HO CHI MINH CITY UNIVERSITY OF ECONOMICS & FINANCE

FACULTY OF ECONOMICS
YEAR: 2024-2025

ESSAY REPORT
QUALITY MANAGEMENT

COURSE CODE: 232.MGT1116E.B06E

LECTURERS: Nguyen Thanh My
GROUP: 1

Topic:
 Members Task Contribution
Mai Thị Bích Châu Introduction + Find out 100%
Lại Vũ Quỳnh Anh similar solutions that can be 100%
Vũ Quốc Đạt appied to business + Theory 95%
Tô Ngô Thái Tân Systematically describe the 95%
content of the total quaility
management process
Lương Triều Vĩ Analysis of advantages and 95%
disadvanteges show that the
problem still exists
Phan Ngọc Minh Propose speccific 95%
Triết recommendations or solutions for
enterpries to omprove quaility
management
Phan Minh Giàu Conclusion 80%
Nguyễn Ngọc Anh 70sss%
Table of Contents
ACKNOWLEDGEMENT.......................................................................................4
I. INTRODUCTION............................................................................................5
II. CONTENT....................................................................................................5
A. Theory.................................................................................................................5
1. Basic concepts of quality management................................................................5
2. The theoretical content.......................................................................................................9

3. Hoa Phat Group............................................................................................9

B. APPLY..............................................................................................................11
2. Analysis of advantages and disadvantages shows that the problem still exists.................28
3. Explore similar solutions that can be applied to businesses..............................................29
3.1 Competitors in the same industry:....................................................................................29
4. Propose specific recommendations or solutions for businesses to improve management
quality 34

III.CONCLUSION...............................................................................................39
ACKNOWLEDGEMENT
“Quality Management” is an important subject for anyone pursuing
Economics - Business, especially those who wish to work in the
manufacturing, service or management fields. Quality is the key factor that
determines the success of an organization. Quality management was born to
help organizations improve product/service quality effectively and safely.
Through this subject, we learned that quality is not just the responsibility of the
quality control department or management board but is the responsibility of
everyone in an organization. Each individual needs to have a sense of playing a
common role in quality assurance products, services and work processes. We
are very grateful to the schools for creating conditions for them to have
opportunities to continue and interact with reality through a series of business
visits. Finally, more than all of our group, I sincerely thank Ms. Nguyen Thanh
My for her enthusiasm in teaching, helping, and imparting all the knowledge to
help us better understand the models. , the concept of the subject "Quality
Management" besides thanks to the participation and cooperation of the group
members, we have completed the report.
 I. INTRODUCTION
In today's era, when competition is increasingly fierce in the market,
product/service quality plays a key role in determining the success of a
business. Quality Management was born to help businesses improve
product/service quality effectively and comprehensively, thereby meeting
customer needs and expectations, building brand reputation and bringing
profits for businesses. Understanding this importance, Hoa Phat has always
focused on applying advanced quality management systems, contributing to
making the group one of the leading steel brands in Southeast Asia with a
vision With wise strategy and leadership, Hoa Phat has achieved many great
successes. Starting from this reality, our team decided to choose the topic
"Comprehensive quality management of Hoa Phat Group" to shed light on
comprehensive quality management and logistics activities - supply chain
management. the company's response, thereby providing suggestions and
solutions that contribute to the development of Hoa Phat and the Vietnamese
economy.
II. CONTENT
A. Theory
1. Basic concepts of quality management
1.1 TQM definition
TQM (Total Quality Management) is first and foremost a management
philosophy. TQM focuses on improving the quality of a company's products
and services. Integrated quality management always emphasizes that all
company activities should be directed toward achieving quality goals. The goal
of TQM is to improve product quality and satisfy customers at the best possible
level. TQM comprehensive management system is not only a simple concept, it
is also a tool to help businesses establish management processes with tasks
such as: continuous improvement, systematization of production processes.
production, optimize resources, reduce waste and create the best value for
customers. TQM controls production activities and provides products that
always meet the highest quality standards. Always put customers at the center,
thereby creating satisfaction and loyalty. Additionally, TQM also impacts
organizational performance improvement through process optimization and
resource savings. From there, it can be seen that TQM focuses on positive
impacts and long-term development instead of short-term goals as before.
1.2. Content of quality management
1.2.1 Quality phaning
• Define specific quality goals that are clear, measurable and achievable
(SMART).
• Plan to achieve quality goals, including activities, time, and resources
needed.
• Identify potential leaks and develop a room plan.
1.2.2 Quality management and control
Refers to a set of principles, methods and processes used by organizations
to ensure consistency and excellence of their products and services. Essentially,
this is a proactive approach to identifying and resolving any potential issues
before they reach the customer.
Below is a breakdown of the key aspects of Quality Management and
Control:

