MADE IN VIETNAM LEAN MANAGEMENT IMPROVING VIETNAMESE VALUE

Doing right on the wrong path, never getting to the destination …

Doing wrong on the right path, failure will be the mother of success, help us quickly mature and reach the destination …

 (With more than 20 years of preparation, development and growth, with what has been contributing to the sustainable development of Vietnamese businesses, the Made in Vietnam Lean Management School is proud to be the management school Made in Vietnam, Made by Vietnam, Made for Vietnam and humanity, affirming the level of Vietnamese management in the international arena)

Assoc. Prof. Nguyen Dang Minh, President of GKM Lean Institute

1. The problems that no ones can shared of the heads of businesses

The last years of this decade have left deep imprints in the Vietnamese business community. The value of a series of big names falls partly or wholly into foreign businesses. These include: Sabeco, Tribeco, Kinh Do, Duc Viet Sausage, Pho 24, Highlands Coffee, Diana, Binh Minh Plastic, Tien Phong Plastic. Even Vinamilk, a long-standing brand and a pride, also holds a 59.21% stake for foreign businesses. The story of Big C making the decision to stop all contracts with Vietnamese garment companies is an unexpected shock. The value of Vietnamese businesses gradually slips out of the Vietnamese community, leaving many concerns in the minds of our entrepreneurs …

Looking back over the past 30 years, entering the era of reforming, Vietnam has opened the door to foreign markets, no ones are surprised with the fact that a Vietnamese factory investing in a multi-million dollar modern machine line. It is easy to find a Vietnamese enterprises owning advanced German or Japanese technologies in their production line. However, the people and the management system to operate those expensive and modern machines effectively are not easy questions to answer even after 30 years have passed. A business, whether operating in any industry or field, needs to be developed on both Management and Technology (vocational) platforms for sustainable development. It is a requirement that can be verified in any successful and long-term business in the world.

According to a survey of the Lean Institute of GKM through more than 1,000 enterprises that have participated in application programs Made in Vietnam Lean Management, more than 80% of businesses feel that they are having management problems but cannot name. Despite applying a lot of solutions, self-study tools, or support from abroad, but after many years of operation, there is a general comment that many CEOs have bitterly admitted: “I don’t know tomorrow What will we do when the products we used to be proud of are now a thing of the past in the minds of our customers?”.

2. The CEOs are full of skepticism because they do not know if Made in Vietnam Lean Management solves their problems?

More than 1,000 businesses in 30 industry sectors have approached Made in Vietnam Lean Management. Along with that, a long list of 93 management problems that businesses are facing, whether manufacturing or trading, whether in Vietnam or FDI, whether in Hanoi or Ho Chi Minh City, whether 5 years old or 25 years of development, see themselves in it. At the beginning of the approach, the entrepreneurs all complained: “Does Made in Vietnam lean management help us overcome the current limit of production capacity despite having the full potential and resources? Currently, I have applied but failed to maintain the management methods of G7, Japan, America, and Europe such as 5S, work improvement, QCC; can not effectively apply management solutions such as 3P Salary, KPI, ERP and ect. There are still many problems in the human resource system such as workers do jobs as the way they like, workers overestimate themselves, jump job, workers say good but can’t do, workers do not understand what career means but the salary; the procedures are available but no ones read and applies  properly; though checking and controlling are applied continuously but still complained by the customer, errors still reach customers etc.”. And after that, CEOs and business owners must spend 90% of the time and effort just to handle and solve cases; And after one round of applying one method to another, the CEO decided to make his own way to reduce complexity and confusion, although knowing the efficiency would not be high.

