MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE

FACULTY OF ECONOMICS

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MIDTERM REPORT
OPERATIONS MANAGEMENT MGT1127E
LECTURERS: TRAN HOANG NAM
CLASS: A03E
% contribution of Evaluation
No. Full name Student ID Tasks the task to the of task
overall task results
Question 1 Good
1 Nguyen Dang Khoa 205085117 20%

2 Cao Ngoc Phuong Trinh 205085189 Question 2 20% Good

Question 4 Good
3 Ngo Hoang Anh Thu 205084196 20%

205017714 Question 3 Good

4 Chu Huynh Vu Hoang Anh 20%

Question 5 Good
5 Le Nguyen Thanh Thuy 205012946 20%

Total: 100%

Ho Chi Minh city, On August 8, 2023

 TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................................................... 3
QUESTION 1: DESCRIBE THE OPERATIONS MANAGEMENT OF THE COMPANY, INCLUDING INPUT,
TRANSFORMATION PROCESS, OUTPUT. ................................................................................................................ 5
1.1 Aji-ngon Flavor Seasoning ............................................................................................................................................ 7
1.1.1. Meat & Bone extract production process (Pork/Chicken)............................................................................ 7
1.1.2. Aji-ngon production process .............................................................................................................................. 8
1.2. Umami Seasoning of Ajinomoto ................................................................................................................................ 8
QUESTION 2: EXPLAIN THE QUALITY OF OUTPUT OF THE COMPANY (I.E. PRODUCT QUALITY AND SERVICE
QUALITY). ............................................................................................................................................................ 10
2.1. Output quality of Product: ....................................................................................................................................... 10
2.1.1. AJINOMOTO System of Quality Assurance (ASQUA): ................................................................................. 11
2.1.2. Certificates of Quality standards: ................................................................................................................... 12
2.1.3. Other perceptions of Product Quality: .......................................................................................................... 13
2.2. Output quality of Service: ........................................................................................................................................ 14
QUESTION 3: COMPARE THE RESOURCES AND COMPETENCIES OF THE COMPANY TO OTHER COMPETITORS.. 14
3.1. Ajinomoto's resources and abilities: ...................................................................................................................... 14
3.2. Ability to compete with competitors:.................................................................................................................... 16
QUESTION 4: APPLY THE OPERATIONS THEORIES TO THE PRODUCTION PROCESS OF AJINOMOTO TO EXPLAIN
THEIR EFFECTIVENESS IN INCREASING PRODUCTIVITY. ....................................................................................... 17
4.1 Lean Manufacturing of Ajinomoto .......................................................................................................................... 17
4.2 Total Quality Management (TQM) of Ajinomoto ................................................................................................. 17
4.3 Supply Chain Management of Ajinomoto .............................................................................................................. 17
4.4 Six Sigma: ...................................................................................................................................................................... 18
4.5 Ajinomoto System of Quality Assurance (ASQUA) ............................................................................................... 20
QUESTION 5: PROPOSE THE IMPROVEMENT OF THE OPERATIONS TO INCREASE THECOMPETITIVE ADVANTAGES
OF AJINOMOTO'S COMPANY............................................................................................................................... 24
5.1. First strategy: .............................................................................................................................................................. 24
5.2. Second Stratery:......................................................................................................................................................... 25
CONCLUTION ...................................................................................................................................................... 27

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 INTRODUCTION
Ajinomoto Vietnam Company (AVN) was established in 1991 as a 100% foreign-invested company belonging to
Ajinomoto Group, Japan with an initial investment value of more than 8 million USD. For more than 30 years of
operation and presence in the market, AVN has maintained a positioning strategy in providing other products
under the Ajinomoto brand. Always creating techniques, improving product quality, having a methodical
approach to help the company stand firm in the present as well as in the future to compete with other
competitors. As a result, the company has constantly grown, expanded its network of relationships and
improved product productivity.
AVN has two representative offices in Ho Chi Minh City and Hanoi, two manufacturing plants including
Ajinomoto Bien Hoa Factory operating since 1991 and Ajinomoto Long Thanh Factory operating since 2008 with
the same factory. The third factory in Long Thanh started construction in 2016. In addition, the company has 3
large distribution centers and branches spread over 63 provinces. The total number of employees working at
Ajinomoto Vietnam Company is nearly 2,300 people.
Developing production on a sustainable environment is the motto of Ajinomoto Group globally. Based on the
Group's motto, Ajinomoto Vietnam Company always strives to implement policies and activities that contribute
to the protection of the green environment, which is always the top concern with constant efforts to achieve
harmony between the company's activities with the rational use of resources, natural resources, and safe
protection for the natural environment. Finally, Ajinomoto uses advanced technologies such as AI and robotics
to manufacture their products quickly and efficiently. With a combination of traditional methods, modern
technology and rigorous testing procedures, Ajinomoto has become a leader in the food and beverage industry.

