INTRODUCTION

In the context of businesses competing on a global scale with powerful

multinational competitors with superior scale and technology, product
quality is becoming a key factor in creating a competitive position for
businesses. Customers are increasingly demanding higher product
quality. Not only that, but the view of product quality has changed
from "product without defects" to "product that fully meets all needs".
That view, along with the increasing differentiation in each customer
segment, makes the market increasingly diverse and demanding. Most
businesses with a long-standing foundation and high management
level often pay great attention to the quality management process. That
is what gives them top-notch products, which makes customers lean
towards them in choosing products, creating a significant competitive
advantage in the market. And the enterprise that we chose to analyze is
TH True Milk Company - TH True Milk is the full name of TH Milk
Food Joint Stock Company.
1. THEORETICAL BASIS
1.1 TQM method
The TQM method originates from the ideas and lectures of Dr. W.Edwards Deming
and Joseph Juran (USA). These two professors are considered the people who built the
foundation for the revolution in the field of quality management. The theoretical basis
of this method is "preventing the appearance of defects and quality problems from the
beginning". Use statistical techniques and management to check and monitor factors
affecting the appearance of defects right in the production system: from research,
design, supply and Other services related to the process of forming quality.
Applying TQM not only improves product quality, but can also improve the operating
efficiency of the entire system thanks to the principle: "Always do things right from
the beginning". TQM is not a separate science or a theory solely about product quality
control, but rather a strategic approach that provides attention to quality in an
integrated, comprehensive way through improvement. Improving the quality of work
of each department and individual in the organization (enterprise), satisfying the needs
of customers inside and outside the enterprise in the most economic and effective way.
According to ISO 8042: "Total quality management (Total quality management -
TQM) is a way of managing an organization that focuses on quality, relies on the
participation of all its members, and promises to achieve long-term success, customer
satisfaction, and benefits to the organization's members and to society.
TQM is considered one of the important tools to help manufacturers overcome
technical barriers in world trade - TBT. Applying TQM is one of the necessary
regional and world conditions, an inevitable need in the process of integrating into the
economy. Currently, many organizations, after being certified with ISO 9000, have
researched Apply TQM to quality management, to improve work efficiency and
customer satisfaction (Cadivi, Vinamilk, The company has shown encouraging results
from Binh Hoa, Matsushita, Sony...), step After the first National Quality Conference
in August 1995, the TQM movement in Vietnam began to take off. The State has
announced the annual Quality Award to encourage management activities and quality
improvement. The basis for evaluating this award is mainly based on the requirements
of a quality system according to the TQM model.
1.2 Constituent elements of TQM

4. Quality control tools

This section presents some statistical tools that are commonly applied in businesses
today. These tools are used to collect, identify, classify, and synthesize data for
analysis to solve a certain quality problem.
4.1. Check Sheet
A Check Sheet is a form designed to record collected data about the results of
repetitive activities or processes. From the data in the inspection sheet, businesses can
know the movement trends of defective elements or the causes of problems, as a basis
for analyzing and identifying defects, and at the same time help for drawing
appropriate diagrams.
4.2. Flowchart
Flowchart, also known as process chart, indicates the actions of a work process
arranged in a logical progression and shown in diagram form. The tasks are illustrated
by icons in a simple and clear manner. Through flow charts, relevant people can
identify the work to be done more easily than reading a descriptive paragraph.
Creating and using flow charts helps control the process close to the production and
operation process. Specifically, flow charts help participants clearly understand the
process and master the work; Identify work that needs modification or improvement;
determine each person's position in the process; help with training and education;
contribute to improving quality. When describing a process, it is not necessary to use
all of these symbols. Depending on each specific process, we choose the symbol to
use.
4.3. Cause – effect chart
Cause-effect chart also known as fishbone diagram, was first used by Kaoru Ishikawa
in the 1950s in Japan (so this diagram is also called Ishikawa diagram). Often a
problem or a result will be caused by many different causes.

