HO CHI MINH CITY OPEN UNIVERSITY BRUXELLES UNIVERSITÉ LIBRE DE SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MPQPM4 NGO DUC MINH IMPROVEMENT OF RESEARCH AND DEVELOP PROCESSES AT BT CHEMICAL COMPANY MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2014) ACKOWLEDGEMENT During the time I studied master program of SOLVAY BRUSSELS SCHOOL, I was supported a lot from my supervisor , Dr Jacques Martin not only has three helpful and exciting modules : Business Strategy, TQM and Performance Valuation, but also fully support us in information transferring , giving direction for self-study and specially providing me great ideas and advisement for my final report Besides that, all of professors who handled all our modules provide us a lot in knowledge, conception, new broad thinking and many modern methods that are useful not only for study but also for my own career I graduated and be working for Technology field, not in Management field So when I join this program, I learned a lot, understand something I feel strange before and important thing is I know how I can improve my career , my work place and contribute for my company I would like to thank to my supervisor in BT Chemical Company, Mr Tam- Director, who support me all condition in term of time, data and customer contacts to collect data and make this report I would like to thanks to Ms Ngoc Hien - Solvay Program Coordinator- for her support whole the Master Program and a perfect coordinator in proving useful information relate to final Project and all modules of this program Last, I would like to express my gratitude to my all class mates who always not hesitate to support me in document, methodology, noting me some works that I nearly missed Thank you all, I really have a good time in my life with this program I saw and felt new horizon of knowledge, have broad thinking and many interesting friends I wish you all have a good life and more successful in your own career ABSTRACT All companies, Organizations always aim to become bigger and more valuable Developing an organization is not simple It needs long-term strategy, good direction and be supported by all company members A Chemical Company provide goods follow market demands, new requirement and face to fierce competition, it has most of added values come from Research and Develop activities and Production So clearly to see the priority of improvement must be put into RD operation This department has vital role for demand adaptability, give the power to help company to sustainably develop RD activities require highest level of staff’s education, the works are so complicated and change every day So improvement of RD department performance requires differently, strictly in process, recruitment, manpower organizing This report aim to not only recommends the direction for RD activities through customer feedback analysis, the defect and cause analysis then giving more ideas for improvement direction but also prove out full plan to improve total performance of RD department CONTENTS ACKOWLEDGEMENT .3 ABSTRACT CONTENTS INTRODUCTION .8 I BT Chemical Company business description II Structure of BT Chemical Company III.RD departments and its role in company business .9 IV Need of Improvement .9 IV.1 Operations of RD department IV.2 Main weaknesses of recent operation lead to need of improvement 10 PART A: ESSENTIAL WORKS FOR RD DEPARTMENT PERFORMANCE IMPROVEMENT 12 I Situation of BT Chemical Business performance 12 I.1-Customer satisfaction analysis .12 I.2- Products Quality Follow up analysis .16 II Essential works for performance improvement 18 PART B: DEPLOYMENT 19 I Re-organize RD man power .19 I.1- Why to re-organize RD man power 19 I.1.1-Make all processes run smoothly .19 I.1.2- Increase adaptability of RD department and increase awareness of each person 19 I.1.3-Make people accept new structure and follow division 19 I.2-How to .20 I.2.1- Valuating staff’s work load 20 I.2.2- Make work division table .21 I.2.3- Organize the structure of RD department 22 II New recruitment process for long term improvement 23 II.1-Candidate resource 23 II.1.1- Experience candidate 23 II.1.2-Introduced candidate 23 II.1.3- Recent staff 24 II.1.4- Common resource .24 II.2- Build up the RD job description for new recruitment 24 II.3- Recruitment steps .25 II.3.1- General interview 25 II.3.2- Specific interview or doing test 25 II.3.3- Assessment 25 III Set-up Document system 26 III.1- Documents for RD staff can self-study 26 III.1.1- Basic Knowledge .26 III.1.2-Advance Knowledge 27 III.2-Work document 27 III.3- Work community 27 IV Set-up new raw material data based 27 IV.1- What is raw material data base .28 IV.2- How to collect the information, specification of material .30 V Build-up new RD process 31 V.1- Material Test 31 V.2- Chemical Engineer work at RD department 33 V.3-Process of making decision: improve recent products or develop new products 34 V.4-Process of development new chemical product for furniture .37 VI Build up KPI for RD staff and Dashboard for RD activities 39 VI.1- RD staff assessment 39 VI.2- RD activities assessment 40 