Ambition, aspiration of entrepreneur is extremely valuable and needs to be nurtured in every country. But it is the daily and result-in-nothing nuisance make many entrepreneurs self-retreat to the area of acceptance and abandonment. Deadlock and cynicism contained in the work life are finding a way out of the spiritual life elsewhere. And, the scary thing about the middle-income trap for a country is not only the numbers but also the average income trap in the development mindset of individuals and businesses. Is Made in Vietnam Lean Administration the solution? These doubts are always in the minds of entrepreneurs in the first time they approach…

According to Dr Nguyen Dang Minh, the existing management problems are essentially the manifestation of the lack of a suitable management platform in Vietnam, leading to the end result that enterprises are suffering from a dramatic limit of productivity and quality. Vietnamese businesses have largely risen from the technical profession, not having time to learn about management in a deep and methodical manner. Then the business grew up over the years, there was right, there was wrong in development activities, and the business continued to exist by natural selection without pure Vietnamese management science…

3. Convince and deploy successfully in more than a thousand businesses in Vietnam

With the management capability and technology transfer research capacity (manufacturing technology and management technology) accumulated in Japan and Toyota Corporation after nearly 14 years of living and working, Dr Nguyen Dang Minh acknowledged that Vietnamese businesses are facing many problems due to the lack of a foundation of management designed in accordance with the conditions and characteristics of Vietnamese enterprises. The core of Vietnamese businesses need not stop at finding something to blame, Vietnamese businesses need a training, a pure Vietnamese management system to be able to deploy, apply effectively for synchronous and sustainable results.

From that urgent requirement, after more than 20 years of preparation and formation (successfully applied in thousands of businesses in Vietnam), Dr Nguyen Dang Minh has perfected a pure Vietnamese management system called Made in Vietnam Lean Management School  (including the system of management from foundation elements, methods, tools, digitizing tools etc. have been registered intellectual property in Vietnam and internationally).

In addition to training in internal consulting for each enterprise, the Made in Vietnam Lean Management System has been replicated through training programs for businesses. By the end of 2019, 40 Made in Vietnam Lean CEO Courses have been completed. The survey results from the trained businesses show that:

• 80% of businesses affirmed that labor productivity increased from 30% to 80% after enterprises applied Made in Vietnam Lean Management in the first year.;
• 80% of businesses said that their profits increased by 20-50% over the same period of the previous year, right after the first 1 year of application;
• 100% of businesses understand that the quality of their products and services has not been as expected and plans to improve in the first year.;
• 80% of CEOs participating in the Made in Vietnam Lean CEO program build their own plans to implement Made in Vietnam Lean Management to be feasible and effective in improving productivity and quality for businesses towards sustainability;
• 90% of businesses in Vietnam and international researchers after approaching Made in Vietnam Lean Management System agree that this is a complete and effective system for the development of businesses not only in Vietnam but also in many other countries.

4. Breaking emotions of entrepreneurs when approaching and applying

In fact, most businesses that have passed the 5-year development milestone have begun to enter the stage of intensive development and need to find a sustainable development path. Each business with specific conditions has its own problems that need specific advice to be able to solve. From there, the requirement for the training program for CEOs is to be built from practice, the theory must be proved to be specific showing results or a feasible plan in a consistent  road map. Therefore, Made in Vietnam Lean CEO program is completely designed according to the consulting method with the content drawn from the successful consulting lessons learnt has given the CEOs a deep impression and contribute significantly in lighting more passion fire.

Module 1 of the program named Made in Vietnam Lean Management is the module that helps businesses have the most general and systematic overview of the genetics of the Lean Management in Made in Vietnam. The content of the program enables the CEO to name exactly the problems that his business is facing, the causes of those problems and what specific solutions need to be done for sustainable development..

Mr. Nguyen The Hung, CEO of SSP Molding Company shared: Made in Vietnam Lean CEO Program right from the first module took me from surprise to surprise. Although nearly 20 years as CEO in Japanese enterprises, applying a lot of advanced management methods of Japan and the world, the program gave me more than what I expected. My companies have implemented the content of the program right from the first lessons and achieved many good results. In my opinion, the contents of the training program of the GKM Lean Institute such as Tam The, Made in Vietnam Lean Management Thinking, the Science of problem solving of Made in Vietnam Lean Management School ect. is necessary to quickly and widely deploy simultaneously for Vietnamese enterprises and foreign enterprises in Vietnam. I think this is the way to help Vietnamese businesses grow to the level of the continent and the world

Mr. Hoang Tu Khoa, General Director of AVC Structure and Equipment Joint Stock Company shared: After 15 years of development, we realized that it is impossible to apply Japanese ideological machines and management methods of any Japanese or any other countries for Vietnamese. When approaching Made in Vietnam Lean Management I see this is a very suitable way for Vietnamese businesses, is the answer to many questions and concerns of Vietnamese business owners on the way of sustainable Development.