Figure1. Production location of Ajinomoto Vietnam (Source: ajinomo.com)

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Vision, mission & common value creation activities of Ajinomoto Vietnam
Vision: “Becoming the most loved and trusted Company in Vietnam with “Unique features” in the field of food
and health.”
Mission: “We contribute to the further development of the country of Vietnam, contributing to the happiness
and health of the people in Vietnam through culinary culture and the development of food sources.”
With this vision and mission, Ajinomoto Vietnam Company always makes constant efforts to bring a wide range
of food products and spices with the best quality, safety, suitable for the taste of Vietnamese people. Along
with the development trend of today's modern society, the products researched and developed by Ajinomoto
Vietnam always aim at two great values: (1) contributing to delicious meals and convenient cooking. create
family cohesion and happiness; and (2) contribute healthy nutritional value.
Besides, Ajinomoto Vietnam Company is applying a sustainable business principle, which is the creation of
common values - referred to as "ASV" (Ajinomoto Group CreatingShared Value) through its own production
activities. business of the Company. This both creates Economic Value, promotes the sustainable development
of enterprises, and creates Social Value, contributing to improving the happiness and health of people in
Vietnam. ASV business principles are demonstrated. is consistent in many activities that Ajinomoto Vietnam has
been implementing for the past 30 years as well as persistently pursuing in the medium- and long-term
orientation, with a commitment to sustainable development with Vietnam and bringing life values. The best life
for people in Vietnam revolves around three key values including:
Value 1: Use energy and natural resources efficiently as exemplary citizens of society.
Value 2: Supporting the development of food resources in the agricultural sector.
Value 3: Improve nutrition, healthy and happy life for people.

Figure 2. Representative office and factory in Ho Chi Minh City & Hanoi (Source: ajinomo.com)

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Production of Ajnomoto: Over the past 30 years, Ajinomoto Vietnam has consistently invested in research and
development to bring a variety of spices, food products, drinks, and nutritious food with the best quality, safety,
and suitability for the taste and needs of Vietnamese people. The company's first product was AJI-NO-MOTO®
MSG. Currently, Ajinomoto Vietnam has more than 35 types of food products that are widely introduced
nationwide with brands that are trusted by many consumers such as AJI-NO-MOTO® MSG, Aji-tasty Seasoning
Seeds ®, Aji-Quick® Seasoning, Aji-mayo® Mayonnaise, "Fuji" Soy Sauce, LISA® Fermented Rice Vinegar, Ready-
made Donut Powder, BlendyTM Instant Drink, Birdy® Canned Coffee, Amino VITALM drink, "Mam mam"
micronutrient supplement seasoning powder, etc

Figure 3. Ajinomoto’s products in Vietnam market (Source: ajinomo.com)

QUESTION 1: DESCRIBE THE OPERATIONS MANAGEMENT OF THE COMPANY, INCLUDING INPUT,
TRANSFORMATION PROCESS, OUTPUT.
Ajinomoto developed the ASV management cycle to increase their business value. They can solve more social
issues and provide economic benefit by using this model:
ASV stands for “Ajinomoto Group Creating Shared Value,” which is based on the expression “creating shared
value,” or CSV for short. In addition to pursuing sales and profits, a company that practices CSV creates social
value by addressing social issues and problems through its business activities, and, as a result, creates economic
value as well. They believe efforts to create social and economic value in this way are what ASV is all about, and
that evolving ASV will lead to the realization of the Ajinomoto Group’s vision.
With a commitment to quality, sustainability, and innovation, ASV uses cutting-edge technology and research
to satisfy the various demands of its global customers. Through its state-of-the-art production facilities and
dedication to customer satisfaction. Likewise, ASV remains a reliable partner, offering creative solutions and

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promoting development in the biotechnology sector. Getting to know better about how they operate to
produce their products.

Figure 1.1. ASV Management Cycle (Source: ajinomo.com)

ASV is a strategic initiative for achieving sustainable growth. By reinvesting the economic value created by
solving social issues through business operations into further activities and creating a virtuous cycle that
contributes to solving yet more social issues.
Besides, ASV creates a virtuous cycle (the ASV cycle) that reinvests the economic value created by resolving
social issues through the Group’s business activities in future business activities, which in turn contributes to
the further resolution of social issues. In this way, ASV represents a strategic initiative for realizing sustainable
growth. Through the ongoing implementation of the ASV cycle, the Group will enhance corporate value by
accumulating value into corporate brand. The Ajinomoto Group is promoting greater wellness among people
around the world with its Creating Shared Value (ASV) initiatives to get all of us to “Eat Well, Live Well”. The
initiatives are linked to the creation of economic value and growth by contributing to the resolution of social
issues such as global sustainability, food resources and healthy living with the Ajinomoto Group’s business
specialties.

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 Figure 1.2. Creating Shared Value (Source: ajinomo.com)

1.1 Aji-ngon Flavor Seasoning

In order to have the best Meat and Bone Extract ingredient for Aji-ngon® production, Ajinomoto Vietnam
Company selects the qualified materials of bone, marrow, and pork supplied by prestigious food companies in
Vietnam. The production of Meat and Bone Extract is industrially similar to the soup stock preparing process of
housewives in families with the unique cooking stage of meat and bone that helps to keep the naturally savory
and meaty taste. The production process is applied to a strict quality management system to ensure food
hygiene and safety before packing and distributing to the market for consumers. The raw materials including
meat, marrow, and bone extract, salt, and sugar are tested to guarantee they fulfill Ajinomoto's quality
requirements. The raw components are then processed into Aji-ngon Flavor Seasoning in the Meat & Bone
Plant. The Flavor Seasoning Aji-ngon is manufactured in two stages:
1.1.1. Meat & Bone extract production process (Pork/Chicken)

Figure 1.3. Meat & Bone extract production process (Source: ajinomo.com)
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To produce Meat & Bone Extract (Pork/Chicken), a number of meticulously planned actions must be taken. To
begin with, the flesh and bone (Pork/Chicken) undergo a preliminary treatment stage when their appearance is
examined and they are treated. After that, the flesh is stewed for more than three hours while the bone is
boiled in a high-pressure tank for more than an hour (for chicken, the whole chicken is simmered for more than
three hours sans viscera). In the subsequent stage, the meat is minced, combined, and ground with meat
extract. The mixture is sterilized and chilled after being made by blending ground beef extract with bone extract.
Following packaging and shipping to the Aji-ngon Plant, the meat and bone extract is ready for use.
1.1.2. Aji-ngon production process