VI.2.1-Building up Raw material data base: 40 VI.2.2- Product Improvement 40 VI.2.3-New product development 40 VII Build up RD training program .41 VII.1- When training is implemented 41 VII.2- Training classification 42 VII.3- Training methods 42 VII.4- Personal training plan: 44 CONCLUSTION .45 I- Which one is most important and high priority 45 II-Difficulty 45 REFERRENCE 46 INTRODUCTION I BT Chemical Company business description BT Chemical is the local private company that produces mainly wood coating for furniture and outdoor wooden products that was provide both for exporting and domestic market At the beginning of time, BT Chem Company produces cashew oil coating, a kind of traditional and ancient coating for furniture, now only use for handicraft products During the operation, top management realized that market of cashew oil went down year after year and there are some substitutes that have proper characteristics for wood coating such as NC lacquer, PU coating, AC coating… Solvent based coating emerged and had been used mainly till now BT Chem started research and produce the solvent based coating to adapt market demand beside keep producing cashew oil as company traditional products Now, BTchem has become the biggest local coating company for furniture in Vietnam with13 years experience and over 25 million dollar of sale per year BTchem has number of customers that spread along the country from South to the Middle of Vietnam and some provinces of the North Some segments of BTchem products competed directly with the products that come from well-known foreign companies such as Serwin , Inchem… II Structure of BT Chemical Company III.RD departments and its role in company business At the beginning, RD department only had two persons include company director and one staff who supported him in all test and research At that time, there were not many competitors in market and the requirements were not too difficult That was the opportunity for BTchem had time to adjust and create new things for that young markets With only two persons for new products research, products were poor in function, not stable But after a time, the market requirements increased so top management decided to establish RD department to handle this Why RD department is key department Beside the research for new products, RD dept was put in charge to test new raw material for change in some case or just for backing up RD people make prototype of new product, they also create procedure of making goods in small scale Then, responsible people will base on that procedure to calculate for production side Because of being the product makers, RD people know about to specification, raw material safety and handling So they have to issue the process and method for quality control department and make the products document for customer service and marketing activities Now we can see the responsibility of RD people across the organization and be essential RD department operate well, that impact positively on all remain departments: Business, Customer service, marketing, purchasing and QC as well IV Need of Improvement IV.1 Operations of RD department The process abroad has not been used yet RD activities mainly control by director and deputy manager Every day, issues rise at customer, Technical department, supplier and QC department are informed directly to RD and Director or manager use their experience to find the way for each issue and assign RD staff to this Issues can be new requirement, complain, new raw material supplier There are no issues classification and no standardization of method to solve issues RD staff will just follow manager direction and report to him ( most of case are oral report ) until issues has done In case, the issue is new product, prototype or sample is sent to customer for trial but don’t have any way to be followed up and sometime, issue is forgot It’s potential of market lost because lack of sensitive adaptability -New sample of raw material are sent to company, most of them are stored and forgot Only samples that company ask supplier because of need for some improvement or new product, they will be test immediately If the 10 sample doesn’t work, supplier feel difficult to ask the result, maybe they will be not enthusiasm to support company next time IV.2 Main weaknesses of recent operation lead to need of improvement BTChem Company was established as a private small business of family At that time, most of staffs or members of BTchem are in the same family or friends So the way that this company runs not really a company It’s suitable with the business environment in the past By this way, BTchem was not worry too much about the labor management cost and organizing manpower Remember that the market at that time was so easy and there was not a lot of competitors, so owner was able to reduce the management cost as much as possible without any negative impacting on business ( if any, they were not significant) I recall this to explain some complicated things of RD process now Although the company grew up and achieve new level in term of scale and