VINFAST PRESENTATION

Quality Management

PRESENTATION

GROUP 1 Members: Nguyễn Ngọc Anh Thư Diệu Quân Ý Đình Nguyễn Minh Trâm Thành Phước Trần Chí Thịnh Quỳnh Anh Tiến Dũng

Start

table of contents

The importance of TQM

Reasons to choose Vinfast

Business overview

Business overview

Quality concept

Total Quality Management Concept

Analysis of Vinfast's TQM

table of contents

Advantage & Disadvantage

Solution

Propose

Conclude

VinFast-Presentation

The importance of TQM

- In today's business environment, if you want to maintain market dominance, it is necessary to build a quality assurance system in your business. It can be said that product quality plays an important role in determining the survival of a business. Realizing that, more and more businesses are applying Total Quality Management (TQM) to their organizational systems. - TQM is a tool to manage a quality-oriented organization or business with the participation of all members to bring satisfaction to customers and benefits to company members.

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Reasons to choose Vinfast

Vinfast continuously conveys the message that their products are made in Vietnam with advanced technology and high quality. Therefore, group 1 chose Vinfast company to research the quality management process as well as provide weaknesses and recommendations for Vinfast.

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Vinfast overview:

VinFast is a Vietnamese car and electric motorbike manufacturing company, part of Vingroup corporation. They produce a wide range of electric car and motorbike models, with a modern factory in Hai Phong. VinFast not only produces pre-designed models but also invests in research and development of its own products. Their target is not only the domestic market but also the international market. VinFast has received great support from the Vietnamese government and investment from foreign investors. This is helping VinFast develop and expand both products and consumer markets, changing the auto industry both domestically and internationally.

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Quality Management Concept

Quality management is a general management function that establishes policies, objectives, and responsibilities and implements them by means such as quality planning and quality improvement within a systematic framework quality.

Functions of the total quality management model

Inspection and control: It is the first function of quality management. During this phase, the organization determines its quality objectives and the methods for achieving them.

Organization: It is the process of establishing and maintaining an effective quality management system. This system must ensure that the necessary resources are provided and the necessary processes are implemented to achieve quality objectives.

Motivation: It is the process of motivating employees to participate in quality improvement activities. These stimulation activities can be implemented through forms such as rewards, training and promotion opportunities.

Remediation: It is the process of taking actions to ensure that quality goals are achieved.

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Vinfast's TQM analysis:

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Figure 2.2:Baldrige criteria for performance excellence framework- a framework of seven categories which are used to assess organizations

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ERP (Enterprise Resource Planning systems)

ERP (Enterprise Resource Planning systems) is enterprise resource planning software. A model for applying information technology to business management, data collection, storage, analysis and interpretation.

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SALES MANAGEMENT ERF DIAGRAM

ERF sales management has the main features that meet the sales management needs of businesses as follows: process management, sales management, support for managing many types of contracts and orders, and tracking Customer debt limit, inventory management, delivery management, sales invoice creation and payment, accounting

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DISTRIBUTED ERF DIAGRAM

ERF distribution management has the following main features to meet the distribution management needs of businesses as follows: the function of controlling sales staff roadmap, keeping abreast of the market, integrating with accounting and finance systems. administration, human resources and salaries

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1. Leader

- VinFast - Vietnam's leading electric vehicle manufacturer announced a change in leadership, as the company enters a new stage of development. - Mr. Pham Nhat Vuong - Founder and Chairman of Vingroup, VinFast's parent company, will move from the role of Chairman of the VinFast Board of Directors to take on the position of General Director of VinFast.

- VinFast is a member company of Vingroup, with the vision of becoming a smart electric vehicle brand that strongly promotes the global electric vehicle revolution.

Established in 2017, VinFast owns the region's leading, modern automobile factory complex located in Hai Phong, Vietnam with an automation level of up to 90%.

Strongly committed to the mission of a green future for everyone, VinFast is constantly innovating, bringing quality, classy products, smart service platforms, excellent customer experience and pricing strategies. reasonable, thereby inspiring global customers to join hands for a future of smart mobility and a sustainable planet.