 Focus on quality: Define what "quality" means to the organization,

taking into account customer needs and expectations. Establish clear quality
goals and set measurable goals.
 Precautions: Implement quality control procedures throughout the entire
production or service delivery process. This may involve inspection, testing
and quality control at various stages. The aim is to detect and resolve any
defects or inconsistencies early.
 Continuous improvement: Encourage a culture of continuous
improvement within the organization. Regularly analyze quality data to identify
areas for improvement. Implement corrective actions and preventive measures
to resolve identified problems.
  The participation of the workers:Empower employees to actively
participate in quality control activities. Encourage them to report any quality
concerns and suggest improvements. Provide training and resources to equip
them with the skills needed to manage quality.
 Benefits of quality management and control: Enhance customer
satisfaction: Products and services of consistent quality make customers
happier, driving loyalty and repeat business.
o Reduce costs: By preventing errors and rework, organizations can save
resources and improve their bottom line.
o Increased efficiency: Streamlined processes and improved quality
control lead to operational efficiency and faster production times.
o Enhance brand reputation: Providing high quality products and services
will build a strong brand reputation and increase competitiveness in the market.
1.2.3 Quality improvement
Quality improvement is a continuous process of improving product/service
quality to meet increasing customer needs and expectations. This is an
important part of the quality management system of any organization that
wants to achieve long-term success.
Improve the quality of new products by creating items that serve consumer
needs, identifying opportunities for quality improvement, through analyzing
data on customer complaints and feedback. market recovery. Raising employee
awareness of the importance of quality helps drive competitive advantage and
customer satisfaction.
1.3 Evaluation process
Like other management activities, quality management includes essential
functions: planning, organizing, controlling and adjusting. Because quality
management has specific goals and targets, its functions also have their own
characteristics.
PDCA cycle: The cycle consists of four iterative steps:
 Planning: Identifying goals and determining methods to achieve them
for quality improvement.
  Should: Implement planned actions or solutions.
 Check: Evaluate results and evaluate their effectiveness in achieving
planned improvements.
 Action: Take corrective action based on the assessment. If results are
successful, standardize practices for continuous improvement.
Bottom line: The PDCA cycle emphasizes the cyclical nature of quality
management. After the Action phase, the process starts again in the Plan phase
to ensure continuous quality improvement. This continuous evaluation and
improvement is necessary for effective quality management.
1.4 The Baldrige Award – Management model towards excellence
The Baldrige Award Model, also known as the Sharp Baldrige
Manufacturing Management Framework, is a comprehensive rating and
evaluation code used to measure organizational performance. This model is
developed based on advanced quality management principles and is widely
applied worldwide. Baldrige is an affirmation of a new approach to principles
in corporate management. This award plays a key role in strengthening the
competitive strength of organizations. The Baldrige Award Model is not only
an evaluation framework but also a useful tool for organizations in:
 Clearly define the vision, mission and strategy of the organization.
 Focus on customer and market needs.
 Develop and maintain a high quality workforce.
 Improve the efficiency of process systems.
 Measure and track performance.
 Continuously learn and improve.
Applying the Baldrige bonus model brings many benefits to the
organization, including:
 Improve product/service quality.
 Enhance customer satisfaction.
 Improve operational efficiency.
 Reduce costs.
 Enhance competitiveness.
  Enhance signal signal.
2. The theoretical content

2.1 5s model quality management method

2.1.1 Define
5S is a work management and organization method originating from Japan,
developed in the early and mid-twentieth century. This method has received
positive response and reception from many domestic companies. Tissue aims to
improve productivity, efficiency and quality in the workplace through the
organization and maintenance of the work environment.
Each “S” represents part of a five-step process to improve the overall
performance of your business.
 Seiri (Sorting): Remove unnecessary items to create a clean and tidy
workspace.
 Seiton (Arrange): Arrange and place necessary items for easy access and
use.
 Seiso (Cleanliness): Clean and tidy the workplace, including machinery
and equipment.
 Seiketsu (Maintenance): Maintaining a clean and tidy state through
maintaining and promoting standards and procedures.
 Shitsuke (Readiness): Promotes self-discipline and personal
responsibility, continuously improving established standards and processes.
2.1.2 Benefit
Improve work efficiency: Help employees easily find and use items,
saving time and effort. Minimize errors due to emptying or missing materials.
Create conditions to carry out process work smoothly and effectively.
Improve a better working environment: Safe, clean, bankrupt, inspires
employees and enhances the image of the organization, creating a professional
working environment
Reduce waste: Eliminate unnecessary items, save resources and costs.
Minimize wasted time, effort and materials.
3. Hoa Phat Group
 3.1 Introduction

Hoa Phat is the leading industrial manufacturing group in Vietnam. Starting

from a company specializing in selling construction machines in August 1992.
On November 15, 2007, Hoa Phat officially listed shares on the Vietnam stock
market with the stock code HPG.
Currently, the Group operates in 05 fields: Iron and steel (construction
steel, hot rolled steel) - Steel products (steel pipe components, galvanized steel
sheets, wire drawing steel, prestressed steel) - Agriculture - Real estate Take
advantage of real estate – Household appliances. Steel production is the core
field that accounts for 90% of the group's revenue and profit.
Without paying any attention to the domestic market, the company also
provides export activities. Hoa Phat furniture products have appeared in the
markets of Japan, Singapore, Laos, Cambodia, Middle East Market, Ukraine
and are promoting exports to major markets such as the EU, Eastern Europe,
and the US.