Businesses who want to grow also need development strategies and plans. However, the strategy needs to be easy to understand and implement. At the same time, the strategy is not a decoration but must be close, must be shown daily and hourly through all activities of the business. Module 2 Made in Vietnam Lean Strategy Management  is a special module that has helped hundreds of CEOs recognize the Strategy as the right role and make the strategy become catchy, completely an important component in building and developing a sustainable business.

Mr. Le Minh Duc, Director of JK Vietnam Company, after finishing module 2, shared: after more than 10 years of development, as a business founder, he no longer has to worry about daily earn. Attending the show, he understood more deeply and realized he really had to think bigger. The physical and spiritual well-being of houses and cars for every employee in the business must be an important part of the development mission of JK Vietnam. In order to achieve those goals, after having the path with the Made in Vietnam Lean Management School, Mr. Duc also understood that it is necessary to have a team of associates to implement it to meet the workload and business size. Therefore, he decided to appoint 3 deputy CEOs of JK Vietnam to attend the next Made in Vietnam Lean CEO  program (course 39) at GKM Lean Institute.

Mr. Nguyen Quang Khai, Director of Hoa Hoa Company, said at the end of the course: “After 30 years of graduation, running business, this is the first time he participated in a training program. It also took a lot of time to decide as well as the encouragement of referrals from his friends to attend this program. To this day, after 2 months of studying, I feel very happy that I have decided to attend with my two deputy directors. Hoa Hoa Company has applied a lot of the contents of Lean Management Made in Vietnam to the work, from which the efficiency of labor productivity and service quality increased markedly. After implementing the methods in Made in Vietnam Lean Management System to perfect the management system in Hoa Hoa, for more than a month now, no mistakes have occurred as before, no more No more complaints from the staff. Along with that, the plan for the next 5 years has also been written down with details on how to implement that plan successfully. Everything has become transparent and clear making the enthusiasm to work become stronger than ever.

One of the most difficult challenges of Vietnamese businesses in both manufacturing and services is the process and the implementation of the process. The fact that writing down a series of processes is not the same as doing it every day and doing it every day is not the same as the process that makes the business process system become decorative and heavy in operation. Moreover, when abnormal events occur, the existing hard process system does not help businesses solve much. At this time, businesses often rely on the improvisation and experience of the leaders. Therefore, CEOs often have to spend 90% of their time and effort at the enterprise to solve cases, no longer have resources to find development directions for businesses. Knowing that, Made in Vietnam Lean CEO program is designed for Problem-solving Science module into Module 3 to support CEOs to solve thoroughly.

Sharing about the Module No. 3, Mr. To Duc Hai, General Director of AgriMedia said: He felt very happy when the entire management team unified about Tam The, thinking and scientific working method on which built a lean communication culture, lean and effective problem solving, contributing to the improvement of productivity and quality. The problem-solving science is really an effective method of the Made in Vietnam Lean Management School and is thoroughly applied in AgriMedia’s leadership in all businesses, becoming a part of AgriMedia’s DNA.

After two years of applying problem solving science, Ms. Tran Thi Khanh, Director of VIJA Link Company said: As soon as I learned the Science of problem solving by Mr. Nguyen Dang Minh, got permission to use copyright of Mr. Minh, she has specified for the whole VIJA Link Company to apply. All problems, all obstacles, all plans, all processes of VIJA Link must be solved according to the Science of problem solving. After a period of application, this method has become a pride and culture of VIJA Link.

For any business, whether at management level 1.0 or 4.0, human resources are also the most important resources, and also the most difficult resources to manage. 90% of CEOs when discussing business issues have the same HR topic, from staff to mid-level and senior personnel. Even FDI companies with 100% foreign capital are no exception. In fact, the CEOs also acknowledged that human resource operations in enterprises in Vietnam are just limited to administrative activities (recruitment, regimes, policies, resignation, etc.) without actually having a Human resource management system properly and appropriately. Meanwhile, in order for businesses to develop sustainably, to increase productivity and quality, the human resource system must be the core and firm, human resource system must be managed according to the same management DNA of the business. Therefore, Module 4 Made in Vietnam Lean Human Resource Management  has always received the most comments and thoughts from the CEOs.

