BTEC Operations and Project Management Assignment: VAFI Co. Analysis

This report, prepared for a BTEC Higher National Diploma in Business (Business Management) course, analyzes the operations management practices of VAFI Co., a Vietnamese manufacturer of automobile engine oil filters. The report begins with an introduction to the company, followed by an explanation of operations versus operations management. It then reviews and critiques the implementation of operations management principles within VAFI, assessing how well these principles meet the organization's requirements. The report delves into continuous improvement as a philosophy, explaining Lean principles and their application. A continuous improvement plan is proposed based on the review, and at least two justified recommendations are made to improve the operations function at VAFI. The analysis includes discussions on functional areas, operations management in manufacturing and service industries, the relationship between operations management and other functional areas, and the application of Lean Six Sigma principles. Furthermore, the report covers supply chain management, measuring operations, and enterprise resource planning, culminating in a conclusion that summarizes the findings and recommendations.

Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business (Business Management)
Student Name /ID Number Võ Hoàng Nhật Minh (Cecilia) – NE40849
Unit Number and Title Unit 16: Operations and Project Management
Academic Year 2021-22
Unit Assessor Aung Kyaw Oo
Assignment Number and Title OPM 1: Review and Critique of Operations Management (1 of 2)
Issue Date 13 October 2021
Submission Date 19 November 2021
IV Name
Date
Submission Format:
The submission is in the form of an individual written report. This should be written in a concise,
formal business style using single spacing and font size 12. You are required to make use of
headings, paragraphs and subsections as appropriate and all work must be supported with
research and referenced using the Harvard referencing system. Please also provide a bibliography
using the Harvard referencing system. The recommended word limit is 2,000–2,500 words,
although you will not be penalised for exceeding the total word limit.

Unit Learning Outcomes:
LO1 Review and critique the effectiveness of operations management principles.
LO2 Apply the concept of continuous improvement in an operational context.
Assignment Brief and Guidance:
Established in 2003 with Korean investment capital of US$ 5,000,000, VAFI Co., Ltd., located in
Hoa Khanh Industrial Park, Da Nang city, Vietnam, has become a leading manufacturer of
automobile engine oil filters for well-known global car brands. The company is projected to
manufacture 960 tons of products per year.
With more than 15 years of experience in the field of automobile parts manufacturing, VAFI is
committed to quality in each of its products. VAFI has been manufacturing quality products with
IATF 16949, the International Standard for Automotive Quality Management, standards. The
company's brands include Micro Garden Select, Service Pro, Premium Guard, Halvoline and STP
for local overseas markets.
You are working as an assistant to the Operations Officer of VAFI and have been asked to review
and critique the effectiveness of operations management principles and apply the concept of
continuous improvement to the organisation.
You are required to produce a formal business report which should contain the following:
1. An introduction of the organisation
2. An explanation of operations vs. operations management.
3. Conduct a review and critique of the implementation of operations management principles
within the organisation.
4. Analyse the extent to which the operations management meets the requirements of the
organisation.
5. Discuss continuous improvement as a philosophy and describe the concept of Lean principles.
6. Prepare a continuous improvement plan based on your review and critique of operations
management principles within the organisation.
7. Using continuous improvement principles, make at least two justified recommendations which
could improve the operations function detailed of VAFI.
(source: www.afifilter.com.vn)

Learning Outcomes and Assessment Criteria
Learning Outcome Pass Merit Distinction
LO1 Review and
critique the
effectiveness of
operations
management principles
P1 Conduct a review
and critique of the
implementation of
operations
management principles
within an organisational
context.
M1 Review and critique
the implementation of
operations
management in relation
to Six Sigma
methodology and Lean
principles
LO1 & 2
D1 Apply appropriate
theories, concepts
and/or models to justify
strategies of a
continuous
improvement plan for
achieving improved
efficiency.
LO2 Apply the concept
of continuous
improvement in an
operational context
P2 Prepare a
continuous
improvement plan
based on the review
and critique of
operations
management principles
within an organisational
context.
M2 Analyse the
effectiveness of a
continuous
improvement plan
using appropriate
theories, concepts
and/or models.
Pearson Education 2021
Higher Education Qualifications
Assignment Brief

Higher Nationals RQF
Pearson Education
Higher Education Qualifications
STUDENT ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each student must sign a declaration confirming that
the work is their own.
Student name: Võ Hoàng Nhật Minh (Cecilia)
– NE40849
Assessor name:
Aung Kyaw Oo
Issue date:
13 October, 2021
Submission date:
19 November, 2021
Submitted on:
19 November, 2021
Programme:
Pearson BTEC Level 5 Higher National Diploma in Business (Business Management)
Unit:
Unit 16: Operations and Project Management
Assignment number and title:
OPM1: Review and Critique of Operations Management (1 of 2)
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expected to use appropriate references throughout and keep carefully detailed notes of all your
sources of materials for material you have used in your work, including any material
downloaded from the Internet. Please consult the relevant unit lecturer or your course tutor if
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malpractice.
Student signature: Date: 19 November, 2021

