Vinfast TQM Midterm Report
Vinfast TQM Midterm Report
ECONOMICS
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Thanks for the great teaching skills of lecturer
Nguyen Thanh My
"First of all, my team would like to express our sincere thanks to the
University of Economics and Finance for bringing the subject of Quality
Management into the curriculum. In particular, our team would like to express our
deep gratitude to the lecturers. Subject – Mr. Nguyen Thanh My has taught and
imparted valuable knowledge to me during the past study period. a lot of useful
knowledge, and effective and serious learning spirit, this will be valuable
knowledge, a piece of luggage for the group to be able to step firmly in the future.
2
LAYOUT
I/ Introduction: .............................................................................................................................................. 4
1. Total Quality Management: .................................................................................................................. 4
1.1. What is TQM? ................................................................................................................................ 4
1.2. The importance of TQM to Vinfast: ............................................................................................... 4
2. Overall of Vinsfast: ................................................................................................................................ 4
2.1. The development history of Vinfast: ............................................................................................. 4
2.2. The vision and mission of Vinfast:.................................................................................................. 5
2.3. The core values of Vinfast: ............................................................................................................. 6
3. The theory of total quality management: ............................................................................................. 7
3.1. The basic concepts of total quality management related to the research content of Vinfast. ..... 7
3.2. State the theoretical content to form scientific hypotheses related to the issues that the
research group is researching. .............................................................................................................. 8
II/ Content: .................................................................................................................................................. 14
1. How has Vinfast applied total quality management? ......................................................................... 14
1.1. Managing quality of Vinfast: ........................................................................................................ 14
1.2. Output – input model of Vinfast: ................................................................................................. 14
1.3. Discribe the key elements of Vinfast quality management process following the model of the
Baldrige Award Criteria. ...................................................................................................................... 15
1.4. The key elements of Vinfast in the EFQM exellence model: ....................................................... 20
1.5 Implementation of Vinfast’sTQM: ................................................................................................ 21
2. Analysis of advantages and disadvantages in the total quality management process shows that the
problem still exists of Vinfast .................................................................................................................. 25
2.1. Advantages in the total quality management process of Vinfast when comperi with the key
elements of TQM model: .................................................................................................................... 25
2.2. Disadvantages in the total quality management process of Vinfast when comperi with the key
elements of TQM model: .................................................................................................................... 26
2.3. The problem still exists of Vinfast: ............................................................................................... 26
3. Suggests similar solutions that can be applied to the Production process of Vinfast. ....................... 27
4. Propose specific recommendations or solutions for enterprises to improve quality management: . 28
III/ Conclusion: ............................................................................................................................................ 29
IV/ References:............................................................................................................................................ 30
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I/ Introduction:
2. Overall of Vinsfast:
2.1. The development history of Vinfast:
Vinfast is a Vietnamese car manufacturing company established in 2017. However,
Vinfast has a very notable history of development.
-In 2017, Vingroup, a multi-sector business conglomerate in Vietnam, decided to
invest in the car manufacturing industry with the Vinfast brand. In less than two
years, Vinfast made a splash by introducing two car models at the 2018 Paris Motor
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Show: a sedan (LUX A2.0) and an SUV (LUX SA2.0). This attracted the attention
of consumers and experts in the automotive industry.
-In 2019, Vinfast began producing its first car models at the manufacturing plant in
the Dinh Vu-Cat Hai industrial zone, Hai Phong, Vietnam. The first car models,
including the LUX A2.0 sedan and LUX SA2.0 SUV, were mass-produced and sold
domestically.
-In 2020, Vinfast continued to enter the international market by introducing two
car models at the 2020 Geneva Motor Show, including the electric cars VF e34 and
VF e35.
-In addition, Vinfast has also collaborated with major car companies such as BMW
and General Motors to develop new products and technologies. Vinfast has also
participated in projects related to self-driving cars and electric vehicles,
demonstrating efforts to become a global car manufacturer. The overview of
Vinfast's history shows the company's rapid development in the automotive industry.
Vinfast has gained attention and made an impression with high-quality products and
advanced technology.
