Index

Part 1: Introduce

Chapter 1: Company Overview

1. History of formation

2. Development and business trends

Chapter 2: Company Products

1. Fresh produce

2. Processed products – dry goods

3. Frozen goods

Part 2: Analysis

Chapter 1: Development history

Chapter 2: Pest analysis

Chapter 3: Five forces analysis

Chapter 4: SWOT analysis

Chapter 5: Generic strategy

Chapter 6: Positioning

Part 3: Decision making matrix

Part 4: Pert chart

Part 5: Fishbone Ishikawa

Chapter 1:

Chapter 2:

Chapter 3:

Chapter 4:

Chapter 5:

Part 6: Vissan Co Standard Operating Procedure

Chapter 1: Original SOP

Chapter 2: Improve SOP

Part 7: Executive dashboard

 Chapter 1:

Chapter 2:

Chapter 3:

Chapter 4:

Chapter 5:

Part 8: Solution

Chapter 1: Mitigation plan

Chapter 2: Return on investment

Part 9: Conclusion

Chapter 1: Conclusion

Chapter 2: Recommendations

Part 10: References

I. Company introduction
Vietnam Animal Industry Joint Stock Company was established on November 20,
1970, and went into production and business operations on May 18, 1974. Currently,
VISSAN is one of the leading enterprises in the food industry in the country,
specialising in the production and trading of fresh and frozen meat and processed
meat products.
II. Decision-making matrix
1. Five forces model.

Threats of new entrants: High challenge

The market for the food manufacturing industry is famous and open, so there
are many potential competitors. With the open-door policy encouraging
foreign investment into the Vietnamese market, there is a threat from both
foreign and domestic enterprises.

Bargaining power of suppliers: Low challenge

Bargaining power of suppliers: Vissan is also active in livestock farming and

slaughtering technology. Therefore it supplies the food processing's activities
on its own. However, when it comes to diseases that occur for cattle and
vegetables, the company will be under pressure from the costs incurred by
the suppliers.

Threats of substitute products: Low challenge

Fast food form. The pressure of substitute products is not tremendous

because Vissan has launched fast food products, both as substitutes and
promoting consumption of ready-made products.

Bargaining power of buyers: High challenge

Consumers trust the company's products and often buy in bulk, which is an
advantage of Vissan. Nevertheless, there are also pressures; as life improves,
packaging and quality must also improve, they are willing to pay higher prices
for better quality products. Therefore, customers are also challenges for
Vissan.
 Rivalry among competing firms: High challenge
1, Plenty of domestic and foreign competitors
2, Diverse opponents
- Fresh food: CP company
- Processed foods:
+For pasteurised sausages: competitors such as Ha Long, Duc Viet, etc.
+For canned goods: Ha Long, foreign companies, etc.
+For sausage products: Bamboo Bridge, etc.
+For pork products of all kinds: Nam Phong, - For other processed goods:
Seaspimex, etc.
+For deli products: Superchef (CP company), etc.
- Vegetables, tubers and fruits: Sao Viet Center, etc.
- Pigs, pigs: CP Breeding Co, etc.
3, Canned food market share of companies in the domestic market: Vissan have
50,1%

2. The target of the company and their production factories

Every day in all activities of VISSAN, every thought and action of each
member of VISSAN is directed towards the goal of bringing new vitality to the
community. VISSAN has continuously improved technology and production
recipes towards absolute safety, comprehensively satisfying the value chain
from clean raw materials to high-quality finished products so that users can
experience nutritious products. , unique delicious taste.

3. Ishikawa
 Expenses
USD/Year)
Effect Cause Explain
and reason

352885.7
Pollution Pollution without wastewater treatment
leading to pollution made Vissan deduct
Reason: points in the eyes of customers.
External - Do not treat
environment wastewater
“Rescuing” Pork Vissan has rescued pork, but it is also 160402.9
affordable at a reasonable cost, thereby
Reason: making it easy to overload meat.
- Plenty of pork Therefore, it takes more time for
- More Capacity employees to work.
Operation

Mouldy product The product is still expired, but it is 112281.3

Product mouldy in the user’s hands; because of
Reason: poor storage and unskilled transport, it is
Shipping easy to damage the product accidentally.
Storage
 Products are The staff at the store was distracted, so 80201.45
overdue they sold products are overdue to
customers, leading to the customer
Reason: having to go to the emergency room
Staff do not manage
well

Lack of workforce Because of the pandemic, there is a lack 160402.9

Employees of operating funds, leading to a lack of
Reason: human resources who cannot afford to
- Pandemic hire again.
->Lack of operating
funds

Poor skills Internally, the working processes are not 160402.9

tight, leading to a lack of experience and
Reason: ultimately poor training for new
- Lack of training employees-lack of movement, thus
- Internally not tight leading to poor skills.