Picture 1: HOA PHAT Group

 3.2 Vision

Rise to become a company providing reputable and large-scale furniture

products, with a large market share in Vietnam, serving society for a
prosperous community. Become one of the companies with the best and most
complete working environment and employee remuneration policies.
Positioning the brand as a strong, reputable enterprise domestically and
internationally.
3.3 Mission
Providing leading products, contributing to improving the quality of life,
achieving customer satisfaction.
3.4 Core value
The core value of Hoa Phat Group is the cause of Harmony and
Development. This can be formed in the relationship between staff and
workers, between the corporation and its partners, agents, shareholders and
social community, ensuring harmony in the interests of related parties on the
same basis. boat, towards sustainable development. In particular, Hoa Phat
Group has built a sustainable, long-term, trusting partnership with sales agents
accompanying the Group since the early days of its establishment
B. APPLY
1. Systematically describe the content of the total quality management
process in the enterprise
1.1 Current quality management system of HPG Group Joint Stock
Company

1.1.1 Leader
Organizational structure:

Acceptance Board of Directors

Divisional Heads Functional

Approve
 Department Heads

Executive Board

 Chief Executive Officer (CEO)

HPG Group strategic
management  Chief Operating Officer (COO)

 Chief Financial Officer (CFO)

 Chief Marketing Officer (CMO)

The group's Board of Directors regularly meets to discuss the group's long
and short strategies as well as business development orientation, supervision of
group activities and risk management.
The Board of Directors of HPG Group Joint Stock Company consists of
individuals with experience and high professional qualifications in the
company's business field. The Board of Directors (BOD) plays a very
important role in the operation and development direction of a company,
especially joint stock companies. The Board of Directors is considered the
"brain" or "driving machine" of the enterprise.
 Mr. Tran Dinh Long
Chairman of the Board of Directors of Hoa Phat Group
Mr. Tran Dinh Long is a famous Vietnamese businessman. Known for his
visionary leadership and business acumen, he played a key role in shaping the
nation's steel industry.
Mr. Tran Dinh Long's legacy goes beyond his outstanding success in
building Hoa Phat Group. He is an inspiration to aspiring entrepreneurs and a
role model in promoting ethical and sustainable business practices in Vietnam.
 Picture 2: Mr. Tran Dinh Long. Chairman of the Board of Directors of
Hoa Phat Group
 Mr. Tran Quang Vu
Mr. Tran Quang Vu currently serves as the Deputy Chairman of the Board
of Directors of Hoa Phat Group, a leading Vietnamese steel conglomerate. He
holds a prominent position within the company, contributing significantly to its
growth and success.
Joined Hoa Phat Group in 2007, assuming the position of General Director
Played a pivotal role in steering Hoa Phat Group's expansion and
diversification strategies. Demonstrated exceptional leadership skills and
expertise in managing the company's operations
 Ms. Tran Thi Minh Tram
Ms. Tran Thi Minh Tram holds a prominent position as a Member of the
Board of Directors at Hoa Phat Group, a leading steel conglomerate in
Vietnam. Her expertise and contributions have significantly impacted the
company's growth and success.

 Mr. Nguyen Viet Thang

Member of the Board of Directors and General Director of Hoa Phat
Group. He has 20 years of leadership experience at the Group with important
positions.
Currently, the new General Director of Hoa Phat Group holds nearly 10.63
million VND of HPG shares and uses about 0.32% of Hoa Phat's charter
capital. If considered based on current stock prices, Mr. Nguyen Viet Thang's
assets are equivalent to more than 580 billion VND. With huge assets, CEO
Hoa Phat is holding the 153rd position on the ranking of Top 200 richest
people on the Vietnam stock exchange.
 Picture 3: Mr. Nguyen Viet Thang.Member of the Board of Directors and
General Director of Hoa Phat Group
 Social activities
Hoa Phat Group has contributed 5,000 billion VND to the state budget in
taxes and fees, an increase of more than 40% compared to 2016. Of which, Hai
Duong Province is where Hoa Phat has the most spare parts with a rate of over
2,000. Hoa Phat's tax amount is the second largest for Hai Duong and is in the
Top 10 largest contributing enterprises to this province. With a completed
amount of more than 1,200 billion VND, Hoa Phat continues to be the
enterprise contributing the most to Hung Yen province, using 12% of total
local budget revenue and over 40% of total revenue from outside businesses.
national industry of Hung Yen.

In addition to the above localities, Hoa Phat also contributed advice to the
budgets of 23 other provinces and cities across the country, including Hai
Phong (332 billion VND), Ho Chi Minh City (253 billion VND), Ha Giang
(over 200 billion VND), Quang Ninh (180 billion VND), Binh Duong (81
billion VND), Hanoi (63 billion VND),...

