it can be
shown that the manufacturer is one of the specifications. Such input suppliers do have a significant effect
on the amount and productivity of the product. The supply chain of the automotive industry has now
reached high commercialization, with the presence of companies operating in each field such as design,
manufacturing, assembly, marketing, sales, or services. finance. So it is very difficult for any company to
enter the industry and start working. As a brand new company in the field of automobile manufacturing,
VinFast focuses on recruiting senior and reputable personnel with extensive experience in the industry.
VinFast, a Vietnamese enterprise, is taking advantage of the perfection of the global supply chain to
participate in automobile manufacturing and trading. By negotiating the acquisition of GM Vietnam,
VinFast once again shows an understanding of how to play in the global supply chain when participating
in the chain as quickly as possible by acquisitions.

In sum it up, using the details in the Vinfast Force Five report, business managers should be capable
of understanding how the various variables drive the income of the company every year. Stronger power
implies lower income, while lesser power implies rising income. Furthermore, an evaluation of the income
of the company may be produced and was used in strategic thinking.
2. Scandal of Vinfast
Vinfast problem encountered

Snoring November 21, 2018, Vinfast Klara stalled while marching. Every new machine makes
mistakes, so it takes a process to test out what is wrong, to complete it. So the time to make a new model
is only 1, the testing time is 10 times, with many machines requiring high safety such as cars, motorcycles,
the testing time is even more. And when thoroughly tested, but the product to market, they are anxious
to advise customers to be careful with natural conditions to avoid loss of life for customers, because that
is the responsibility. But Vinfast is different, Mr. Pham Nhat Vuong brought his aggressive manner, fasting
the word Fast for it. Then the car manufacturing place is not finished, he has launched the car to the
market, let alone have experimental time. As a result, Vinfast Klara participating in the PR stalled and had
to be rescued by a car from another company.

From a technical perspective, it is inevitable because it is not empirical but in terms of business and
ethics, this is a huge problem. Try asking what happens when a customer walks in front of a truck and stalls
like that. Try asking how many people will be startled with the word Fast, with the article praising the
production of fast cars world record ... Which understands car production is needed slowly, surely.
Experiment for years in all kinds of harsh conditions. Should they spend a lot of money to buy this quick
put their lives on it?

From this incident, Vinfast no longer has too much customer confidence in the quality of the cars
that Vinfast is being manufactured. Worse still, images of the deadly motorbike paraded around social
networking sites and images were increasingly bad for Vinfast during the first phase of the decision to
launch the product. consumers.

Vinfast solves the problem

After the product problem, the fault of the product is to kill the car in the middle of the product to
the consumer. Vinfast stood out to apologize to its customers because this is a very serious product failure
for Vinfast Klara's electric motorbike. And I promise to try harder in the trial version to bring the best
product to consumers.
 It can be seen that this is an incident that any company does not want to happen because it will
lower the reputation of the quality of the product. Therefore, the later versions of the car achieved quality
and customer satisfaction. These are the first products of Vietnam's automobiles and electric scooters to
be exhibited with many big brands around the world.

In reality, two years after the crisis, Vinfast is still a successful brand. To summarize, although the
task of the management is to avoid mistakes, misleading statistics in financial reporting, and organizational
threats from the crisis, the leadership helps the business restore the confidence of the shareholders.

Importance of Stakeholders

Employees: The workforce becomes the company's identity. They are direct connections with
consumers and others that build a love for consumers and companies. In order for workers to operate
together and still concentrate on jobs, companies will consider their desires. Employees deserve a modest
wage, not a small one. The working climate must be ensured so that they can work up to 100% of their
potential. Their control over the business is fairly significant. They are the cornerstone that decides the
standard of the company.

Customer: Customers are a significant element deciding the growth of the company. While buying
goods, consumers expect their items to be of acceptable quality as well as to be pleased with the money
they pay. Customers are a strong and important team. If the consumer meets their standards, they can
suggest the company of the business to others. On the opposite, if the business fails and the owner
struggles to fix the problem, the business faces losing consumers.