Deficient Vissan has a wide variety of items, so it 320805.8

Preservation preservation
may not be possible to carefully control
each step of the selection and
Reason:
-Damaged preparation of ingredients selected and
machinery preparing.
-Old machines-Poor
staff skills
-Insufficient training

Deficient Factors of preservation and 240604.35

transportation of transportation are also one of the major
 raw materials causes affecting product quality
(explained by Vissan representative).
Reason: Unscientific activities will cause excess
Time delay
or lack of time to transport stages.

Poor quality Because the product packaging is thin, it 160402.9

Materials packaging is effortless to be punctured or rent when
it comes to collisions or sharp objects,
Reasons: and it affects the quality of the product.
The packaging is
easy to tear during
transportation

Bad quality meat The cause of perishable meat may be 208524.42

Ingredients due to poor livestock suppliers not
Reasons: checking carefully when selling, or it may
be due to the poor quality of Vissan's
Supplier
meat preservation and storage facilities.
Storage

Poor quality With a hot and humid climate like in our 434140.9692
Machinery machinery country, machinery is easy to break or
rust, affecting productivity and quality. In
Reasons: addition, due to careless staff during
Environment maintenance also causes this situation.
Maintenance staffs

2,471,257.0392
Total

4. SOP analysis
SOP 1:

Cost: 5.667.961 USD in capital for goods and services provided

The leading causes are that machines are out of date, and the inspection
process in the manufacturing process is lax, resulting in numerous food safety
mishaps and a loss of customer trust.

This corporation, which employs KPI in its manufacturing process, is required

to create a specified number of canned products every day. Because
achieving a sufficient KPI is needed, many employees will overlook the
process of assessing output or quality in order to obtain an adequate quantity.
As a result, there will be some damaged products delivered to customers.
Vissan is a long-established canned food manufacturer in Vietnam. Still,
numerous food-related scandals have harmed the company's brand as well as
customer trust, resulting in a considerable drop in canned products sales. As
a result, our group has offered some recommendations to optimise the
manufacturing process.

SOP 2 :

Because the scandal related to food safety last year caused Vissan to lose a
certain number of customers, we suggest focusing on product quality
inspection to regain the trust of customers. Products strictly to ensure that no
inferior products are sold to the market, and there will also be some changes
to help optimise the production line.
The improvement of meat cutting machinery instead of using labour as before
will help cut meat more accurately, faster, and more hygienically and reduce
the amount of unnecessary work in this process. Thus, it is possible to save
an amount of VND 2 billion in payment for labour. In the purple onion cutting
stage, Vissan's current machine can only cut shallots in 1 size; if the larger
size is undercut, the smaller one will pass through and have to be cut again,
which causes Vissan's loss. A lot of time and cost, we suggest to buy the
onions of the same size, before being put into the machine, it will be
guaranteed that the same size will not have to be discarded, so at the This will
save 400 million VND. The product quality inspection stage will be guaranteed
both output and input; in the production area, 100% sterility is guaranteed,
 employees must always wear protective gear while in the production area to
avoid mistakes. The same mistake as before that Vissan encountered.

Exclusive dashboard:
1. Downtime
The company produces 100 products per minute, and each of these products represents a
profit potential of $1. For this company, the cost of downtime in production based on lost
production would be $100 per minute, $6000 per hour, and so on. Furthermore, a 40%
reduction in employee productivity will result in a loss of up to 150% of labour costs

Problem Downtime Percentage Cumulative

Broken machine 3.8 19.32% 19.32%

Tool changes 6.19 31.47% 50.79%

Maintenance 7.23 36.76% 87.55%

Personal breaks
2.45 12.45% 100%
 Total 19.67 100% 100%

2. Labour cost

3. Overall equipment effectiveness

Availability = 95%: This means the business is utilizing 95% of its resources in
terms of time and has 5% downtime compared to its operational potential.

Quality = 96%: This means that for every 100 production hours, 4 hours are
wasted due to quality problems. Or, for every 100 products produced, there
are 96 qualified products and 4 unqualified products.

Performance = 95%: indicates that the actual production capacity of the

line/equipment is only 95% of the designed capacity. Or equivalent to less
than the set goal by 5% in terms of time.

OEE=Availability x Quality x Performance / 10000

5. Health and safety

 Screening applicants should perform pre-employment physicals to ensure that they
are placed in roles that are a good fit for their physical ability. After that, regular
health checkups, once a quarter.
Vissan company should educate employees and management about the dangers of
accidents that occur when the workplace is unsafe. As often as possible, remind staff
of the necessity of following safety procedures.
Investigate possible security flaws, especially those related to engineering and
operating machinery. Pay special attention to common mishaps and devise
measures to prevent them from occurring.
The company should provide protective gear. Teach personnel how to utilise
goggles, face protection, gloves, hard hats, safety shoes, and earplugs or earmuffs
correctly.
Make sure each department have enough people on staff. Overworked employees
can become burned out and cut back on safety steps to reach output goals. Hiring
part-time or seasonal workers could help minimise fatigue-related accidents.
Do not try to save time by taking shortcuts. Allowing staff to skip processes in order
to finish a job ahead of schedule is never a good idea. To avoid workplace errors,
make sure all instructions are clear and well-organized.
All company machinery must be inspected and maintained. Inspection and
maintenance should be carried out by supervisors monthly, and equipment failure
should be widely communicated to staff and repaired as soon as possible.
Keep an eye on the safety precautions via reports and cameras. Reward employees
that stick to the rules or stay injury-free for a certain period of time and severely
punish those who intentionally violate safety regulations in the workplace.
Maintain a tidy workplace. The floor must not be slick or moist, making it easy for
workers to slip and fall. While working, all garbage must be kept orderly and collected
at the end of the day. Every day after work, it is vital to clean the workplace.
6. Mitigation plan

