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Chapter 2 - Contact Production Quality Management at TH True Milk Dairy Food Joint Stock Company
Chapter 2 - Contact Production Quality Management at TH True Milk Dairy Food Joint Stock Company
HCM
ĐẠI HỌC KINH TẾ TÀI CHÍNH TP. HỒ CHÍ MINH
FINAL REPORT
QUALITY MANAGEMENT
GROUP 2
University lecturer: TS. Nguyễn Thanh Mỹ
Members participate in implementation:
1. Phạm Thanh Diệu -
215018546
2. Hoàng Minh Ngọc -
215010335
3. Cao Thanh An - 215018440
4. Trần Nhât Khoa - 215019248
5. Nguyễn Gia Bảo - 215018512
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Quality Management
Thành phố Hồ Chí Minh, ngày 23 tháng 03 năm 2024
INSTRUCTOR'S COMMENTS
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TABLE OF CONTENTS
FINAL REPORT..........................................................................................................1
INSTRUCTOR'S COMMENTS.................................................................................2
TABLE OF CONTENTS.............................................................................................3
INTRODUCTION........................................................................................................4
1. THEORETICAL BASIS..........................................................................................4
1.1 TQM method.....................................................................................................4
1.2 Constituent elements of TQM..........................................................................5
2. Quality control tools.................................................................................................5
2.1. Check Sheet.......................................................................................................5
2.2. Flowchart..........................................................................................................6
2.3. Cause – effect chart..........................................................................................6
2.4. Pareto chart......................................................................................................6
2.5. Scatter chart.....................................................................................................7
CHAPTER 2: PRODUCTION QUALITY MANAGEMENT AT TH TRUE MILK
DAIRY FOOD JOINT STOCK COMPANY............................................................7
1. Overview of TH Group............................................................................................7
1.1. Enterprise introduction.........................................................................................7
2. Enterprise..................................................................................................................8
2.1. Enterprise quality policy...................................................................................8
2.2. Enterprise quality goals....................................................................................8
2.3. Enterprise quality plan.....................................................................................8
2.4. Quality control activities...................................................................................9
2.5. Quality assurance activities..............................................................................9
2.6. Quality system..................................................................................................11
2.7. Quality improvement activities......................................................................15
2.8. Quality organizational apparatus..................................................................15
2.9. Company quality costs....................................................................................16
2.10. Process procedures........................................................................................16
2.11. File...................................................................................................................17
CHAPTER 3: ADVANTAGES AND DIFFICULTIES IN PRODUCTION QUALITY
MANAGEMENT OF TH TRUE MILK JOINT STOCK COMPANY................17
1. Advantages and disadvantages in production quality management of TH True Milk
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2. Proposing measures to improve production quality management of TH True Milk 18
BIBLIOGRAPHY.......................................................................................................19
TEAM MEMBER REVIEWS...................................................................................20
INTRODUCTION
In the context of businesses competing on a global scale with powerful
multinational competitors with superior scale and technology, product quality is
becoming a key factor in creating a competitive position for businesses.
Customers are increasingly demanding higher product quality. Not only that, but
the view of product quality has changed from "product without defects" to
"product that fully meets all needs". That view, along with the increasing
differentiation in each customer segment, makes the market increasingly diverse
and demanding. Most businesses with a long-standing foundation and high
management level often pay great attention to the quality management process.
That is what gives them top-notch products, which makes customers lean
towards them in choosing products, creating a significant competitive advantage
in the market. And the enterprise that we chose to analyze is TH True Milk
Company - TH True Milk is the full name of TH Milk Food Joint Stock
Company.
1. THEORETICAL BASIS
1.1 TQM method
The TQM method originates from the ideas and lectures of Dr. W.Edwards
Deming and Joseph Juran (USA). These two professors are considered the
people who built the foundation for the revolution in the field of quality
management. The theoretical basis of this method is "preventing the appearance
of defects and quality problems from the beginning". Use statistical techniques
and management to check and monitor factors affecting the appearance of
defects right in the production system: from research, design, supply and Other
services related to the process of forming quality.
