ASSIGNMENT 1 FRONT SHEET

Qualification BTEC HND in Business

Unit number and title Unit 26: Principles of Operations management

Submission date 22/10/2024 Date Received 1st submission

Re-submission Date Date Received 2nd submission
Student Name TRAN THI HANG Student ID BH00413

Class BA06201 Assessor name NGO THE NAM

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 I) Introduction.
Theo Vingroup (2017), (1) On September 2, 2017, Vingroup launched “VinFast”, which is Vietnam’s first
domestic automotive manufacturer whose mission is to provide a sustainable future by making the access
to acquiring EVs possible for everyone. In their first launching year they established an automotive
manufacturing facility in Hai Phong, Vietnam, which has the potential to achieve up to 90% automation.
In the same year VinFast partnered with established suppliers, manufacturers, and visual designers namely
BMW, Bosch, Siemens, Pininfarina, General Motors, Magna Steyr, ABB, Eissenmann, Dürr, Grob, and
MAG which enabled them to develop and produce cars to high qualitative international standards.
In October 2018, they were awarded with the “A Star is Born” price by AUTOBEST at the Paris Motor
Show for their rapid emergence and commitment to the environmental focus of the European market. At
the end of 2018, VinFast began the trial production for their pre-orders in their manufacturing facility in
Hai Phong (Vingroup, 2018). In June 2019, VinFast was able to officially initialize its manufacturing
plant which implements a general assembly that is fully integrated and automated by thousands of ABB
robots and Siemens smart manufacturing equipment. (Vingroup, 2019b). (2)
In the following two years VinFast increased their investment for research and development of EVs,
which is why they were able to have their first EVs roll off the production line in the beginning of 2021.
They launched three smart EVs: the VF e34, a compact SUV for the Vietnamese market, and the larger
allelectric premium SUV models VF 8 and VF 9 for the global market. With this 12 line-up of EVs, they
aimed to demonstrate their commitment to an all-electric strategy and green mobility (Vingroup, 2023a).
(3)
At the beginning of 2022 Vinfast launched several self-owned showrooms and partnership showrooms in
the US, Canada, and Europe to display their electric SUVs and plans to reach opening a total of 70
showrooms in 2023. As of December 31st, 2022, they have received 55,000 effective reservations for their
VF 8 model and 70,000 effective reservations for their VF 9 model (Vingroup, 2023a). They persuade an
extensive global expansion strategy that targets markets with well-established infrastructure and efficient
manufacturing, as well as highest expected EV penetration rates. Hence, their main strategic focus
continuous to be set on offering an EV SUV portfolio, which aims to reach to their focus markets
comprised of Vietnam, USA, Canada, and Europe.
In this report, the author will analyze in two parts. In the first part, the author will analyze the
effectiveness of operations management in achieving organizational goals in different types of
organizations and industries. In the second part, the author will apply some analytical techniques and
theoretical frameworks used by operations managers to support decision making and problem solving.
II) Content.
Part 1: Analyse the role and effectiveness of operations management.
According to CFI (2023), (4) Operations management is a field of business concerned with the
administration of business practices to maximize efficiency within an organization. It involves planning,
organizing, and overseeing the organization’s processes to balance revenues and costs and achieve the
highest possible operating profit. An operations manager is tasked with ensuring that the organization
successfully converts inputs such as materials, labor, and technology into outputs in an efficient manner.
According to Mateusz Brodowicz (2024), (5) Besides supporting day to day activities - working
psychological conditions, strategies and development within the business - the role of operations
management cannot be understated. However large or small, basic operations tasks exist which need to be
accomplished in order to make sure the firm is progressing correctly. A business which can meet
consumer needs and demands is consequently turned into an effective and successful business, while
stakeholder fulfilment keeps the business running. A realistic example of this would be an insurance firm.
People require assurance policies so this firm needs people to manage the process of processing
agreements, staff to handle claims, support desks to answer queries and etc.
Operations managers play a central role in stabilizing an organization's internal operations and ensuring
that these operations are comparative with external market conditions and international management
models. Firstly, operations managers are concerned with the planning and organizing of an organizations'
resources. This includes key areas such as using the company's staple materials and workforce to generate
successful products and/or services, whilst also being cost effective at the same time. For example, many
industries and government sponsored operations are now reliant on recycling methods and the notion of
contracts and off-shoring of labour. This key change in today's management structures is going to benefit
those operations managers who are willing to move on with developments and display their innovative
skills. Operations managers also play a role in the monitoring and controlling of an organizations'
resources. This includes the basic idea that the workforce needs to be able to trust their managers and so
the communication network needs to be appropriate and other methods including Total Quality
Management, Just in Time, FMS and CAD CAM techniques are used as quality control measures and as
efficient production methods. Finally, the operations managers are concerned with the improvement and
innovation of the company's resources as required. This is key to the operation of the business, and the
need to regularly implement improvements and/or innovate internal processes is a fundamental change
which is paramount to the long-term survival of the organization. Operations managers to an extent do an
element of R&D and look to change operations to continuously benefit the company. Our business is
reliant on the successful completion of the above efficiencies, and this is the fundamental reason why we
consider the operations manager to be such an important managerial figure in our organization.
 Planning and organizing: Planning and organizing are key to the operations function. The
operations manager must ensure that the output produced is in line with the firm's objectives.
Planning is the process of setting down in advance, and the operations manager must have an
understanding of the firm's objectives in order to plan and make decisions to meet these objectives.
Organizing involves setting work for individuals, ensuring that the correct resources are available,
identifying the inter-relationships between the different work areas and co-coordinating work
activities to provide the most efficient performance.
 Controlling and monitoring: By monitoring and controlling the production process and the quality
of the final product, operations management is an essential function for any business. It ensures
that all the business's resources are working at optimum capacity to achieve the desired output.
Controlling involves first setting benchmarks or goals and then comparing the actual output with
these goals. Deviations will occur from time to time and these are analysed and corrected by the
managers to ensure that the entire workforce is pushed to work to their maximum potential.
Monitoring on the other hand involves keeping a watch on things as they occur and then taking
corrective measures when necessary. A visual method of control which some businesses find very
effective is the use of Gantt charts where each stage of a project is planned on a bar-sheet and the
actual progress is depicted alongside.
 Improving and innovating: Advanced technology has resulted in the rapid change of business
environments. In order to remain competitive, companies must constantly innovate (introduce
something new or improve something existing) in product development, customer service, cost
efficiencies, processes, and other business activities. The continuous improvement model promotes
making ongoing incremental advances, whereas the innovation model promotes radical changes in
the status quo. Operations managers must not only be familiar with these models but also have the
capability, resources and support of senior management to carry out the required change.