-Overall, the name VINFAST focuses on the core values of the brand, bringing
pride in Vietnamese origin and setting high standards for product quality and
advancement.
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2.3. The core values of Vinfast:
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and Frankfurt Motor Show to introduce its products and brands to
international customers.
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3.2.2. Output – input model:
Quality assurance is operated through planned and systematic activities to prevent
of quality problems.
Quality assurance is established for a good quality management system that
integrates the assessment and audit through the operation and review of the system.
Quality assurance is adopted for outputs of the enterprise's process – Customers.
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Quality control is the activities and techniques to achieve or maintain the quality of
products and services.
Quality control is monitoring activities to find and eliminate the cause of quality
problems.
Quality control is adopted for the inputs of the enterprise’s process – Suppliers.
3.2.3. The key elements in the model of the Baldrige Award Criteria
(1) Leadership:
• Organizational leadership
• public responsibility and citizenship
(2) Strategic planning:
Strategy development
Strategy deployment
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(3) Customer focus:
Customer and market knowledge
Customer relationships and satisfaction
(4) Information management:
Measurement, analysis and knowledge management
Measurement and analysis of organizational performance
(7) Results:
• customer focused results
• financial and market results
• human resource results
• organizational effectiveness results.
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3.2.4 Key elements of TQM in the EFQM Excellence Model:
Leadership: Top management vision, planning and support
Employee involvement: All employees assume responsibility for inspecting the
quality of their work.
Product/Process Excellence:
Involves product design quality and monitoring the process for continuous
improvement.
Poka-yokes (Mistake proofing) are devices that prevent defects from being
produced.
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Continuous Improvement: A concept that recognizes that quality improvement is
a journey with no end and that there is a need for continually looking for new
approaches for improving quality.
Customer Focus: customer and market knowledge, customer relationships and
satisfaction.
Design quality: Specific characteristics of a product that determine its value in the
marketplace.
Conformance quality: The degree to which a product meets its design
specifications.
Successful Implementation of TQM
Requires total integration of TQM into day-to-day operations.
3.2.5. Implementation of TQM:
The key elements of TQM can be divided into four groups according to their
function:
Foundation: Integrity, Ethics, Trust
Building Bricks: Leadership, Teamwork , Training
Roof: Recognition (Motivation)
Binding Mortar: Communication
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II/ Content:
1. How has Vinfast applied total quality
management?
1.1. Managing quality of Vinfast:
Vinfast's strategic vision is to become one of the world's leading auto brands, and at
the same time build a comprehensive auto industry ecosystem in Vietnam. They
followed the rules and clearly defined goals that align with their strategy:
- Clearly define the customer segment through the advantages of domestic products
and the support of domestic people and overseas Vietnamese.
-Positioning product segments with low, mid, and high prices
-Focus on developing product quality with a strict monitoring process. Focus on
safety by developing a touch technology system.
- Adapting to the trend, developing electric vehicles in all segments to adapt to the
current trend of green technology.
Because of determining the right strategy from the beginning and implementing it in
the right direction, Vinfast has achieved many successes such as expanding markets
to Europe, America, and China, despite being a new brand in the industry.
VinFast is a Vietnamese automaker that has gained international recognition for its
rapid development of high-quality vehicles. VinFast takes quality management very
seriously and has implemented a rigorous quality management process to ensure the
highest level of product quality.
Here are some of the key elements of VinFast's quality management process:
1. Quality Planning: VinFast establishes quality objectives and a plan to achieve
them. This involves identifying customer needs and expectations and translating
them into specific quality standards.
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Here are some of the quality planning measures that Vinfast has implemented:
• Quality Management System (QMS): Vinfast has implemented a
comprehensive QMS that covers all aspects of the production process. The
QMS is based on the ISO 9001 standard, and it ensures that all processes are
documented, controlled, and continuously improved.
• Design for Manufacturing and Assembly (DFMA): Vinfast uses DFMA
principles to design products that are easy to manufacture and assemble. This
approach helps to reduce the likelihood of defects and ensures that the final
product meets customer expectations.
• Supplier Quality Management: Vinfast has a rigorous supplier selection
process that ensures that only high-quality parts and components are used in
the production process. The company works closely with suppliers to ensure
that they meet Vinfast's quality standards.