Applying TQM not only improves product quality, but can also improve the
operating efficiency of the entire system thanks to the principle: "Always do
things right from the beginning". TQM is not a separate science or a theory
solely about product quality control, but rather a strategic approach that provides
attention to quality in an integrated, comprehensive way through improvement.
Improving the quality of work of each department and individual in the
organization (enterprise), satisfying the needs of customers inside and outside
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the enterprise in the most economic and effective way. According to ISO 8042:
"Total quality management (Total quality management - TQM) is a way of
managing an organization that focuses on quality, relies on the participation of
all its members, and promises to achieve long-term success, customer
satisfaction, and benefits to the organization's members and to society.
TQM is considered one of the important tools to help manufacturers overcome
technical barriers in world trade - TBT. Applying TQM is one of the necessary
regional and world conditions, an inevitable need in the process of integrating
into the economy. Currently, many organizations, after being certified with ISO
9000, have researched Apply TQM to quality management, to improve work
efficiency and customer satisfaction (Cadivi, Vinamilk, The company has shown
encouraging results from Binh Hoa, Matsushita, Sony...), step After the first
National Quality Conference in August 1995, the TQM movement in Vietnam
began to take off. The State has announced the annual Quality Award to
encourage management activities and quality improvement. The basis for
evaluating this award is mainly based on the requirements of a quality system
according to the TQM model.
1.2 Constituent elements of TQM
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The birth and spectacular development of the clean fresh milk brand TH True
Milk from the end of 2010 until now has created a phenomenon in the
Vietnamese dairy industry. The secret of this brand is "The True Story of TH".
The organizational structure of the company:
● Head office: Nghi Son commune, Nghia Dan district, Nghe An province
● Product: Milk & food processing
Website: : https://www.thmilk.vn/
Vision and Mission
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the quality of products and services provided by the business. This is a
viewpoint agreed and applied by many countries.
In 1994, the ISO organization released the ISO 9000:1994 set of standards,
divided into three separate models:
- Model 1 (ISO 9001) applies to organizations involved in design,
development, production, installation and service. This International
Standard is particularly relevant if there is a design activity involved in the
provision of products and services.
- Model 2 (ISO 9002) is applicable to businesses involved in
manufacturing, installation and services, but in these businesses there are
no design activities.
- Model 3 (ISO 9003) applies to businesses if conformity with defined
requirements can be fully verified through inspection and testing of the
finished product or service. This is the least used standard.
The third edition of ISO was released in 2000 called ISO 9000:2000 and
includes three sets of ISO 9000 standards - basics and vocabulary; ISO
9001:2000 – requirements; ISO 9004:2000 – guidance for improvement. For the
2000 version, businesses only apply the ISO 9001 model. In a general sense,
ISO 9001:2000 is the good implementation and strict control of an established
quality management system document. Businesses must write down what needs
to be done, do what is written down and keep records of what is done.
ISO 9001:2008, the 4th edition of the ISO standard, does not introduce new
requirements compared to the 2000 version, but only clarifies existing
requirements of ISO 9001:2000 based on application experience over the past 8
years and introduced changes aimed at improving consistency with the ISO
14001: 2004 environmental management system standard.
Environmental Management System Standard (ISO 14000)
ISO 14000 also originates from the British standard BS 5750, a set of standards
for Environmental Management Systems regulated by the European Union since
the early 1990s. The ISO 14000 standard requires businesses to apply must meet
the goal of sustainable development based on the viewpoint of not causing
adverse impacts on the surrounding ecological environment and the business and
production environment of the enterprise.
Food safety standards (HACCP)
HACCP (Hazard Analysis and Critical Control Points) are principles used in
establishing a food safety management system. HACCP aims to control the
processing process, prevent toxic factors in food, evaluate hazards, and focus on
preventive measures instead of just testing the final product. HACCP also
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facilitates effective use of resources. This standard applies to a wide range of
food products and technologies, monitoring 259 health risks, and the
development of new processing processes. HACCP can be applied in
combination with ISO 9000 standards by taking advantage of ISO
implementation processes but focusing on food safety aspects.