4.4. Pareto chart

Pareto chart– Italian economists were the first to introduce the Pareto principle applied
in economics. The Pareto principle is based on the « 80-20 » rule, that is, 80% of the
problems (controlled by 20% of the main causes.
The Pareto chart reflects the causes of problems arranged according to the ratio and
level of influence of the causes on the problem, thereby helping us make decisions to
fix the problem quickly. effectively, because we know what the main and most
important causes are to focus resources on solving.
4.5. Scatter chart
Scatter diagram, also known as a correlation chart, is a chart that represents the
relationship between two quantities in the correlation between their series of values.
When quantity X has a changing value, the chart shows the corresponding change in
quantity Y.

CHAPTER 2: PRODUCTION QUALITY MANAGEMENT AT TH TRUE MILK DAIRY FOOD

JOINT STOCK COMPANY

CHAPTER 2: BUILDING A QUALITY MANAGEMENT SYSTEM FOR

TRUE MILK DAIRY PRODUCTS
1. Overview of TH Group

1.1. Enterprise introduction

History begin:

TH True MILK - full name is TH Dairy Food Joint Stock Company, international transaction
name is TH Joint Stock Company, is a company of TH group established in 2009 in Nghe
An.

The business was established based on financial advice from Bac A Joint Stock Commercial
Bank. Started business in 2010. TH True Milk always aims to produce clean, fresh milk
products to consumers.

From that starting point, TH Group is gradually developing to become becoming a leading
manufacturer in Vietnam providing clean food products originating from nature, including
fresh milk, clean fruits and vegetables,...international quantity.

With serious and long-term investment combined with the most modern technology world,
determined to become a world-class food brand trusted by everyone, loved by everyone and
proud of the nation. With the spirit of being close to nature, TH Group always tries its best to
nurture Vietnamese body and soul by providing food products originating from nature -
clean, safe, fresh, delicious and nutritious.

The birth and spectacular development of the clean fresh milk brand TH True Milk from the
end of 2010 until now has created a phenomenon in the Vietnamese dairy industry. The
secret of this brand is "The True Story of TH".

The organizational structure of the company:

● Head office: Nghi Son commune, Nghia Dan district, Nghe An province

● Product: Milk & food processing

· Website: : https://www.thmilk.vn/

Vision and Mission

 - Vision: TH Group wishes to become Vietnam's leading manufacturer in the clean
food industry originating from nature. With serious and long-term investment
combined with the world's most modern technology, we are determined to become a
world-class food brand that every home trusts, everyone loves and the nation is
proud of.
- Mission: With the spirit of being close to nature, TH Group always tries its best to
nurture Vietnamese body and soul by providing food products derived from nature -
clean, safe, and nutritious. fresh and nutritious.

2.1. Enterprise quality policy

Our company always complies and controls the quality management system according to
international and stable standards to create domestic and international competitive
advantages. TH- Truemilk always proposes innovative and improved solutions to create
quality products with the desire to "Always bring quality and safe products to Vietnamese
and international consumers".

2.2. Enterprise quality goals

TH- Truemilk always applies the quality assurance system - the group's own system for each
product. Always comply with the provisions of the set of standards and apply the quality
management system. Besides, detect defects in products and propose solutions to improve
production activities.

2.3. Enterprise quality plan

For Input: All raw materials, materials, and raw materials must be sampled and tested at a
rate of 100% before being warehoused and exported to the manufacturing plant.

For Process: All stages in the operating and production process must be checked every 30
minutes.

Output: All products must be inspected every 30 minutes after production.

All measuring equipment of production activities will be periodically inspected once a

quarter.

For machinery and equipment carried out in production and business: Must be inspected
twice a day before production and after production.

During the inspection process, if defects are detected, the company will take corrective and
preventive actions

2.4. Quality control activities

Công ty chúng tôi thực hiện hoạt động kiểm soát chất lượng theo kế hoạch chất lượng đã
đề ra và tuân thủ nghiêm túc bộ tiêu chuẩn của doanh nghiệp.

2.5. Quality assurance activities

When conducting quality control activities throughout the company, if defects are detected,
our company will take corrective and preventive actions to eliminate the defects, helping the
product achieve stable quality. , while applying quality tools to help activities easily achieve
set standards.

