ContentsIntroduction.................................................................................................................................................2

3.1 Design systems to manage and monitor quality standards specified by Vinamilk.................................3

3.2 Demonstrate a quality culture to ensure continuous monitoring, evaluation and development of the process.........................................................................................................................................................6

3.3 & 3.4 Recommend improvements which align with the Vinamilk objectives and goals and which result in improvements of the infant formula systems. Report on the wider implications of proposed changes within Vinamlk.............................................................................................................................................8

4.1 Carry out risk assessments as required by legislation, regulation and organisational requirements and also to ensure appropriate action is taken on the new production lines for the domestic product............9

Risk........................................................................................................................................................10

Risk assessment.....................................................................................................................................10

Identify the hazards...........................................................................................................................11

Decide who might be harm and how.................................................................................................11

Evaluate the risks and decide on precautions....................................................................................11

Record fiding and implement them...................................................................................................12

Review assessment and update if necessary.....................................................................................12

4.2 Demonstrate that health and safety regulations and legislation applicable in specific work situations (at Vinamilk) are correctly and effectively applied....................................................................................14

4.3 Carry out a systematic review of organisational health and safety policies and procedures in order to ensure they are effective and compliant...................................................................................................16

4.4 Carry out practical application of health and safety policies and procedures in the workplace..........18

Reference..................................................................................................................................................21

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Introduction

Vinamilk is the biggest local company who produce dairy products in Vietnam and they also

have GEA Processmengineering for the delivery of two complete dairy processing lines for

production of infant formula.

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Moreover, the delivery invlolves two GEA Process Engineering wet mix plants, two GEA Niro

spray dryers, and two GEA Colby powder handling and retail filling plants. GEA Process

Enginering will also provide utility and mechanical installation as well as production start-up

services.

These processing lines will produce four tonnes of infant formula per hour infant formula

production., scheduled to commence in August 2012, will serve both domestic market in

Vietnam, as well as Vinamilk’s export markets.

3.1 Design systems to manage and monitor quality standards specified by VinamilkTo make the best product, Vinamilk use 2 production lines that was made by high technique

including wet mix process and dry mix process.

Processing line 1: Wet mix process.

This is the first process. The raw material will be put into “Raw material reception” at the same

time with “Tankers” and “Drums” in “Oil reception” . Then, the process will continue with steps

later. All of steps will be described clearly in the chart below.

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The second process is processing line 2: Dry mix process

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For ensuring the the quality standard, Vinamilk uses systems to manage and monitor it. There are

some of systems that company apply including ISO 9002, ISO 17025, BRC, HACCP, TQM.

Applying Total quality management (TQM) in Vinamilk.

Total Quality Management (TQM) is the important system to manage and reponsible quality

of product in production process.

“The continuous process of reducing or eliminating errors in manufacturing, streamlining

supply chain management, improving the customer experience and ensuring that employees are

up-to-speed with their training. Total quality management aims to hold all parties involved in the

production process as accountable for the overall quality of the final product or service.”

(Following www.investopedia.com)

These are some main factors in Total quality management (TQM):

Understanding and commit to TQM

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Evaluate the current culture, customer satisfaction and quality management systems.

Define the core values that is used to communicate with other departments.

Determine and priority customer's need about the infant formula product

Creating the map of critical processes through which Vinamilk can fullfil customer's

demand about product.

The progress will be evaluated regularly

Providing employee awareness and feedback about reward/ recognition process is

established.

3.2 Demonstrate a quality culture to ensure continuous monitoring, evaluation and development of the processEach company has their own culture for ensuring the whole company running on the right way

and having core value for both company and other that could be customer, environment…etc…

These are the main culture of Vinamilk company.

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The mission of Vinamilk is not just giving the best product to the customer, it also create the best

work environment and good relationship with stakeholders and all of Vinamilk’s acts will based

on these core values.

“Our value and success rely on your creativeness and interest in work. Therefore, we always

exert ourselves to create a professional, friendly and open-hearted environment in order for

individuals to show your creativeness, promote your potentials to make differences.