Figure 1.4. Aji-ngon production process (Source: ajinomo.com)

After the mixer was delivered to the Aji-ngon facility. To begin with, the caliber of chosen materials is carefully
inspected to guarantee food safety and hygiene. The components are then weighed accurately and
mechanically in line with the Aji-ngon formula. The components are crushed to the same size and kneaded to
strengthen the glue and produce moisture by combining them with water and mixing. The mixture is
subsequently dried and granulated. Following sifting, the fine and regular grains are oiled to produce shine. The
production process is then finished by weighing and packing the Aji-ngon flavor seasoning in different SKU
(Stock Keeping Unit) sizes. The Aji-ngon Flavor Seasoning, which has high-quality and uniform granule size
seasoning, is the final product of these operations. In order to guarantee consumer pleasure, the items are
subsequently supplied to clients, including food producers, retailers, restaurants, and so forth.
1.2. Umami Seasoning of Ajinomoto
Based on the research and development foundation of Ajinomoto Group, Ajinomoto Vietnam always cares
about Vietnamese dietary habits and cuisine in order to study and develop food products that meet the
Vietnamese people’s taste. Ajinomoto Vietnam always commits to providing consumers with a variety of
products of deliciousness, high quality, safety, convenience, being good for health with affordable prices for
different targets of local consumers. The products meet demand for creating delicious meals, contributing to
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bringing happiness for families and developing the Vietnamese culinary culture as well. One of the most popular
products is made of seasoning made from glutamate, especially the umami flavor called Umami Seasoning AJI-
NO-MOTO. Below will show you their operation in how to produce Ajinomoto products. The input comes from
sugarcane, cassava, and corn would give the final material Glucose. After 4 steps such as fermentation,
purification, crystallization, packaging the output is completely done, Umami Seasoning Ajinomoto products are
possible to export from storage and be ready to deliver to distributors.

Figure 1.5. Umami Seasoning Of Ajinomoto (Source: ajinomo.com)

Fermentation has been used by humans for centuries as a way to preserve foods and enhance their taste. MSG
(monosodium glutamate) is made of naturally occurring substances through a modern version of that process,
with the help of microbes that transform feedstocks like sugarcane into food products. First the sugarcane is
extracted as glucose and sent to a fermentation tank, to which fermentative microbes are then added. These
microbes consume the glucose, releasing glutamic acid, which though neutralization is turned into a solution
that contains MSG. This solution is then decolorized and filtered, resulting in a pure MSG solution. This pure
solution is crystallized using an evaporator and the crystals dried to produce the final product - MSG. The entire
process has a very small environmental footprint, as its coproducts can be returned to the soil in the form of
fertilizer to help grow more crops like sugarcane, forming a virtuous cycle.

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 Figure 1.6. Fermentation Process’s MSG(Source: ajinomo.com)

QUESTION 2: EXPLAIN THE QUALITY OF OUTPUT OF THE COMPANY (I.E. PRODUCT QUALITY AND SERVICE
QUALITY).
2.1. Output quality of Product:
For more than 30 years of operation, Ajinomoto has expanded its business network in many fields such as
seasonings, dietary supplements, beverage products,... Ajinomoto has a lot of standard to ensure that their
products meet the quality expectations from the Ajinomoto Group brand, these requirements guarantee
stringent quality control across the board, including training, labeling, packaging, traceability, and more. Their
output quality is demonstrated through AJINOMOTO System of Quality Assurance (ASQUA), Certificates of
Quality standards.

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2.1.1. AJINOMOTO System of Quality Assurance (ASQUA):
ASQUA standard is a standard system that Ajinomoto established in. It is based on ISO 9001, the international
quality management system standard, as well as manufacturing management standards like Hazard Analysis
and Critical Control Points (HACCP), a food hygiene management standard, and good manufacturing practices
(GMPs). Ajinomoto Quality Assurance Regulations, Regulation for Quality Assurance, Quality Standards, and
other guidelines set by the Group or each internal organization are also included in the system. From the
purchase of raw materials through the selling of products, the Group conducts laborious quality assurance
activities with ASQUA around the world, continually aiming for even higher production quality.

Figure 2.1. ASQUA Components (Source: ajinomoto.com)

ASQUA's foundation includes production management tools such as ISO 9001 (international standard for quality
management systems), HACCP (food safety control method) and good manufacturing practices. (GMP) to
ensure consistent production. To complement these, ASQUA adds the Ajinomoto Group's own ideas and
standards.

Figure 2.2. ASQUA framwork (Source: ajinomoto.com)

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2.1.2. Certificates of Quality standards:

These certifications prove that product characteristics such as smell, tastes, materials, packaging, safety in use,
... are regularly checked during the production process to the finished product as packaging, packing and
checking weight to meet the requirements.