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Higher Nationals - Assignment Feedback Form
Student Name/ID Võ Hoàng Nhật Minh (Cecilia) – NE40849
Unit Title Unit 16: Operations and Project Management
Assignment Number 1 of 2 Assessor Aung Kyaw Oo
Submission Date Date Received 1st
submission
Re-submission Date Date Received 2nd
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0
Table of Contents
Introduction: ............................................................................................................................... 2
I. An introduction of Vafi limited company: ......................................................................... 2
II. Operations vs operations management: .......................................................................... 4
1. The Approaches To Operations Management: ................................................................... 5
2. Functions of operation management: ................................................................................. 6
IV. Principle of operation management, operation management theories, operation
management’s strategy and Process Design: ............................................................................. 7
1. Principles of operation management: ................................................................................. 7
2. Operation management theories: ........................................................................................ 9
3. Operation management’s strategy: ................................................................................... 10
4. Process Design:................................................................................................................. 11
V. Functional areas of business: ........................................................................................ 12
VI. Operations Management in Manufacturing and Service Industries: ............................. 14
1. Operations Management in Manufacturing: ..................................................................... 14
2. Operations Management for Service Providers : .............................................................. 17
3. Manufacturing and service companies alike use total quality management and outsourcing
to provide value to customers: ................................................................................................. 19
VII. Relationship of Operations Management With Other Functional Areas: ..................... 19
VIII. Lean Six Sigma: ........................................................................................................ 21
IX. Lean production and Six Sigma applies into VAFI company: ..................................... 24
1. Applying lean production in VAFI company: .................................................................. 24
2. Applying six sigma to VAFI company: ............................................................................ 25
X. Continuous Improvement: ............................................................................................ 27
XI. Supply chain: ................................................................................................................ 30
1. Supply Chain Planning: .................................................................................................... 30
2. Lean & Just In Time: ........................................................................................................ 31

1
XII. Measuring operation and Enterprise resource planning: .............................................. 31
1. Measuring operation: ........................................................................................................ 31
2. Enterprise Resource Planning:.......................................................................................... 32
Conclusion: .............................................................................................................................. 34
Reference list: .......................................................................................................................... 35

2
Introduction:
Operation management is an area of management that is concerned with design, controlling
and production as well as redesigning of the business operations of an organization for
manufacturing of goods and services. The term operation management is being majorly used
for increasing the efficiency and effectiveness of planning the activities that have significant
impact on the business process of organization. This Assignment will explain the importance
of operation management for leading spare auto parts of VAFI company that is offering high
quality goods in a wide range. Additionally, the report will discuss the approaches of operation
management. In the next part, the report will explain the principle of OM and analyze the
critical path as well as the networking planning. In the next task report will produce the
operation management theories and enterprise resource planning that can be used for project
management and quality control.
I. An introduction of Vafi limited company:
Vafi Company Limited, short name VAFI CO., LTD., foreign name is Vafi Company Limited,
original name is Công Ty TNHH Vafi, has operated for over 3 years in producing spare parts
for motor vehicles and vehicle engines. Established in 2003 as a Korean capital enterprise in
Da Nang, Vietnam by the Chairman of the Board of Directors and the General Director, Mr.
Kim Chong Su, the total project investment capital is USD 5,000,000. VAFI has become a
leading manufacturer of air purifier products and dust filters for auto parts of famous global
brands. Project scale: 950 tons of products per year. (VAFI, 2021)
VISION (VAFI, 2021):
The country prospers sustainably through the optimization of equipment and the regeneration
of resources.
MISSION (VAFI, 2021):
Unleash the potential of contractors and society through comprehensive solutions for
construction machines.
14 CULTURAL VALUES OF VAFI COMPANY (VAFI, 2021):
1- Integrity:
We are honest, upright, act rightly and transparently in every decision. We don't try to please
others if it goes against our integrity.
2-High performance

3
We believe that a good machine is a machine with high performance, and tomorrow's
performance will be better than today's performance.
3- Level:
Good products not only bring economic value to owners but also affirm their class. The same
goes for construction machines.
4- Share:
We believe that if you give, you will receive, and if you share, you will be shared.
5-Commitment:
We understand and always deliver on our commitments. For us Honor and reputation are
extremely important in long-term sustainable relationships with colleagues, the Company and
partners.
6- Sincerely:
People often say "attitude over skill", and we choose sincerity as a guide for our internal and
external activities.
7-Success:
Success is not the destination, nor the big things. We look for a sense of success in seemingly
small things and in the most extreme situations.
8- Solidarity:
When they are colleagues and teammates, right and wrong is not the most important thing, but
togetherness.
9- Cooperation:
1+1 = 11.
10- Acknowledge:
When you acknowledge it, you will be grateful. When you are grateful, your mind and heart
merge into one. And that is the most peaceful state of a human being.
11- Prosperity:
We believe that we are people with the ability to bring prosperity to others and to our partners.
12- Friendly, cheerful:
We interact with each other in a spirit of fun, friendliness and sociability. In addition to good
products and services, we also bring joy expressed by satisfaction in service to customers and
the community.