Social Security Standards (SA 8000)
SA8000 is a system of social accountability standards to improve working
conditions for workers in businesses, farms or offices, developed by Social
Accountability International. - SAI) development and monitoring. This set of
standards is applied to ensure that businesses, especially those in the garment
and footwear manufacturing industries, fully fulfill their responsibilities to
employees and the community, such as working conditions. jobs, salary and
social insurance, etc. Enterprises not only fully implement the guiding
provisions of SA 8000 but also must strictly comply with the labor laws of the
host countries
2.6. Quality system
Hardware (property, equipment, raw materials, money...)
Infrastructure
The organization shall determine, provide and maintain the infrastructure for
operating processes to achieve product and service conformity.
Customer assets
The organization must take care of customer or external supplier assets while
they are under the organization's control or used by the organization. The
organization must identify, verify, and protect assets provided by customers or
external suppliers for use or to incorporate products and services. When property
belonging to customers or external suppliers is lost, damaged or found to be
unfit for use, the organization shall notify the customer or external supplier and
retain this written information about what happened.
Software (Information, technology, operating management methods,
policies, inspection and control mechanisms...)
Organizational context
The organization shall identify internal and external issues that are relevant to
the organization's purpose and strategic direction and that affect the ability to
achieve the intended outcome of the quality management system.The
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organization must monitor and review information on internal and external
issues.
Understand needs
Because of their significant influence or impact on the organization's ability to
consistently provide products and services that meet customer requirements and
applicable applicable statutory and regulatory requirements, the organization
must identify:
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The organization shall determine the knowledge required to operate its processes
and achieve conformity of products and services. This knowledge must be
retained, and available to the extent necessary. When it comes to changing needs
and trends, organizations must consider current knowledge and determine how
to acquire or access the necessary additional knowledge and necessary updates.
People (Is the human resource in the organization)
Leadership and commitment
Top management must demonstrate leadership and commitment to the quality
management system by:
● Responsible for the effectiveness of the quality management system;
● Ensure that the quality objectives policy is established within the quality
management system and is appropriate to the context and strategic
direction of the organization;
● Ensure the integration of quality management system requirements into
the organization's operational processes;
● Promote the use of process approaches and risk-based thinking;
● Ensure the availability of necessary resources for the quality management
system;
● Communicate the importance of effective quality management and of
meeting quality management system requirements;
● Ensure that the quality management system achieves its intended results;
● Engage, direct and support personnel who contribute to the effectiveness
of the quality management system;
● Promote innovation;
● Support other relevant leadership roles to demonstrate their leadership
within their responsibilities.
Power
The organization shall determine and provide the necessary resources to
establish, implement, maintain and continually improve the quality management
system. The organization shall consider:
● The capacity and limitations of existing internal resources;
● Needs to be understood from external suppliers.
Personnel
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The organization shall determine and provide the personnel necessary to
effectively apply the quality management system and to operate and control the
system's processes.
Resources to monitor and measure
The organization shall determine and provide the resources necessary to ensure
valid and reliable results when monitoring or measurement is used to verify the
conformity of products and services to the requirements. request. The
organization must ensure resources are provided:
● Appropriate for the specific type of monitoring and measurement
activities to be carried out;
● Maintained to ensure continued fitness for their purpose.the organization
shall retain appropriate documented information as evidence of the
fitness for purpose of its monitoring and measurement resources.
2.7. Quality improvement activities
Our company carries out quality improvement according to the proposed quality
plan. When carry out improvement action, our company will carry out
improvement according to PDCA and improvement. This improvement is
carried out step by step until optimal improvement results are achieved.
2.8. Quality organizational apparatus
When operating the quality management system, our company operates
according to an organizational structure as follows :
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2.9. Company quality costs
When operating a quality financial system, our Company operates a quality
management system the amount of cost compliance follows the following
model:
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2.11. File
All control activities in our company must be designed in forms and regulations
procedures and regulations during the control process and the control results will
be recorded on the form all forms after recording must be approved and stored
for evidence the truth of the activities.
