Kinh Do Corporation

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Table of Content

1.    The Organization. 1

2. Process & functions at Kinh Do company (KDC) 2

2.1. Explain the term “process”, “function”. 2

2.2. Explain processes & functions at KDC (sales, marketing, R&D, logistic, etc). Analyze functions of each department. 2

2.2.1. Functions in Kinh Do Corporation. 2

2.2.2. The processes in Kinh Do Corporation. 5

3.    Inter-relationship of processes & functions. 6

4.    Methodology in mapping process. 7

5.    Quality gateways & process outputs. 9

5.1.     Requirement specification of products and services through Q&A function. 9

5.2.     Diagram for the process of quality management 10

6.    Plans to achieve goals & objectives for the strategy of enhancing KDC’s manufacturing capacity  10

7.    Designing objectives (you may combine together). Write objectives which are specific, measurable, achievable, realistic and time-based to align people and other resources in an effective and efficient way. 10

7.1.     Design objectives through SMART goals. 10

7.2.     Planning to implement this strategy (*) 11


 


SCENARIO

1.      The Organization

Kinh Do Corporation is a business group of Vietnam with an emphasis on distribution of imported branded snack and candy goods, and food production including baked goods, confections, snacks and soft drinks. The Kinh Do story stars with a small family business in 1993, with a single snack product which has since grown to include 300 products under 30 brands; creating one of the most well-know and dynamic companies in Vietnam. Kinh Do’s market leading position is a result of their strong local presence, significant distribution reach, innovative product strategy, and high quality products. Main office of the company is located in Ho Chi Minh City.

In 2010, Kinh Do focused more on both internal processes and business activities to be effective and efficient. Kinh Do restructured to build a professional distribution system capable of reaching broad regions in the country with high efficiency, enabling robust growth for the company. Kinh Do’s corporate strategy focuses on mergers and acquisitions, efficient business processes and well-connected distribution system. To date, Kinh Do’s distribution system has been very convincing in its transformation, incorporating 200 best distributors, servicing 120,000 retail outlets, 30,000 ice-cream and dairy products retailers, and 30 Kinh Do Bakery stores across the country. With 1,300-strong sales force, KinhDo is ranked among top companies which have best distribution system in Vietnam.

As a manufacturing company, Kinh Do’s functional departments include sales, marketing, R&D, logistics, purchasing, production, finance and accounting, HR and IT. Kinh Do’s organization structure is exhibited below. The company’s manufacturing plants are located in Ho Chi Minh City, Hung Yen and Binh Duong Provinces. As a large organization, effective cooperation among functional departments is a crucial factor in successful business operations of the group. Moreover, almost all business processes require associated tasks and activities taken across various departments and SBUs as well as some external stakeholders.

As the company grows, process standardization will be among the primary focuses of the functional departments in its building of the foundation upon which to accelerate growth.

Standardizing processes and work flows help the company to scale up faster in the post M&A and expansion scenarios.

Strategic management activities and processes are carried out at the highest management levels in head office. These include implementation and evaluation of cross-functional decisions that coordinating activities, setting product strategies, identifying new investments, mergers and acquisitions, expanding distribution network, and establishing joint-ventures.

In order to achieve its corporate objectives, Kinh Do managers must ensure that these functional activities and processes in this large and complex organization area carried out effectively and efficiently with high quality standards. Management must make sure that objectives of every functional area must be aligned with those of the organization. Quality management is practiced throughout the organization from strategic to operational level.

Kinh Do annual report is provided to you for your information and reference.

2. Process & functions at Kinh Do company (KDC)

2.1. Explain the term “process”, “function”

A process is defined as the instance of a program running in a computer. It is close in meaning to task , a term used in some operating systems (Business Dictionary)

According the definition of Business Dictionary, an action performed by a devicedepartment, or person that produces a result. Function remains more or less fixed whereas the purpose (which indicates intention or objective) generally changes. For example, the function of a hammer is to strike something nearby whereas its purpose (what to strike and why) could be anything the hammer-wielder has in mind.

2.2. Explain processes & functions at KDC (sales, marketing, R&D, logistic, etc). Analyze functions of each department.

2.2.1. Functions in Kinh Do Corporation

2.2.1.1. The operation of input supply

Merchandising operation

All kinds of materials which have been used for manufacturing process in Kinh Do Corporation have been handled by the department of Material Supply. This department includes one Supply Director and three vice directors who are in charge of three kinds of materials including package, materials and all other input materials from local suppliers as well as foreign suppliers. These people need to make sure the materials they bought with the best price and quality in the stable amount. Moreover, this department usually needs to look for the new supply source, new supplier and cooperate effectively with other departments such as manufacturing planning and stock department to implement their merchandising process.

