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D. CONCLUSION ............................................................................................ 17
E. REFERENCES ............................................................................................. 18
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Operations Management Report
Operations Management
Report
EAST ASIA CO., LTD TRIP
I. BACKGROUND
East Asia Co., Ltd was established in late of 1998 and officially went into operation in the
beginning of 1999.
galvanized iron, and Zinc/Aluminum coated iron used in the industry and civil construction.
The main factory is located at Street 5, Song Than Industrial Park – Binh Duong province
East Asia Co., Ltd has developed a distribution system throughout the country and to some
other East Asian Countries… With the professional, energetic employees including over 40
graduated and post-graduated qualified engineers and technicians; the number of official
mechanic who have been trained in middle-ranking technical school, is over 150 people.
II. ACHIEVEMENT
Possessing the human resources, modern technique and a trusted service, East Asia Co., Ltd
is, day by day, developing and becoming one of the top leading steel companies in Vietnam.
East Asia was acknowledged by many customers both in domestic and oversea.
East Asia co., Ltd is one of 500 largest private companies in Viet Nam. The presence of the
Color Coating line marked a step of the new improvement of East Asia that meet the need
going higher and higher, and more and more various of the current market.
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Operations Management Report
Beside the strategies of investing for technology, developing manufacturing and trading,
asserting the competitive position by the quality and the cost price, East Asia has been
building an action plan to improve the brand name of East Asia through broadcasting,
marketing, participating in yearly industrial fairs and projects related to our major. Thus,
East Asia can research the market, and catch the predilection of consumers. With the
modern technologies, East Asia guarantees to supply quality products in wide range,
East Asia has provided 2 advanced continuous galvanizing lines and 1 color coating line.
The capacity of the 3 lines gains over 100,000 tons of product/year and is ISO 9001:
2000 qualified.
There are many tasks to perform managing quality such as process strategy, location
strategies, layout strategies, human resources, supply- chain management, scheduling, and
maintenance. Each strategy as we mention above will be more detail in other specific part in
this report.
In this part of the case we mention about quality in East Asia company; we just focus on
International Quality Standard. As we know, there are tow ISO 9000 and 14000, in East Asia
company, they just apply ISO 9000.
Now how we can understand what ISO 9000 is and how East Asia can apply it.
A set of quality standards developed by the international standards Organization (ISO) such
as Quality management system, Management responsibility, Resource management,
Product realization, Measurement, analysis and improvement.
It is very hard to go detail in this part, we just mention some main idea about ISO in Ton
Dong A.
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Operations Management Report
East Asia established and maintained a quality manual that includes the control of document
and control of record.
For example, in work environment part, East Asia determined and managed the work
environment needed to be achieve conformity to product requirements
For example, in purchasing part, the company ensured that purchased product conforms to
specified purchase requirements. East Asia can supply all of requirement about product
from specific customer, that’s why they become to be stronger over time.
Here all contents to answer the question how East Asia company can apply ISO 9000, but
there another way to us to understand easily by and answer some question when we look at
their operation as follow:
Effective operation
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Operations Management Report
At the end, the manger of East Asia said that their innovation is ISO14000 in the near future.
1. GENERAL
The production line is WETLUX technology. The factory has prepared to build a new
production line with NOF technology. Productivity: 5000-6000 ton/month (the ratio is 80%
Zinc plated Steel plate, 50% Color plated steel plate. Recently, the ratio is changed to 50%
plated Steel plate and 50% Color plated steel plate. And last month, the ratio of production
is that the percentage of color plated steel plate is more that one of zinc plated steel plate. )
production lines. Maybe the product of this production line becomes raw material for
2. DETAIL
A) GALVANIZED IRON
There are 8 sections in Zinc plated Steel plate production line
From production schedule, checking the specification of materials and define quantity.
Weighing the Black Sheet bundle, writing and recording the data such as: standard weight,
actual weight, suttle, specification and mode into the quality logbook of Black Sheet.
Unpacking the bag, checking inside materials. To some bundles which are not enough
equality such as : distorted, exothermic, iron-mould ….they will be carried out without
producing.
In the production process, workers often monitor the quality of Black Sheet (level of fertile,
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Operations Management Report
If the materials are enough quality to produce, they are inflow exhaust
system and hood up with the first bundle to provide continuously for
production line
Checking input
Step 3: Deoiling and Pickling: Materials
Before Steel plates was entering to plate, they had had to through the
Direct feed material
deoling and pickling section, this section has 4 parts : continuously
to 40, the temperature is 600C – 800C here with steam, then next to two
Deoiling and
Pickling
flushing chambers. Those flushing chambers is including : pump high –
pressure team system and small detergent from the cistern. It atomizes
Heating the sheet
two faces of black sheet bundle; use the crane to cleanse deoiling parts.
It continues going through the hot water flushing chamber (600C – 800C)
Plating ZINC
to reclean some dirty elements on Sheet.