Figure 2.3. Ajinomoto Group's Quality Standards (Source: ajinomo.com)

 Certificate of HACCP: This certificate was issued by SGS Vietnam Ltd for Ajinomoto Vietnam Co., Ltd. This
show that Ajinomoto Vietnam certified as meeting the requirements about: The packing of food additive;
the processing of vinegar product, fermented soybean product (soya sauces) and sauces; the processing of
culinary product (enhanced umami seasoning, seasoning granule and powder, supplement seasoning, pork
& chicken extracted soups and broths, batters) and soft beverage product (powder drinks); the processing
of mixes for fine bakery wares.
 Certificate of ISO 9001: 2015, Certificate of ISO 14001 : 2015 and Certificate of ISO 45001 : 2018: These
certificates were issued by Compliance & Risk - Asia Pacific for Ajinomoto Vietnam Co., Ltd. This show that
Ajinomoto Vietnam certified as meeting the requirements about: Food additive; Vinegar; Soybean-based
seasoning and condiment products 4.Sauces and like products (Mayonnaise, oyster sauce); Soft beverage
products (powder drinks); Soups and broths; Seasoning and condiments; Batters; Mixes for fine bakery
wares; Supplemented food (Supplemented powders); Organic and biological fertilizer products; Material for
animal and fishery feed products.
 Certificate of HALAL MS 1500: 2019: has been assessed and found to be in accordance with Islamic Law that
“Aji-no-moto monosodium L-glutamate” is allowed to be eaten according to Muslim dietary regulations.
 Certificate of ISO 50001 : 2018: This certificate was issued by Compliance & Risk- Asia Pacific for Ajinomoto
Vietnam Co., Ltd. This show that Ajinomoto Vietnam certified as meeting the requirements about:

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 Manufacturing of monosodium glutamate; liquid seasonings (vinegar, mayonnaise and soy sauce); biological
fertilizers and animal feeds.
2.1.3. Other perceptions of Product Quality:
 Brand-name: Ajinomoto pays great attention to environmental issues. In addition to product advancements
to improve the physical health of the community, they also have policies to improve and preserve the lips of
all members of the company globally. It can be mentioned as "Conservation of water resources", only
wastewater that has been treated and meets the standards of Ajinomoto Corporation, which is stricter than
Vietnam's regulations, can be release into the Dong Nai River. Another initiative is "Bio-cycle", which recycles
100% of food waste and eliminates food loss and waste, saving production costs.

Figure 2.4. The Ajinomoto Group Bio-Cycle (Source: ajinomoto.com)

 Quality in Service:
Based on the Standard for Handling of “Voice of Customer” and the Standards for Reflecting “Voice of
Customers” (VOC) of ASQUA, Ajinomoto pays close attention to customer feedback and requests, considers
issues from their perspective, and focus all of their resources on developing the solutions that customers
require. They uses customer feedback to improve products, services, and business activities, constantly
making effort to further raise customer satisfaction. Above all, their aim is to be an honest company that the
customers can trust in.

Figure 2.5. Framework for incorporating the Voice of Customer into product manufacturing (Source:
ajinomoto.com)
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2.2. Output quality of Service:
With strengths in the field of cuisine, nutrition and health, Ajinomoto not only provides main products, but also
provides other programs to support consumers to effectively apply in their daily menu. Such as: "School meals",
"Online cooking classes" on Ajinomoto Cooking Studio fanpage, "Nutrition for mothers and babies", each project
has their own Quality for Services.
 Project “School meals”:
o The recipes and the amount of ingredients used in each menu are supervised by the Ministry of Health;
Ministry of Education and Training and Ajinomoto Vietnam.
o Standardizing and providing nutritionally balanced, varied and delicious menus for students.
o Provide the school with a user-friendly, easy-to-use software tool that supports the daily menu.
o Helping the school build new menus that are nutritionally balanced and suitable for the food culture
of the region, at the same time saving time for the management of student meals.
 Project “Nutrition for mothers and babies”:
o This is Software to improve the nutritional status of mothers and babies, contributing to the goal of
improving the Vietnamese people's intelligence and physical strength
o Supervised, consulted and approved by National Institute of Nutrition, Ministry of Health and
Ajinomoto Vietnam.
o More than 1300 dishes are consulted and evaluated by nutritionists from “Department of maternal
and child health” of Ministry of Health.
o Standardized in software features on maternity basics, childcare, exercise and home health
monitoring.
QUESTION 3: COMPARE THE RESOURCES AND COMPETENCIES OF THE COMPANY TO OTHER COMPETITORS.
3.1. Ajinomoto's resources and abilities:
Ajinomoto Vietnam was established in 1991 with 100% foreign investment capital and is also a member of the
famous Ajinomoto corporation in Japan. Currently, Ajinomoto Vietnam has two representative offices in Ho Chi
Minh City and Hanoi, two manufacturing plants including Ajinomoto Bien Hoa Factory operating since 1991 and
Ajinomoto Long Thanh Factory operating since 2008 and a factory. The third machine in Long Thanh started
construction in 2016. In addition, the company has 3 large distribution centers and branches spread over 63
provinces. The total number of employees working at Ajinomoto Vietnam Company is nearly 2,300 people.
Thereby, the resources and competitiveness of Ajinomoto Vietnam are huge through the following factors.
 Human resources:
Currently, the total number of employees at Ajinomoto Vietnam's facilities and factories is more than 2,300
employees in all positions from the office to the factory. To be able to recruit such many employees, Ajinomoto
has done very well from recruitment to training and most importantly, salary and social benefits. Ajinomoto
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 Vietnam always shows its responsibility at the highest level to be able to help employees enjoy benefits such
as:
· Competitive salary and allowances.
· Policy on bonuses and gifts for employees on holidays and Tet.
· Participating in all types of insurance according to Vietnam Labor Law and 24/24 Insurance.
· Periodic health check regime.
· Annual vacation regime.
· Ajinomoto Family Day, strengthening the solidarity among employees.
· The policy of gratitude to employees who have a long-term commitment to the company for 10
consecutive years or more.
· Training programs inside and outside the Company, helping employees develop their own capacity.
· Other supports (meals between shifts, shuttle bus, uniforms, ...).
The team of workers, employees and managers are professionally trained, regularly exchange, and learn from
experts of the Group. As a result, high working efficiency, smooth transmission line operation, rare occurrence
of incidents, contributed many good ideas to help the company and the Group develop more sustainably.
 Infrastructure:
In terms of facilities at Ajinomoto Vietnam, there are currently two representative offices in Ho Chi Minh City
and Hanoi, two production factories including Ajinomoto Bien Hoa Factory operating since 1991 and Ajinomoto
Long Thanh Factory operating since 1991. since 2008 and the 3rd factory in Long Thanh started construction in
2016. In addition, the company has 3 large distribution centers and branches spread over 63 provinces. All of
Ajinomoto's factories are built and operated very carefully, in each stage from raw materials to finished
products sold to consumers, they are screened and strictly inspected according to the process. The factories
are equipped with the best equipment and most of them are handled by machines and robots under human
inspection and evaluation. Ajinomoto Vietnam's working facilities are fully equipped from processing areas,
warehouses, packing areas to living services such as stadiums, canteens, entertainment areas and car parks,
meeting rooms, ... In addition, each factory complies with the regulations of 20% of trees of the Vietnamese
government, so it is very friendly and safe.
 Potential market:
Vietnam is a country with a very long culinary culture. Each region and province in Vietnam have a very rich and
diverse cuisine. Spices are an integral part of dishes and this market in Vietnam has great potential. With the
policy on health and nutrition safety that Ajinomoto Vietnam is implementing, it is receiving great attention
from consumers. With a long history and origin from Japan - a country with a tradition of being very clean and
food safe. Ajinomoto Vietnam predicts that in the future, there will be potential in the seasoning industry from