Picture 4: State budget submission chart of Hoa Phat 2008

  Improving community life:
In 2017, Quang Ngai farmers fell into a situation of "crying for help" even
though watermelons had a good harvest but were "losing value". Traders forced
prices and even refused to buy, causing melon growers to struggle.
Watermelons are left in the fields, not harvested or used as food for cattle.
Farmers are at risk of falling into debt with nothing.
With the viewpoint of "letting melons be melons", Hoa Phat does not
provide cash support like previous relief activities, but mobilizes personnel to
directly coordinate with Quang Ngai farmers day and night to purchase 250
million VND. tons of melons shipped to Hanoi, Hai Duong, Hung Yen, Da
Nang, Ho Chi Minh, Dong Nai... Supporting all costs of transportation,
loading, packaging... so that each melon reaches the consumer at a reasonable
price. only 2,500 VND. In addition, Hoa Phat Group donated 70 tons of melons
to the Hanoi Youth Union to raise funds to build charity houses.
 Picture 5:Quang Ngai people
1.1.2 Strategic competition
In July 2022, Hoa Phat signed a contract to export a shipment of 8,000 tons
of rebar steel to Mexico. The shipment of rebar steel has an ASTM steel grade,
manufactured according to ASTM -US standards, and is a type of concrete
reinforcement steel commonly used to construct buildings. This is the first
order exported to this country, creating momentum to expand the market for
Hoa Phat construction steel products.
At the end of 2022, a contract to export a shipment of 10,000 tons of rolled
steel wire to Europe was signed. This is a shipment of rolled steel wire
produced according to American ASTM standards, low carbon. The product is
used to draw wire or make common wire mesh. With a modern, closed
technological line for steel production from blast furnaces, Hoa Phat provides a
variety of quality steel grades, meeting the standards strict standards of foreign
partners and competitiveness in the world market. Up to now, Hoa Phat Steel
has exported to 30 countries and territories across 5 continents such as:
America, Japan, Canada, Australia, Belgium, Singapore, Hong Kong, Korea….
In addition to exporting long steel, Hoa Phat Group also exports hot rolled steel
coils, steel pipes and galvanized steel sheets of all kinds to the world market.
Typically, the first batch of hot rolled coil (HRC) steel arrived in Italy with a
volume of 35,000 tons in early 2022. The order to Europe opens up a large
consumption market for the Group's HRC products. In addition, HRC Hoa Phat
has been exported to a number of other countries such as Italy, Indonesia,
Thailand, etc. Ton Hoa Phat is currently exported to dozens of countries in
Asia, Europe, and America such as India, Taiwan, Malaysia, Indonesia, Italy,
Belgium, Spain, UK, Portugal, USA… In 2022, Hoa Phat Steel Sheet exploits
some new markets such as Japan, and some countries in Europe. (HPG News,
2023)
 Exploiting export markets helps Hoa Phat diversify consumer markets,
while contributing to foreign exchange earnings and balancing Vietnam's trade
balance.
Hoa Phat's competitive strategy is to race to invest as soon as possible,
produce the newest products, and recover capital faster than competitors, to be
able to create a lower cost advantage compared to other steel and industrial
complexes. The steel company operates later. Besides, it is necessary to
improve product quality, take advantage of existing processes to cut production
costs, and maximize profits.
Hoa Phat builds a vertical development strategy, strengthens distribution
system capacity, expands coverage, and increases brand market share both in
domestic and world markets.
1.1.3 Customer
Hoa Phat's customers include large enterprises in the industry such as
VinGroup, Samsung, LG, Panasonic,..They can negotiate closely to reduce
prices or make special requirements on product quality.
Hoa Phat Group's internal customers are member companies. HPG
prioritizes providing raw materials to member companies; Therefore, HPG
does not have to bear much pressure from this group of customers. HPG's
customers are also individual customers, switching from using HPG products
to other products does not take much time and cost.
1.1.4 Partnerships
 Cooperation between Hoa Phat Group and Vietnam Coal and
Mineral Group (TKV)
2008: The two sides signed a strategic cooperation agreement on raw
material sources and long-term investment cooperation. 2014: Hoa Phat
became a founding shareholder of Thang Long Mineral Joint Stock Company
(TLM) - a subsidiary of TKV. 2018: Both parties signed a cooperation contract
on providing TKV work for Hoa Phat steel manufacturers.
Content of cooperation:
Cooperation on raw material sources:
  TKV commits to supplying coal to Hoa Phat's steel factories at
reasonable prices and guaranteed quality.
 Hoa Phat prioritizes using TKV coal for steel production.
Investment cooperation:
 The two sides cooperate to invest in coal, iron ore and other mineral
mining projects.
 Hoa Phat participates in infrastructure development projects serving
TKV's coal mining activities.
Commercial cooperation:
 The two sides cooperate in the fields of import and export of coal, iron
ore and steel.
 TKV and Hoa Phat jointly promote their brands and products to the
international market.
The cooperation between Hoa Phat Group and TKV is a long-term strategic
and mutually beneficial relationship. This cooperation has contributed to
promoting the development of Vietnam's steel industry, while bringing benefits
to both parties and the community.
 Cooperation process between Hoa Phat Group and Voestalpine
Group (Austria)
2011: The two sides signed a strategic cooperation agreement on
technology transfer, human resource training and investment cooperation.
2014: Voestalpine became a founding shareholder of Hoa Phat Stainless Steel
Joint Stock Company with 10% ownership. 2017: The two sides signed a
cooperation contract for Voestalpine to provide hot rolled steel production
technology for Hoa Phat Dung Quat 2 steel factory.
Technology transfer: Voestalpine transfers to Hoa Phat the most advanced
technologies in the field of steel production, including:
 Steel bar production technology
 Stainless steel production technology
 Technology for producing hot rolled steel coils
 Steel plate production technology
  Electric steel production technology
 Cooperation process between Hoa Phat Group and Nisshin Steel
(Japan)
1998: Nisshin Steel became a strategic investor in Hoa Phat Steel Joint
Stock Company with 10% ownership.
2002: The two sides signed a strategic cooperation agreement on raw
material supply, steel production cooperation and export market sharing. 2005:
Hoa Phat and Nisshin Steel cooperated to build Hoa Phat Dung Quat 1 steel
factory. 2014: The two sides signed a cooperation contract on Nisshin Steel
providing hot rolled steel production technology for the steel factory Hoa Phat
Dung Quat 2.
1.1.5. Processes, products and services
Processes:
Steel Production Process: Hòa Phát operates steel manufacturing plants
where raw materials such as iron ore, coal, and limestone are converted into
various steel products through processes like blast furnaces, steelmaking
converters, and continuous casting.

