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Table of Content

1. The Organization......................................................................................................................1

2. Process & functions at Kinh Do company (KDC).......................................................................2

2.1. Explain the term “process”, “function”.................................................................................2

2.2. Explain processes & functions at KDC (sales, marketing, R&D, logistic, etc). Analyze

functions of each department.......................................................................................................2

2.2.1. Functions in Kinh Do Corporation.................................................................................2

2.2.2. The processes in Kinh Do Corporation..........................................................................5

3. Inter-relationship of processes & functions..............................................................................6

4. Methodology in mapping process............................................................................................7

5. Quality gateways & process outputs........................................................................................9

5.1. Requirement specification of products and services through Q&A function...................9

5.2. Diagram for the process of quality management............................................................10

6. Plans to achieve goals & objectives for the strategy of enhancing KDC’s manufacturing

capacity..........................................................................................................................................10

7. Designing objectives (you may combine together). Write objectives which are specific,

measurable, achievable, realistic and time-based to align people and other resources in an

effective and efficient way.............................................................................................................10

7.1. Design objectives through SMART goals......................................................................10

7.2. Planning to implement this strategy (*)...........................................................................11

SCENARIO

1. The Organization

Kinh Do Corporation is a business group of Vietnam with an emphasis on distribution of

imported branded snack and candy goods, and food production including baked goods,

confections, snacks and soft drinks. The Kinh Do story stars with a small family business in

1993, with a single snack product which has since grown to include 300 products under 30

brands; creating one of the most well-know and dynamic companies in Vietnam. Kinh Do’s

market leading position is a result of their strong local presence, significant distribution reach,

innovative product strategy, and high quality products. Main office of the company is located in

Ho Chi Minh City.

In 2010, Kinh Do focused more on both internal processes and business activities to be

effective and efficient. Kinh Do restructured to build a professional distribution system capable

of reaching broad regions in the country with high efficiency, enabling robust growth for the

company. Kinh Do’s corporate strategy focuses on mergers and acquisitions, efficient business

processes and well-connected distribution system. To date, Kinh Do’s distribution system has

been very convincing in its transformation, incorporating 200 best distributors, servicing 120,000

retail outlets, 30,000 ice-cream and dairy products retailers, and 30 Kinh Do Bakery stores across

the country. With 1,300-strong sales force, KinhDo is ranked among top companies which have

best distribution system in Vietnam.

As a manufacturing company, Kinh Do’s functional departments include sales,

marketing, R&D, logistics, purchasing, production, finance and accounting, HR and IT. Kinh

Do’s organization structure is exhibited below. The company’s manufacturing plants are located

in Ho Chi Minh City, Hung Yen and Binh Duong Provinces. As a large organization, effective

cooperation among functional departments is a crucial factor in successful business operations of

the group. Moreover, almost all business processes require associated tasks and activities taken

across various departments and SBUs as well as some external stakeholders.

As the company grows, process standardization will be among the primary focuses of the

functional departments in its building of the foundation upon which to accelerate growth.

Standardizing processes and work flows help the company to scale up faster in the post

M&A and expansion scenarios.

Strategic management activities and processes are carried out at the highest management

levels in head office. These include implementation and evaluation of cross-functional decisions

that coordinating activities, setting product strategies, identifying new investments, mergers and

acquisitions, expanding distribution network, and establishing joint-ventures.

In order to achieve its corporate objectives, Kinh Do managers must ensure that these

functional activities and processes in this large and complex organization area carried out

effectively and efficiently with high quality standards. Management must make sure that

objectives of every functional area must be aligned with those of the organization. Quality

management is practiced throughout the organization from strategic to operational level.

Kinh Do annual report is provided to you for your information and reference.

2. Process & functions at Kinh Do company (KDC)

2.1. Explain the term “process”, “function”

A process is defined as the instance of a program running in a computer. It is close in meaning

to task , a term used in some operating systems (Business Dictionary)

According the definition of Business Dictionary, an action performed by a device, department,

or person that produces a result. Function remains more or less fixed whereas the purpose (which

indicates intention or objective) generally changes. For example, the function of a hammer is

to strike something nearby whereas its purpose (what to strike and why) could be anything the

hammer-wielder has in mind.