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the well-known resources as well as the policy that the company is implementing for instant food products that
help save time and seasoning natural origin.

 Strategic vision:
In terms of business strategy, Ajinomoto Vietnam is currently deploying a lot of instant condiment products
such as fish stock seasoning, Thai hot pot seasoning, braised ribs seasoning... or ready-made powder products
such as: Pancake flour, fried dough, donut flour.... To match the market trend that is developing very fast, and
people do not have much time to cook, the research and development of products. instant food in the future
will be well received and have a lot of potential. The majority of the company's executive team comes from
Japan with rich experience and good vision, so they have issued many policies that not only develop the
company's market share but also care about the environment to achieve common goals. This is sustainable
development.
 Investment:
In 1991, Ajinomoto Vietnam was established with 100% foreign investment. Company under Ajinomoto Group,
Japan with initial investment value of more than 8 million USD. After a period of establishment, the company
has been constantly developing, expanding its scale, improving production capacity, and the current investment
capital has reached 70 million USD. With resources and a long-standing name from the parent company in
Japan. Over the years, Ajinomoto Vietnam has always had a certain place in the hearts of fans and the
Vietnamese spice market.
3.2. Ability to compete with competitors:
Regarding Ajinomoto Vietnam's competitors, currently on the market there are many big players in the industry
such as Knor, Magi, Vedan.... Vedan set foot in Vietnam quite early in 1991, at the same time as Ajinomoto
Vietnam. After nearly a quarter of a century, Vedan Vietnam now has built a closed system from starch and
sugar factory, monosodium glutamate factory, modified starch factory, Lysine factory, etc. to specialized port
Phuoc Thai Vedan.
Ajinomoto MSG products account for about 60% of MSG market share in Vietnam. Since then, MSG has been
the main driving force that helps Ajinomoto Vietnam earn large revenue and profits every year. According to
the Q2 consolidated business results report (July 1 to September 30, 2022), sales in Vietnam achieved the
highest growth rate in some of Ajinomoto's foreign markets such as Thailand, Indonesia, Philippines, Brazil.
Specifically, in the second quarter (July 1 to September 30, 2022), sales in Vietnam increased by 16% and in 6
months (April 1 to September 30, 2022), sales in Vietnam increased by 22%. Ajinomoto Vietnam achieved such
success largely thanks to the resource factors analyzed above.

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QUESTION 4: APPLY THE OPERATIONS THEORIES TO THE PRODUCTION PROCESS OF AJINOMOTO TO EXPLAIN
THEIR EFFECTIVENESS IN INCREASING PRODUCTIVITY.
The operations theories can be applied to the production process of Ajinomoto company to explain their
effectiveness in increasing productivity. Here are some key theories and how they relate to Ajinomoto's
production process:
4.1 Lean Manufacturing of Ajinomoto
Lean manufacturing aims to eliminate waste and improve efficiency in the production process. Ajinomoto can
apply lean principles such as Just-in-Time (JIT) inventory management, continuous improvement, and value
stream mapping to optimize their production flow.
By implementing JIT, Ajinomoto can minimize inventory levels and reduce storage costs while ensuring that
materials arrive exactly when needed. This helps to streamline the production process, reducing lead times and
increasing overall efficiency.
Continuous improvement methodologies, like Kaizen, encourage employees at all levels to contribute ideas for
process optimization. Ajinomoto can conduct regular efficiency assessments, gather employee feedback, and
implement small changes to enhance productivity over time.
Value stream mapping enables Ajinomoto to analyze the end-to-end production process, identify bottlenecks,
and eliminate non-value-added activities. By mapping out the flow of materials, information, and actions, they
can streamline operations and increase productivity.
4.2 Total Quality Management (TQM) of Ajinomoto
TQM focuses on achieving consistent quality throughout the production process. Ajinomoto can implement
TQM principles by emphasizing the importance of quality at each stage of production.
Through a robust quality control system, Ajinomoto can ensure that raw materials meet specifications,
processes are tightly controlled, and final products consistently meet customer expectations. By minimizing
defects and enhancing product quality, Ajinomoto can reduce rework, returns, and customer complaints,
leading to increased productivity.
Implementing techniques like Six Sigma, which aims to systematically identify and eliminate defects, can further
enhance Ajinomoto's quality efforts. By reducing process variability and improving process capability, Six Sigma
can help Ajinomoto achieve higher levels of productivity and customer satisfaction.

