Student Name /ID Number Phạm Tú Anh/ F12-018.

Unit Number and Title Unit 4: Management and Operations

Academic Year Semester 2, Academic year 2019 - 2020

Unit Assessor Dr. Le Tien Trung, Ms. Pham Thu Trang

Assignment Number and

MO2: Leaders and operation management (2 of 2)
Title

Issue Date 3rd February 2020

Presentation Date 4th May to 22nd May (14th – 16th week)

IV Name Ms. Pham Thu Trang

Date 2nd January 2020

Submission Format:

Submission is in the form of a 10-minute individual presentation using relevant software, with five
minutes allocated for questions. The presentation slides and speaker notes should be submitted as one
copy. You are required to make effective use of PowerPoint headings, bullet points and subsections as
appropriate. Your research should be referenced using the Harvard referencing system. Please also
provide a bibliography using the Harvard referencing system. The recommended word limit is 1,000 to
1,500 words, including speaker notes, although you will not be penalised for exceeding the total word
limit.

Unit Learning Outcomes:

LO3 Demonstrate an appreciation of the role 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:

Scenario

1
Since reporting on the role of management and leadership within Vinfast, the CEO have now asked you
to feedback on best approaches and practices with regards to operations management.
This will take the form of a 10-minute presentation to the leadership team that will address how the
leadership and management team can improve overall operations within the company.

To assist with this you will need to investigate external business factors that influence operational
management and the decisions the management team makes.

Activity
The presentation slides should cover the following areas:
1. An introduction to the key operations of the organisation.
2. Details of each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions.
3. Explanation of the key operational approaches to operations management and their value.
4. An evaluation of the impact of external business environment factors that affect decision-making by
leaders and managers.
5. How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches.
6. Conclusions and supported recommendations for future improvements to be taken by the
organisation.

Learning Outcomes and Assessment Criteria

Pass Merit Distinction
LO3 Demonstrate an appreciation of the role leaders and managers play
in the operations function of an organisation
P4 Explain the key approaches to M3 Evaluate how leaders and LO3 & 4
operations management and the role managers can improve D2 Critically evaluate
that leaders and managers play. efficiencies of operational application of operations
P5 Explain the importance and value management to successfully management and factors
of operations management in meet business objectives. that impact on the wider
achieving business objectives. business environment.
LO4 Demonstrate an understanding of the relationship between
leadership and management in a contemporary business environment
P6 Assess the factors within the M4 Analyse how these different
business environment that impact factors affect the business
upon operational management and environment and wider
decision-making by leaders and community.
managers.

Slide 1:
2
Title of presentation:

Slide 2:
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1. Introduction to key operations of Vinfast:
*Products:
Currently, Vinfast introduces 3 new model cars and electric motorbike in the automobile market
(Nguyễn, 2020).
 Vinfast Fadil car (Hatchback 5 seats).
 Vinfast Lux A2.0 car (5 seater sedan).
 Car Vinfast Lux SA2.0 (SUV with 5 seats)
 Electric motorbike.

Slide 3:
*Core operations of Vinfast:
Vinfast automobile factory was built according to technology standard 4.0. The production
process at the factory is completely synchronized and automated with 6 factories (Kenant, 2020).
The press shop covers an area of more than 50,000 square meters, is 100% automated
stamping.
The body shop covers an area of more than 100,000 square meters, has an automatic spot

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welding system with 1200 robots.
The engine manufacturing workshop covers an area of 50,000 m2 and is designed and
supplied by large industry groups such as GROB, Thyssenkrupp, AVL, MAG.
Paint shop covers an area of more than 50,000 square meters. The factory is 95%
automated and equipped with EcoSmart VEC intelligent air system.
Sub assembly shop with an area of over 20,000 square meters with 3 lines, operates fully
automatically from pre-treatment stage to spraying paint with robots.
General assembly shop is the largest area of the factory with an area of over 200,000
square meters, made by the most prestigious contractor in Germany – Fisenmann. Once
completed, the vehicle will undergo rigorous testing before it reaches the consumer.