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2. Strategic planning

Wide distribution channels

Strong communication

Product strategy

- Not only applying the "buy out" strategy in production, to ensure the big goal set out, Vinfast also acquired the entire automobile production and distribution system of GM Vietnam.- It is expected that by the end of 2018, the transfer of GM Vietnam's operations, including the factory in Hanoi, the authorized dealer network and staff will be completed.

- Perhaps the media is the area that makes Vietnam pay the most attention to Vinfast and is more or less surprised by the "expenditure". At the launch ceremony at the Paris Motor Show, VinFast invited former British football player David Beckham, Miss Vietnam 2018 Tran Tieu Vy, Miss Universe Vietnam 2017 Hoang Thuy and model Tran Quang Dai... and many brands.

- Talking about Vinfast's plan to produce Vietnamese-branded cars. Vinfast's goal is to produce 100,000 vehicles in the first year, starting from the third quarter of 2019. - Basically, Vinfast aims to master both car production and distribution, selling not only domestically but also abroad, for a domestic car brand that has never built a position before.

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3. Customer focus:

Knowledge about customers and markets:- VinFast's target customers are domestic and international consumers, especially those who love and wish to own cars with beautiful designs, high quality and that meet operating needs. in modern urban environments. Customer relationships and satisfaction: - Vinfast's after-sales policy brings peace of mind and satisfaction, which is also the factor that convinces many customers to decide to buy an electric vehicle.

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4. Measure, analyze and manage knowledge

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4.1. Measure and analyze Vinfast's performance

According to the unaudited financial statements for the fourth quarter and the whole year of 2023, VinFast Auto Ltd. (Nasdaq: VFS), a member company of Vingroup, announced that the Vietnamese brand car company achieved total revenue of 10,418 billion VND (437 million USD) in the fourth quarter of 2023, an increase of 26% compared to the previous quarter and increased 133% over the same period in 2022. According to information provided by VinFast, in the second quarter of 2023, the number of electric cars delivered in the quarter was 9,535 cars, an increase of about 436% compared to the first quarter of 2023. The number of electric motorbikes delivered in the second quarter was 10,182, an increase of 4% compared to the previous quarter.

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4.1. Measure and analyze Vinfast's performance

Also according to VinFast, car sales revenue reached 7,488 billion VND (314.6 million USD), an increase of 147.0% compared to the second quarter of 2022 and an increase of 387.3% compared to the first quarter of 2023. Total revenue in the second quarter of 2023 is 7,953 billion VND (334.1 million USD), an increase of 131.2% compared to the second quarter of 2022 and an increase of 303.3% compared to the first quarter of 2023. Total revenue mainly comes from electric car sales. Gross loss from business activities is 2,715 billion VND (114.1 million USD), an increase of 7.5% compared to the second quarter of 2022 and a decrease of 28.7% compared to the first quarter of 2023. Gross profit margin improved to 34.1% in the second quarter of 2023, compared to a decrease of 73.4% in the second quarter of 2022 and a decrease of 193.2% in the first quarter of 2023

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4.2. Information manage

VinFast applies 4.0 technology at manufacturing plants such as applying ERP systems to help devices and part/entire lines in a factory be connected to each other through sensors connected via the network. and/or cloud computing. Information during the production process will be continuously updated, stored and analyzed. This data will be important input information for research and development of new product lines with new designs, materials and production processes to suit increasingly diverse and changing desires. quickly of customers regarding usage needs, techniques, designs, quality, delivery time and price.

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5. Concentrate the workforce

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5.1. Working system

VinFast factory not only ensures compliance with regulations on standards for automobile manufacturing and assembly enterprises but also applies the first digital technology in Southeast Asia. The entire automotive component production and assembly process is completely synchronized and closed, operated by a modern, intelligent machinery system and automated through robots. - Working hours are 8 hours/day, 5.5 days/week (administrative and office blocks) and 6 days/week (service blocks).