1. Analyze the role of operations management in private and public organizations.

 Criteria Private organization Public organization
Target The main goal of operations The goal of operations management in
management is to optimize production public organizations is not only focused on
and service delivery processes, thereby economic efficiency but also on creating
maximizing profits. public value and improving public service
performance.
Resource Optimize to reduce costs and increase Use public resources effectively, avoid
Management profits waste
Quality and Innovation, productivity and quality Providing quality, fair and timely public
performance increase to compete services
Supply chain Supply chain management to meet Ensure public services meet requirements
market demand and are distributed equitably
Transparency Focus on profits, less pressure to go Must be transparent and responsible to the
and public people and society
accountability

2. Analyze the effectiveness of operations management in private and public organizations.

2.1. The effectiveness of operations management in private organizations.
According to Adam Hayes (2024), (6) Private organizations mainly focus on maximizing profits and
competing in the market. Operational management in this organization is effective when it can achieve
economic goals at the lowest cost, while improving the quality of products and services. The first
efficiency that private organizations want to aim for is to optimize costs and increase profits by applying
management methods such as lean production and just-in-time (JIT) to minimize waste and optimize
production processes. This helps increase efficiency, thereby reducing costs and increasing profits. Next is
innovation and continuous improvement. In a highly competitive environment, continuous improvement
of processes and products is a vital factor. Effective operations management helps promote innovation
processes, thereby improving the quality of products and services, quickly meeting market needs. And
finally, focusing on customers, businesses focus on optimizing supply chains, reducing delivery times and
improving service quality to retain and attract new customers.
2.2. The effectiveness of performance management in public organizations.
According to Harvard University (2016), (7) In public organizations, the goal of performance management
is not only economic efficiency but also to achieve social goals, such as providing fair services and
improving community welfare. Public organizations will evaluate the effectiveness of performance
management based on the following three criteria. The first is about budget management and use of public
resources. Because public organizations operate with limited budgets, the effective use of resources is
extremely important. Effective performance management helps ensure that public services are provided
with high quality and without wasting budget. Next is about transparency and accountability. Public
organizations need to ensure transparency and accountability in the use of public resources. Performance
management effectiveness is measured through the level of publicity and accountability to management
agencies and the people. And finally, it is about meeting social needs, with the long-term goal of public
organizations being to improve the quality of life for citizens. Effective performance management in
public organizations helps ensure that services such as health, education, and security are provided
adequately, equitably, and promptly.
2.3. Comparison of operational management effectiveness between two types of organizations.
Private organization Public organization
Speed of decision Decision making is often faster due to Must comply with stricter legal
making less influence from complex procedures, slowing down the pace of
administrative regulations. innovation and change.
Risk and innovation Take higher risks in innovation and Tends to be more conservative due to
experimentation public responsibility and limited
resources
Effective evaluation Often measured through financial The effectiveness of public
method metrics such as profits, revenue, and organizations is assessed based on
customer satisfaction. factors such as the quality of public
services, fairness and the level of
improvement in social welfare.