Introducing quality assurance system standards

General quality system standards are the most widely applied currently in Vietnam as
well as in the world is the ISO 9000 standard system.
In addition, businesses in Vietnam are also applying ISO standards 14000, HACCP,
SA 8000, GMP, QS 9000... Quality system standards will be briefly introduced in this
section.
ISO 9000 quality management system standard
The ISO standards system first appeared in 1979 in the form of the British Standard
System (BS 5750) introduced by the British Standards Institute. Then BS 5750 was
reissued by the International Organization for Standardization (ISO) with some minor
adjustments and was called ISO 9000. Since 1987, ISO 9000 has been applied in
many countries in the world.
The ISO 9000 international standards series, 1987 version (abbreviated as ISO
9000:1987) is a standard system to ensure the quality of an organization and business.
The quality of a business's management is the foundation for forming the quality of
products and services provided by the business. This is a viewpoint agreed and applied
by many countries.
In 1994, the ISO organization released the ISO 9000:1994 set of standards, divided
into three separate models:
· Model 1 (ISO 9001) applies to organizations involved in design,
development, production, installation and service. This International
Standard is particularly relevant if there is a design activity involved in the
provision of products and services.
· Model 2 (ISO 9002) is applicable to businesses involved in manufacturing,
installation and services, but in these businesses there are no design
activities.
· Model 3 (ISO 9003) applies to businesses if conformity with defined
requirements can be fully verified through inspection and testing of the
finished product or service. This is the least used standard.
The third edition of ISO was released in 2000 called ISO 9000:2000 and includes
three sets of ISO 9000 standards - basics and vocabulary; ISO 9001:2000 –
requirements; ISO 9004:2000 – guidance for improvement. For the 2000 version,
businesses only apply the ISO 9001 model. In a general sense, ISO 9001:2000 is the
good implementation and strict control of an established quality management system
document. Businesses must write down what needs to be done, do what is written
down and keep records of what is done.
ISO 9001:2008, the 4th edition of the ISO standard, does not introduce new
requirements compared to the 2000 version, but only clarifies existing requirements of
ISO 9001:2000 based on application experience over the past 8 years and introduced
changes aimed at improving consistency with the ISO 14001: 2004 environmental
management system standard.
Environmental Management System Standard (ISO 14000)

ISO 14000 also originates from the British standard BS 5750, a set of standards for
Environmental Management Systems regulated by the European Union since the early
1990s. The ISO 14000 standard requires businesses to apply must meet the goal of
sustainable development based on the viewpoint of not causing adverse impacts on the
surrounding ecological environment and the business and production environment of
the enterprise.
Food safety standards (HACCP)
HACCP (Hazard Analysis and Critical Control Points) are principles used in
establishing a food safety management system. HACCP aims to control the processing
process, prevent toxic factors in food, evaluate hazards, and focus on preventive
measures instead of just testing the final product. HACCP also facilitates effective use
of resources. This standard applies to a wide range of food products and technologies,
monitoring 259 health risks, and the development of new processing processes.
HACCP can be applied in combination with ISO 9000 standards by taking advantage
of ISO implementation processes but focusing on food safety aspects.
Social Security Standards (SA 8000)
SA8000 is a system of social accountability standards to improve working conditions
for workers in businesses, farms or offices, developed by Social Accountability
International. - SAI) development and monitoring. This set of standards is applied to
ensure that businesses, especially those in the garment and footwear manufacturing
industries, fully fulfill their responsibilities to employees and the community, such as
working conditions. jobs, salary and social insurance, etc. Enterprises not only fully
implement the guiding provisions of SA 8000 but also must strictly comply with the
labor laws of the host countries
2.6. Quality system

Hardware (property, equipment, raw materials, money...)

Infrastructure

The organization shall determine, provide and maintain the infrastructure for operating
processes to achieve product and service conformity.

Customer assets
The organization must take care of customer or external supplier assets while they are under
the organization's control or used by the organization. The organization must identify, verify,
and protect assets provided by customers or external suppliers for use or to incorporate
products and services. When property belonging to customers or external suppliers is lost,
damaged or found to be unfit for use, the organization shall notify the customer or external
supplier and retain this written information about what happened.

Software (Information, technology, operating management methods, policies,

inspection and control mechanisms...)

Organizational context

The organization shall identify internal and external issues that are relevant to the
organization's purpose and strategic direction and that affect the ability to achieve the
intended outcome of the quality management system.The organization must monitor and
review information on internal and external issues.