4.3 Supply Chain Management of Ajinomoto

Effective supply chain management allows Ajinomoto to optimize the flow of materials, information, and
finances across their production process. This enables them to synchronize their operations with suppliers and
customers, enhancing productivity.

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Through inventory management techniques like Vendor-Managed Inventory (VMI) or Collaborative Planning,
Forecasting, and Replenishment (CPFR), Ajinomoto can minimize stockouts and reduce holding costs. By having
the right materials available when needed, production can proceed smoothly, increasing overall productivity.
Furthermore, Ajinomoto can establish strong relationships with suppliers to ensure timely delivery, negotiate
favorable terms, and collaborate on process improvements. A well-managed supply chain contributes to
efficient production planning, reduced lead times, and increased productivity.
By applying these operations theories, Ajinomoto can streamline its production process, enhance quality, and
optimize its supply chain, thereby increasing productivity. However, it is important to note that the specific
implementation of these theories should be tailored to Ajinomoto's unique business needs and industry
dynamics.
4.4 Six Sigma:
Beside the lean production, Ajinomoto has also applied Six Sigma methodology in their
manufacturing operations and R&D processes. The aim of Six Sigma is to reduce defects and variability in a
process, resulting in increased productivity and improved quality. Ajinomoto's R&D department also uses Six
Sigma as a tool to identify defects and enhance the efficiency and effectiveness of their development process.
From that, Ajinomoto eliminates bottlenecks in their R&D system, resulting in faster development cycles and
increased throughput. We will discover how Ajinomoto can benefit from Lean Six Sigma implementation:
 Identifying and eliminating waste :

Lean manufacturing practices emphasize locating and getting rid of waste in the form of overproduction,
holdups, extra inventory, and pointless transportation. Ajinomoto Company Vietnam is and will not stop trying
to apply a sustainable business principle, which is to create common values - called ASV (Ajinomoto Group
Creating Sharing Value) - with the mission "We contribute to the further development of Vietnam, contribute
to the happiness and health of the Vietnamese people through culinary culture and the development of food
sources". As a result, from the stage of input materials to the stage of production of a variety of products to the
stage of storage and distribution to consumers, the company can eliminate unnecessary factors, swap out
equipment or materials that are bad for the environment for resources that are good for the environment, and
increase production efficiency and productivity as a result. Ajinomoto, for instance, has incorporated a just-in-
time system as well as numerous other ideas and techniques for its production process. Particular concepts
have been listed. This reduces the need for storage space and lowers the danger of waste from rotting or
expiration because raw materials and other inputs are supplied to the production line just in time for usage.
Ajinomoto Vietnam also employs a biological boiler system, which converts rice husks into energy and steam to
support the manufacturing process. The technology helps to save expenses, provides the plant with self-
sufficient power, prepares ahead of time for an unplanned power outage, and reduces CO2 emissions by more
than 50% annually.
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 Figure 4.1. Ajionomoto’s biological boiler (Source: Ajinomoto Vietnam company)
Ajinomoto also uses a cyclical production approach. The factory will maximize its use of resources, materials,
and recovered and reusable materials. As a typical illustration, after using sugarcane as the primary raw material
to create MSG, bagasse is placed in the composting system and supplied back to nearby farms, where it helps
to boost the output of numerous crops. many crops, including tomatoes, grapes, and coffee…
 Standardize Workflows:
Standardized work methods that eliminate variances and errors are encouraged by lean six sigma. Through
more efficient and predictable outcomes, this operational consistency eventually boosts production.
In the plant that creates powdered goods, the ingredients are all weighed, ground, and combined while being
subject to the tight control procedures of the business. according to each product's recipe. The mixture is
brought to the steps of mixing, processing, drying, and producing finished products after being sieved through
the mesh and directed to the packaging tapes. Ajinomoto has standardized the procedures to be followed in
the meat and bone stew plant in order to produce the meat and bone broth for seasoning. When receiving
meat supplies, they are initially examined for appearance and processed in a preliminary manner. When not in
use, the bones and meat are frozen at -18C to maintain freshness. Additionally, workers at the workshop are
required to adhere closely to workplace safety, food safety, and hygiene at all times. On an industrial scale,
bones and flesh are cooked in the traditional manner—the bones for an hour in a pressure cooker, the meat
for three—and then pureed and combined with juice. The finished product, which is made up of the casserole
bones, is wrapped and kept in storage until seasoning is made.