Quality Control Processes: Hòa Phát implements rigorous quality control

processes throughout its production facilities to ensure that the steel products
meet international standards and customer requirements.
 Supply Chain Management: Hòa Phát manages its supply chain efficiently
to ensure a steady supply of raw materials and components for its
manufacturing processes. This includes sourcing, procurement, logistics, and
inventory management.

Research and Development: The company invests in research and

development (R&D) activities to continuously improve its production
processes, develop new products, and enhance efficiency and sustainability.

Environmental Management: Hòa Phát places importance on environmental

sustainability and implements processes to minimize its environmental impact,
such as waste management, energy efficiency initiatives, and emissions control
measures.
Products:
Steel Products: Hòa Phát manufactures a wide range of steel products
including construction steel (rebars, structural steel), hot-rolled coil, cold-rolled
coil, steel pipes (for construction, infrastructure, and industrial applications),
and galvanized steel products.

Construction Materials: In addition to steel products, Hòa Phát may also

offer construction materials such as cement and concrete to support
infrastructure development and construction projects.
 Services:
Technical Support and Customer Service: Hòa Phát provides technical
support and customer service to assist clients with product selection,
customization, and usage guidance.

Logistics and Distribution: The company may offer logistics and

distribution services to ensure timely delivery of products to customers across
various industries and geographical locations.

Consulting and Engineering Services: Hòa Phát may provide consulting

and engineering services related to steel construction projects, offering
expertise in design, structural analysis, and material selection.

After-Sales Support: Hòa Phát offers after-sales support to address any

issues or concerns related to its products, including warranty services and
maintenance assistance.

1.1.6. Social responsibility:

The beat of love

“Beat of Love” is an activity sponsoring free heart surgery treatment for

poor children implemented by Hoa Phat Group since 2015. Up to now, after 4
years of operation, the program has become a news address. Trustworthy for
poor patients with congenital heart disease who need help.

"Hoa Phat goes to school with you"

Carries a practical meaning of Hoa Phat Group, aiming to modernize

educational infrastructure, improve the quality of teaching and learning in

localities across the country.

In 2019, Hoa Phat Group launched the activity of donating bunk beds to
boarding schools for ethnic minorities in Chien Pho and Ho Thau, Hoang Su
Phi district, Ha Giang through the Hope fund to help children always feel
comfortable and happy. looks in learning and living.
 In addition to production and business activities, over the past 28 years,
Hoa Phat has always implemented corporate social responsibility in a practical
and heartfelt way with the motto "Harmony and development". That is
reflected in the growing contribution to the annual state budget, creating stable
jobs for tens of thousands of workers, good implementation of social security
work and a series of charity and general programs. hands for meaningful
community. In 2019, the total amount of money Hoa Phat sponsored for social
and charitable activities reached nearly 19 billion VND.

1.1.7Result:

Revenue in 2023 reaches 80% of the plan, down 16% over the year 2022.
Of which, steel contributes 94% of the Group's total revenue. Revenue of the
steel sector decreased by 16% due to market demand for steel decreased along
with the decrease in steel selling price over the same period. Revenue from real
estate sector. Real estate decreased by 37%. Profit in 2023 reaches 85% of plan
and decreases 19% over the same period in 2022, in which the sector causing
this decline is mainly due to the steel industry's 22% decrease in profits over
the same period.

In 2023, the steel industry will decline in both revenue and profit due to...
facing many difficulties when world steel prices plummeted, putting
pressure on prices domestic steel. Steel consumption is still weak and has not
improved
much because Vietnam's real estate market has been gloomy since the
second half of the year From 2022 until now, the armed conflict between
Russia and Ukraine continues to be in a deadlock. Along with the post-Covid
recession, the world's demand for steel has increased The world recovers
slowly.
 1.2. HPG’s quality management status:
1.2.1. Strength:

Commitment to Quality: Hòa Phát Group demonstrates a strong

commitment to maintaining high-quality standards across its products and
services. This commitment is reflected in its organizational culture, policies,
and practices.

Robust Quality Control Processes: The company has established robust

quality control processes throughout its manufacturing facilities. These
processes ensure that products meet stringent quality standards at every stage
of production, from sourcing raw materials to final inspection.

Continuous Improvement: Hòa Phát Group emphasizes continuous

improvement in its quality management practices. The company regularly
reviews and updates its quality management systems to incorporate best
practices, industry standards, and customer feedback.

Investment in Technology: The company invests in state-of-the-art

technology and equipment to enhance its quality management capabilities. This
includes advanced testing and inspection tools that enable precise quality
control and product validation.
 Certifications and Accreditations: Hòa Phát Group holds various
certifications and accreditations attesting to its adherence to international
quality standards. These certifications not only validate the company's
commitment to quality but also enhance its credibility in the market.

Customer Focus: Hòa Phát Group places a strong emphasis on

understanding and meeting customer requirements. By prioritizing customer
feedback and satisfaction, the company ensures that its products consistently
meet or exceed customer expectations in terms of quality.

1.2.2. Points for improvement:

Sourcing and supply chain management: The company can improve its
sourcing and supply chain management to ensure stable and high-quality
supply. This includes optimizing import, transportation and warehousing
processes, as well as strengthening collaboration with suppliers to ensure
consistency and reliability across the supply chain.

Improve cost management capabilities: Companies can enhance cost

management capabilities to minimize waste and optimize operational
efficiency. This includes evaluating and improving work processes, applying
technology and information systems to optimize cost management.

Employee training and development: Companies can increase investment in

employee training and development to improve capacity and performance. This
includes providing intensive training and career development opportunities to
encourage progress and creativity.

