The current model shows a change compared to the old model (before 2010) - see Appendix 2, the change into blocks of departments, factories, and the formation of a number of additional departments such as fashion design department, production organization research department, kindergarten, showing that when restructuring the organization, the Corporation has really paid attention to the efficiency in production and business activities. The core issue of garment products is the difference in style, design and material of the product, it can be said that every garment enterprise understands that, but to do that, it is necessary to invest heavily in the company's design team, which few garment companies of VINATEX Group can do. The formation of a separate fashion design department is a correct direction in the restructuring of Garment Corporation 10, wanting to emphasize and enhance the importance of design activities - an activity that is assessed by experts as still young in garment enterprises in Vietnam. In addition, investment activities are also a decisive issue, affecting whether the corporation has capital to operate or not. Many orders the corporation has to ignore due to insufficient capital to implement, or because of the risks of capital cut during the implementation process. Seeing these difficulties, right after equitization in 2005, May 10 Company has oriented to establish a separate investment department with the motto of diversifying capital sources to find capital sources, and large projects, joint projects with foreign partners to expand relationships, and at the same time have opportunities to participate in investment in the world market. Because the investment department operates very effectively, the Corporation continues to maintain and develop this department until the present stage. In addition to paying attention to business activities, the Corporation also cares a lot about the feelings of employees. Restructuring the organization through the formation of a kindergarten right in the corporation is a very suitable direction of change. Characteristics of garment industry workers are mostly female, young workers,
always fluctuates, the number of people quitting their jobs greatly affects the efficiency of garment enterprises, including Garment Corporation 10. One of the reasons is the problem of family and children. The establishment of a kindergarten has created conditions for workers to feel secure in their work, solving the ideological problem for workers. This change is also a very effective way to retain workers in addition to increasing wages for workers as other garment companies have done.
The big change in the manufacturing enterprise sector also meets the current needs - integration and development. The formation of enterprises according to product objects is the right direction, meeting the extremely diverse needs of customers. The initial stage of the garment industry was specialized design, mass production. When the market changed, customer needs were diverse, the company switched to a production strategy according to orders, and today aims to build business processes to serve the needs of "gods". Garment Corporation 10 has started to implement in that direction, much faster and more effectively, customers are satisfied.
Thus, when restructuring the organizational structure of Garment Corporation 10, the organizational structure of the administrative apparatus was changed not only in form (forming and eliminating some departments) but also in nature (orientation, policies, relationships).
2.3.1.3. Processes formed at May 10 company
Orders are formed according to different customer-oriented processes, as shown in the following diagram:
Plan
- Market
Engineering - Design
Production plants
Distribution
- Business
Order 1
Customer 1
Customer 2
Order 2
Source: Author's construction based on interview information
Figure 2.6: Order fulfillment process
Planning and Marketing Department
The company receives orders from many different sources, through the efforts of marketing staff searching for orders, or from the initiative of customers coming to the company. Orders are filtered and classified in the marketing department according to customers and different delivery times. After receiving orders, the marketing department will transfer them to the planning department to execute the orders. The planning department, based on the balance of production capacity of the factories at the delivery time, will establish a plan and transfer it to the production department. The planning process includes a procedural plan, importing raw materials sent by customers according to each type.
Order
Classify orders
Assign staff to be in charge of each item
Build a schedule for implementation
Build a plan to import raw materials
Figure 2.7: Work flow in the planning department
Source: Author's construction based on interview information
Fashion design and engineering department
Order fulfillment plan
Design template
Develop a plan to guide workers to follow the design
At the same time, together with the planning department, the technical department also coordinates and is responsible for the sample and design based on drafting technical documents to guide workers. The technical department will prepare raw materials to test the sample and deliver it to the customer for approval of the sample and technical parameters. This entire process is assigned to the item officer to carry out and coordinate activities until the order is completed. That item officer is the employee of the planning department who takes on and is primarily responsible.
Prepare relevant technical documents
Figure 2.8: Work flow in the technical department
Source: Author's construction based on interview information
Manufacturing plants
After the production planning department and the engineering department complete their work, the company begins to issue production orders.
Order fulfillment plan
Design and technical documentation
Issue production order
XN 2
Order 1
XN 1
Order 3
Item 1 Supervisor
Item 2 Supervisor
Order 2
Item 3 Supervisor
XN 5
Order 4
Item 4 Supervisory Officer
Factory manager
Figure 2.9: Work flow in the production department
Source: The author builds on the interview information. The factory manager will manage the production process, arrange work for workers with the coordination of the product supervisor and technical staff. During the production process, if there are any problems, the product officer is responsible for negotiating with the customer on the terms of the agreement. For example, during the production process, if there is a change in the design compared to the model offered by the customer due to raw materials, etc., the product officer will negotiate with the customer to replace the raw materials, or supplement the raw materials. Each product officer will be in charge of a separate order until the order is completed.
