Managing Business Activities to Achieve Results
Managing Business Activities to Achieve Results Essay Sample
The case below is based on a real life organisation, but details have been changed for assessment purposes and do not reflect the current management practices. Students are however encouraged to search the internet for cross references in answering this assignment. Thanh Vinh Company, founded in Ho Chi Minh City on Feb 04 1991, is the leading company specializing in design, interior decoration and manufacture furniture for office, factory, school, hospital, and home in Viet Nam. More than 15 years of experience as the pioneer of interior contractor, Thanh Vinh has decorated successfully for many projects of well-known international and local clients.
The company philosophy is to provide long term certainty and confidence for the clients by offering the highest possible quality products at the most competitive price, and providing closest personal services at all times. With 2 factories – 1 in Ho Chi Minh City (about 10,000 square meters in area) and 1 in Ha Noi (about 2,000 square meters in area) and 2 showrooms – 1 in Ho Chi Minh City & 1 in Hanoi of over 450 staff, Thanh Vinh continues to grow from strength to strength meeting the needs of all customers around the country. Thanh Vinh Company through the combined services of design, furniture manufacture and interior decoration departments, is able to offer a Turnkey service which guarantees all project will be successfully completed to a high quality standard within budget and time frame.
Manufacturing furniture at Viet Nam through the latest machines imported from Germany, Italy and Japan such as: edge bander, electronic horizontal panel saw optimat, 3-head drilling machine, 4-side & 2-side planer and moulder, curved wood forming presses machine, hot presses machine, auto glue spreader, CNC router machine, sanding machine,… with skilled workers. Manufacturing furniture for offices, factories, schools, hospitals, hotels and home,… by advanced technology of Europe from natural wood as: Xoan Dao, Beech, Ash, Mahogany to MDF timber veneer, Laminate, MDF (Medium Density Fibreboard), MFC (Melamine Faced Chipboards), stainless steel, steel, aluminium, upholstery and hardware’s utilising high quality imported products.
1.1 Evaluate the inter-relationships between the different processes and functions of Thanh Vinh Process is association of the independent components of an organization such as the management team, the department and the company’s resources… Function is an action taken by a group or a department and it toward a clear goal. For example, the function of finance department is managing finance of company; provide information about the financial situation, the management team to help get the decision on the development plan. Organization process of Thanh Vinh Furniture Company
Division of functions and tasks for each level clearly
Maintain the level of activity of the company
Create operation between the level of information management Time consuming when making decisions
Conflicts between levels
This is an organizational chart of the company Thanh Vinh interior. It shows a diagram of the plant structure and the management level. Topping is the board of director, the second level is the director and after that is department of company. In each department, they have chief of department and staffs and they have difference function to ensure that company can stable operation. Beside, this structure brings some advantage and disadvantage. The structural model of Thanh Vinh Furniture Company is shown very clearly but I have some recommendations for the following company. The company can increase departmental functions for services such as monitoring functions. This will help the company better manage the activities of other departments. Information should also be transported in many different directions as top-down, bottom-up and communication between departments a more flexible way. Process of manufacture department
Ensure the departments are always in accordance with the company’s goals Ensure that departments have the resources necessary to operate Managers difficult to track all the activities
Many problems require the implementation process
Main function of the manufacture department at Thanh Vinh Furniture Company is responsible for the production and implementation of orders … While the company has an order of the interior, the implementation process will be carried out as follows. Department will prepare production materials, calculate the amount of materials needed for production, production planning and production technology. The process will be divided into small sections for each level. Evaluate the quality of input materials, check the products before storing, handling inconsistent product and management of manufacturing equipment, and monitoring equipment, measuring equipment. After receiving request, the department will receive designs from the design department to conduct material preparation and manufacturing planning.