After that, sheets are gone into HCl bath with 10% - 20% strength. This is Cooling
The last part is a water bath to make HCl out, and Sheets go through the Passivation surface
hot water flushing chamber again. Then they are dried by a couple of
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Operations Management Report
The air duct system and booster perform this process. But after
cooling sheets with air duct system, the temperature of sheets still
not quality enough, are taken out and recorded in the document.
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Operations Management Report
Chemical coater dry Grainy coater machine Finish coater machine Cool
Color plated steel plate product process divided into 4 areas by its function
Raw sheets feed consecutive into manufacturing process, choose good material to
Black sheet bundle or zinc plated sheet plate which was be warm up and checked
carefully, will be choose to be material for Color plated steel plate product.
Material feed into input area by a couple of rubber crane and carry on carriage
To prepare for feeding raw sheets tin into manufacturing , material bring in drum to
After bringing in drum to decompress raw sheets, hydraulic system decompress tang
, brace the core of raw sheets and move them into the center of route. Some devices
is such as junctors, sheets reserves place by Korea technology to ensure route will be
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Operations Management Report
Cleanse area includes one clear oil bath with an injection blow
Korea) to clean oil and dust which adhere on tin interface ( Notes:
if tin material still have oil or dust on its surface, so coat will be Cleanse area
appear easy….) oil in the clear oil bath will be recycle and check
carefully before exhaust outside. After clear oil bath are 2 hot and
chemical drains from clear oil bath and squeeze tin conveyor
Coating, baking and cooling area or center area are some main
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machines
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Operations Management Report
engine, infinitely variable control and modern load cell system. Lacquer film cover
uniformly on whole surface, help tin increase color fastness from severe weather
condition in our country and protect from Corrosion, commit to coastal area and
industry zone…
h. After coating the last lacquer film, sheets will bring in the baking process by using
baking ovens in order to the lacquer cell stick together and produce a strong
adhesive lacquer. High temperature baking oven system use LPG fuel with the burner
from German, Italia, help to avoid produce exhaust fume into natural. Heating
system from German, Italia burned almost fuel in order to avoid produce carbon
black.
i. After baking, sheets will be cooled by high capacity air-blast system and water spray
system.
j. After exit from the last water spray system, sheets cooled by high-pressure fan
a) Main function test product quality, divide raw sheets into parts like customer's order
form.
b) After sheets type exit from center area, it is driven by AC vector motor into looper in
order to the central part run stably and consecutively in scroll product process.
c) After testing by eye on both 2 surface, sheets is printed meter number and logo like
d) After testing enough meter quantity sheets is cut, carry on carriage, packaged and
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V. LOCATION
POSITION
East Asia Co., Ltd was established in late of 1998 and officially went into operation in the
beginning of 1999. The main factory is located at Street 5, Song Than Industrial Park – Binh
Duong province with an area of over 30,000m2 that is one of the biggest industrial Zone in
Vietnam.
Lying in the heart of the Southern key economic zone (i.e, Ho Chi Minh City, Binh Duong,
Dong Nai, Ba Ria – Vung Tau, Tay Ninh, Long An, and Binh Phuoc) Situated near the main
route of the National Highway No. 13 with a system of the complete infrastructure
connected to the significantly principal routes of the national highway and the nationwide
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Cheaper
Training
Quantity
- Costs
community, quality-of-life
Political of Song Than Industrial Zone: Three supports free of cost to the investors
o Investment licence
o Making stamp
- Proximity to Competitors
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o Although this location have a lot of competitor such as Hoa Sen Group but
Today, the East Asia used product-oriented layout for production because characteristics of
each products. Factory has six departments in which have two Galvanized Iron worksation
and one Pre-painted Galvanized Iron workstation. Next year, Factory will have more one
2. Supply material
6. Inventory
Product-oriented layout had been used because factory makes focus only two kinds of
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Product-oriented Layout
Advantages Disadvantages
•Low variable cost per unit Higher capital investment
•Low material handling costs •Special equipment
•Reduced work-in-process inventories •Any work stoppage stops whole
•Easier training and supervision process
•Rapid throughput •Lack of flexibility
•Volume
•Product
The product manager said that factory faced with area problem and they can’t expand area
of factory. Supply material area and inventory is often in minimizing stable that mean
company expense more money. Area problem is also reason that the distance between
departments is still so far and movement components still not convenient. For instance in
Although factory has many difficult but East Asia intend to make innovation of layout
The Human Resource strategy of East Asia based on the Annual Strategy of the company –
when the company defines its main strategy for the year – they will define the number they
want to have in their human resource based on all of the related sides: Marketing,
productivity …. After that, a process is opened up, they will search to the application pool in
some public places like job fair, the job centre…, then they will get the application, after
screening the application, the second round is the interview round. The interview round will
also be the last round of the selection process of East Asia. All of their process about Human
Resource, not only selection, but also others like training, incentive program … followed the
government process.