At Vinamilk, employees are always respected, listened and shared. Each individual also

understands that he is a link of a chain in a united and powerful team. Your efforts and

achievements are recognized and highly commended. That is the big motivation to help you find

interests and be ready for new challenges in their work.

You spend more than one third of your time working in our company. Thus we assure to bring

you ease of mind to work well. Outdoor activities, performance, dancing and camping … are

held frequently to help you enjoy happy and useful moments. Employees also have a chance to

understand each other and promote teamwork spirit effectively.”

Next, these things below are some recommand about improving quality culture of Vinamilk to be

better.

For getting the high quality performance, Vinamilk is required inspirated and be capable

leadership. Leadership in the organization must demonstrate in expectations about

changed quality. Then, assign new leadership can improve more the quality of

organization.

For better in quality,they must be developped by a new level of discipline with regard to

quality deliverables, new observed criteria by which employees who are rewarded and

promoted and a change in which metrics are tracked rigorously.

They need change for new slogan. Their own slogan is “International Quality – Vinamilk

Quality” and they should let people knowing deeply more about the core value of

Vinamilk's product. It's not just quality, it's more than that.

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They need change for new slogan. Their own slogan is “International Quality – Vinamilk

Quality” and they should let people knowing deeply more about the core value of

Vinamilk's product. It's not just quality, it's more than that.

3.3 & 3.4 Recommend improvements which align with the Vinamilk objectives and goals and which result in improvements of the infant formula systems. Report on the wider implications of proposed changes within Vinamlk Goals:

•To apply new technology in infant formula system

•To develop the satisfaction of customers

•To increase the profit

Objectives:

•To GEA Colby system for processing line.

•To increase 20% of customer satisfaction and decrease 15% complaint from customer by the end of 2013

•To provide training programs for employees every three months until the end of 2013.

•To recruitment five high quality supervisor of five departments by the end of September, 2013

Some recommendation about relation with stakeholders of Vinamilk:

• Internal stakeholder: Rising aware and bonus for employees who work profitability.

• External stakeholder: Building good relationships e.g they should pay full tax for the government to get the belief of them.

• Connected stakeholder: Giving some special treatment. For example, they can purchase higher bonus for distribution when the product they sell is higher than before.

Performance of Vinamilk

• “Decreasing advertising costs, increasing promotional costs”

• Vinamilk got over 40 performance and aware e.g “Be honored and award winning Intellectual Property Organization WIPO World in 2006”.

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• “The company increased some costs such as sales promotion expenditure increased from 268 billion to 502 billion, commission and support distributors from 237 billion to 330 billion.”

4.1 Carry out risk assessments as required by legislation,

regulation and organisational requirements and also to ensure

appropriate action is taken on the new production lines for the

domestic product

Anything has its own risks so the same at the production line of Vinamilk. When the chain of

production runs, it could have some risks and if they do not have any solution to stop or

overcome it, they can lose money for fixing, getting employees’ accident and losing the belief in

good conditional of work environment. Then, what is risks? How many risks assessment? And

what did Vinamilk do to low down the risks to the lowest and making sure create the best

conditional work environment?

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Risk

“The possibility that due to a certain hazard in food there will be an negative effect to a certain

magnitude.” (following businessdictionary.com). In Vinamilk product, if they do not be careful

in manage the risk of system, they can get products that own bad quality , some harmful and the

customer can get noxious goods. Finally, they can get sick and the belief for the company from

the customer low down, the means the value of brand also low down too and of course, the profit

will be decreased quickly. In addition, risks of production can cause many of happens for the

whole process such as the damage of machines, building or people.

Risk assessment

When they understand the risks that could be happened when the processing line runs, they can

make some risk assessment to decrease risks as much as possible. Then, risk assessment is an

examination of what could caause harm to people. So what they can wiegh up whether they have

taken enough precautions or should do more to prevent harm. Workers and others are right to be

protected from harm caused by failure to take reasonable control measures. There are 5 steps of

risk assessment.