3. Go green
GO GREEN, i.e. a concerted effort to build a healthy climate, is a crucial organizational drive into
ethical and socially conscious behavior (Slides). Regarding environmental protection and promoting the
society's awareness of environmental protection, Vinfast has succeeded with its choice of manufacturing
automobiles and electric motorcycles. Because the materials used by Vinfast are the optimal engines or
materials for the purpose of environmental protection such as electric motorbikes are powered from
electricity and do not create emissions to the environment. Contribute to the image of a beautiful Vietnam
in promoting environmental protection of the whole society and more than the whole world.
VI. Conclusion
The ideas and strategies for operational management, procedures, leadership, and management
positions are discussed in Part One. Actually, this segment simply describes the strategies, procedures,
and requirements used to help companies implement a variety of suitable choices for themselves. In turn,
this segment frequently lets companies grasp and incorporate further topics such as six sigma, lean
production, and queuing theory. Standards for MBO & SMART, TQM, Kaizen, or JIT were also provided.
Depending on what has been described, the performance of Vinfast in utilizing such approaches is indeed
a testimony to their usefulness. By the end of Part One, Vinfast's company priorities were created. Part
Two, in order to accomplish the Vinfast aim, the company must consider the roles that exist within the
company. The major roles identified include product and service planning, preparation, transfer
procedures, monitoring and delivery structures, logistics and inventory management, and power
management. Through studying the concept of functions, companies can consider themselves at the root
of their potential success. Step three should examine the effect of certain variables on the sales of the
product. Within this portion, the evaluation evaluates the leadership or management position in
organizational management to satisfy the desires, aspirations, and demands of the organization's
stakeholders. In fact, the Vinfast controversy was raised along with the company settlement. It is evident
from this illustration that somehow the leadership and management position that occurs in the company
is significant. The problem with this study is that quest detail is so big, it's simple to confuse and overwhelm
the mind. In fact, some of the topics to be discussed in the article are not accessible, depending on a variety
of specific details or documentation from the organization chosen to locate the appropriate information.
 Forbes (2019). “Forbes viet nam”. Available at: https://forbesvietnam.com.vn/kinh-doanh/con-
duong-cua-vinfast-6267.html. (Accessed April 22, 2020)

Gupta, M.C., and Boyd, L.H., (2008). “Theory of constraints: a theory for operations management.
International Journal of Operations & Production Management.” Available at:
https://www.emerald.com/insight/content/doi/10.1108/01443570810903122/full/html (Accessed April
22, 2020)

Oto (2020). “Vinfast oto”. Available at: https://oto.com.vn/bang-gia-xe-o-to-vinfast-moi-nhat (

Accessed April 22, 2020)

Porter (2004). “Religion versus empire?: British Protestant missionaries and overseas expansion,
1700-1914. Manchester University Press”. Available at:
https://books.google.com.vn/books?hl=en&lr=&id=ldQxO_yIPSEC&oi=fnd&pg=PP9&dq=porter+2004&ot
s=p7YazTRyCu&sig=xjsZmtdVTk1oG8DlisrrNDLHyTE&redir_esc=y#v=onepage&q=porter%202004&f=false
(Accessed April 22, 2020)

Slack, N., Chambers, S., and Johnston, R., (2010). “Operations management”. Pearson education.
Available at: https://drive.google.com/drive/folders/13-9-vT6csbOPXHXL_KyIDxPz0IqT-FFL (Accessed
April 22, 2020)

Techbike (2020). “Time to use electric motorcycles”. Available at:

https://techbike.vn/threads/thoi-gian-sac-day-xe-dien-klara-vinfast-va-quang-duong-di-duoc.1838/.
(Accessed April 22, 2020)

Tuan (2019). “VinFast recalls Chevrolet cars with airbag faults”. Available at:
https://e.vnexpress.net/news/business/companies/vinfast-recalls-chevrolet-cars-with-airbag-faults-
3931839.html (Accessed April 22, 2020)

Vinfast (2018), “The vinfast way”. Available at: https://vinfast.vn/vi/ve-chung-toi (Accessed April
22, 2020)
 Vinfast (2018), “Vinfast cars - electric motorcycles”. Available at: https://vinfast.vn/vi/vinfast-da-
ban-duoc-67000-o-xe-may-dien (Accessed April 22, 2020)

Powered by TCPDF (www.tcpdf.org)

 Index of comments

2.1 Strengths: Addressed all questions as required.

Weaknesses: Should state the SMART objective in 1 sentence.

Improvements: Address weaknesses as stated above.

2.2 Tham Nguyen

2.3 04/28/20

Powered by TCPDF (www.tcpdf.org)