business But it still be impacted by the old ways of thinking, methods and from old people still be working -RD department doesn’t have manager, only has person is called deputy manager (it’s quite strange world but that it is) Director is also RD manager, he manage all activities of RD and all remain people must follow his direction The small scale company, this way is still good, because topmanagement can follow whole operation process tightly But when the company develops to medium scale and large scale, director have many management activities beside technical issues So, that the way BTChem is getting massive day after day -As usual, customer information will be collected by Technicians or Customer service center Then these information will be stored at data base and waiting for responsible persons take action (normally Technical Manager and his assistances will arrange or assign people to work) But Director really wants to involve to all his company operations, so he always cut across the normal process and has some special ways/ short ways with RD staff supporting to solve and feel that could be better -Some problems rise at customer side and be reported by Technicians RD staff, actually, director and his assistance will solve this, another staffs only play role like supporter Because: - They were not trained enough - They were not selected carefully in recruitment process( lack of basic knowledge) - There were no further plans to train staff They feel to be difficult to improve themselves and get promotion, so lead to lacking of staff commitment -Another problem is other departments and whole related staffs are not really understands how importance of information flow They lack of system 11 thinking, and commitment Staffs don’t understand their Job or the result of their work is where of whole system and their influence Common ground of basic knowledge of all staff is quite low, so there is big barrier of learning new thing, acceptant new conception Maybe it’s difficult to carry out training activities and some process improvement, management as well One more special things that slowed down the develop and became barrier for innovations are all managers and some important position are old and low education and have special relationship with director (relatives, close friend, school mate…) so it’s hard for change or replacement And most of them are so persistent, difficult to absorb new things All staff did not really understand and follow the process, procedure of their work Technician and sale-man often provide information to wrong person (information from customer sometime go to formulator or RD staff without manager approval) and there are some miss-understanding between provider and receiver that lead to wrong action and waste time -Maybe at this time, the strengths of Company still have more advantages then influences of weakness, but for long term and stand on “sustainability strategy view”, Company must have to have some changes Below are some points that we can have overview about the situation, talk in another way, the negative points that impact, slow down the RD processes performance -The information of new raw material is not updated for related person ( formulator) so they don’t have enough data to improve or develop products After some description above, I summarize to nine weaknesses of BTchem RD department Obsolete thinking and structure of organization Process interruption due to management Management system did not work sufficiently Lack of commitment and it’s difficult to satisfy Self-esteem needs Lack of awareness of system thinking Knowledge barrier Passive thinking The procedure was not followed tightly Lack of data base 40 This assessment aims to classify competency of staff or use to decide promotion The purpose is to improve work division and help staffs develop themselves After deputy manager done this report, a short meet will be hold to collect ideas and revise whole process to draw out experience VI.2- RD activities assessment Dashboard is created to follow up status of RD operation in all main activity of RD VI.2.1-Building up Raw material data base: Manager see number of new raw materials were tested in months to assess how much time RD spend for this activity and see number of raw materials were used for production in months to know the effectiveness of data base is building Assessment of Engineer/Formulator: valuate the usability of data base Assessment of Supplier: valuate the quality of testing , this assessment will be done through all material test reports VI.2.2- Product Improvement Number of improvement in months and Number of improved product that satisfied customer per number of improved product is reviewed and assessed the work load of RD and the effectiveness of this activity VI.2.3-New product development Number of new products in months and number of new products that satisfied customer per number of new products were developed are reviewed and evaluate the work load and effectiveness of this activity Dashboard (see table 15)show manager how RD operate and when is need to revise