After the end of the production process, finished goods will be delivered to the customer or transferred to the company’s warehouse. In process of manufacture department, company should apply standardization about quality, design, method production for entire production process and each kind of products. These will help the company to reduce the number of errors in the manufacturing process; the product will be most applicable customer demand for quality and design. This is one of the important departments of the company. Therefore I strongly recommended company should monitor this process closely. Services departments can combine monitoring product quality when the product is completed to ensure the company continues to provide products with best quality. Process of accounting department
Ensure the production process of the company
Ability to control the company’s financial
Ensure budget for planned activities
Implementation complex process
Request multiple standard
The function of accounting department is control and functions allocate financial situation of the company. In the implementation process, the department will require all information about the costs, revenues … during its operation. From there, they can make financial reports for management. To get this information, the accounting department to collect information on sales, cost of daily operations. Then they will be analyzed and synthesized to provide the most specific data. This process requires staff with experience and time consuming, so I recommend that company should adopt a system of internal accounting firms. The problems finance related to operation manufacture that will update through internal software. On the other hand, the financial statements may be made based on specific criteria and quickly. (http://www.mybusinessprocess.net/business-process-mapping/)
This is process mapping in business process; it can be apply for each department of Thanh Vinh Company. Because, Thanh Vinh Furniture Company divided organization structure base on the function of department. This chart provides information to control activities, information flows and decision points of the process operation. For example, in the manufacturing action, they get an order for furniture production. Marketing department will check whether the company has the ability to perform or not. In the case of company with the ability to perform, the accounting department will deposit requirements to conduct the production process. The requirements of the order will be delivered to room design. This room will have the task of moving the product design and process design for manufacturing. If the order is not deposited to the company, the accounting department may notify the manufacturing departments plan to stop manufacturing.
If the order is successful, manufacturing departments will plan manufacturing and storage methods, delivery to customers. Finally, the accounting department will make the payment process for customers. Process mapping is very importance for the operation of each department. I recommend that Thanh Vinh Furniture Company should require staff implement fully the steps in the process of operation. This helped the company reduce risks during the operation and management can easily control the operation of each department. 1.2 Justify the methodology to be used to map processes to the organisation’s goals and objectives Goals are direction for the activities of a company or organization. It consists of one or more objectives must do in a fixed time. Objectives are a result of a specific individual or group gain over a period of time and available resources. Objectives are often made more specific and easier to understand than goals. In current period, Thanh Vinh furniture has a lot of goals and objectives.
This is the first goal and objective of Thanh Vinh Furniture Company; they want to become diversified business corporations in Vietnam. To accomplish this goal, the company has created an organizational structure which has specific functions and clear parts. Each department in the company has its own function but can support other departments such as link information, to support the implementation of the project. In addition, each department in the company has its own working procedures. Generally, these processes have to meet the requirements of the company. On the other hand, ordering to develop the market, the company has made a lot of plans to improve the quality of products such as quality control of raw materials, production processes.
This is second goal of Thanh Vinh Furniture Company. A company may wish to create a reputable brand in Vietnam market and internationally. The company has set for themself four objectives with clients, markets, and social employees. Company used Turnkey system to ensure the quality of products and services from their manufacturing process to installation for the customer. For each objective, the company has specific criteria to direct activities for the company.
During establishment, the company has established manufacture departments. Objectives of this department are is produce product for the company and ensure the quality inspection, installation support and maintenance… With customers, departments must ensure that the products are made of high quality, quality of service the company has been fully implemented as deliveries from 1 to 2 days for small customers and after 5 days with customers as business. Perform maintenance checks and maintain relationships with clients on a regular basis. These will be based on the standards of the ISO 9001 system. 1.3 Evaluate the output of the process and quality gateways
Requirements are the foundation for the design and manufacture of a product, so it is the reason that the request must be made correctly and specifically before the manufacturing process begins. Quality gateway used for inspection that requirement. It is usually performed by a head analyst and a tester. They have the task of ensuring the standards according to the requirements of the entire production process.
(Management: Communications and Achieving Results, p.27)
The component to make good quality in requirement may include: Elicitation – needs of customers can be collected through interviews, market research … since then, the company can provide the exact requirements and appropriate. Analysis – analysis will help company realize the weaknesses in process or in the request as the overlapping loss. Since then, the company can provide the solutions.
Representation – materials when preparing the report should be brief, clear and easy to understand to meet individual requirements Validation – testing requirements to ensure that these requirements meet quality standards. It avoids cases such as conflict, unclear… Advantages and disadvantages of output of the process and quality gateways Advantages
Ensure consistency of product quality. Quality standards are set for each production process and products must ensure the quality requirements of the testing process. Reduce production costs. Quality standards will help company reduce material damage, defective products. Thus, company can maximize materials to save costs. Maximum use of the time of the production process. Monitoring staff will ensure the full implementation of the working time that labor productivity can be improved. Reduction of productivity workers. To ensure quality, workers will must pay attention and be more careful in the production process. It leads to the production of one product to be more time consuming. To apply quality management, company need staff training. This cost will affect the cost and labor time.