Understand needs

Because of their significant influence or impact on the organization's ability to consistently

provide products and services that meet customer requirements and applicable applicable
statutory and regulatory requirements, the organization must identify:

a) relevant parties relevant to the quality management system;

b) requirements of interested parties relevant to the substance management system. The

organization must monitor and review information about these interested parties and their
requirements.

Determine the scope of the quality management system

The organization shall determine the limits and applicability of the quality management
system to establish the scope of the system. When determining this scope, the organization
shall consider:

The organization shall apply all requirements of this International Standard where they are
appropriate within the defined scope of the quality management system. The scope of the
organization's quality management system shall be available and maintained as
documented information. The scope shall clearly state the types of products and services
controlled, and the justification for any requirements of this standard that the organization
determines are not applicable within the scope of the quality management system
organization's. Compliance with this International Standard can only be asserted if the
requirements determined to be non-applicable do not affect the organization's ability or
responsibility to ensure conformity of products and services organization and enhance
customer satisfaction

Quality management system and processes

The organization shall develop, implement, maintain and continually improve a quality
management system, including the necessary processes and their interactions, in
accordance with the requirements of this International Standard. The organization shall
identify the processes needed in the quality management system and apply them throughout
the organization and shall:

● determine the required inputs and expected outcomes from these processes;
 ● determine the sequence and interactions of these processes;
● identify and apply the criteria and methods (including monitoring, measurement and
relevant performance indicators) necessary to ensure the effective operation and
control of these processes;
●
● determine the resources required for these processes and ensure their availability;
● assign responsibilities and authorities for these processes;
● address risks and opportunities
● evaluate these processes and make any necessary changes to ensure that they
achieve their intended results;
● improve quality management systems and processes.

The organization shall maintain as much documented information as is necessary to support

the operation of the processes and retain as much documented information as is necessary
to ensure that the processes are proceeding as planned.

Depending on the level of necessity, the organization must:

● maintain documented information to support the operation of processes;

● retain documented information to ensure that processes are being carried out as
planned.

Policy

Top management must establish, implement and maintain a quality policy that:

● is appropriate to the organization's purpose and context and supports its strategic
directions
● provide a basis for establishing quality objectives
● includes a commitment to comply with applicable requirements
● includes a commitment to continuous improvement of the quality management
system.

The quality policy must:

● available and maintained as documented information

● be communicated, understood and applied within the organization
● available to relevant stakeholders, as appropriate.

Organizational knowledge

The organization shall determine the knowledge required to operate its processes and
achieve conformity of products and services. This knowledge must be retained, and
available to the extent necessary. When it comes to changing needs and trends,
organizations must consider current knowledge and determine how to acquire or access the
necessary additional knowledge and necessary updates.

People (Is the human resource in the organization)

Leadership and commitment

Top management must demonstrate leadership and commitment to the quality management
system by:

● responsible for the effectiveness of the quality management system;

 ● ensure that the quality objectives policy is established within the quality management
system and is appropriate to the context and strategic direction of the organization;
● ensure the integration of quality management system requirements into the
organization's operational processes;
● promote the use of process approaches and risk-based thinking;
● ensure the availability of necessary resources for the quality management system;
● communicate the importance of effective quality management and of meeting quality
management system requirements;
● ensure that the quality management system achieves its intended results;
● engage, direct and support personnel who contribute to the effectiveness of the
quality management system;
● promote innovation;
● support other relevant leadership roles to demonstrate their leadership within their
responsibilities.

Power

The organization shall determine and provide the necessary resources to establish,
implement, maintain and continually improve the quality management system. The
organization shall consider:

● the capacity and limitations of existing internal resources;

● needs to be understood from external suppliers.

Personnel

The organization shall determine and provide the personnel necessary to effectively apply
the quality management system and to operate and control the system's processes.

Resources to monitor and measure

The organization shall determine and provide the resources necessary to ensure valid and
reliable results when monitoring or measurement is used to verify the conformity of products
and services to the requirements. request. The organization must ensure resources are
provided:

● appropriate for the specific type of monitoring and measurement activities to be

carried out;
● maintained to ensure continued fitness for their purpose.The organization shall retain
appropriate documented information as evidence of the fitness for purpose of its
monitoring and measurement resources.