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5.2. Employee education training and development

Office working conditions are extremely spacious and spacious, provided with uniforms, modern equipment, periodic health checks (for administrative staff), and fully equipped. means, labor protection equipment, labor hygiene (for service sector employees) - Pay attention to managing and training them throughout their work for Vingroup. Accordingly, from leaders to employees of Vingroup, they must be learners and willing to learn anytime, anywhere. For leaders, subordinates must be trained 52 hours/year; 1 employee must train 100 hours per year. - Each employee must be responsible for their own work. Because of that, they are the ones most responsible for their own work and from there try to complete the assigned work. If any employee does not perform well, they will be fined, disciplined, or even fired.

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5.3.Employee welfare and satisfaction.

Vingroup employees also enjoy allowances. In addition, Vingroup employees also enjoy other benefits from the group such as: Giving gifts on important occasions such as birthdays, births, marriages; organize vacation activities and travel for employees; Establish a fund to support disadvantaged employees, establish a mutual aid fund with interest-free loans

When working at Vinfast, employees have the opportunity to maximize their professional abilities, creativity and intelligence, and enjoy outstanding remuneration and bonus policies.

Ensure uniforms, labor protection equipment, labor tools, machinery... for employees in each industry and commit to providing the healthiest, fairest, and most professional working environment.

The environment is extremely friendly, united and respectful of each other. Employees are entitled to holidays, vacations, and personal leave with full pay in accordance with the provisions of the Labor Law, have the Group's shuttle bus when going to work, and are served lunch at the workplace.

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6. Operations focus

DATA

6.1 Product and service processes:

VinFast, a leading automotive and motorcycle manufacturer in Vietnam, adheres to a stringent product and service process. Firstly, they conduct market research to understand demands and trends. Then, with the contribution of talented engineers and designers, VinFast develops new product ideas and designs. Next, through modern manufacturing plants, they fabricate and produce products that meet high-quality standards. VinFast employs diverse marketing strategies to promote their products, ranging from traditional advertising campaigns to online and social media outreach. They also commit to providing quality after-sales services, including regular maintenance and customer support. Lastly, VinFast continuously upgrades and improves its products and services based on feedback from customers and the market, ensuring satisfaction and ongoing competitiveness in the automotive and motorcycle industries.

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6.2 Business processes

Implementing a comprehensive business process to ensure product quality and success is crucial. Starting with research and development, VinFast focuses on understanding market needs and developing design prototypes that reflect technological trends and consumer preferences. Subsequently, the company engages in production at modern factories, ensuring automated processes and strict quality control. A multi-channel marketing strategy and dealership network are established to enhance visibility and customer outreach. VinFast also emphasizes post-sales services to ensure customer satisfaction and maintain long-term relationships. Continuing investments in research and development, along with expanding international operations, are the next steps in VinFast's development strategy, helping them sustain and expand their market share in the global automotive industry.

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6.3 Support processes

VinFast has established a rigorous and efficient customer support process. When customers reach out, their information is recorded and categorized based on priority levels. Simple issues may be addressed online through automated systems, while more complex requests are assigned to support specialists. Support staff will work to resolve customer issues, providing necessary information and guidance. After the issue is resolved, they will follow up to ensure customer satisfaction and gather feedback. From this feedback, VinFast can improve support processes in the future, ensuring satisfaction and convenience for customers.

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7. Result

DATA

7.1 Customer-focused results

By listening to and understanding customer needs, VinFast has been able to significantly increase sales volume. Simultaneously, improving products and services based on customer feedback has helped the company enhance their satisfaction levels, thereby fostering a loyal and passionate customer community. Going beyond this, VinFast has built a robust customer ecosystem by creating interactive programs and events, ranging from providing excellent after-sales service to creating opportunities for meetings and interactions for enthusiasts. Focusing on customers has also helped VinFast establish a solid brand reputation built on trust and customer satisfaction. Understanding and effectively serving customer needs has been key to this success.