3. Analyze the role of operations management in VinFast.

Theo VinFast (2024), (8) Quản lý vận hành tại VinFast không chỉ đóng vai trò vận hành sản xuất mà còn
là nhân tố chủ chốt trong việc thực hiện các chiến lược phát triển bền vững và toàn cầu hóa. Điều này giúp
VinFast không ngừng củng cố vị thế trên thị trường ô tô điện trong nước và quốc tế.
 3.1. Supply chain optimization.

Tại VinFast, đã có những cải tiến đáng kể trong quản lý chuỗi cung ứng để đối mặt với những thách thức
hiện nay. Một số nguyên tắc chính mà VinFast hướng đến bao gồm nội địa hóa, near – shoring (hình thức
thuê ngoài các nhà cung cấp có vị trí địa lý gần công ty), đa dạng hóa và hiện đại hóa. Cụ thể,VinFast đã
đạt được tỷ lệ nội địa hóa lên đến 60%, có khả năng tự sản xuất 47% nguyên vật liệu. Đặc biệt, VinFast đã
thiết lập nhà máy phụ trợ ngay trong khu phức hợp sản xuất của mình để tối ưu hóa quá trình sản xuất.
VinFast đã áp dụng nguyên tắc chuyển từ sản xuất tuyến tính sang nền kinh tế tuần
hoàn, giúp giảm chất thải và tiêu thụ tài nguyên, đồng thời ưu tiên tìm nguồn cung ứng
nguyên liệu và sản phẩm từ các nhà cung cấp thể hiện trách nhiệm môi trường. Ví dụ,
pin xe điện của VinFast có nguồn gốc rõ ràng từ các công ty pin hàng đầu, với tỷ lệ có
thể tái chế lên tới 95%. Bên cạnh đó, VinFast còn áp dụng mô hình cho thuê pin để
đảm bảo quản lý pin phù hợp. Khi pin đạt khả năng hoạt động 70% thì thay pin và sử
dụng pin hiện có làm bộ lưu trữ năng lượng. Ngoài ra, VinFast đã thiết lập quan hệ đối
tác toàn cầu với LiCycle (một công ty có uy tín của Canada) để tái chế pin.
3.2. Service process management and improvement.
According to Thoibaonganhang (2024), (9) VinFast vừa trở thành thương hiệu bán chạy nhất thị trường ô
tô Việt Nam trong tháng 9/2024 với doanh số bàn giao kỷ lục lên đến hơn 9.300 xe ô tô điện. Dự kiến
trong 3 tháng cuối năm, lượng xe điện ra thị trường sẽ tiếp tục bùng nổ với kế hoạch bàn giao gần 80.000
xe VinFast trong năm 2024.Nhằm chuẩn bị sẵn sàng cơ sở hạ tầng và nguồn nhân lực phục vụ nhu cầu sửa
chữa, bảo dưỡng xe cho khách hàng trong thời gian tới và nâng cao hơn nữa sự hài lòng của khách hàng,
VinFast đang triển khai kế hoạch mở rộng hệ thống xưởng dịch vụ và phát triển đội ngũ kỹ thuật viên
ngay trong năm nay.
Cụ thể, từ nay đến hết năm 2024, VinFast sẽ đưa thêm 150 xưởng dịch vụ vào hoạt động, với mật độ ưu
tiên cho các địa phương đang có lượng xe điện lưu hành lớn như Hà Nội, TP.HCM, Bắc Ninh, Lạng Sơn,
Khánh Hòa… Cùng với đó, VinFast cũng sẽ quy hoạch lại các xưởng hiện có để đảm bảo mạng lưới
xưởng dịch vụ phủ kín 63/63 tỉnh thành, trở thành hãng xe sở hữu nhiều xưởng dịch vụ nhất cả nước vào
cuối năm 2024.
3.3. Investment in technology and production innovation.
Tại VinFast, đặc biệt chú trọng vào hiện đại hóa bằng cách sử dụng công nghệ điện toán đám mây và phân
tích dữ diệu từ các đơn vị công nghệ trong cùng hệ sinh thái. Điều này được thực hiện nhờ hệ sinh thái các
công ty công nghệ của VinFast như VinAI, VinBigData, VinBrain…, những đơn vị liên tục làm việc để
phát triển và thử nghiệm các công nghệ mới để hỗ trợ VinFast và các công ty thành viên khác trong hệ
sinh thái của Vingroup. Ngoài ra, các doanh nghiệp còn có thể tối ưu hóa các khâu vận chuyển và hậu cần