All forms, processes, and regulations designed and written must be seen by
leadership review and approval before use.
CHAPTER 3: ADVANTAGES AND DIFFICULTIES IN PRODUCTION
QUALITY MANAGEMENT OF TH TRUE MILK JOINT STOCK
COMPANY
1. Advantages and disadvantages in production quality management of TH
True Milk
Advantages:
Strong financial capacity: With a large initial investment capital, TH True Milk
has the advantage of investing in technology, production lines, and ensuring the
quality of both human resources and products.
A team of high-level management experts and highly qualified specialists, along
with a large number of workers directly involved in production activities. TH
True Milk's human resource strategy is integrated and interacts in real time,
helping TH to have the best management system in the industry, helping quality
management work to operate smoothly.
Favorable conditions for grass cultivation: Vietnam is a country with a good
climate, suitable for raising tropical dairy cows, with a diverse and rich natural
environment, favorable for grass cultivation. Therefore, the grass supply is
continuous and ensures the quality of feed for the herd.
Owning a high-quality herd: TH True Milk's cow breeds are imported from
famous dairy farming countries in the world such as New Zealand, Australia,
etc., ensuring the origin and quality of milk.
Advanced management system: The company applies a suitable management
system for each production stage. The herd is classified into different groups and
has a nutritional diet, each meal is mixed according to a modern formula based
on Afimilk software. The drinking water for cows is also filtered using Amiad's
modern water filtration technology to meet the purity standards.
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l For the barns, the most advanced standards and specifications of livestock
barns are applied, creating the most comfortable conditions for cows with a
cooling roof system to prevent heat shock, a bathing system, fans, and drying
cows before milking. In addition, the AfiFarm herd management system is also
applied, cows are tagged and their health is monitored 24/7.
Difficulties:
The company's factory is still small with a small capacity, the products are not
yet diverse and rich.
Because of buying all foreign technology and importing good breeding cows
directly from other countries, the cost for the whole system is very high.
High production costs lead to the current price of TH's products on the market
being assessed as higher than other brands. It mainly operates and depends
heavily on the domestic market, and has not yet really established a foothold in
the foreign market.
Having to import the entire system of equipment from abroad makes it passive
in terms of spare parts.
The modern process mainly uses machines, so it is inevitable that there will be
errors, especially when the machines have been used for a few years and the
process of removing substandard milk also uses machines as the main tool.
The hot and humid climate and the strong winds affect the health of the herd,
and the milk and machinery are also corroded quickly.
2. Proposing measures to improve production quality management of TH
True Milk
Research and crossbreed domestic cow breeds suitable for the climate conditions
to reduce import costs (this has also been implemented by TH True Milk).
Strengthen control of machinery and testing equipment, especially in the
milking stage as well as eliminate low-quality milk units to ensure safety for
consumers.
Promote learning and technology transfer to take the initiative in the control
system.
Have a periodic maintenance and repair plan for the production line of
machinery and equipment to ensure that the machinery and equipment are
always in the best operating condition.
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The company must also have a backup procurement plan to ensure continuous
production operation without interruption.
Promote the milk brand to the foreign market
BIBLIOGRAPHY
1) Hiệp, Đ. V. (2O15). Tập tài liệu môn quản trị chất lượng. TPHCM.
2) Th Truemilk. Available at: https://www.thmilk.vn/ (Accessed: 14 August
2023).
3) Lan, M. (2019, 09 16). Biểu đồ Pareto (Pareto chart) là gì? Ý nghĩa và các
bước lập biểu đồ. Được truy lục từ Vietnambiz:
https://vietnambiz.vn/bieu-do-pareto-pareto-chart-la-gi-ynghia-va-cac-
buoc-lap-bieu-do-20190916115515926.htm
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TEAM MEMBER REVIEWS
STT HỌ VÀ TÊN MSSV NHIỆM VỤ
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