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Slide 4:
2. Key external environment factors influencing operation management in Vinfast:
2.1 Global environment:
* The EU is currently one of Vietnam's leading trading partners in both export and
import. In June 2019, Vietnam and the EU officially signed Vietnam-EU Free Trade Agreement
(EVFTA). With the commitment to eliminate import taxes up to nearly 100% of the tariff and
trade value agreed by both sides, the opportunity to increase exports for advantageous items such
as textiles, footwear and seafood is very is significant, especially in Vietnam's automotive sector
(Carmol, 2020).
Tax will be reduced to nearly 0% when cars equipped in Vietnam meet localization
requirements for export to Europe. Thanks to EVFTA, VinFast can also easily access the
European market. A number of Lux SA2.0 and Lux A2.0 vehicles have been detected running in
Spain and Austria (Tracy, 2020). The first three VinFast car models have also been tested safely
in Germany and all meet the standards.
However, signing this agreement also poses a challenge for Vinfast. The abolition of
import tax will help carmakers like Mercedes-Benz or BWM will have much cheaper prices
when they export to Vietnam. Therefore, many customers will want to buy those brands because
the cars produced in the EU are always quality cars and luxurious designs. This reason will make
it difficult for Vinfast to attract customers in the domestic market.
* Currently, trade tensions between the US and China have not been resolved. Nearly half
of all imports from China to the United States (253$ billion) are subject to punitive taxes with an
additional tax of 25% (Crackent, 2019).
Regarding import-export, taking advantage of escalating trade war, Vietnam will quickly
develop export-oriented electronics and automotive manufacturing industries, which will be an
attractive destination for both FDI inflows from multinational corporations.
* 2020 is a dark year for the worldwide economy due to the effects of the Covid epidemic
19. Especially the epidemic countries like Europe, Russia and China have been seriously affected
by Covid (Lempinen, 2020). For example, industrial and automotive production in Europe in the
first quarter of 2020 will decrease by 5.4%, the largest decrease in the past 11 years.
Fortunately, Vietnam is one of the best countries that control the Covid 19 epidemic in
the world, so the economy is not seriously affected by the crisis (Menickella, 2020). Thanks to
this advantage, Vinfast has rapidly developed the production and improved the quality used to
supply the market.

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 However, due to the outbreak of Covid in Europe, most of the export process will be
delayed due to strict control to prevent the disease. This will bring challenges for Vinfast in the
process of exporting cars to potential markets.

Slide 5 +6:
2.2 Marco environment (PESTEL):
Opportunities Threats
Political The automotive industry has always been a Although the transparency index has
major contributor to Vietnam's GDP increased by 4 points compared to 2018,
(accounting for 3%). For this reason, this Vietnam is still among the 2/3 countries
industry always receives special attention in the world with scores below 50
and treatment from the government (Rahman, 2020). This shows that
(Menickella, 2020). Therefore, Vinfast corruption in the public sector is still a
always receives great support from the serious problem. in Vietnam. This is a
government to continue developing the challenge for Vinfast. To ensure smooth
production of automotive components and production and trade, business need to
accessories and product quality, thereby set aside a sum of money to bribe.
confirming the position of Vietnamese cars
on the world market.

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Economic GDP growth rate is estimated at 6.8%, an Although the average income is US $
average of US $ 2,778 per person. In 2,778 per person, it is still quite low
addition, Vietnam's economy grew more compared to the world average
than 7%, inflation rates were low. This (Overview, 2019). Therefore, many
makes the income trend of developed people still hesitate before deciding
households go up (Smith, 2020). As a whether to buy a car or not. In addition,
result, customer demand for cars will payment packages to support car loans,
increase and Vinfast will benefit from this. although interest rates have been
reduced but remain at high levels,
consumers need to borrow to buy cars
are still hesitant.
Sociocultural Vietnam has a labor market with abundant However, Vinfast is the first Vietnamese
human resources due to the golden automaker so it still has no place in the
population period. This enables Vinfast to car market (Dao, 2019). People still trust
accelerate and develop product and prefer perennial cars like Toyota,
development and component Honda or Mazda instead of choosing
manufacturing processes (Ngoc, 2017). In Vinfast cars if they are at the same price
addition, most people when buying a car range.
are aiming at affordable criteria, luxurious
style, suitable for traveling in the city.
Understanding these reasons, Vinfast has
quickly produced cars suitable for
customers' psychology.
Technology Vietnam is being transferred the most Although Vietnam has an abundant
advanced technology from European human resource, the skill level and
countries about the automobile production knowledge of employees in automotive
line. In addition, Vietnam also received technology are still limited. This has
many orders for the production of greatly affected the production process
automotive components from automakers of Vinfast, most important stages of
such as Toyota or Honda. This also affects Vinfast production require the
the quality improvement in Vinfast cars consultation of foreign engineers and the
production process. car's core accessories also need to be
imported.
Environmental Vietnam is a country with abundant and