• Quality Control: Vinfast has implemented a robust quality control process that
includes both in-process and final inspection. The company uses advanced
equipment and technologies to test and verify the quality of its products.
• Continuous Improvement: Vinfast is committed to continuously improving its
products and processes. The company uses feedback from customers and
employees to identify areas for improvement and implements corrective
actions to address any issues.
Overall, Vinfast's quality planning measures demonstrate the company's
commitment to producing high-quality vehicles that meet customer expectations. By
implementing a total quality management system through using DFMA principles,
working closely with suppliers, implementing robust quality control processes, and
continuously improving, Vinfast is well-positioned to deliver on its promise of
quality.
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trends, and emerging technologies. The company uses this information to
create a product roadmap that outlines its strategic goals and objectives.
• Concept Development: Once Vinfast has identified its strategic goals, the
company begins the concept development process. This involves
brainstorming and sketching ideas for potential products, evaluating the
feasibility of these ideas, and selecting the most promising concepts to move
forward.
• Design: The design phase involves creating detailed 3D models and
renderings of the selected concept. Vinfast uses advanced design software and
virtual reality tools to refine the design, ensuring that it meets the company's
quality and performance standards.
• Prototyping: Once the design is finalized, Vinfast creates a prototype of the
product. This allows the company to test the product's functionality,
performance, and durability in a real-world environment. The prototype is
tested extensively to identify any design flaws or manufacturing issues.
• Testing and Validation: After the prototype has been tested and refined,
Vinfast conducts rigorous testing and validation to ensure that the product
meets all relevant safety and performance standards. This includes crash
testing, environmental testing, and durability testing.
• Manufacturing: Once the product has been tested and validated, Vinfast
moves into the manufacturing phase. The company uses advanced
manufacturing technologies and processes to produce high-quality products
efficiently.
• Launch and Post-Launch: After the product is manufactured, Vinfast launches
it into the market. The company continues to monitor and evaluate the
product's performance, collecting feedback from customers and making any
necessary improvements.
Overall, Vinfast's design and development process is a rigorous and iterative process
that is focused on delivering high-quality, innovative, and technologically advanced
vehicles to its customers. By leveraging the latest technologies and design practices,
Vinfast is well-positioned to continue to innovate and push the boundaries of the
automotive industry
3. Process Control: VinFast has implemented a comprehensive process control
system that ensures quality at every stage of production. This includes regular
inspections, testing, and process monitoring to identify and address potential issues
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before they can impact quality. Here are some of the process control measures that
Vinfast has implemented:
• Statistical Process Control (SPC): Vinfast uses SPC to monitor its production
processes and identify any trends or patterns that could indicate a potential
issue. This approach allows the company to take corrective action before a
problem occurs, minimizing waste and reducing costs.
• Quality Control: Vinfast has implemented a rigorous quality control process
that involves both in-process and final inspection. The company uses
advanced equipment and technologies to test and verify the quality of its
products.
• Automation: Vinfast has implemented automation technologies to improve
the efficiency and consistency of its production processes. This includes using
robots and other automated systems to perform tasks that are repetitive or
require a high level of precision.
• Lean Manufacturing: Vinfast has implemented a lean manufacturing approach
to eliminate waste and improve efficiency. This involves optimizing the
production process to minimize the time and resources required to produce a
product.
• Continuous Improvement: Vinfast is committed to continuously improving its
production processes. The company uses feedback from employees and
customers to identify areas for improvement and implements corrective
actions to address any issues.
• Training and Development: Vinfast provides extensive training and
development opportunities to its employees to ensure that they have the
knowledge and skills required to perform their jobs effectively. This includes
training in process control, quality assurance, and other relevant areas.