Expenses
Expenses after Reduction
Effect Cause Mitigation plan mitigation plan (USD/Year)
(USD/Year)
and reason

Instead of spending money to 256646.1 96243.2

Pollution pollute wastewater, Vissan should
pay a fixed cost from the beginning
Reason: to treat wastewater. This will reduce
External - Do not treat the cost of compensation for the
environment wastewater neighbouring houses, the cost of
paying fines to the environment, the
cost of regaining the reputation.

“Rescuing” Pork Rescuing pork is no longer a matter 96243.2 64159.7

of individuals of each company, that
 Reason: must be responsible for the whole
- Plenty of pork society, so this burden can
- More Capacity automatically switch pressure. We
Operation will still rescue, but it is suitable for
some cost that can be spent
together operating capacity at the
best level.

Product Mouldy product The management and process 92506.5 19774.8

conversion set consists of several
Reason: segments. Each piece of code will
- Shipping analyse for each employee in
- Storage charge. This that will be down the
Minimalist cannot be fixed when the
product is released to customers

Products are Train employees thoroughly and 60359.86 19841.6

overdue carefully. One more step of testing
before the product is delivered to
Reason: the customer. There are penalties
Staff do not for employees who do not follow this
manage well procedure

Employees Lack of Instead of waiting for the pandemic 112281.3 48121.6

workforce to end, the company must try to call
on the government to get a vaccine
Reason: for workers. There will be productive
- Pandemic employees in sales and shipping
->Lack of and earn money so that the
operating funds company will be able to pay
employees.

Poor skills The fact that employees do not have 128323.1 32079.85
the skills to work will always cause
Reason: shortcomings from production to
- Lack of training sales, so spending a fixed cost from
- Internally not the beginning to train employees,
tight both internally and simultaneously.
So that the department can better
understand its working functions,
work productivity will be more
effective and not miss a single
detail.
Preservation maximise Assign and train personnel for each 260791.7 60014.1
stage of production, processing and
shipping of products. Invest in and
change old machines to maximise
the quality of products

Deficient Set a certain standard and time for 180791.7 59812.6

transportation of each stage. Pay attention and
raw materials carefully preserve all the ingredients
of the product, especially the natural
Reason: ones (easily perishable).
Time delay

Materials Poor quality Vissan needs to find and use better, 112281.3 48121.6
packaging more rigid packaging as well as take
extra care at the packaging stage to
Reasons: ensure that the product is fully
The packaging is protected during transit.
easy to tear
during
transportation

Ingredients Bad quality meat Vissan needs to talk to the shop 152942.82 56088.017
owners or suppliers, ask them to
Reasons: check carefully to ensure the quality
of their meat before selling to
Supplier
Vissan. Otherwise, the producer will
Storage be required to compensate for
damage when Vissan receives poor
quality meat.
Vissan should also inspect and
maintain freezers or other
machinery used to store meat. If the
 machine is too old and broken, not
meeting the storage capacity, those
machines will be replaced with more
modern freezers.

Machinery Poor quality With a hot and humid climate like 382067.19 52073.7791
machinery this, Vissan's machines must be 6
maintained more often to ensure
Reasons: they are always running at their
Environment best. Devices also need to be
Maintenance placed at an elevated place, cool,
staffs dry place to prevent mould and rust.
The technical staff maintaining
machinery need to be trained to
improve their qualifications and
divide the work among themselves
to keep the machines regularly.

7. Return On Investment

Plans to invest in upgrading machinery to serve in the production process to overcome the
limitations in the past years, such as increasing productivity, improving food quality, and
reducing the cost of loss due to product defects, thereby gradually improving the commercial
value of the company's goods. After investing in upgrading machinery, we predict revenue
will increase by 18%; employee payroll costs decreased by 20% (because of staff reduction)

ROI=(Revenue-Operating expenses)/Investment expense = (590-88.312)/10= 50.16%

8. Conclusion
With the above recommendations, we estimate that 6 billion VND a year can be
saved with the new process. Moreover, the products produced in the factory are
guaranteed to have no inferior products sold in the market. Using machines instead
of labour in the meat-cutting process as before also reduces the risk of accidents
while working, and the work productivity is also higher than before.