Enhance research and development: The company can increase research

and development activities to innovate and improve products, production
processes and technology. This helps capture new opportunities and create
competitive value in the market.

Customer care and feedback: Companies can enhance customer care and
feedback to better understand customer needs and desires. This includes
collecting and analyzing feedback from customers to improve products and
services, as well as creating an open and flexible communication environment
with customers.
1.3 . Conclude

Hoa Phat Group's (HPG) quality management system is operating with

strength and caution, but still needs some improvements to improve
performance and meet increasingly stringent market requirements. and
customers.

Commitment to quality: HPG has a high commitment to quality, which is

demonstrated through maintaining and improving quality standards in the
production and supply of products.

Quality control processes: The company has developed and implemented

strict quality control processes, ensuring that products meet high quality
standards.

Continuous improvement: HPG continuously improves its quality

management system, using customer feedback and performance data to adjust
and improve processes.

HPG’s already has a strong quality management system, but continued

investment and improvement is needed to ensure that it remains responsive to
ever-increasing market and customer requirements. By enhancing supply
management, employee training, and enhancing customer communication,
HPG can continue to strengthen and expand its position in the industry.
 2. Analysis of advantages and disadvantages shows that the problem
still exists

2.1 Advantages

Reputation and reputation: Hoa Phat has a good reputation and prestige in
the industry, built over many years of operation.

Financial capacity: The Group has strong financial capacity, can invest in
research and development as well as expand production scale.

Advanced technology: Hoa Phat owns advanced production technologies,

helping to improve production efficiency and product quality.
2.2. Disadvantages
Fierce competition: The steel industry is facing stiff competition from
foreign manufacturers and importers, especially in the context of increasing
trade defense measures.

Responding to market fluctuations: The steel market can fluctuate strongly

due to the impact of economic, political and environmental factors, requiring
flexibility in business strategies.

Environmental challenges and resource protection: The steel industry often

faces pressure from the government and society to minimize environmental
impacts and protect resources.

2.3. Existing problem

Unstable market situation: The steel market is experiencing major

fluctuations due to the impact of global economic factors and trade defense
measures from other countries.
 Increased production costs: Production costs may increase due to increased
raw material prices and labor costs, affecting the group's profits.
Environmental protection challenge: Need to face pressure from
government and society to improve standards of environmental protection and
waste management.
3. Explore similar solutions that can be applied to businesses
3.1 Competitors in the same industry:
Domestic competitors
In the current market, there are many businesses directly competing with
Hoa Phat in many fields. Specifically, Hoa Sen Group Joint Stock Company
(HSG) competes with Hoa Phat in terms of galvanized steel products, the
export of galvanized steel products can reach 1.1 million tons, revenue will
reach VND 13,095 billion, and the profit will reach VND 1,100 billion in 2021-
2022. Therefore, Hoa Sen Group will be a serious competitor directly to Hoa
Phat in the galvanized steel market. In addition, in terms of the hot coil
segment (HRC), Hoa Phat's biggest competitor is Hung Nghiep Formos Iron
and Steel Co., Ltd. in Ha Tinh (FHS). Because Formosa is doing the leading
job in the field of hot can roll (HRC).
Foreign competitors
Hoa Phat's biggest competitors in the foreign market are Chinese steel
enterprises. Although the production output of domestic steel enterprises is in a
state of surplus, the amount of steel imported from China is still massively
landed. For this reason, Hoa Phat's competitive pressure does not only come
from imported steelif it cannot shape the input (production) and output
(market). Although domestic production has increased sharply, domestic
companies have also spent a lot of money to import all kinds of steel. The
largest imports are from China, including products that domestic enterprises
have produced, even surplus such as construction steel, color-coated steel
sheets, and hot-rolled coils. According to economic experts, the financial
situation of Chinese steel enterprises in recent years is on the verge of strong
development. The price of billet and construction steel in China is even higher
than in the Vietnamese market, thanks to the policy of stimulating consumption
and tightening supply. Therefore, whether Vietnam's steel industry is able to
cope with Chinese steel or not depends on the development investment policies
of enterprises to increase competitiveness.
Competitor Success Results:

Domestic competitors:

 Hoa Sen Group (HSG):

Hoa Sen is a direct competitor to Hoa Phat in the galvanized steel segment,
especially the export market.

 Hung Nghiep Formosa Ha Tinh Iron and Steel Co., Ltd. (FHS):

It is the largest manufacturer of hot-rolled steel coils (HRC) in Vietnam

with a current output of 5 million tons/year.

FHS is leading the domestic HRC market and is Hoa Phat's main
competitor in this segment.

Foreign competitors:

 China Steel Enterprise:

Chinese steel is cheaper than Hoa Phat steel due to a number of factors
such as lower input material prices, support policies of the Chinese
government.

The amount of steel imported from China into Vietnam has continuously
increased in recent years, putting competitive pressure on Hoa Phat.

Conclude:
 Both domestic competitors, Hoa Sen and Formosa, have their own
strengths and are formidable competitors of Hoa Phat.

Chinese steel enterprises are Hoa Phat's main competitors in the

international market with the advantage of low prices.

To maintain its leading position, Hoa Phat needs to continue to improve

operational efficiency, reduce production costs, and at the same time promote
export activities and diversify markets.

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%E1%BB%A7-HPG-docx

3.2 Competitors in various industries:

In addition to the steel industry, Hoa Phat also does business in a number of
other fields such as agriculture, real estate, electronics, and furniture.