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 diverse mineral resources, especially iron
ore minerals. Taking advantage of mineral
resources, Vietnam is gradually becoming
a supplier of raw materials for auto parts
manufacturing industry in the domestic
market. Therefore, Vinfast does not have
to spend a huge amount of money to
import auto parts from abroad.
Legal Although the law still has some gaps, this Vietnamese law still has some gaps. Tax
is also an opportunity for Vinfast. and fee policies related to the
Vingroup has had many good relationships automotive industry are constantly
with the government, especially Vinfast's changing. This accidentally affected
production of Vietnamese-branded cars Vinfast's business. Because Vinfast is a
has made this relationship more intimate. new business in the automotive sector,
As a result, simple issues related to the law the increase in tax will make it difficult
can easily be handled with care. to compete with other cars in the market.

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Slide 7:
2.3 Industrial environment:
Porter's Five Forces is a model used to analyze and research competitive factors in a
market that businesses intend to enter, helping identify the strengths and weaknesses of the
market (Jim Chappelow, 2020).
Company competitor: In the automotive manufacturing industry, automakers such as
Toyota, Ford, Mercerdes - Benz are always the preferred car manufacturers in the market. This
shows that the number of Vinfast competitors is quite large because this is a famous car company
with safe quality, diverse designs, spanning all segments. This is a challenge for Vinfast to attract
the attention of customers.
Customer: Vinfast was just established in 2017 so this car company is still quite new in
the market. Therefore, not many customers are interested in Vinfast cars. In order to attract more
customers, Vinfast will have to provide customers with bargaining and delivery rights. Even
Vinfast must be willing to agree if customers want to maximize benefits with the lowest cost.
This is also a pressure that Vinfast faces.
Suppliers: Vietnam has many large-scale auto parts factories and received many orders
from well-known car manufacturers. This will be an advantage for Vinfast in selecting suppliers.
Vinfast will have the right to negotiate on price, delivery time from which to choose which
suppliers meet the requirements and also ensure the quality of components.

10
 New entrants: Vinfast's power will also be affected by the force of new car
manufacturers in the automobile market. However, the automotive sector requires a large scale of
production, high investment costs, employees must have a high degree of experience in
automotive technology. Therefore, very few businesses can meet the above standards. This is
also an opportunity for Vinfast to reduce competition when not facing new competitors in the
automotive market.
Substitual: Because Vinfast is a new manufactuer in the automobile market,so that this
car company has not really gained the trust from customers. Customers will choose famous and
safe car manufacturers instead of Vinfast cars if they are at the same price range. This shows that
Vinfast is still not a perfect substitual for automakers such as Toyota, Mazda or Honda.

Slide 8:
3. Roles and responsibilities of managers in the key operational functions:
3.1 Roles and responsibilities of managers in operation:
Vinfast has handed over the operation of the assembly workshop to Mr. Do Trung Nghia -
an engineer with nearly 20 years of achievements in the field of automobile assembly and
manufacture. This is one of the most important positions in the process of manufacturing a
Vinfast car, considered as the "heart" of the factory. As a foreman, Mr. Nghia will be responsible
for managing the assembly activities at the workshop, including managing people, machines,
environment, product quality, managing - processing orders, handling problems arise, ... ensure

11
the completion of the task according to the assigned technology plan and process. Here are some
of the roles and responsibilities he needs to manage the assembly plant:
- Monitor: Mr. Nghia will supervise and inspect assembly activities at Vinfast's workshop.
 Responsibility: Responsible for receiving and implementing the production plan, ensuring
the assembly plan is implemented efficiently, quality, meeting the productivity
requirements.