Ms. Nguyen Thi Minh Thu, Director of 3 companies on production, processing and trading of pearl jewelry and export lacquer paintings shared after attending module 4: After more than 10 years of development, Ms. Thu attended Many training programs, especially in human resource management, have not yet found a scientific, effective, systematic solution that can be applied to 200 people at her company. In the present situation, leaders and employees still have mixed roles and leadership to do the work of employees. Since then she decided to do it her own way. But when coming to the Made in Vietnam Lean CEO program, Thu actually found the answer and applied it right after each lesson. She said that since the implementation of the Lean Management System Made in Vietnam, Made in Vietnam Lean Management Model, previous problems have gradually been removed. At the company, each employee is self-employed. Everything has become clear, specific, very standard only.

Mr. Nguyen Minh Tan, General Director of Tan Phat Equipment Joint Stock Company shared about module 4: At Tan Phat Company, after nearly 25 years of development, the company has also applied many methods of human resource management in enterprises but coming to Made in Vietnam Lean CEO  program, he was systematically re-thinking about the personnel system under Made in Vietnam Lean Management Model. Thereby, he explained scientifically the successes he has achieved, the things he has not done and needs to be supplemented at Tan Phat. In this Human Resources module, Mr. Huyen and Mr. HR Director of the company have a specific plan to complete the company’s Human Resource Management system according to Made in Vietnam Lean Human Resource Management.

There is a fact that regardless of the role, Vietnamese people need to openly admit that the requirements for the quality of Vietnamese products and services were once very low and growing higher with the development of the country. Because of the difficulties caused by the war in the past, it is rare for Vietnamese people to understand and deeply feel about a quality product or service as well as how to create their own products and services being of top quality, surpassing customers’ expectations. With a population of more than 90 million people and a fast economic growth rate, the Vietnamese market is attracting more and more foreign businesses to invest in business, bringing a lot of quality goods and even required by international standards. Therefore, improving the quality of our products and services closed to imported goods, and avoiding the loss of a promising domestic market is an extremely urgent need for Vietnamese businesses. That’s why Module 5 Made in Vietnam Lean Quality Management is an important component of Made in Vietnam Lean CEO program.

After understanding and mastering the quality management method according to the lean management style Made in Vietnam, Mr. Bui Duc Thien, Director of FC Wiring Company specializing in manufacturing OEM products for Japanese customers, said: Wiring companies always strives for the goal of increasing quality throughout the years. The company spent 10% of its staff in the QC department, but there were still cases where the goods were defective. After attending the program, he understood the root cause of this problem, understood that if there was no root solution, even 10% or 20% QC would still have a rate of defective products beyond the allowed level. FC Wiring will immediately implement Made in Vietnam Lean Quality Management  to overcome this.

Mr. Soren, Director of Julie Sandlau Vietnam Company (100% foreign capital) said: Despite bringing both the production system and the quality expert of the Group from Europe to Vietnam to support but throughout 9 years we still suffer a lot of waste due to product quality does not guarantee stability. With the characteristics of completely exported products to Europe and North America, the quality of our products and services is very strict, any product with the slightest error will be removed. We feel fortunate to have access to Made in Vietnam Lean Management of Dr Nguyen Dang Minh. He has helped us find solutions to many management problems that are unique to Vietnam, especially the Made in Vietnam Quality Management model. The rate of defective goods after application has been reduced by more than 60% after only 1 year of application.