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Identify the hazards

The first thing is they need to work out how people could be harmed. They can easily discover

some hazards when they have overlook in the work place.

Decide who might be harm and how

After they define hazards that can make a harmed to people, they need to be clear about who

might be harmed by these hazards. Next, they can identify the best way of managing the risk.

Evaluate the risks and decide on precautions

When they got the spotted of hazards, the next step they do is deciding what do they do to

resolve that hazards based on the law that requires them to do everything "reasonably

practicable" for protecting people from harm.

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Record fiding and implement them

Putting the result of risk assessment in practice and that will make a difference when they look

after everybody in business. Moreover, they need to write down the results of risk assessment,

share them to employees and encouraging people follow.

Review assessment and update if necessary

The final step is review all risk assessment. If steps of risk assessment is good, they will continue

execute following steps and updating more. Besides, if that risk assessment is not approriate

anymore, they will reject and replace by others.

In processing lines of Vinamilk, there are some hazards that could be happened. The table below

some of them.

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(Following DOE Handbook Chemical process hazards analysis by U.S. Department of Energy

Washington, D.C. 20585)

For example, in “thermal energy”, “Elevated temperature” can be happened and the result could

be “Hot material release, Steam explosion or equivalent”. Then, workers can be hurt by these

things. That is the reason why Vinamilk must have power meter, temperature gauge to make sure

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all machines run in safety temperature when the temperature is high over than the standard,

workers can adjust machines for dropping down the temperature to avoid accidents.

4.2 Demonstrate that health and safety regulations and legislation applicable in specific work situations (at Vinamilk) are correctly and effectively applied For ensuring create good condition at work for everybody who work in the company. Every

company must have regulation in work environment and it will be based on the general law that

will apply for everywhere. The most typical law is “The Health and Safety at Work, etc Act

1974”. Following this, employers have responsible to protect their employees from bad

condition to make sure the health and safety for employees e.g training deeply for employees

about how to use machine on the right way. Besides, employees have responsible following their

employees about health and safety. The cooperation of both employee and employer will

decrease the accident by negligence to the lowest for people’s safe. These are some general

sections in this law.

• Section 1 places a duty on employers to ensure the health, safety and welfare of

employees as far as is reasonably practicable.

• Section 2 requires employers to ensure that non-employees (eg pupils/students) who may

be affected by work activities are not exposed to risks to their health and safety.

• Section 3 places a duty on anyone responsible for the workplace to ensure that the

premises, plant and machinery do not endanger the people using them.

• Section 4 requires employers to prevent and control harmful, noxious or offensive

emissions into the atmosphere.

• Section 5 places duties on designers, manufacturers and suppliers to ensure that articles

and substances are safe for use.

• Section 6 The duty of every employee while at work to take reasonable care of him or

herself and of any other person who may be affected by his or her actions.

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• Section 7 requires employees not to interfere with or misuse anything provided in the

interest of health and safety.

The same as “The Health and Safety at Work, etc Act 1974” of UK, Vietnam government also

have Vietnam Health and safety at work issue The Government 06/CP 1 January 20, 1995

following Law on Organization of the Government of September 30, 1992.

Section 5: Workplace risk factors, likely to cause harmful accidents under Article 100 of the

Labor Code shall be as follows:

1. There must be equipped with technical means, as appropriate medical drugs, cotton, bandages,

stretchers, respirators, emergency vehicles;

2. There are contingency plans to handle incidents that may occur;

3. Must be organized rescue teams;

4. Team and emergency workers should be regularly practiced.

For small units, the employer or self-organization associated with the adjacent units, the

organization of local emergency to deal with the emergency, but still held to aid in place.

Section 6: Employees work with dangerous elements, are toxic to adequate personal protective

equipment properly, and quality standards, the list of the Ministry of Labour - Invalids and social

regulation.

Section 7: The periodic health checks and training on occupational safety, occupational health

under Article 102 of the Labor Code as follows:

1. Must health care workers, including trainees and apprentices, at least once a year, for the hard

work, malicious damage, at least 6 Months 1 times.