Overall, Vinfast's process control measures demonstrate the company's commitment
to producing high-quality vehicles efficiently and consistently. By implementing a
comprehensive process control system that includes SPC, quality control,
automation, lean manufacturing, continuous improvement, and training and
development, Vinfast is well-positioned to maintain its position as a leader in the
automotive industry
4. Supplier Management: VinFast works closely with its suppliers to ensure that they
meet the same high standards of quality. This includes regular supplier evaluations
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and audits, as well as collaboration on product design and development. Here are
some of the supplier management measures that Vinfast has implemented:
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• Kaizen: Vinfast has implemented the Kaizen approach, which involves
continuous improvement of all aspects of the business. The company
encourages all employees to identify areas for improvement and implement
solutions.
• Lean Manufacturing: Vinfast has adopted a lean manufacturing approach,
which aims to eliminate waste and improve efficiency. The company regularly
reviews its processes to identify opportunities for improvement and
implements changes to reduce waste and improve efficiency.
• Six Sigma: Vinfast has implemented the Six Sigma methodology, which
focuses on reducing defects and improving quality. The company uses
statistical tools and techniques to identify the root causes of problems and
implements solutions to improve quality.
• Training and Development: Vinfast provides extensive training and
development opportunities to its employees to ensure that they have the
knowledge and skills required to implement continuous improvement
initiatives.
• Customer Feedback: Vinfast solicits feedback from its customers and uses this
feedback to identify areas for improvement. The company takes customer
feedback seriously and implements changes to address any issues or concerns.
• Data Analysis: Vinfast uses data analysis to identify trends and patterns that
could indicate areas for improvement. The company uses advanced data
analytics tools to analyze production data, customer feedback, and other data
sources to identify opportunities for improvement.
Overall, Vinfast's focus on continuous improvement demonstrates the company's
commitment to delivering high-quality vehicles to its customers. By implementing
continuous improvement measures such as Kaizen, lean manufacturing, Six Sigma,
training and development.
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satisfaction. The company's leaders also promote a culture of innovation and
collaboration to drive performance and achieve excellence.
Strategy: VinFast has a clear and well-defined strategy that is aligned with the needs
and expectations of its customers. The company's strategy is focused on product
innovation, operational excellence, and customer satisfaction.
People: VinFast invests in its people and fosters a culture of engagement and
empowerment. The company provides training and development opportunities to its
employees, and it recognizes and rewards their contributions to the organization's
success.
Partnerships and Resources: VinFast has established partnerships with leading
suppliers and service providers to ensure that it has the resources it needs to deliver
high-quality products and services. The company also uses technology and data
analytics to optimize its operations and improve efficiency.
Processes, Products, and Services: VinFast has implemented rigorous quality control
processes to ensure that its products and services meet or exceed customer
expectations. The company uses advanced technologies and materials to develop
innovative products and services that provide value to its customers.
Results: VinFast measures and tracks its performance using a range of metrics,
including customer satisfaction, employee engagement, and financial performance.
The company uses this data to identify areas for improvement and to drive
continuous improvement and innovation.
Overall, VinFast's implementation of the EFQM Excellence Model has helped the
company to achieve business excellence and become a leader in the automotive
industry. The company's focus on innovation, customer satisfaction, and continuous
improvement has enabled it to deliver high-quality products and services that meet
the needs and expectations of its customers.
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With the philosophy of "Customer is the center", VinFast is constantly innovating to
create high-class products with the best prices and outstanding after-sales service,
bringing opportunities to use smart electric vehicles for everyone. People.
Everybody. Everybody. people, contributing to creating a green, smart, and
sustainable future. Vinfast constantly strives to improve the quality as well as the
brand image in the hearts of Vietnamese and international people.
The trust of Vietnamese employees and people created a great opportunity for
Vinfast a fledgling brand to expand the market to the world.
Building Bricks:
Safe, modern, civilized, and professional working environment with many
opportunities for promotion and personal development. Trained, and improved
professional skills, and management skills by experienced domestic and foreign
experts. Vinfast builds such an environment to attract more talent and strengthen the
organization's machinery.
Roof:
-Invest in management and staff training:
Vingroup has a movement: Each employee is an ambassador of Vingroup. That is,
each employee is an image and representative of the Group. Therefore, all employees
of the Group need to express themselves at all times. To ensure this, Vingroup has
focused on employee training with the program "Vingroup learning". Accordingly,
any employee who does not improve his/her professional skills or fails to meet the
academic targets will be cut off from all additional benefits.