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For training, they have 2 levels, the first one for low-level employees; mainly they will do
training on the job, and the former train to their new members, or their successors. This
kind of training is suitable for East Asia as the low level because it can save the cost, also
reduce the training time. Mainly the low-level employees of East Asia have low educational
level, with not high salary, and do simple processes work in the machine. With high level
employees, mainly high-level educational level, from business field or technical, East Asia
have programs for them to educate them more about knowledge and train more skills
needed. Sometimes, they send some of their technical employees to near country like
Singapore and Malaysia to learn more about the modern techniques in this country.
East Asia follow the Employment-stability process, that keep their employees constant with
time, and expand their employees by around 10-20% per year. Their Standard work
schedule is 3 periods (8 hours per one period) per day (24 hours per 24 hours), with this
working time, they can produce with all of natural providing time and take advantage of the
running of machine to keep the work all the time. The working rules of East Asia are clarify
and put in the information board of each machine – then the employees can follow their
period and do needed things with respect the rules to make the process run well time by
The work in East Asia, as watched, can be clarified to 2 types, high-level and low-level. In
Low level, they do the work with very high specialization – the low-level employees work in
process together with the machine, their works require very accurately and somehow
simple, that why their employees don’t need to have average education level. With high
level, they work as administrative works and high level techniques and business, still with
specialization but more autonomy than low-level, their education and training are also
better.
The psychology components of job design for low-level employees are rather clear. Skills
variety is not so much because the job is specialization. The job identify is clear, also
trained carefully on the job. Job significance is also clear, each employee has his
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responsible, and stated clearly in the information board, working rules, and process
identification. Job autonomy and feedback on the job is not much, due to the job
characteristics.
Motivation system of East Asia is based on productivity and some gain sharing and profit
sharing of the company. The ergonomics and work method in East Asia is also rather good.
Their process is semi-autonomic, the employees just special in their works beside the
machine. Work environment in East Asia is somehow rather good, with wide and high
factory. But the noise in the machine is so high, very head-ache sound. The dust from the
machine is not so much due to the good technology of East Asia, it’s a plus signal for work
environment.
Inventory is a very important part of any company and so does East Asia Company. It helps
the company flexible to keep pace with customers’ needs and perform production process
effectively. In this part, East Asia Company’s inventory is discovered in main terms below.
The method used to compute the inventory level that the company apply is base on
production volume, sale volume and inventory capacity. After all factors are balanced, the
backward calculation is done to find out the amount to keep in inventory.
The goals are to minimize the cost and satisfy the demand such as reduce holding cost – the
cost of carrying inventory over time. The company tries to get stock safety and avoid stock
outs. The company invests a lot in equipment and management tools. The setup cost is
high. Once a year, each chain of production equipment is repaired and maintained for one
month according to ISO 9001-2000 quality management standard.
Record and cycle account: Each roll of material or product is verified carefully and pasted a
certification sheet of characteristics and codes to manage. The manager goes around
checking and recording them. Management the inventory is done by software. The company
has invested in Lac Viet software company 300 million vnđ for operation management
software.
Reorder: the company order in two sources: domestic suppliers (30% raw material demand)
and foreign suppliers (70% raw material demand). Domestic company is Phu My steel
company. This company uses Italian technology, so that their products have high quality,
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short lead time but low quantity outputs. And the price is published daily. The commercial
department has authority and responsibility to make decision on order (which companies
are suppliers for each period for reorder point and order detail)
At the present time, East Asian doesn’t have MRP or ERP computer system. In short term,
East Asia will use MRP software of Lac Viet Co., Ltd for management system
X. SHORT-TERM SCHEDULING
In East Asia Company, scheduling also play an important role like that. For the fixed
scheduling with auto-machines, scheduling is assigned correspondingly from each worker
group to each task with a specific machine in continuous production. Basing on the demand
or requirement form the market, the manger can give out the requirement of output for
each period, so that, for each period the scheduling should be changed, and worker is
ranged in the most suitable position of time and task. It is very effective because it does not
make worker bored, they are more willing to work in different tasks and different time.
XI. FORECASTING
marketing will forecast the future plan on October and November for the next year.
As the development of the company, East Asia co., Ltd will invest on new equipment,
maintenance-process … with high quality, and update the management program
continuously
D. CONCLUSION
East Asia co., Ltd is one of the 500 largest private companies in Viet Nam, qualified as ISO
The current volume of products has not met the large demand for steel in Viet Nam. So, with
the proud of customer satisfaction about its high quality products, East Asia Co., Ltd will
enlarge production as well as the size of company more and more in the future.
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E. REFERENCES
East Asia Co., Ltd homepage. Retrieved June 23, 2008 from
http://www.tondonga.com/index.php?navi=home
ISO 9000 family of standards for quality management systems. Retrieved June 20,
2008 from http://en.wikipedia.org/wiki/ISO_9001
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