The business also standardizes the stages for other workshops that follow the two processes mentioned above.
As a result, it is clear that Ajinomoto standardizes all product manufacturing processes, enclosing each step in
a set of rules and specifications designed to evaluate the quality of each stage and prevent manufacturing

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errors. If something goes wrong, assess the process's production effectiveness to raise output and product
quality.
 Value Stream Mapping (VSM):
A technology called value stream mapping is used to visualize and examine how information and materials move
through the production process in order to spot wasteful regions and locations where improvements can be
made. In order to find chances for improvement, VSM entails mapping out the entire production process in
detail, from raw materials to completed goods. Using VSM, businesses like Ajinomoto can map out the entire
process, from raw materials to final goods, detecting bottlenecks and inefficiencies along the way. Ajinomoto
can use VSM to identify areas for improving production flow, cutting back on inventory and lead times, and
increasing overall productivity.
In their production process, Ajinomoto, for instance, employs VSM to identify the best locations for machines
and the material flow. They are able to make adjustments that will shorten lead times and lower costs by
identifying locations where machines are not being used to their full potential or where material handling is
inefficient. Additionally, Ajinomoto has used VSM to find areas that could be improved, such as lead times or
quality control.
VSM helps Ajinomoto find opportunities for ongoing development while also enhancing the production
procedure. By outlining the production process, companies can pinpoint problem areas and monitor
development over time to make sure they are consistently increasing productivity and minimizing waste.
Overall, Lean Six Sigma can help Ajinomoto optimize production processes, reduce waste, improve quality, and
enhance overall productivity. However, it is essential to tailor the implementation to the specific needs and
challenges of the company, engage all stakeholders, and foster a culture of continuous improvement to
maximize efficiency. results of Lean Six Sigma initiatives.

4.5 Ajinomoto System of Quality Assurance (ASQUA)

The Ajinomoto Group applies its own quality assurance system, the Ajinomoto System of Quality Assurance
(ASQUA), to all of its products and services. This ensures strict quality assurance from raw material procurement
to product sales.
Established in 1997, ASQUA is the Ajinomoto Group’s own quality assurance system. It is based on ISO 9001,
the international quality management system standard, as well as manufacturing management standards like
Hazard Analysis and Critical Control Points (HACCP), a food hygiene management standard, and good
manufacturing practices (GMPs).*1
The system also incorporates the Group Shared Policy on Quality, Ajinomoto Quality Assurance Regulations,
Regulation for Quality Assurance, Quality Standards, and other rules and requirements established by the Group
or each internal organization. With ASQUA, the Group carries out painstaking quality assurance activities
worldwide, from the procurement of raw materials to the sale of products, always pursuing even higher quality
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manufacturing. Customer requests and expectations are also promptly utilized to improve products, services
and business operations.

Figure 4.2. ASQUA Framework (Source: ajinomo.com)

ASQUA components

Figure 4.3. ASQUA components (Source: ajinomo.com)

Ajinomoto Group's Quality Standards

The Ajinomoto Group’s Quality Standards are designed to ensure that products meet the level of quality
expected of the Ajinomoto Group’s brand, and are strict standards covering a wide range of areas including
training, labeling, packaging, traceability and so on.

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Organizational framework for ASQUA implementation
Comprised of members of senior management and reporting to the Management Committee, the Quality
Assurance Committee is the highest body for quality assurance in the Ajinomoto Group. Considering customer
feedback, it drafts basic policies and plans relating to the Group’s quality assurance, and after approval by the
Management Committee, promotes their implementation at group companies worldwide. Every six months,
the Quality Assurance Committee reviews the status of policy and plans implementation throughout the Group.
This framework ensures that everyone—from top management to frontline employees working in production
and sales— maintains a strong awareness of product quality and a total commitment to providing safe products
that are worthy of consumer trust.

Figure 4.4. Quality Assurance Committee (Source: ajinomo.com)

ASQUA implementation system

Figure 4.5. ASQUA implementation system(Source: ajinomo.com)

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Obtaining third-party certification
The Ajinomoto Group is working to obtain third-party certifications in ISO 9001. All certified group companies
and sites of the Ajinomoto Group is maintaining their ISO 9001 certifications. The Group is also advancing to
obtain Food Safety System Certification (FSSC) 22000*5 at multiple manufacturing sites from the Global Food
Safety Initiative (GFSI) in accordance with customers’ requests.

Figure 4.6. Kawasaki Plant in Japan (Source: ajinomo.com)

Human resources development to raise quality assurance levels
The Ajinomoto Group leverages its human resources development programs to further improve quality. Each
year, the Group reviews its quality training, and creates programs that meet the needs of each organization and
company. The programs are then implemented according to a plan.

Figure 4.7. Quality Management System (QMS) training course (Source: ajinomo.com)

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QUESTION 5: PROPOSE THE IMPROVEMENT OF THE OPERATIONS TO INCREASE THECOMPETITIVE ADVANTAGES
OF AJINOMOTO'S COMPANY.
About the new strategy to improve and develop Ajinomoto Vietnam's activities. The group has proposed 2
strategies:
5.1. First strategy:
To improve the operations and increase the competitive advantages of Ajinomoto's company, the following
proposals can be considered:
 Streamline Supply Chain Management: Enhance the efficiency of the supply chain by implementing advanced
technologies like supply chain analytics, demand forecasting tools, and inventory optimization systems. This
will help optimize inventory levels, reduce lead times, minimize stockouts, and enhance overall
responsiveness to customer demands.
 Invest in Research and Development: Allocate resources to research and development efforts to
continuously innovate and develop new products that cater to changing consumer preferences and market
trends. This will allow Ajinomoto to stay ahead of competitors and offer unique and high-quality food and
seasoning products.
 Enhance Quality Control Processes: Implement robust quality control measures throughout the production
process to ensure consistent and superior product quality. This can include regular inspections, testing
protocols, and adherence to international quality standards. By maintaining high-quality standards,
Ajinomoto can build trust with customers and differentiate itself in the market.
 Embrace Sustainable Practices: Integrate environmentally friendly practices into operations, such as
adopting renewable energy sources, reducing waste, and promoting sustainable packaging solutions. These
initiatives not only contribute to environmental conservation but also resonate with consumers who value
sustainable products and brands.
 Improve Distribution Network: Optimize the distribution network by leveraging technology and data
analytics to enhance logistics planning, route optimization, and tracking capabilities. This will result in faster
and more reliable product deliveries, improving customer satisfaction and reducing operational costs.
 Enhance Customer Relationship Management: Implement a comprehensive customer relationship
management (CRM) system to gather and analyze customer data effectively. This will enable personalized
marketing campaigns, tailored promotions, and improved customer service, fostering stronger relationships
with customers and increasing brand loyalty.
 Invest in Employee Development: Set employee training and development programs as a top priority to
improve knowledge and skills at all organizational levels. Employees will be given the tools they need to offer
creative ideas, boost productivity, and provide great customer service as a result.

