INSTITUTE FOR STANDARD AND QUALITY DEVELOPMENT STUDIES
Implementation of the task “Research and application of advanced management systems and productivity-quality improvement tools for Vietnamese start-up enterprises.”
Under the task “Research and application of advanced management systems and productivity and quality improvement tools for Vietnamese start-up enterprises” (03.2/DA2-2019), within the National Program “Enhancing productivity and quality of products and goods of Vietnamese enterprises until 2020,” the SME Support Center 2 (SMEDEC2) has successfully completed the implementation and application of foundational management systems such as ISO 9001, ISO 22000, HACCP, and advanced productivity and quality improvement tools in five enterprises. The achieved results were measured with specific indicators and clearly illustrated by data and visual evidence.
Creating momentum for start-ups
Enterprises participating in the task were supported in developing and successfully applying foundational management systems and advanced productivity and quality improvement tools, thereby meeting the conditions for management system certification assessment.
Common benefits achieved by enterprises include: ensuring convenience, completeness, and rigor in achieving management objectives according to each process in line with standard requirements; maintaining consistency and efficiency in organizational structure and human resources (reducing and optimizing workforce for system operation); changing employees’ awareness and building safe working habits; helping enterprises thoroughly resolve quality-related issues; reducing certification and annual surveillance costs; and shortening the time required to receive audit teams.
Within the 18-month implementation period, the results from five enterprises were summarized into two models. The model applying the ISO 9001:2015 Quality Management System and 5S (two enterprises) helped businesses control issues related to defective materials, scrap rates, and production tools and equipment.
As a result, the defect rate of materials and semi-finished products decreased by an average of 40%. Production time was also shortened through improved labor productivity, enabling enterprises to save approximately 10% in labor costs related to overtime work or outsourcing, material inspection, product inspection, packaging, and delivery time.
The model applying the ISO 22000:2018 Food Safety Management System, HACCP, and 5S (three enterprises) enabled businesses to identify all hazards throughout the production process, from raw material intake to finished products (biological, chemical, and physical hazards). Accordingly, sanitation standard operating procedures (SSOP) and HACCP plans were established to control critical control points (CCPs) and prevent all food safety hazards, thereby reducing non-conforming products before shipment. Production areas were maintained in a clean condition; tools and equipment were neatly arranged; raw materials and additives were properly identified and stored in designated locations, following a one-way flow principle to avoid cross-contamination and infection in production areas. This allowed companies to effectively control hygiene issues, produce safe products, enhance customer trust, and create sustainable value.
Economic benefits
In summary, the economic benefits achieved by the five enterprises included reduced defects in materials and raw inputs, lower labor costs, improved productivity, and better control of hazards and cross-contamination. On average, enterprises saved VND 399.6 million out of the total investment cost of VND 539 million for training, procurement of racks, pallets, plastic curtains, warehouse materials, etc. The average payback period was 13.67 months.
Scaling solutions for Vietnamese start-ups
Based on the experience gained during implementation, SMEDEC 2 recommends that ministries, departments, and local authorities continue to replicate the application model of foundational management systems and advanced productivity tools for start-up enterprises nationwide in accordance with Decision No. 1322/QĐ-TTg.
However, in addition to government support policies, enterprises must ensure the following conditions to achieve real effectiveness in streamlining management operations and organizational structure:
Top management commitment: This is the decisive factor for success. Leadership must provide timely and sufficient resources and financial support to ensure progress and effectiveness. Implementation involves not only technical solutions but also many other factors affecting solution identification and action planning.
Human resources: Enterprises must maintain a stable workforce and select key members to participate in the project implementation team. Changes in personnel significantly affect project progress and quality. In practice, some projects had to be restarted due to workforce changes.
Defining the scope of application: Enterprises must assess their current situation and clearly identify objectives and needs regarding management systems and advanced productivity and quality tools. Objectives must be specific and aligned with the enterprise’s actual conditions.
The ISSQ Institute for Quality is always ready to accompany enterprises during the period of integration and development.
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Source: tcvn.gov.vn