Vingroup's human resources strategy sets a target for leaders to spend about 52 hours
a year training subordinates. Meanwhile, 1-year employees must be trained for about
100 hours. Mr. Pham Nhat Vuong - Chairman of Vingroup's Board of Directors -
emphasized the importance of personnel training: "It means learning anytime,
anywhere, from everyone. Academic training seems to become the national book,
the first requirement. Investing in employee training is also an important leading
principle in the human resource management of Google and other large corporations
in the world.
-Hold employees accountable for their work:
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According to Vingroup's human resources strategy, employees are the ones most
responsible for every job. In case of poor performance, employees may be subject
to fines, discipline, or even dismissal from the Group. This requirement will
motivate employees to work responsibly and try harder in completing assigned tasks.
-Ensure employee welfare:
Vingroup's welfare policy has long been known for its high competitiveness. This is
the golden key in Vingroup's human resources strategy, helping employees to give
their best and work long-term with the Group.
Vingroup has built its own salary and bonus policy suitable for each position, skill,
and level of employees to properly recognize competence and motivate employees
to develop their abilities. Positive initiatives and breakthrough achievements are
recognized and promptly rewarded by the Group through cash, promotions, salary
increases, etc.
All employees at Vingroup are guaranteed insurance and leave according to the
provisions of the Labor Law. Depending on each industry, Vingroup will take full
responsibility for uniforms, labor tools, labor protection equipment, etc. Regarding
allowances, Vingroup fully supports employees with allowances such as Money
lunch, transportation money, phone money, and car support to pick up employees
from afar...
-Improve management efficiency through simplified and standardized processes:
Although the number of human resources is extremely large, Vingroup's human
resources strategy does not become more complicated. The Group leverages human
resource management software to simplify the management process for offices with
50 or more employees.
For Vingroup, standardization is an effective and detailed human resource
management process through a clear departmental plan. The Group implements
stratification of the employee system to make it easier to manage. In it, each
department will be responsible for managing its employees.
Improving management efficiency from Vingroup is the most important lesson for
any business. In the digital age, especially after the Covid-19 pandemic, the need to
enhance, synchronize and standardize the working process of enterprises has
increased rapidly, especially in the way of managing restaurant personnel and the
management of the restaurant industry. service industry. By digitizing management
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work, businesses can reduce operating costs, help employees take initiative in terms
of time, and create conditions for businesses to integrate globally faster and more
deeply. However, not all businesses have the knowledge and skills to effectively
transform their working model. And the birth of HrOnline will be a comprehensive
solution to the above problem
Binding Mortar:
-Effective human resource management:
The staff selection process is strict, the training stage is directly supervised and
decided by the director and managers in the human resources department.
Know how to motivate employees through reward policies and talented leaders with
high self-discipline and discipline.
-Propose and transfer power quickly and accurately:
The strategic vision of the head of Vinfast - Pham Nhat Vuong is excellent. When
allocating human resources to each department effectively and delegating rights to
the right person according to the mission of the organization.
-The departments work closely together:
Assassinated closely from the input stitch. Suppliers are specifically planned
and selected by the company. Input materials must go through many
inspection procedures to ensure the quality of raw materials.
Strict production processes with 90% AI combined automation technology
and machinery and equipment are maintained every 6 months.
Product output is tested through many segments such as safety testing, product
durability, aesthetics, vehicle systems, and product experience testing.
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2. Analysis of advantages and disadvantages in the
total quality management process shows that the
problem still exists of Vinfast:
2.1. Advantages in the total quality management process of
Vinfast when comperi with the key elements of TQM model:
Some strengths in VinFast's quality management process include:
-Skilled workforce: VinFast has a team of skilled engineers and experts who are
deeply trained in technical, design, and quality fields. This expertise allows them to
develop and improve the production process and product quality control.
-Advanced technologies: VinFast uses advanced technologies in car production,
including automation systems, to increase accuracy and consistency in production
and quality control. These technologies help VinFast to produce high-quality
products efficiently.
-Strict quality control system: VinFast has a strict quality control system that
includes inspection steps from the production process to finished products. This
ensures that products meet the highest quality standards and reduces the risk of
defects or other quality issues.