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 Leverage Digital Marketing: Utilize digital marketing strategies to expand the company's online presence,
reach a wider audience, and engage with customers through social media, content marketing, and targeted
advertising. This will help increase brand awareness, drive customer acquisition, and strengthen the
company's competitive position in the digital era.

By implementing these proposed improvements, Ajinomoto can enhance its operational efficiency, product
innovation, customer satisfaction, and sustainability practices. These initiatives will contribute to the company's
competitive advantages in the food and seasoning industry, enabling it to thrive in an increasingly competitive
market.
5.2. Second Stratery:
Mr. Tatsuo Warita (Business Division Director) said that Ajinomoto Vietnam is committed to creating delicious
and healthy products. This shows that the company is very concerned about the health of consumers. In
addition to making quality products, the company also cares about how to best use their products for users. By
printing the quantity of MSG for the consumer's diet. However, the company has not yet instructed consumers
how to use the product at what temperature is most appropriate.

Figure 5.1. Ajinomoto product packaging (Source: ajinomo.com)

According to a study in the health journal:
Users need to use MSG properly to limit the side effects of MSG:
- Do not add MSG to food while it is cooking. High temperature will cause chemical reactions that make MSG
become harmful. You should only add a moderate amount of MSG to the dish after turning off the stove.
- MSG dissolves best in solution at a temperature of 70 - 90 degrees Celsius, so MSG should not be added to
cold foods.
- Do not add MSG to foods with natural sweetness such as shrimp and crab, bone broth, tomatoes.
- Children under 2 years old should not eat MSG.

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- MSG is not easily soluble in an acidic environment, so MSG should not be used in sour dishes with vinegar such
as mannequins, sweet and sour salad.
- MSG has no effect on reducing saltiness and bitterness. MSG already contains a significant amount of sodium,
so it is necessary to reduce the amount of salt, soup powder or fish sauce when seasoning.

Solution:
The company should add guidance on the most appropriate temperature for the product to achieve high quality
and efficiency for consumers. In addition, the company should have an accompanying warning about how the
misuse leads to consequences so that customers are not misunderstood about the quality of the product. This
solution helps the company to increase sympathy and trust with users about the company's caring attitude
towards consumers. Increasing the user's sympathy and reliability about the product is one of the advantages
of competing with other competitors.

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 CONCLUTION

Through the above report, Ajinomoto Vietnam is a very large-scale, modern, and professional enterprise in the
process of production and operation. This helps us better understand the processes, operations, and
coordination of a food manufacturing business. Hands-on business courses are very interesting and useful for
students. For students to understand how it works and better understand the role of operations in the company
and in production. In addition, students can gain certain insights about the subject and the knowledge goals
they want to bring. This trip not only helps them visualize the work in the enterprise but also helps students
clarify their career orientation and prepare the best luggage for the future. This field trip is very useful and
interesting, bringing a lot of knowledge to students.

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 REFERENCES
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VTC News.
https://vtc.vn/ajinomoto-viet-nam-ap-dung-mo-hinh-triet-ly-moi-vi-nen-san-xuat-xanh-ar768897.html
2. Có gì ở mô hình triết lý mới của Ajinomoto Việt Nam. (2023, April 29). Báo Điện Tử Tiền Phong.
https://tienphong.vn/post-1530487.tpo
3. Bữa ăn học đường. (n.d.). Giới Thiệu. Retrieved August 9, 2023, from https://buaanhocduong-com-
vn.translate.goog/About?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc
4. EYE, A. (n.d.). Giới thiệu. DinhDuongMeBe. https://dinhduongmevabe.com.vn/gioi-thieu/ve-chuong-trinh
5. What is ASV? | About the Ajinomoto Group | Ajinomoto Group Global Website - Eat Well, Live Well. (n.d.).
Ajinomoto Group Global Website - Eat Well, Live Well. https://www.ajinomoto.com/aboutus/asv_concept
6. Giải tỏa nỗi lo về dinh dưỡng thai kì với Lớp học nấu ăn online cùng Ajinomoto. (2021, November 15). Giáo
Dục Việt Nam. https://giaoduc.net.vn/post-222413.gd
7. CERTIFICATE OF HACCP (from 24 May 2022).pdf. (n.d.). Google Docs.
https://drive.google.com/file/d/1FI43wpWJeH_eGj991-bFDCIjDqR_BPcW/view?usp=embed_facebook
8. CERTIFICATE OF ISO 9001-2015 (from May 2021-2024).pdf. (n.d.). Google Docs.
https://drive.google.com/file/d/1A_sVm1teWPYk0uUvw-ciPD2-yE2jCU_x/view?usp=embed_facebook
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https://drive.google.com/file/d/1CDF_KIeLA7UWdgu0SKdCPr1S3flmTMiu/view?usp=embed_facebook
10. CERTIFICATE OF ISO 50001-2018 (From 26 Sep 2021).pdf. (n.d.). Google Docs.
https://drive.google.com/file/d/1Zkvz8N4FUWdN1wQ9l-N_PdJdlCx65SWt/view?usp=embed_facebook

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