2.2. Explain processes & functions at KDC (sales, marketing, R&D, logistic, etc). Analyze

functions of each department.

2.2.1. Functions in Kinh Do Corporation

2.2.1.1. The operation of input supply

Merchandising operation

All kinds of materials which have been used for manufacturing process in Kinh Do

Corporation have been handled by the department of Material Supply. This department includes

one Supply Director and three vice directors who are in charge of three kinds of materials

including package, materials and all other input materials from local suppliers as well as foreign

suppliers. These people need to make sure the materials they bought with the best price and

quality in the stable amount. Moreover, this department usually needs to look for the new supply

source, new supplier and cooperate effectively with other departments such as manufacturing

planning and stock department to implement their merchandising process.

Inventory management department

The operation of this department has been calculated on the basis of optimal inventory

and always implement the inventory of some materials which the organization will use the large

amount or with unstable price in the market. In every month, stock management department and

the manufacturing department has cooperated with accounting department to check the stock

room.

2.2.1.2. Operation phase

The department of equipment operation: This department need to have the knowledge of

operating some modern kinds of equipment in Kinh Do Corporation

R&D department

KDC focused on the R&D activities for new products and consider this duty not to

belong to R&D department but also belong to the Management Team and the Board of Directors.

This department has implemented many kinds of R&D activities

- Research to manufacture new products, from the phase of materials supplement to

manufacturing, packaging and quality management.

- Research some solutions for upgrading current products on the basic of quality and

packaging

- Research the manufacturing issues in the new equipment system which KInh Do

Corporation has just invested and planned to invest.

- Research the use of new materials in the manufacturing process

- Research the manufacturing process of export products to meet the requirements of

foreign customers under the quality standards.

Manufacturing department: This is in charge of manufacturing products to satisfy

customer demand

Quality Management department: This department will be in charge of quality

management in the products KDC supplies to the market under some standards such as Quality

Safety fro material phase to sales department strictly.

Distribution phase

Marketing and Sales department: This department is responsible for making sure the

increase of sales capacity, the increase of revenue and marketing in KDC and building the trust

from customers and increasing the profit rate to KDC

R&D department: This department is much different from R&D department in the

Operation phase. The responsibilities of this department are to implement the survey of customer

feedback with the purpose of improving the quality and developing the new products or to

collect surveyed information through outside consultants. Moreover, this department also

handles some survey about the efficiency of marketing and sales program.

PR and marketing department: This department will be in charge of marketing and PR

program with the goal of making sure the efficiency of their program as well as keep the cost at

the reasonable level not to increase the product price. Some PR and marketing or promotion

programs which KDC has implemented are promotion program in Tet holiday, market fair

participation as well as volunteer program.

2.2.1.3. Supportive phase

HR department: This department will handle some operation activities such as

recruitment, the policy of talent attractiveness, training, reward program

Finance and Accounting department: This department includes accounting team

including finance accounting, financial report; financial team including cash management, credit

management which are responsible for raising capital for manufacturing process, stock

department which is in charge of managing, following stock investment in KDC and handle

stock investment for each portfolio.

2.2.2. The processes in Kinh Do Corporation

There are three main phases such as Input Supply, Operation phase and Distribution

phase. There is one supportive phase including Financial and accounting department

Inventory

management

department

Merchandising

department

Manufacturing department

R&D department Quality Management department

Marketing and Sales department

R&D department

HR department Finance and Accounting department

Input

Supply

Operation

Phase

Distribution

Phase

Supportive

Phase

3. Inter-relationship of processes & functionsAs you can see in the process of KDC operation, there are three phases to provide

products to customers such as Input Supply; Operation phase and Distribution phase. In the Input

Supply, there are two department working and supporting together such as Merchandising and

Inventory Management. The next phase is Operation phase including Manufacturing department

with some supportive functions such as R&D department and Quality Management department.

And Distribution phase has been considered the final phase including the main department which

is Marketing and Sales department, R&D department. Besides three main department mentioned,

there is the supportive phase which hasn’t involved in the process of creating and delivering

products, but important such as HR department which focuses on finding suitable people for

operation of each department and Financial and accounting department which handle financial

activities.