-Customer-focused approach: VinFast places a strong emphasis on understanding
and meeting customer needs and expectations. This focus is reflected in the design,
production, and quality control of its cars, which are tailored to meet the specific
requirements of its target markets.
-Continuous improvement: VinFast is committed to continuously improving its
production processes and product quality through ongoing training and development
of its employees, as well as the use of advanced technologies. This helps to identify
and eliminate defects and reduce waste, leading to improved efficiency and cost
savings.
Overall, VinFast's quality management process is focused on producing high-
quality products that meet customer needs and expectations. The company's skilled
workforce, advanced technologies, and strict quality control system, combined with
its commitment to continuous improvement, have helped it to establish a reputation
for quality and gain recognition as a leading automobile manufacturer in Vietnam
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2.2. Disadvantages in the total quality management process of
Vinfast when comperi with the key elements of TQM model:
Some weaknesses in VinFast's quality management process include:
New company: VinFast is a relatively new company in the automotive industry, and
its quality management processes may not be fully established or matured. This
could lead to issues with consistency and efficiency in its quality control processes,
and may require further development over time.
Product variety: VinFast produces a range of different products and uses different
technologies, which can pose challenges for quality control processes. Ensuring
consistent quality across different products and technologies may be difficult,
requiring additional resources and processes.
Competitive pressures: VinFast faces significant competition from established and
well-known automotive manufacturers, both domestically and internationally. This
puts pressure on the company to maintain high levels of quality in its products to
differentiate itself from competitors and maintain its market position.
Supply chain management: VinFast's quality control processes depend on the quality
of components and materials supplied by its vendors and suppliers. Any issues with
the quality of these inputs could impact the quality of VinFast's finished products.
Overall, while VinFast has developed a strong quality management process,
it still faces some challenges that it needs to address to maintain its position as a
leading automotive manufacturer in Vietnam. The company needs to continue to
refine its quality control processes, manage the complexity of its product line, and
maintain its focus on quality in the face of intense competition.
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This proves that the resources of the enterprise have not been used effectively,
especially the production process and the leaders in the organization. The specific
cause of the problem is determined as follows:
Quality control in the production process is still limited and ineffective
compared to competitors in the same industry. Therefore, the product output has not
yet built its distinctive character.
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4. Propose specific recommendations or solutions
for enterprises to improve quality management:
In our team's opinion, the most suitable solution is that Vinfast should focus on
product design. To do that, Vinfast needs to apply effective policies to motivate
employees and innovate the company's strategy by innovating the vision and
thinking of the head.
As well as the distribution of quality management in the production process of
enterprises with quality management in the strategy of following the trend. Identify
specifically what businesses need to do to effectively manage quality in their
production processes and strategies.
- Quality management in the production process: enterprises need to maximize the
creativity of employees through a number of factors in TQM implementation such
as reward, welfare, etc. to motivate and stimulate the creative thinking of employees.
-The leadership team or superior needs to change, but only, to rebuild the strategy
effectively, through discussion in the strategic plan with subordinates and other
managers through the element of communication in the definition of TQM
implementation.
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III/ Conclusion:
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IV/ References:
Overall of Vingroup:
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20Vingroup&op=translate
The strategy of Vinfast:
https://www.studocu.com/vn/document/dai-hoc-quoc-gia-ha-
noi/principle-of-marketing/marketing-4p-for-vinfast-car/24975230
What is tqm in business
https://www.investopedia.com/terms/t/total-quality-management-
tqm.asp#:~:text=Total%20quality%20management%20(TQM)%20is,up
%20to%20speed%20with%2
What are the key elements of TQM model?
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elements-tqm/
The total quality management in a company:
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tqm.asp
What is resources of Vinfast ?
https://vingroup.net/en/about/human-resources
Overall of Vinfast:
https://en.wikipedia.org/wiki/VinFast#:~:text=VinFast%20LLC%20is%
20a%20Vietnamese,founded%20by%20Ph%E1%BA%A1m%20Nh%E1
%BA%ADt%20V%C6%B0%E1%BB%A3ng.
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