thông qua việc sử dụng phần mềm để lựa chọn tuyến đường và các phương thức vận chuyển thay thế như
đường sắt, đường biển hoặc xe điện để giảm mức tiêu thụ nhiên liệu và khí thải. Điều này có thể góp phần
vào một chuỗi cung ứng bền vững và hiệu quả hơn.
3.4. Effective human resource management.
Theo VinFast (2024), (10) tại VinFast, họ nhận thấy tầm quan trọng của việc giáo dục và đào tạo nhân
viên về các thực hành bền vững và khuyến khích họ áp dụng các hành vi thân thiện với môi trường ngay
tại nơi làm việc. Đặc biệt, tại VinFast, đã triển khai khung phát triển bền vững (ESG) phù hợp với sáng
kiến báo cáo toàn cầu (GRI) để đào tạo cho nhân sự các cấp, đồng thời tuân thủ các Mục tiêu phát triển
bền vững của Liên hợp quốc (UNSDGs), có chiến lược dài hạn. Ngoài ra, VinFast cũng thiết lập KPI ở
cấp phòng ban và công ty để theo dõi và đo lường tiến độ hướng tới các mục tiêu bền vững. Điều này giúp
chúng tôi xác định các lĩnh vực cần cải thiện và thúc đẩy cải tiến liên tục.
Theo Thoibaonganhang (2024), Nhằm nâng cao chất lượng dịch vụ và đem đến sự hài lòng tối đa cho
khách hàng, VinFast cũng đang triển khai chuỗi chương trình hội thảo chuyên sâu kết hợp đào tạo kỹ năng
mềm cho tất cả cán bộ nhân viên nhà phân phối trên toàn quốc trong tháng 10/2024. Chương trình mang
đến cơ hội giao lưu, gắn kết, chia sẻ và học hỏi kinh nghiệm lẫn nhau giữa đội ngũ cán bộ nhân viên của
các nhà phân phối trên cả ba miền Bắc - Trung - Nam, từ đó giúp hoàn thiện quy trình vận hành và khắc
phục những điểm còn hạn chế trong quá trình cung cấp dịch vụ tới khách hàng.
 1) Vingroup, 2017. Vingroup’s annual report of 2017.
https://vingroup.net/viewer.html?file=https%3A%2F%2Fircdn.vingroup.net%2Fstorage%2FUploads
%2F0_Bao%20cao%20thuong%20nien%2F2018%2FVIC_BCTN%202017_VN.pdf
2) Vingroup, 2019b. Vingroup’s annual report of 2019.
https://vingroup.net/viewer.html?file=https%3A%2F%2Fircdn.vingroup.net%2Fstorage%2FUploads
%2F0_Bao%20cao%20thuong%20nien%2F2019%2FVingroup%20-%20Annual%20Report
%202019_VN.pdf
3) Vingroup, 2023a. Vingroup’s Corporate Presentation.
https://ircdn.vingroup.net/storage/Uploads/0_Quan%20he%20co%20dong/0_Vingroup_2023/Apr/
2023.04.07_Vingroup%20Corporate%20Presentation_upload.pdf
4) CFI. Operations Management. (2023).
https://corporatefinanceinstitute.com/resources/management/operations-management/#:~:text=Operations
%20management%20is%20a%20field,the%20highest%20possible%20operating%20profit.
5) Mateusz Brodowicz. The Role and Importance of Operations Management in the Success of a
Business. (01/02/2024).
https://aithor.com/essay-examples/the-role-and-importance-of-operations-management-in-the-success-of-
a-business
6) Adam Hayes. Operations Management: Understanding and Using It. (23/07/2024).
https://www.investopedia.com/terms/o/operations-management.asp
7) H.Moore. Operational Management in the Public Sector (I): Performance, Impact, and Value
Creation in Government AgenciesAn Analytic Note. (04/2016).
https://scholar.harvard.edu/markmoore/publications/operational-management-public-sector-i-
performance-impact-and-value-creation
8) VinFast. VinFast – a model of sustainable supply chain in Vietnam. (11/2024).
https://vinfast.vn/vinfast-mot-hinh-mau-chuoi-cung-ung-ben-vung-o-viet-nam/