process, re-organize structure of manpower, training and improve the method, invest to buy new devices, machines, apparatus that help these activities 41 Table 15 Because of specific of RD work, all attributes of RD performance base on market demand We only can see the number of work to assess work load and consider the performance of department Effectiveness of RD only assess through the performance of staff, how the staff can done their work on time, correctly, completely So the Dashboard will show the workload and total delay time of RD staff Manager will try to make balance the work load and delay time to make sure effectiveness of RD department VII Build up RD training program Training and development is important to ensure that staff to continue to learn skills, knowledge to help the company be successful Employee training is a learning experience that seeks a relatively permanent change in employees such that their ability to perform at their current job improves This may mean changing what employees know, how they work, or their attitudes toward their jobs, co-workers, managers, and the organization VII.1- When training is implemented  New staff  Old staff moves from another department  Rotation of work in RD department 42  New method is applied  New device/apparatus/tool is used  There are some problem and training is preventive action VII.2- Training classification Btchem have policy help its employee not only the matter but also way of thinking, knowledge Through this policy, BTchem align staff’s benefit to company benefit Now, RD department has some kind of training that are available to help staff their job well and improve their skill, develop career and their own knowledge  Basic training: this training provide staff definitions, conceptions, basic knowledge, basic skills  Advance knowledge training: method of thinking, process, production follow up  Set up mindset training: Quality management system, Company policy, Regulation, Overview of market VII.3- Training methods There are two main methods of training that are used in Btchem : workshop training and on-job training Workshop training: a training class is hold and a expert is assigned to be trainer This method use for some skills that is too complicated and systematical to train on job Trainees have to arrange their time and works to attend this class and there is assessment after class to valuate effectiveness and quality of training On-job training: Most training takes place on the job Such training is convenient and cost effective But, on-job training can disrupt the workplace But this method doesn’t need a lot of time and money The effectiveness is may highest The assessment is made by directive trainer The training has to be record and re-evaluate at least three times to make sure the competency of trainee and let them work independently (see table 16) 43 RD training program No Training Class RD conception Basic training 10 11 13 Advance training Technology implement Analyze sample 19 RD department regulation Chemical Regulation 20 22 23 24 Implement modern method for research and develop Paper research skill Production assessments Customer assessment 16 17 18 21 Basic of coating Basic of Chemical in Coating Industry Sample valuation skill Prototyping process assessment skill Safty training Material safty Mechanism of additive 12 14 15 Content Sampling skill Prototyping skill Reading skill Reporting skill Set up mindset training Environment Regulation Method On-Job On-Job On-Job On-Job Selflearning Selflearning Workshop On-Job On-Job Workshop Workshop Selflearning Workshop Workshop Selflearning Workshop On-Job Selflearning Selflearning Workshop Selflearning Company HR Policy Quality management system Quality Policy Workshop Selflearning Document code Approval by Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg Deputy Mg RD manager RD manager RD manager RD manager RD manager RD manager HR department HR department HR department HR department HR department HR department Table 16 Training program for RD staff aim to provide staff need knowledge and skill for their work, beside that, this program is desired to train them to become experience, committed , professional employees They have standard program to improve themselves and learn more then they need So the change for promotion 44 will be shared equally for everyone Training program is one of most important part to create motivation for staff VII.4- Personal training plan: Table 17 RD department has a large of work load, so everyone ,especially managers are so busy They can spend too much time to follow each staffs training And most of skill and knowledge are trained by self-training Personal training plan(see table 17) is setup specifically for each staff so that they can be active to train themselves and ask upper staff/manager assess them then confirm and record their competency 45 CONCLUSTION I- Which one is most important and high priority Base on strategy was built, all processes have special role and support each other Because BTchem operation relate tightly customer operation.It’s possible to interrupt for