- Disseminator: He will act as the direct recipient of requires from his superiors regarding
requirements for changes or improvements in the assembly process.
 Responsibility: He will intiatively research and propose solutions to improve production
efficiency, accelerate the completion of the plan and then continue to disseminate them to
the leader of each main assembly phase.

- Leader: Mr. Nghia will have a role to allocate working time based on assembly processes as
well as on the qualifications of workers to ensure the entire assembly process takes place as
planned.
 Responsibility: He is responsible for organizing the assignment, assigning daily and
weekly tasks to the teams and employees in the assembly workshop, ensuring the
balanced use, optimizing the machinery and manpower.

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 Slide 9:
3.2 What manager should do to improve operation efficiency?
To increase profits for businesses, in addition to increasing sales, the problem of cutting
costs for non-quality processes or products, also called waste, is also an important factor. So
businesses need to learn the approach and eliminate waste (Porter, 2020). At Vinfast, this waste
occurs in the production of cars, particularly at the general assembly general assembly plant.
- A waste of time due to waiting often occurs during vehicle assembly. The assembly
stages are equipped with Atlas Copco's modern guns and Dalmec power arm systems to ensure
that the tightening of each assembly is controlled. Therefore, if one of the firearms fails,
subsequent assembly operations must be stopped so that the repair team can adjust the machines.
This will lead to a series of subsequent assembly lines being delayed and Vinfast wasted not only
time but also huge amount of money.
To solve this waste, the plant manager has asked the supplier to have a specific warranty
for each different type of machinery. Besides, he also expanded the number of machines when
doing the same assembly job to avoid overloaded machinery lines.
- Vinfast has used robots in its pre-programmed engine factory with the most advanced
technology. However, what still happens is that the device lacks components and cannot be fitted
to the vehicle's engine system. This leads to the defect of these products and the need to repair
them, thus leading to inefficient labor and inefficient use of machinery.
Therefore, Vinfast's workshop manager requires employees to closely monitor the
machine at all stages of installation. In addition, he proposed expanding the scale of the rigorous
engine quality testing line (hot and cold testing) to ensure 100% of the products are quality
controlled from input components until finished products.
- In addition, Vinfast has many automobile engine assembly lines. This inadvertently
makes some lines unnecessary and assembly processes are more complex than required.
Therefore, over processing not only causes inefficient use of labor and equipment, but also
disrupts the open production flow, resulting in bottlenecks in the process.
To limit the over processing lines, he drafted, issued specific instructions for each
assembly line and put it to work, standardizing operations for all stages and areas.
- One of the wastes that Vinfast encountered in the assembly workshop was the waste of
motion. In the process of installing a motor for a car, there are a few robot operations in the line
that are rated as redundant and unnecessary. Besides, some heavy and difficult stages have the
help of robots, so the workers do not need to do that job. If this situation continues for long,

13
Vinfast will waste human resources on unnecessary work and the production line system will be
worn down due to doing redundant activities, these causes will impact. directly to Vinfast's
operating expenses.
To minimize this waste, the workshop manager arranged the working position of the
employees as well as reduced unnecessary assembly stages.

Slide 10 + 11:
3.3 Specify the operation theory applied in Vinfast:
Lean production is one of the modern management methods to streamline production,
minimize waste in the business, increase business efficiency (Harid, 2016). Vinfast has used this
method in the automobile manufacturing process, namely to be applied to assembly workshops.
Lean production will support Vinfast to minimize redundant components, eliminate duplicated
and unnecessary assembly stages. Specifically Vinfast has applied the Just in time and Kaizen
factors in the assembly process.
Just in Time (JIT):
Just in Time (JIT) is a production management strategy in which raw materials or
products circulate during production and distribution are planned in detail at each step, so that the
process continues can be performed as soon as the current process terminates (Karent, 2016).
Vinfast applies this campaign to ensure "the products are manufactured in accordance
with the quantity and ensure the right place and the right time". In the assembly workshop of
Vinfast, every stage of assembly is ensured that the components are always fully supplied to