3.2.1. Agriculture:

 Pig farming:

BIM Group: The largest private enterprise in Vietnam in the field of pig
breeding, with a herd size of more than 1 million pigs.

Mavin Group: Vietnam's leading enterprise in the field of animal feed

production and pig breeding, with pork export output reaching more than
100,000 tons/year.

Thaco Group: A multi-industry corporation, with a pig breeding segment

with a herd size of more than 500,000 pigs.

 Rubber planting:
 Vietnam Rubber Company Limited (VRG): The largest state-owned
enterprise in Vietnam in the field of rubber planting and processing, with an
export rubber output of more than 1 million tons/year.

Tay Ninh Rubber Joint Stock Company (TNR): An enterprise listed on the
Ho Chi Minh City Stock Exchange. Ho Chi Minh City, with a rubber area of
more than 30,000 hectares.

Dak Lak Rubber Joint Stock Company (DPR): An enterprise listed on the
Ho Chi Minh City Stock Exchange. Ho Chi Minh City, with a rubber area of
more than 20,000 hectares.

3.2.2. Real estate:

 Industrial Park:

Becamex IDC Corporation: The largest private enterprise in Vietnam in the

field of industrial park development, with a total industrial park area of more
than 10,000 hectares.

Amata Corporation: A Thai group, with many industrial parks in Vietnam,

with a total area of more than 5,000 hectares.

Deep C Corporation: A Singaporean enterprise, with many industrial parks

in Vietnam, with a total area of more than 2,000 hectares.

 Urban areas:

Novaland Group: Vietnam's leading private enterprise in the field of real

estate development, with many large urban projects in Ho Chi Minh City. Ho
Chi Minh City and other provinces and cities.

Vinhomes (Vingroup): A high-end real estate brand of Vingroup, with

many urban areas and high-end housing projects in Ho Chi Minh City. Ho Chi
Minh City and Hanoi.
 Sunshine Group: A prestigious private enterprise in the field of real estate
development, with many urban areas and high-end housing projects in Ho Chi
Minh City. Ho Chi Minh City and Hanoi.

3.2.3. Household electrical appliances:

 Refrigerator:

Samsung: Korean brand, accounting for the largest market share in the
Vietnamese refrigerator market.

LG: A Korean brand, is a direct competitor of Samsung in the Vietnamese

refrigerator market.

Aqua: The Vietnamese brand of Hoa Phat Group, is gradually asserting its
position in the Vietnamese refrigerator market.

 Washer:

Samsung: Korean brand, accounting for the largest market share of

Vietnam's washing machine market.

LG: A Korean brand, is a direct competitor of Samsung in the Vietnamese

washing machine market.

Electrolux: Swedish brand, has a significant market share in the

Vietnamese washing machine market.

 Air Conditioning:

Daikin: A Japanese brand, accounting for the largest market share in

Vietnam's air conditioning market.

Panasonic: A Japanese brand, is a direct competitor of Daikin in the

Vietnamese air conditioning market.
 LG: A Korean brand, with a significant market share in the Vietnamese air
conditioner market.

3.2.4. Interior:

 Office Furniture:

The Office Plus: Vietnam's leading private enterprise in the field of

providing office furniture, with a variety of diverse and high-quality designs.

Fivestar: Vietnam's prestigious office furniture brand, with competitive

prices.

Hoa Phat Furniture: The furniture brand of Hoa Phat Group, is gradually
asserting its position in the Vietnamese office furniture market.

 Residential furniture:

Mobel Green: Vietnam's leading private enterprise in the field of residential

furniture manufacturing, with many beautiful and high-quality designs.

=>Reference solutions and successful results from competitors in the same

industry and from different industries can provide Hoa Sing Group with
strategic orientations and business strategies to compete and thrive in fast steel
and related industries. Based on these strategies, businesses can effectively
compete with industry competitors and seize opportunities beyond traditional
markets, driving growth and long-term success.

4. Propose specific recommendations or solutions for businesses to

improve management quality
4.1 General solution recommendations
4.1.1. Improve the management system:
Continue to apply advanced management models, in line with the actual
operation of the Group, such as ISO 9001, ISO 14001, etc.
 Improve the operational efficiency of the existing management system,
regularly review, evaluate and adjust to ensure that it is suitable for the
development needs of the Group.
Apply information technology solutions to management, such as enterprise
management software (ERP), customer relationship management (CRM)
systems, etc., to improve efficiency and transparency in management.

4.1.2. Improving the quality of human resources:

Develop an effective strategy to attract, recruit and develop human
resources, ensuring to meet the needs of the Group in terms of quantity, quality
and structure.
Strengthen training and fostering for employees in professional,
professional and management skills, especially training in corporate culture and
business ethics.
Apply reasonable remuneration policies, create a professional and friendly
working environment to attract and retain talents.

4.1.3. Strengthening financial management:

Improve the financial management system, ensure transparency, efficiency
and strict compliance with the provisions of law.
Strengthen expenditure control, save costs, and effectively use capital.
Apply effective financial risk management solutions to minimize risks in
business activities.

4.1.4. Improve the quality of products and services:

To apply international standards on product and service quality
management.
Regularly research and develop new products, improve the quality of
existing products to meet market demand.
Improve the quality of customer service, ensure customer satisfaction with
the Group's products and services.
 4.1.5. Strengthen communication and brand promotion:
Building and developing Hoa Phat brand strongly, building the Group's
prestige and position in the domestic and international markets.
Strengthen communication activities, promote the Group's brands, products
and services to potential customers.
Participate in social activities, protect the environment to improve the
Group's image in the community.