management activities So the improvement will be implement parallel with normal operation -Re-organizing RD processes should be set high priority because it strongly impact on business quality and may play vital role to maintain the position on market of Btchem Now, many Chemical companies are competing fiercely and BTchem star showing its weakness more and more It’s urgent to change the way of operation so that increase competitive power as soon as possible Besides that, Man-power re-structure is the second priority It’s not difficult to see that BTchem is getting chaos due to the structure is not clear and reasonable Information go to wrong people, the result report to wrong person, miss-understanding occur frequently, staffs don’t understand their role With suitable structure, everything will solve quickly and improve a lot the performance of RD department The training, Raw material Data base, recruitment process, dashboard We can set lower priority All will be implemented in long term because of complication of them and need to be revised and be consulted, supported by competent experts II-Difficulty All activities of improvement must be agreed by top management and has support from him in term of matter, time, man power Difficulty is now, Top management is not really feel the improvement is vital The business till run well, Director always want to implement improvement, development without a lot of work like this Top management must assign one person who have strong knowledge, good attitude and understand all process to follow up process, coordinate work, and report the result Difficulty is this one is not available in BTchem company People who have adapt these requirement often be business and tend to prevent this kind of activities This thesis aim to prove the way that RD department of BTchem company can improve their performance, adaptability, professional manner so that it may helps company has more competitive advantage and permanently develop This thesis is considered as a suggestion and be revised, adjusted during implementation process I hope in future, all departments will improvement and all integrate and make company become a modern organization 46 REFERRENCE -Ackers P (2001) Employment ethics In T Redman and A Wilkinson (eds.) 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Human Resource Management: a critical text London: Thompson (37-56) -ICR 2011 Available: www.icrsurvey.com, Accessed 19th April 2014 -Relation to Retention (WP-06-06) Aspect of Cognitive Process, Journal of Marketing Research APPENDIX A : CUSTOMER SATISFACTION SURVEY Is BTChem company the first choice if you have new project or new production? Answer Mark -A Severity-B (1-5) A Yes B Yes, but I refer xyz Company because of my customer require C Yes, but not only choice, I will ask suppliers at least D No, I have another better choice What is your idea about Btchem products Answer A Overall good B Depend on what kind of products, I think xyx coating is quire good, but abc coating is unacceptable C Good, but the price should be reasonable D so so Do you see the Btchem products are stable ? Answer A pot-life is quire short but acceptable B Very stable C Need to improve D so so Overall score =A*B In general, How you think about Btchem product quality Answer 4 A That's good B Need to improve C It's OK, but can not compare to xyz company D Not too bad The time to complete the color sample, How is it? Answer A Acceptable B it's ok, but sometime too slow C It's OK, but need improve as much as possible D Too slow Competency of Btchem Technicians / Staff Answer A OK B Average C It's OK, but need improve as much as possible D unacceptable Attitude of Btchem staff/Technician Answer A OK B.So so C.Quite lazy D.No commitment How is the packaging of Btchem product Answer A Nice and enough information B.Nice but Lack of information C.So so but enough information D.too bad How is the delivery time of Btchem Answer A on time and flexible B.Not stable but acceptable C.On time but not flexible D.Late Customer Index ( Sum of overall score) Appendix B : DATA AND CALACULATION CUSTOMER SATISFACTION No Dat e Compa Name Position ny A 22Jan B 24Jan D 25Jan E 26Jan F 2Feb 10Feb 11Mar G H I 17Mar J 21Mar Mr Than g Producti on Manager Mr Long Operator Mr Qui Director Mr Truc Producti on Manager Mr Nam Director Mr Thuy Producti on Supervis or Mr An Operator Mr Tran Producti on Manager Mr Dung Producti on Product Using Attribu te Severit y Score PU HXXT Overall Coating score Score NC Overall score Score PUTXXT Overall score Score AC Overall coating score Score PU Overall score Score AC coating Overall score Score PU BTXX Overall score Score UV Overall Coating score Score PUTXXT Overall score Reputati on Compa ny Stabilit Qualit Adaptabili Competen Profession Packagi Image y y ty cy al Manner ng 5 4 Delive ry Custom er Valuati on Index 113 20 15 10 20 8 20 6 125 20 20 20 15 12 20 137 20 20 20 20 12 12 20 133 20 20 15 15 12 16 20 117 15 15 15 20 12 20 6 122 15 20 15 20 12 12 15 128 15 15 15 20 12 16 20 127 20 20 15 15 12 12 20 119 15 15 20 15 12 12 20 2610 Mar K 1511 Apr M 1712 Apr