Inventory management department

The operation of this department has been calculated on the basis of optimal inventory and always implement the inventory of some materials which the organization will use the large amount or with unstable price in the market. In every month, stock management department and the manufacturing department has cooperated with accounting department to check the stock room.

2.2.1.2. Operation phase

The department of equipment operation: This department need to have the knowledge of operating some modern kinds of equipment in Kinh Do Corporation

R&D department

KDC focused on the R&D activities for new products and consider this duty not to belong to R&D department but also belong to the Management Team and the Board of Directors. This department has implemented many kinds of R&D activities

-          Research to manufacture new products, from the phase of materials supplement to manufacturing, packaging and quality management.

-          Research some solutions for upgrading current products on the basic of quality and packaging

-          Research the manufacturing issues in the new equipment system which KInh Do Corporation has just invested and planned to invest.

-          Research the use of new materials in the manufacturing process

-          Research the manufacturing process of export products to meet the requirements of foreign customers under the quality standards.

Manufacturing department: This is in charge of manufacturing products to satisfy customer demand

Quality Management department: This department will be in charge of quality management in the products KDC supplies to the market under some standards such as Quality Safety fro material phase to sales department strictly.

Distribution phase

Marketing and Sales department: This department is responsible for making sure the increase of sales capacity, the increase of revenue and marketing in KDC and building the trust from customers and increasing the profit rate to KDC

R&D department: This department is much different from R&D department in the Operation phase. The responsibilities of this department are to implement the survey of customer feedback with the purpose of improving the quality and developing the new products or to collect surveyed information through outside consultants. Moreover, this department also handles some survey about the efficiency of marketing and sales program.

PR and marketing department: This department will be in charge of marketing and PR program with the goal of making sure the efficiency of their program as well as keep the cost at the reasonable level not to increase the product price. Some PR and marketing or promotion programs which KDC has implemented are promotion program in Tet holiday, market fair participation as well as volunteer program.

2.2.1.3. Supportive phase

HR department: This department will handle some operation activities such as recruitment, the policy of talent attractiveness, training, reward program

Finance and Accounting department: This department includes accounting team including finance accounting, financial report; financial team including cash management, credit management which are responsible for raising capital  for manufacturing process, stock department which is  in charge of managing, following stock investment in KDC and handle stock investment for each portfolio.

2.2.2. The processes in Kinh Do Corporation

There are three main phases such as Input Supply, Operation phase and Distribution phase. There is one supportive phase including Financial and accounting department

 

HR department

 

Inventory management department

 

Merchandising department

 

Manufacturing department

 

R&D department

 

Quality Management department

 

Marketing and Sales department

 

R&D department

 

Input

Supply

 

Distribution

Phase

 

Supportive

Phase

 

Operation

Phase

 

Finance and Accounting department

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.      Inter-relationship of processes & functions

As you can see in the process of KDC operation, there are three phases to provide products to customers such as Input Supply; Operation phase and Distribution phase. In the Input Supply, there are two department working and supporting together such as Merchandising and Inventory Management. The next phase is Operation phase including Manufacturing department with some supportive functions such as R&D department and Quality Management department. And Distribution phase has been considered the final phase including the main department which is Marketing and Sales department, R&D department. Besides three main department mentioned, there is the supportive phase which hasn’t involved in the process of creating and delivering products, but important such as HR department which focuses on finding suitable people for operation of each department and Financial and accounting department which handle financial activities.

Inter-relation between Merchandising, Inventory management and Marketing and Sales Department

The merchandising solutions allow you to take charge of your inventory management, increase service levels, and lower costs, along with these other features and benefits:

-          Access accurate and timely information about what you received, when you received it, and what shape it was in.

-          Increase pricing accuracy for improved customer service.

-          Reduce inventory loss and improve profitability.

-          Reconcile received merchandise to on hand easily and quickly.

-          Increase customer service levels with visibility to your merchandise — no matter where it is.

Inter-relation between Supportive department and other department belonging to three main phases of manufacturing process: Each department needs people to handle its activities, so they need the support from HR department. Moreover, all department need to plan their budget in every activity so they have the close relationship with finance and accounting department.