There is a famous entrepreneur who once said, “every program is like a classroom, it is the same teacher, the content is there but there are good students, some are not good …”. But if from the perspective of Made in Vietnam Lean Management, it is the waste of businesses spending time, effort, money attending the training program and also the waste of the designer of the program as GKM Lean Institute. As in the content of training, Dr Nguyen Dang Minh always said: Business development must be based on Tam The foundation, that is good for the people themselves in the business, good for customers and good for society …, the training programs of GKM Lean Institute itself as a Made in Vietnam Lean CEO programs  must also accomplish that spirit. The continuous effort for each enterprise to learn, understand and apply into the enterprise has become the first training philosophy of “Learning Enough, Understanding Right, Applicable” and concretized through Module 6 Orientation advice for the application at the enterprise. Here, after finishing the learning process and applying 5 modules at 5 working weeks, businesses will have time to summarize the achieved points, the difficult points and obstacles of each company  for Dr Nguyen Dang Minh and other student CEOs discussed and presented a specific plan for further application.

Mr. Vu Van Thang, Director of Truong Giang Company could not hide his emotions at the end of the module: Actually, despite how many courses, both inside and outside the country, he has never seen the a such  clarity and confidence of business development. He no longer has any doubts or thoughts other than devoting 100% of his energy to implementing the plan outlined, bringing Made in Vietnam lean management system  into his company to develop. He confidently asserted with this plan, after only 5 years, his company will make strong changes.

Experiencing many levels of emotion, from skepticism, curiosity, concern to joy, enlightenment, bust and finally trust, determination, calmness, module 6 as a party feast end a beautiful memory. When asked if there were any regrets when going through the Made in Vietnam Lean CEO programs at the GKM Lean Institute, most of the answers agreed that: “Life is not an assumption but it is really regrettable until now to know the program and approach Made in Vietnam Lean Management  to realize the long-term concerns”. The end of the training program is the moment when the CEOs marked the turning point, to start a brighter new journey waiting ahead.

5. Made in Vietnam Lean Management constantly enhances the value of Vietnamese businesses with the mission for a better life, for a strong Vietnam

Following the journey of pride, because of the pure Vietnamese management brand, GKM Lean Institute is always ready for the needs of connecting, sharing and accompanying businesses. As Dr Le Huong Giang, Director of GKM Vietnam, said: “The GKM Lean  Institute is always a place for CEOs to come back when they find it difficult and need fire after a hard working and business life”.

“If you want to go fast, go alone, if you want to go far, let’s go together”, concretized by action, GKM Lean Institute commits to CEOs who have attended training programs on the support process with further training programs within the enterprise or at the GKM Lean Institute. Mostly, after the end of CEO courses, there are internal training programs for intermediate management (EMO) at the registered businesses.

As of September 2019, GKM Lean Institute is proud that nearly 84% of students return to the Institute to continue attending the 2nd and 3rd training programs. This is the evidence for the trust and respect from businessmen who approach the Made in Vietnam Lean Management School. It is also a great encouragement for every person at the GKM Lean Institute to realize the mission of the GKM Lean Institute is gradually being implemented: “Constantly improving the added values for individuals, businesses, organizations and countries through the implementation of Made in Vietnam lean management, making life better and better”.

Instead of a conclusion, if asked about patriotism, it is certain that any Vietnamese persons are available which is flowing in their veins. A survey at the end of 2014 by WIN / Gallup International showed that Vietnam is among the top countries in the world having people “Ready to fight for the country”, businessmen of the last century such as Trinh Van Bo, Bach Thai Buoi  and ect. had contributed all of their businesses to the great national defense. If all entrepreneurs together implement pure Vietnamese management and technology solutions to develop ourselves, sustainably develop the country, overcome the middle income trap, this pride will have to be multiplied several times.

The collective writing of GKM Lean Institute’s Board of Director on the journey of pride of 40 Lean CEO Courses implemented.

The Made in Vietnam Lean CEO program has 6 modules: Module 1: Made in Vietnam Lean Management Module 2: Made in Vietnam Lean Strategy Management Module 3: Problem solving science Module 4: Made in Vietnam Lean Quality Management Module 5: Made in Vietnam Lean Human Resource Management Module 6: Orientation advice applied in enterprises See more details of the program at:  https://gkmfinest.gkm.vn/en/training/lean-ceo-made-in-vietnam-program/ The Made in Vietnam Lean EMO program has 8 modules: See more details of the program at: https://gkmfinest.gkm.vn/en/training/made-in-vietnam-lean-emo-efficient-manager-officer-program-for-middle-management-level/