The goods are completed and delivered to the customer.
The company's garment production process is as follows:
Order
Prepare materials
Prototype production
Browse samples and specifications
Enterprise
Nest | Nest | Nest | Complete | Close | Enter | |||||||||
cut | May | To be | KCS | adjust | package | warehouse | ||||||||
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Organizational Chart of Hong Duc Joint Stock Company
Source: Labor Organization Department, Garment Corporation 10
Figure 2.10: Technological process of garment production
Cutting stage: Based on the production order, raw materials are put into the first stage of the cutting process to create semi-finished cut products. If the customer requests additional embroidery or printing, the semi-finished products will be embroidered or printed.
Sewing stage: Receive semi-finished products from the cutting stage and transfer to continue processing the finished product. At the end of this stage, the product is almost complete.
- Ironing stage: Receive products from sewing stage and then iron them flat.
- Quality Control: Product quality control is performed at many stages in the product completion process. It can be performed while the product is still in the production line and is not yet a finished product.
- Folding and packaging stage: The finished product is folded and boxed according to customer requirements, then the finished product is stored in the warehouse and waits for delivery to the customer.
Table 2.10: Member enterprises of the company
STT
Enterprise name | Area (m 2 ) | Location | Labor (People) | Output (SP/year) | Main products | |
1 | Factory 1 | 2,000 | Hanoi | 700 | 2,200,000 | Shirts of all kinds |
2 | Factory 2 | 2,000 | Hanoi | 700 | 2,300,000 | Shirts of all kinds |
3 | Factory 5 | 2,000 | Hanoi | 750 | 2,000,000 | Shirts of all kinds |
4 | XN veston 1 | 2,000 | Hanoi | 600 | 500,000 | Suit |
5 | XN veston 2 | 2,000 | Hanoi | 500 | 200,000 | Suit |
6 | XN veston 3 | 6,500 | Hai Phong | 600 | 500,000 | Suit |
7 | Vi Hoang Garment Factory | 1,560 | Nam Dinh | 350 | 700,000 | Wrap, Jacet |
8 | Dong Hung Garment Factory | 800 | Peace | 350 | 700,000 | Wrap, Jacet |
9 | Hung Ha Garment Factory | 9,500 | Peace | 1,200 | 2,000,000 | Wrap, Jacet |
10 | Thai Ha Garment Factory | 1,800 | Peace | 800 | 2,000,000 | Jacket, shirt |
11 | Phu Dong Garment Factory | 850 | Hanoi | 300 | 1,000,000 | Jacket, shirt |
12 | Bim Son Garment Factory | 2,300 | Thanh Hoa | 800 | 1,000,000 | Wrap, Jacet |
13 | Ha Quang Garment Factory | 4,500 | Quang Binh | 600 | 1,600,000 | Jacket, shirt |
Source: Finance and Accounting Department, May 10 Corporation
Currently, the Company has 13 member factories with a total annual production capacity of more than 16,100,000 products of all kinds, divided into areas according to product types: veston area, shirt area, jacket and pants area.
Each department will be arranged very flexibly, that is, arranging a workshop specializing in producing one type of product for different customers at different times. This is the arrangement according to the product, specializing in sewing shirts, or specializing in sewing trousers, or specializing in sewing jackets, etc. For example, a workshop will be arranged specializing in sewing shirts to serve American customers. After completing the order, the workshop will be
continue to carry out export orders to the EU,... In the case of foreign customers who are large and maintain regular relationships, the company will aim to design a separate production workshop for that partner. However, in reality, orders and customers change, so a workshop can arrange to produce products for customers at different times. However, there are times when orders are small in volume, the workshop will carry out two orders at the same time.
This layout is different from the previous technological layout according to workshops, cutting, sewing, washing, ironing, finishing, etc. for all types of products.
Thus, at Garment Corporation 10, each process towards a customer has a planning department officer in charge, creating professionalism in coordinating activities in the processes.
Distribution – Business
After the production process is completed, the product is delivered according to the plan and delivery schedule. After checking the quality and packaging of the completed product according to regulations, the factory manager will transfer it to the delivery department. Here, the order will be carried out with the payment methods and means of transportation on time as requested by the customer.
Thus, a process carried out at Garment Corporation 10 - Joint Stock Company includes processes according to different work contents. Each process is formed by a group/implementation team including staff from planning, technical, production, business departments, etc. under the supervision and responsibility of a product officer for the entire process.
2.3.2. Case study of Duc Giang Joint Stock Corporation
2.3.2.1. General introduction about Duc Giang Joint Stock Corporation
Duc Giang Joint Stock Company is a member of Vietnam Textile and Garment Group with headquarters at 59 Duc Giang Street - Long Bien District - Hanoi.