N 2813 Apr O 29Apr 3Ma y 5Ma y 7Ma y 12Ma y 15Ma y 17Ma y P 14 15 16 17 18 19 20 Q AA BB CC DD EE Mr Hiep Supervis or Producti on Supervis or Score 4 3 3 NC Overall score Score Mr UV Director Overall Dao Coating score Score Mr QA PU BTXX Overall Henry Leader score Score Mr AC Director Overall Ching coating score Score Mr Operator PU BTXX Overall An score Score Ms QC NC MOD Overall Duy manager score Score Mr Director PU VS Overall Dat score Score Mr Operator BT UV Overall Tran score Score Mr AC Leader Overall Thu coating score Mr Score QC Flooring Truon Overall manager coating g score Producti Score Mr on PU SM2 Overall Hoc Manager score 122 15 20 20 15 12 12 15 123 15 20 15 15 16 12 20 123 15 15 20 15 12 16 20 119 15 15 20 15 12 12 20 128 15 15 15 20 12 16 20 123 15 15 20 15 12 16 15 131 15 20 15 20 12 16 15 12 127 15 15 20 20 12 12 15 12 127 15 15 20 20 12 12 15 12 128 15 15 20 20 12 16 15 119 15 15 20 15 12 12 20 21 22 23 24 25 26 20Ma y 21Ma y 23Ma y 25Ma y 28Ma y 29Ma y FF GG KK HH MM NN 227 Jun OO 728 Jun PP Process controlle r Score Stain Overall score Score Mr Deputy NC 1106 Overall Huu Director MOD score Score Mr Operator PU 2805 Overall Hai score Score Mr QA Putty Overall Duc Leader 1808 score Producti Score Mr on NC PAK Overall Luu Manager score Score Ms Supervis NC MOD Overall Hanh or score Score Ms BTUV24 Operator Overall Diem 07 score Score Mr PU HXXT Director Overall Chau Coating score Mr Luc 3 4 3 121 15 15 15 20 12 16 15 122 20 20 15 15 12 12 15 112 15 15 15 20 12 12 10 4 130 15 20 20 20 12 12 15 12 126 15 20 15 20 16 12 15 131 15 20 20 20 12 16 15 4 125 15 20 15 20 12 12 15 12 117 15 15 15 Average Customer Index 20 12 12 15 124.1 APPENDIX C: DATA OF PRODUCTION FOLLOW UP Date 2-Jan 5-Jan 15-Jan 27-Jan 4-Feb 13-Feb 18-Feb 2-Mar 7-Mar 19-Mar Production stage Product Defect Root-Cause Topcoat PUTXXT Orange Peel Cause Sealer 2th NC Cratering Cause Primer NC MOD Cratering Cause Topcoat PUTXXT Sanding mark Cause Sealer 1th AC coating Swelling Cause Roller 2th UV Coating Blister Cause Topcoat 2th PU BTXX Orange Peel Cause Topcoat 1th NC Orange Peel Cause Sealer AC coating Swelling Cause Sealer 3th NC 1106 MOD Cratering Cause Topcoat PU BTXX Orange Peel Cause Sealer 1th AC coating Swelling Cause Roller 5th UV Coating Blister Cause Sealer 1th NC Cratering Cause Topcoat PU VS Orange Peel Cause 6-Apr 15-Apr 28-Apr 17-Apr 20-May APPENDIX D: DEFECTS AND CAUSE CLASSIFICATION Defect Mode Cause Corrective action Preventive action Cause Corrective action Preventive action Cause Corrective action Preventive action Orange Peel The temp is too high, so solvent go up faster and no time for leveling Stop production or use slow evaporation thinner Training operator ,Put thermometer at production side, record every shift The coating was applied too thick/Viscosity of coating was too high Follow tightly process step Training operator and issue process paper , stick at production side Poor spaying technique change competent operator Training and practice, evaluate operators carefully Weekly test Cratering Oil, wax, silicon residue on subtrate Clearn carefully with cotton and blow by high pressure air Training operation about the substrate condition for coating Oil in high presure air apply oil filter for air compressor Check air contamination before production Insufficien component of coating Revise formular Sanding mark insufficient drying time of under coat lead to sweeling and make sanding mark is more visible Follow tighly process step Training operator and issue process paper , stick at production side The substrate was sanded with abrasive that was too coarse Follow tighly process step Training operator and issue process paper , stick at production side Poor sanding Technique change competent operator Training and practice, evaluate operators carefully Weekly test Swelling insufficient drying time of under coat Follow tighly process step Training operator and issue process paper , stick at production side The thinner is too strong and dissolve substrate change sufficien thinner Training operator and issue process paper , stick at production side Blister The temp is too high, surface layer cure first and trap solven of under layer Follow tighly process step Training operator ,Put thermometer at production side, record every shift Drying time is too short Follow tighly process step Training operator and issue process paper , stick at production side insufficien thinner change sufficien thinner Training operator and issue process paper , stick at production side ... support company next time IV.2 Main weaknesses of recent operation lead to need of improvement BTChem Company was established as a private small business of family At that time, most of staffs... what they need what company need and how the candidate adapt Job description is just a list of work that candidate will every day in future and to fulfill this, which skill they should have and. .. for raw material selection IV.1- What is raw material data base This is the list of Raw material, it is classified, catalogued and put specification, function, and all attributes that help user