In Viet Nam, due to the difficult economic climate, businesses are limited. They are not eligible to apply for ISO certification of the world except large enterprises and foreign joint venture company. However, Thanh Vinh Furniture Company has adopted TCVN ISO 9001 standards. The company has developed quality management system for the product to ensure the ability to provide good quality products to our customers. On the other hand, it helps improve customer satisfaction through the effective application of the system. The current main task of the company is to establish standards and systems to encourage use, system testing and certification, assessment of the quality management system.
The current main task of the company is to establish standards and systems to encourage use, system testing and certification, assessment of the quality management system. Some measures can help company improve quality management system is organized evaluation process, giving directions based on customer needs, continuous improvement. Company also applied methods to improve quality as weekly staff meetings; training manuals for employees knowledge about ISO system … The Company is making changes, enhancements to further improve the system quality. 2.1 Design plans which promote goals and objectives for your own area of responsibility Thanh Vinh Furniture Company is planning to expand the market share of the largest cities in northern Vietnam such as Ha Long, Hai Phong, Hai Duong …
The company is particularly focused on Ha Long city, because this is a very fast growing city. On the other hand, company can perform market research in this city to get the most accurate information about the market and consumer trends. This can help company improve its market share in Vietnam market. The company has two main forms of sales to consumers and businesses. Therefore, the company’s plan will be prepared and follow these steps. Firstly, the company will have to determine objectives when developing new markets. The overall goal of company is to develop market share in Vietnam. In addition, company will make the opening objectives as agent in Ha Long city after 2 months, setting up a representative office in Haiphong… Each department will have the mission, different goals when involved in this plan.
Based on the functions of each department, tasks and objectives will be identified. Marketing department and service department will be responsible for development of the market; we will have established an objective of dealers and stores representative. The accounting department will have the task of calculating and control financial; their objectives will be responsible to ensure and division financial plan in the amount $ 15,000… Secondly, a business plan will prepare for the new store. Business Trends agent will be determined based on two types of customers is the company’s consumers and local businesses. To find customers, the company will open the campaign on marketing and advertising in the city. The objectives will be fixed execution time to calculate the amount of time for the project as advertising time, contact time with customers, market research… then, personnel decisions to be made and project control.
Thanh Vinh Furniture Company may appoint a director like me to check out the project. In addition, company can also share the operational level for the operation. When the agent comes into operation, the strategic level will have to make the long-term strategy to increase sales and expand market share, competing with competitors … At the tactical level, short-term projects will be prepared as equipment sales, market penetration … Finally, operational level will provide what need to do day by day. Finally, planning and control cycle will prepare, it is a process deciding what should be done. It will be the final ingredient to ensure plans are in accordance with the objectives and promote the activities of the project. On the other hand, it is also a factor to monitor and evaluate what results of plan. From that information, company can adjust objectives and plans.
2.2 Write objectives which are specific, measurable, achievable, realistic and time-based to align the staff and other resources in an effective and efficient way SMART goal is an important part of business. Each specific goal will help company quickly develop and make use of its resources. The first criterion is specific; the company needs to show specific what they want in future.
Second criterion is measurable; it will present what company will have such as revenue, the number of agent… The next is assignable; objectives must be transferred to an object to perform. Realistic is objectives must be identified with the real challenges to accuracy. If the target does not define realistic, managers cannot assess the factors that will influence. Finally criterion is time-based, goal will have limited time in a specific way, and it is also the motivation to promote the ability of employees to work. Thanh Vinh Furniture Company has two major goal is to become the leading furniture company in Vietnam and create a Vietnamese brand. With two goals, Smart goal following. Specific
Achieve 40% of the furniture market
Extending over 20 branches in Vietnam
Provide products according to ISO 9001 quality standards
Annual revenue of over 50 billion
There are 4 major stores in Hanoi and Ho Chi Minh City, 16 galleries in other cities Application of ISO certification for all products, the company’s management Assignable
Made to expand market share in cities like Da Nang, Can Tho… Product research and development of office, household…
Market research, identify customer trends, improve and upgrade the quality of products and services Training employee, define standards
Departments in company
Revenue, the develop of market
Staffs, skills and knowledge,
In current period, the company is implementing many of the strategies to achieve goal. The company has opened showrooms in Binh Dinh. It offers cable function, design and construction. This is a step forward to reach and attract customers and expand market share. Currently, the annual turnover of the company reached more than 30 billion and the company is offering many solutions to improve the skills of employees and production facilities. The company has always made the process of producing a strict way; it is monitored by the specialized agencies and more modern machinery. To expand market share and increase brand competitiveness, the company has high-quality products for hotels, resorts… These things show that the company is gradually implementing their goals and will continue to grow in the coming years.