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7.2 Financial and market results

Enhancing financial strength has enabled VinFast to optimize capital management, reduce borrowing costs, and generate resources for investment in product development research. This has helped the company enhance investor and customer confidence by providing transparent and reliable information about its financial status and business operations. As a result, VinFast has attracted more investment and increased sales revenue. By effectively controlling the market, VinFast has also expanded its market and enhanced its competitiveness by understanding customer needs and developing suitable products

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7.3 HR results

By enhancing training and development for its employees, VinFast has successfully increased labor productivity and improved product quality. Simultaneously, creating a positive working environment has helped reduce turnover rates and enhance employee satisfaction. By attracting and retaining talent, VinFast has built a strong workforce, thereby enhancing its competitiveness in the market. In summary, effective human resource management has significantly contributed to VinFast's success and sustainable development in the automotive and motorcycle industries

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7.4 Organizational effectiveness results

During the manufacturing and business processes, VinFast has focused on enhancing product quality and implementing high-quality management standards. This has been evidenced by the success of VinFast's vehicle models, which have received positive evaluations from both consumers and automotive experts worldwide. VinFast has also achieved international certifications for quality management, such as ISO 9001, serving as a clear testament to the company's commitment to adhering to international standards.

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Advantages and disadvantages

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Advantage

Positive brand image

Financial resource

Quality Management

Compatibility with strict quality, safety and environmental standards is required to enter many markets. With new technology investments and a vision toward the future, Vin has many advantages over existing companies without having to bear the burden of the current system.

Vingroup itself is also a financially strong corporation, as a member of this group, so Vinfast has great financial support.

In this aspect, Vingroup has relatively created a very good image with what Vin does for tourism and real estate, so Vinfast also inherits part of that positive brand image.

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disadvantage

Limited market presence

Lack of experience in the automotive industry

Quality control

This issue has affected its reputation and customer satisfaction, Vinfast has encountered the following problems: body frame defects, delays in service solutions and challenges with component supply.

As a relatively new company in the auto industry, VinFast lacks the extensive experience and track record of established automakers, which could affect consumer confidence.

Although VinFast has expanded beyond Vietnam, its market presence is still limited compared to long-standing global auto brands. This lack of market penetration can pose challenges in terms of competition and brand recognition..

SOLUTIONS

Toyota Vietnam's factory is considered one of the Toyota factories with the best vehicle production quality in the Asia-Pacific region thanks to the application of the quintessence of the Toyota production system (TPS). - Before applying the TQM model, Toyota applied the TQC model - In 1995, Toyota transformed the TQC model into TQM with the aim of not only improving product and service quality but also work quality and management. The main reasons Toyota changed TQC to TQM: + In 1995, for the first time, the number of employees in Toyota's foreign branches exceeded the number of employees in Japan and the sharing of TQC thinking with employees in Abroad becomes necessary, because it is a place where there are differences in language, culture and even lifestyle.

Toyota

RESULTS

- Toyota factory improvement activities - Toyota's departmental improvement activities - Production improvement activities

Toyota

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GROUP'S PROPOSAL FOR VINFAST TO DEVELOP PRIVATE ECONOMY

1. Expand export markets:

Focus on potential markets such as Southeast Asia, Europe and North America.

Cooperate with reputable distributors and agents in target markets.

Participate in international car exhibitions to promote brands and products.

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GROUP'S PROPOSAL FOR VINFAST TO DEVELOP PRIVATE ECONOMY

2. Developing new vehicle lines:

Focus on electric vehicles and self-driving cars, which are the future development trends of the auto industry.

Research and develop new technologies to improve product quality and competitiveness.

Cooperate with other car manufacturers to jointly develop new car lines.

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GROUP'S PROPOSAL FOR VINFAST TO DEVELOP PRIVATE ECONOMY

3. Invest in research and development

Establish a separate research and development center to develop new technologies for electric and self-driving vehicles.

Cooperate with universities and research institutes to train high quality human resources.

Attract leading experts in the field of electric vehicles and self-driving vehicles to work for you

DATA

CONCLUDE

In short, product quality is always a top concern because it has great significance for the survival and development of businesses today. To have a good quality product and meet consumer needs depends on many factors . Vietnam is increasingly integrating and enhancing its position in the world economy. However, not all businesses can survive, not focusing on improving quality will cause many difficulties, hindering the development and long-term survival of the business. As technology innovates, the need to use and choose products and services that bring quality of life to people is increasing day by day. When today's economy always has fierce competition between businesses, focusing on product quality can be said to be the first thought of solution, it will attract customer goodwill, help increasing profits as well as building a stronger brand, so that competition in the market is no longer a difficult problem.

THANK YOU!