2.7. Quality improvement activities

Our company carries out quality improvement according to the proposed quality plan. When
carry out improvement action, our company will carry out improvement according to PDCA
and improvement. This improvement is carried out step by step until optimal improvement
results are achieved.

2.8. Quality organizational apparatus

When operating the quality management system, our company operates according to an
organizational structure as follows :
2.9. Company quality costs

When operating a quality financial system, our Company operates a quality management
system the amount of cost compliance follows the following model:

2.12. Process procedures

All of our company's activities are built with specific control procedures each process is as
follows:

- Milk production process

- Preparation process of raw materials, auxiliary materials, raw materials

- Mixing process

- Filtration process

- Gas removal process

- Assimilation process

- UHT sterilization process

- Refrigeration process

- Aseptic filling process

- Finished product packaging process

2.13. File

All control activities in our company must be designed in forms and regulations procedures
and regulations during the control process and the control results will be recorded on the
form all forms after recording must be approved and stored for evidence the truth of the
activities.

All forms, processes, and regulations designed and written must be seen by leadership

review and approval before use.

CHAPTER 3: ADVANTAGES AND DIFFICULTIES IN PRODUCTION QUALITY

MANAGEMENT OF TH TRUE MILK JOINT STOCK COMPANY

1. Advantages and disadvantages in production quality management of TH True Milk

- Advantages:

l Strong financial capacity: With a large initial investment capital, TH True Milk has the
advantage of investing in technology, production lines, and ensuring the quality of both
human resources and products.

l A team of high-level management experts and highly qualified specialists, along with a
large number of workers directly involved in production activities. TH True Milk's human
resource strategy is integrated and interacts in real time, helping TH to have the best
management system in the industry, helping quality management work to operate smoothly.

l Favorable conditions for grass cultivation: Vietnam is a country with a good climate,
suitable for raising tropical dairy cows, with a diverse and rich natural environment, favorable
for grass cultivation. Therefore, the grass supply is continuous and ensures the quality of
feed for the herd.
l Owning a high-quality herd: TH True Milk's cow breeds are imported from famous dairy
farming countries in the world such as New Zealand, Australia, etc., ensuring the origin and
quality of milk.

l Advanced management system: The company applies a suitable management system for
each production stage. The herd is classified into different groups and has a nutritional diet,
each meal is mixed according to a modern formula based on Afimilk software. The drinking
water for cows is also filtered using Amiad's modern water filtration technology to meet the
purity standards.

l For the barns, the most advanced standards and specifications of livestock barns are
applied, creating the most comfortable conditions for cows with a cooling roof system to
prevent heat shock, a bathing system, fans, and drying cows before milking. In addition, the
AfiFarm herd management system is also applied, cows are tagged and their health is
monitored 24/7.

-Difficulties:

l The company's factory is still small with a small capacity, the products are not yet diverse
and rich.

l Because of buying all foreign technology and importing good breeding cows directly from
other countries, the cost for the whole system is very high.

l High production costs lead to the current price of TH's products on the market being
assessed as higher than other brands. It mainly operates and depends heavily on the
domestic market, and has not yet really established a foothold in the foreign market.

l Having to import the entire system of equipment from abroad makes it passive in terms of
spare parts.

l The modern process mainly uses machines, so it is inevitable that there will be errors,
especially when the machines have been used for a few years and the process of removing
substandard milk also uses machines as the main tool.

l The hot and humid climate and the strong winds affect the health of the herd, and the milk
and machinery are also corroded quickly.

2. Proposing measures to improve production quality management of TH True Milk

l Research and crossbreed domestic cow breeds suitable for the climate conditions to
reduce import costs (this has also been implemented by TH True Milk).

l Strengthen control of machinery and testing equipment, especially in the milking stage as
well as eliminate low-quality milk units to ensure safety for consumers.

l Promote learning and technology transfer to take the initiative in the control system.

l Have a periodic maintenance and repair plan for the production line of machinery and
equipment to ensure that the machinery and equipment are always in the best operating
condition.

l The company must also have a backup procurement plan to ensure continuous production
operation without interruption.
l Promote the milk brand to the foreign market