These objectives are created based on the available resources of the company; they are realistic and is good development direction of the company. 2.3 Implement appropriate systems to achieve the objectives and goals of the plan in the most effective and efficient way, on time, to budget and meeting organizational standards of quality Operating the system requires a new plans must be have an organization structure, staff positions. Manager will promote and testing, perform necessary operations more active process. Their goal is to promote and maintain the company’s activities within a time period and meet organizational standards of quality. Controlling operations it requires the performance criteria, standards for manufacturing process control, product quality, the responsibilities of the management team and the performance of the workforce.
Time and money, budgets are the most basic resource within which actions. A plan should be based on the actual time that the activities required to ensure that the operation had enough time to implement. Besides, the money and the budget should be calculated carefully to support the operation. There are many measures to ensure the company can perform effective way targets such as improving communication systems, and provide planning standards for each level within the company. Firstly, Thanh Vinh Furniture Company needs to improve the communication system. This system should ensure flexibility in the exchange of information between the levels in the company. The Company may apply to the software internal departments to exchange information. The group management must notify any change in the plan for those other groups to perform properly common goal.
Secondly, Company employees required to prepare plans for all activities of the company and its synchronization with the control system, evaluation of company. Each plan must be balanced and objective time, cost and quality. If one company changes in the four factors, the result will change. So, fair balance factors will help company make reasonable plans. Finally, company will provide standardization which is an importance mechanism for coordinating work in operational level. In work process, Company can apply for standard parts, such as production, assembly according to one common standard to ensure the products are uniform in quality and design. Standardization of work will help the department can agree and work together in the system.
This will help increase the quality and productivity for the company. At the same time, standardization of output should apply; it is possible for more complex task as manager level… The company should make provisions for the quality, cost, time and manpower for each product or service that they provide. In addition, standards must also clearly indicate the implementation process so that employees are aware of the need to perform and how to do it. Next is the standardization of skills and knowledge for the staff of the company.
Thanh Vinh Furniture Company will provide the requirements for certification of experience and skills for employees. This will ensure the company’s employees have the necessary skills. Beside, company will need to spend a lot of time and expense for the standardization activities of the company. With the high demand components, company can order from other manufacturers. For staff, company can train and frequent partial training to improve skills. Some of these methods can help company save costs.
2.4 Carry out work activities meeting the operational plan through effective monitoring and control. (Based on critical path, Gantt chart, resource allocation, etc. to support your activities)
Network of project
The project duration is 21 days.
There are four paths, as follows:
A B D F = 4 + 4 + 5 + 6 days = 19 days
A C E F = 4 + 3 + 2 + 6 days = 15 days
G H J L = 3 + 7 + 2 + 8 days = 20 days
G I K L = 3 + 6 + 4 + 8 days = 21 days
Critical path is G I K L (21 days)
In this project, the activity A and G will start at the same time. But activity A have to have done before the company can do activity B and C. Activity D, E will start when B, C finish. Action F can only start when both D and E action completed. Activity H and I will start when activity G finish. Activity J will follows on activity H and K will follow on activity I. After J and K finished, activity L will start. With plans to adopt a new technology for the production of furniture, this plan requires a minimum of 10 employees. The number of employees will be divided based on ability and experience to ensure that the time taken to plan. Thanh Vinh Furniture Company has experienced staff, so 10 staffs are enough to implement this plan.
Quality standards are one of the conditions for international economic integration to achieve prosperity and sustainability. Cannot say the economy if the product developed, manufactured goods of non-standard, quality does not meet customer demand, market and social life. Implementation of harmonized standards in Vietnam with the standards of the countries in the region and around the world (including the application of international standards) is one of the effective measures and actively to improve competition and enterprise integration for Vietnam.
International standards, with a crucial role, are being widely applied to products, services and processes of global supply chain. The scope of standardization is not confined between the domestic and foreign businesses, but also extended to the national level (like the electricity grid) and global (network information technology, telecommunications). In addition to linking markets, international standards is also required to reach out to developing countries and economies in transition in the application of advanced technologies to increase the export capacity and competitiveness.
http://www.thanhvinhfurniture.com.vn/vn/tin-tuc/d/cong-ty-tnhh-thanh-vinh-phat-trien-thi-truong-noi-dia-f24.htm http://davilaw.vn/tu-van-iso/davilaw-iso/894-quan-ly-chat-luong-trong-doanh-nghiep-theo-tieu-chuan-iso.html http://www.mybusinessprocess.net/business-process-mapping/
Management: Communications and Achieving Results, p.27