Specific solutions in each field:

Steel Sector:
Increase investment in advanced production technology to improve product
quality and minimize production costs.
Expand export markets, diversify products to minimize risks dependent on
the domestic market.
Improve the quality of customer service, especially after-sales service.
Real estate sector:

To develop high-quality real estate projects to meet market demand.

Apply flexible sales policies, creating favorable conditions for customers to
buy houses.
Improve the quality of management and operation services of real estate
projects.
Agriculture sector:
To apply science and technology to agricultural production to improve
productivity and product quality.
Developing sustainable and friendly agricultural production models

4.2 Deming PDCA Methodology

The Deming PDCA method, also known as the Deming Cycle or Shewhart
cycle, is a continuous improvement process used to plan, implement, research,
and act on changes to improve a product, service, or process. It's a cyclical
approach that emphasizes continuous learning and improvement.

4.2.1. Plan:

 Define your goals:

Hoa Phat Group aims to become the leading steel manufacturer in

Southeast Asia and compete in the international market.

Specifically, Hoa Phat wants to increase steel production to 20 million

tons/year by 2030, expand export markets to new countries, and improve
product quality to meet international standards.

 Analysis of the problem and root causes:

Some of the problems that Hoa Phat is facing include:

Production capacity is still limited compared to major steel producers in the

world.

The product cost is high due to the cost of input materials and
transportation costs.

Product quality is uneven.

The domestic market is highly competitive.

Risks from fluctuations in raw material prices and trade policies.

After analyzing the problems, Hoa Phat needs to identify the root cause of
each problem so that it can come up with appropriate solutions.

 Action Planning:
 Based on the goals and problem analysis, Hoa Phat needs to make a
specific action plan to achieve the goal.

Action plans need to be feasible, measurable, achievable, relevant, and

time-bound (SMART).

4.2.2. Implementation (Do):

 Implement the action plan:

After making an action plan, Hoa Phat needs to implement the plan
effectively.

The Group needs to assign responsibilities to each individual and

department involved.

It is necessary to closely monitor the implementation process and adjust the

plan if necessary.

 Data and Information Collection:

In the process of implementing the plan, Hoa Phat needs to collect data and
information to evaluate the effectiveness of the plan.

Data and information need to be collected accurately and completely.

4.2.3. Check:

 Data and Information Analysis:

After collecting data and information, Hoa Phat needs to analyze the data to
evaluate the effectiveness of the plan.

Data analysis needs to be done in a scientific and objective way.

 Compare actual results with goals:

 Compare actual results with set goals to determine the level of success of
the plan.

Identify the success and failure points of the plan.

4.2.4 . Act:

 Apply improvement measures:

Based on the inspection results, Hoa Phat needs to apply improvement

measures to improve the efficiency of the plan.

Remedial measures need to be aligned with the root cause of the problem.

 Update the action plan if necessary:

If the plan does not achieve the target, Hoa Phat needs to update the action
plan to be more suitable.

Updating the plan should be done carefully and thoughtfully.

 Repeat the PDCA process:

The PDCA process needs to be repeated continuously for continuous

improvement of processes, products, and services.

It is necessary to apply the PDCA method consistently and persistently to

achieve the highest efficiency.

III.CONCLUSION

Things that need to be changed and improved in Hoa Phat's quality

management
Enterprises always continue to improve and build quality management
processes in accordance with the orientation, actual social conditions and
conditions of the enterprise. It is necessary to apply creativity and flexibility in
the management of human resources, production processes and product quality,
especially the customer care process. Hoa Phat needs to focus on and widely
and fully disseminate the content of quality management to all resources:
managers, deputy directors, chief accountants, unit heads, cashiers, etc. The
company will receive feedback from actual employees about the work process,
thereby providing new solutions and improvements to the quality management
process. Hoa Phat needs to pay attention and respect employees' opinions on
quality management to promptly make appropriate adjustments to help the
company carry out working stages quickly and smoothly. To avoid errors in the
process of applying and implementing the quality management process (QTM),
the group regularly has periodic and unexpected inspections. In order for the
inspection process to bring the best results, the corporation should establish
inspection groups and quality groups to regularly evaluate and monitor. The
Group should implement policies to encourage employees and human
resources to report errors in process management and operation to help
businesses promptly prevent them.

The business strategies that Hoa Phat has been using are quite clear and
highly effective, helping the company build a strong brand and stand firmly in
the domestic and foreign markets. From Hoa Phat's successes, it shows that the
company has built and developed, choosing strategies suitable to the company's
goals and stages of development. However, the constant fluctuations in the
external environment, especially the fluctuations due to the Covid 19 epidemic,
have significantly affected the production and business situation of enterprises,
and at the same time, there still exist weaknesses within the company.
companies such as human resources, supply chain management, ... Hoa Phat
needs to be more careful in building strategies suitable for the next stage of the
company.Through studying the activities of Hoa Phat Group's strategies, the
group has established and proposed four suitable strategies for the period 2022-
2026: Integrated diversification strategy; Joint venture strategy; Concentration-
interception strategy; Product development strategy. In particular, the
Integrated Diversification Strategy is the most highly recommended strategy
for businesses. However, excessive diversification can cause Hoa Phat to stray
from its core values and shift its industry focus, so businesses need to have a
senior management team capable of planning, organizing, encouraging,
effective authorization and control.