The medical examination due to the state medical units perform.

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2. Before getting jobs, workers, including trainees and apprentices, to be guided, trained in

occupational safety, occupational health.

Then based on the work of each person responsible for the training and guidance of safety

measures, and appropriate sanitation practices must be examined closely.

Prohibited the use of untrained labor and safety have not been issued job cards have strict

requirements on labor safety, labor hygiene.

The organization of training courses to train under the guidance of the Ministry of Labour -

Invalids and Social Affairs.

Section 8: Allowances in kind under Article 104 of the Labor Code shall be as follows:

1. Fostering the correct amount, according to the structure of the Ministry of Labour - Invalids

and Social Affairs and the Ministry of Health;

2. Fostering spot in shift work;

3. Ban paid in kind instead fostering.

4.3 Carry out a systematic review of organisational health and

safety policies and procedures in order to ensure they are

effective and compliant

According to health and safety regulation, Vinamilk also have their own health and safety

policies to make sure create good condition for their employees. Then, they will work

effectively, making the best performance in work to produce the best product for customer and

the company can get the highest profit from that. These main factors in Vinamilk’s policy about

“Responsibility social corporation”

SAFETY

Vinamilk focused on providing the employees working conditions are safe and

continuous improvement that:

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Equipped with safety measures to minimize the potential problems that may arise to

cause harm to workers.

Provide adequate tools workwear safety for workers, giving directions and adequate

warnings to employees in the operation and use of machinery and equipment.

Investment equipment systems suitable fire protection at all offices and operating

locations and regular training for employees to prevent problems and ensure the safety of

workers when an incident occurs.

HEALTH CARE WORKERS

In addition to ensuring safety, ensure the health of workers is an issue that VNM are

interested in:

Provide workers nutritional meals to ensure safety and food hygiene.

Organize local health department workers to provide medicines and first aid operations in

place.

To organize periodic health examinations for workers with adequate medical services and

best.

Provide the employee health insurance: accident insurance 24/24, insurance & health

care...

TIME WORK AND RECREATION

Vinamilk is committed to comply with the provisions of the law on working time of employees

and building the appropriate mode to:

Balance between work time and leisure time to ensure the reproduction of labor and

health.

Helping employees balance work and life.

The need for leave under the regime of workers are met in the best way.

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RESPECT FOR HUMAN RIGHTS

In the establishment of labor relations, VNM is committed to respecting the human rights

of workers:

Commitment not to use child labor, forced labor and the use of this object in any case.

Treat all employees equally and according to their job performance, regardless of gender,

ethnicity, religion, age.

4.4 Carry out practical application of health and safety policies

and procedures in the workplace

After applying health and safety policy in work environment, Vinamilk also has “Code of

conduct” that is the rule of conduct. Following this rule, conduct rules behaves mention those

principles and standard platform which not go deeply details the situations specific and be

applied respect all staffs, though in any position. They are also new to the partner and other third

party an understanding and respect for certain.

Vinamilk encourage the discovery and commitment to protect employees informed about the

violations of the Code of Conduct and take appropriate action for violations.

These are some factors that employees and employer must follow when they work at company.

The first is about employee, before they do something, they must answer these questions:

1. Do I have enough ability to do this work?

2. Is it right with policies?

3. Does it bring good things to yourself or improving the reputation for the company?

4. Is it positive when you do it or not especially it apears on public?

If the answer is “YES”, they can do it without accept of manager but if it is “NO”, they have to

ask their manager and waiting for solution.

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The second is about employer who has big responsibility to manage and control their employee

following the policy within no harmful to the company.

1. Making sure that all employees must have responsibility for everything they do.

2. Never encourage employees doing wrong with policy for getting higher profit.

3. Listening to employees and adjusting between the actual of employee’s work and policy.

Compliance department - legal department –compliance. This department will inquire wrong

acts and make a report to the GM. Otherwise, they also report good acts, following the policy to

planning bonus for employees.

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