14
avoid the situation of waiting, waiting for processing, no equipment for input operation.
Specifically, each worker in each stage is the person who checks the components from the
previous stage, its must meet the standards before the worker can carry out their work. The
worker acts as a "customer" when he receives parts from the previous stage and is "inspected" at
the later stage. In order to maximize the effectiveness of the Just in Time process, Vinfast needs
to have suitable plans for each stage of assembly.
 Vinfast should develop a close relationship with suppliers. Although the company has
produced many auto parts by itself, Vinfast still has to buy from suppliers for small and
important components. This is how Vinfast ensures that every automated assembly
process is provided all the components for the work to be planned.
 In addition, Vinfast should use BRAVO software to ensure that the assembly process is
"just in time". This is a multi-function software, with high data security when the parts are
used on the same system. At the assembly workshop, it will help the manager always
know the statistics on the factors related to the assembly process quickly and accurately,
maximum support for the process of dispatching, supervising assembly.

Kaizen:
Kaizen is a Japanese economic term, compounded by the word 改 ("kai") which means
change and the word 善 ("zen") meaning better, meaning "change for the better", more beneficial
to the collective than to the individual (Kowalewski, 2016).
In the car assembly workshop, Vinfast has only actively assembled the main components

15
that make up the car such as the body, engine and chassis, and other details such as the door,
wheels and wheels have not been directed uniformity in the design and assembly stages. This
also significantly affects the production costs of Vinfast. Therefore, the enterprise decided to
apply Kaixzen philosophy in the production and assembly management process.
 At the assembly plant, supervisors and managers will review and approve all
improvement proposals that employees make if during assembly a malfunction occurs or
the components are insufficient, they have the right to make most of the changes without
seeking a higher authority.

Slide 12:
4. Evaluate the current approach to operation management in Vinfast:
 Strengths:

- Supporting Vinfast reduces waiting time between stages as well as maximizes assembly cycle.
- Increase the ability to respond flexibly, while minimizing the pressure on input resources
(people, equipment) to meet the diverse requirements of the market.
- Minimize waste of materials from defective products.
- Supporting the factory to minimize unnecessary and unnecessary assembly processes.
- Supporting Vinfast to develop a working team responsible for each of their jobs.
 Weaknesses:

- It also depends on the supplier, if a material supplier has a problem and cannot deliver on time,

16
that supplier may slow down the entire assembly process.
- Production costs will be high if Vinfast does not know how to apply properly.
- This is a fairly complicated method, so it will require Vinfast plant managers to understand
each stage of assembly as well as high level.

Slide 13
5. Recommendations:
Currently, Vinfast is adopting lean production theory and more specifically using the
philosophy of just in time and kaizen in assembly workshops. Although these are theories to
minimize waste in production and increase profits for Vinfast, it still has certain limitations.
Therefore, Vinfast should apply the Six sigma theory alongside other applications to ensure the
work is done more effectively.
This method will help Vinfast improve the quality management process based on
statistics to find errors in the assembly process, thereby identifying the causes and handling
errors to ensure the accuracy of the process (About Six Sigma | Six Sigma Methodology | Six
Sigma Training and Certification, 2017). Unlike ISO 9001, six sigma is not a product quality
measurement system, it is a system that brings a new mindset to Vinfast "instead of focusing on
handling defective products, invest in improving process to prevent errors from occurring. "
Therefore, Vinfast should incorporate all three theories in the process of management and
operation in an assembly workshop to eliminate unnecessary waste in labor or inefficient
assembly, including materials and time, thereby increasing profits.

17
 In addition, Vinfast can apply an enterprise resource planning (ERP) system to promote
operational efficiency (Jughead, 2017). This system will assist Vinfast to manage and inspect the
production processes. It also helps factory managers provide plans to import parts from suppliers
and track the delivery process.
Besides, Vinfast can apply Computer-aided Manufacturing (CAM). This technology of
processing, manufacturing and is applied a lot in operating and manufacturing processes (Walter,
2014). CAM will program the production plan and control the operation of the production line on
the computer system to directly impact assembly robots or production lines in the workshops. It
also helps Vinfast reduce waste and energy to increase production through material consistency.

Slide 14:

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