 

 

 

Distribution

Phase

 

Input

Supply

 

HR department

 

Finance and Accounting department

 

Supportive

Phase

 

R&D department

 

Marketing and Sales department

 

Quality Management department

 

R&D department

 

Manufacturing department

 

Merchandising department

 

Inventory management department

 

Operation

Phase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.      Methodology in mapping process

The process of Kinh Do Corporation operation use some methodology in mapping process such as single process flow chart

Cross-functional flowchart:

When a flowchart describes a process in which a number of different people, departments, or functional areas are involved, it is sometimes difficult to keep track of who is responsible for each step.

In the process of Kinh Do Corporation, cross-functional flowchart analyzes the relation and flow chart among three phases such as Input Supply; Operation phase and Distribution phase. Moreover, there is the supportive phase involving in the process, for instance, HR department and Financial and Accounting department.

Single process flow chart

When a flowchart describes a process in which there is just one people, one department or functional area involved into the process

In the process of Kinh Do Corporation, there are single process flowcharts for each phase of operation phase. For instance, Input Supply

 

Finance and Accounting department

 

HR department

 

Merchandising department

 

Inventory management department

 

Input

Supply

 

 

 

 

 

 

 

 

 

 

 

 

 

5.      Quality gateways & process outputs

5.1.            Requirement specification of products and services through Q&A function

Applied system of quality management in Kinh Do Corporation

Nowadays, Kinh Do Corporation has applied the system of quality management under the basis of ISO 9001:2000 which has been certificated by BVQI in UK on October, 2002. This system has been compliance by KDC. From 2002 to now, KInh Do Corporation has been evaluated the system of quality management in 24 times (each 6 months for one evaluation) with the good result. This activity of examining product quality has been handled by Q&A department and R&D department.

Hygiene and food safety in Kinh Do Corporation in the process of material supply

-          Materials: KDC always updates all regulations of Vietnam Ministry of Health and other export countries to limit some ingredients in its products not to influence to customers’ health.

-          Using the imported materials from reputational suppliers to make sure origin and quality of used materials.

-          Strictly manage the material input source on hygiene, packaging, certificate from suppliers.

Hygiene and food safety in Kinh Do Corporation in the manufacturing process

-          Kinh Do Corporation sets up the strict regulations relating to hygiene in manufacturing process. The workers handling with products need to have the knowledge of Hygiene and food safety.

-          Always have the team who is in charge of quality management to follow and manage the application of regulations relating to Hygiene and food safety in manufacturing process.

Hygiene and food safety in Kinh Do Corporation in finished products

-          Finished products need to be packaged in the sealed container

-          Instruct sales staff and distributors to manage the product quality, display products under the right requirements of each kind of product to avoid damaging products before expiration.

5.2.            Diagram for the process of quality management

Hygiene and food safety in finished products

 

Hygiene and food safety in manufacturing process

 

Hygiene and food safety in material supply

 

 

 

 

 

 

 

 

 

 

 

6.      Plans to achieve goals & objectives for the strategy of enhancing KDC’s manufacturing capacity

This strategy has been formed in the infrastructure of equipment in Kinh Do Corporation which has been used in the optimal level. In fact, all equipment of Kinh Do has just operated at the capacity of 55 – 65 percent of capacity which combines the opportunities of the potential of local and foreign markets. Through this strategy, Kinh Do can leverage its manufacturing capacity to increase the productivity, reduce the production cost to create competitive advantage of its products

7.      Designing objectives (you may combine together). Write objectives which are specific, measurable, achievable, realistic and time-based to align people and other resources in an effective and efficient way

7.1.            Design objectives through SMART goals

 

 

S Who: Quality Management department and Manufacturing department

What: Enhancing KDC’s manufacturing capacity

Where: In the manufacturing department

When: This year

Which: Leverage at least 90 percent of equipment capacity

Why: To increase the productivity, reduce the production cost to create competitive advantage of its products

M The number of finished products produced within 1 day
A The same with planning part (*)
R A goal can be both high and realistic; you are the only one who can decide just how high your goal should be. But be sure that every goal represents substantial progres
T Implemented within 2 months and evaluate then.

 

7.2.            Planning to implement this strategy (*)

-          To build the manufacturing process for each category, such as Snacks, Cookies, Crackers, Candy and Bread

-          Usually coordinate with Marketing and Sales department to understand the customers’ demand as well as customers’ feedback on its products. Hence, this helps KInh Do Corporation to meet the demand on quality and quantity from customers.

-          Strictly manage the material source on both quality and quantity

-          Planning department need to coordinate manufacturing and purchasing department to follow the inventory.

-          To continue to apply ISO 9001:2000

-          To implement internal evaluation of ISO application and then adjust the suitable quality management system.

 

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