UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------------- Lam Thi Dieu Hien POOR PROJECT MANAGEMENT A CASE STUDY IN ORGANO VIETNAM COMPANY LIMITED MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh city – Year 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------------- Lam Thi Dieu Hien POOR PROJECT MANAGEMENT A CASE STUDY IN ORGANO VIETNAM COMPANY LIMITED MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. TRAN PHUONG THAO Ho Chi Minh city – Year 2018 TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLE EXECUTIVE SUMMARY CHAPTER 1: PROBLEM IDENTIFICATION 1 1.1 Introduction on water Industry and Organo Vietnam 1 1.1 Overview of Water industry 1 1.2 An introduction on Organo Vietnam 2 1.2 Symptom in company 7 1.1 Weak technical engineer performance 11 1.2 Poor performance of process team 12 1.3 Poor performance of mechanical team 15 1.4 Poor project management 16 1.5 External factors from customer 21 1.3 MAIN PROBLEM VALIDATIONS 22 1.4 CENTRAL PROBLEM DEFINITION AND CONSEQUENCES 25 1.1 Central problem definition 25 1.2 An important of central problem 26 CHAPTER 2: SOLUTION 30 2.1 Lack of skills 30 2.2 Lack of experience 32 2.2 Method of training 37 2.3 ACTION PLAN 41 CHAPTER 3: SUPPORTING INFORMATION 44 3.2 TRANSCRIPTION 44 APPENDIX 67 REFERENCES LIST OF FIGURES Figure 1: OV chart Figure 2: Chart of proportion of sales Figure 3: Proportion of cost Figure 4: Parts of OV water treatment project Figure 5: Initial map from interviews Figure 6: Updated map Figure 7: Cause - effect map LIST OF TABLE Table 1: The proportion of sales revenue Table 2: Estimated cost for solution Table 3: Action plan EXECUTIVE SUMMARY Project management is in the family category of both the hardest and most significant projects in the development of organizations and society. Managing this type of project requires commitment and knowledge. It is an ambitious challenge for everyone involved in the project.
Organizations initiate projects with the best of intentions to succeed. The management of project constraints explains, if not fully, why many projects fail. There are many of researches on project management. Due to complex nature of project activities, and the challenges associated with managing a project restriction or constraints of budget, quality and time are also unique and ever changing.
The ideal goal of effective project management is to reach the expected outcome of a project on time and within budget. It will help company survive in fierce competition environment. This thesis used interviews, secondary data of company and literature reviews to analyze. A key finding of thesis will show the problem of company is poor project management.
A list of these causes was collected through an extensive literature reviews, historical projects records and expert opinions. The overall results showed that project manager lack of skills and experience was considered the root causes of problem. Training is suggested the best solution for the company. This thesis uses both qualitative and quantitative method.
The findings of problem and solution discussed with manager will help company run projects effectively and increase profit of company. 1 CHAPTER 1: PROBLEM INDENTIFICATION 1.1 Introduction on water Industry and Organo Vietnam 1.1 Overview of Water industry The status of planning urban areas is not associated with the problem of waste treatment, waste water treatment still in stock in large cities, industrial parks, urban areas. Environmental pollution is at an alarming rate. It is estimated that out of the total 183 industrial parks in the country, over 60% of industrial parks do not have a concentrated wastewater treatment system.
In urban areas, only 60% - 70% of solid waste is collected, wastewater and wastewater treatment facilities and wastes should not meet the requirements of environmental protection. Most of wastewater contaminated with grease, chemical detergents, dye chemicals, etc., has not been treated directly into rivers and lakes. An example of public concern, the case of Thi Vai River is polluted by chemicals discharged from the factory of Vedan company for 14 consecutive years. At present, there are a lot of companies run in water treatment with high competiveness.
Local companies provide system services and products with cheap price. There is a high degree of rivalry in the Vietnamese water treatment systems market, especially in the different segments of the market. The rivalry already starts on a low-level scale, with household water treatment equipment, and continues all the way up to the big plants. Rivalry can clearly be seen at the water treatment plants designed for industrial zones.
Nowadays, the government for the IZ or the IZ itself usually does not take the cheapest design, but decides for what they think is the most efficient or cost-effective plant. Pollution violations by industrial manufacturers have drawn much attention recently. Public interest groups have begun to focus on the impact of industrial waste has on the environment and economy. Violating manufacturers are beginning to feel the impacts of boycotts by their associates and customers.
These companies have also had some difficulty accessing bank funding, as more banks are adjusting their policies to avoid clients on the environment black list. Recent developments have triggered an 2 intensification of monitoring and inspection of industrial pollution. Industrial parks represent an attractive market for wastewater treatment plants since the government is pushing industry harder on environmental compliance. 1 According to Petrus Ghita : “Water Industries in Vietnam include: Chemical/Non chemical Water Treatment companies, Water Delivering companies, Industrial waste water treatment companies, Municipal waste water companies, Waste Water Recycling Systems, Water Filtration & Purification , Water treatment facilities & equipment companies.
There are a lot of drinking water companies in Vietnam who provide clean water. The problem is that they have a lack of technology. Most of these companies are Vietnamese and owned or supported by the government.” The focus of new water treatment companies should be on the large cities in Vietnam. A clear trend is that most cities have one water treatment company which is state owned and which possess a monopoly in their own area because they are the only ones active in those local smaller markets.
On the national level these companies are part of the oligopoly of Vietnam water treatment market. This is changing at the moment. The foreign companies are trying to penetrate the Vietnamese market and collide with the existing companies while national companies try to obtain larger market shares which results in both international and local companies that are starting to compete. Water resources are very significant, especially natural water sources in the rural areas of Vietnam as they are the sources of economic, social and cultural activities.
The government of Vietnam is tackling the water resources management issues in the country by implementing policies and programs relating to this. Some of the challenges that still exist include improving access to clean water and sanitation for both urban and rural population, improving public participation and knowledge and strengthening river basin management.2 An introduction on Organo Vietnam Organo is a general water treatment engineering company that operates in the areas of water treatment engineering and functional product. The water treatment engineering 3 business includes manufacturing, delivery and maintenance of pure water systems, ultrapure water systems and waste water treatment systems for industries, condensate demineralizers for power stations, waterworks and sewage treatment systems for the public sector. The functional product business encompasses the sale of standardized water treatment equipment, water treatment chemicals, and food processing materials.
Organo Vietnam is formed in Vietnam by Organo Corporation. Organo is Japanese Company. It specializes in environment treatment such as providing chemical treatment, design and construct wastewater treatment system, maintenance service. Their corporation is based in Tokyo, Japan.
The number of employees at the company as in the end of 2016 is 91. The main activities of the company are installing WWT system, DI water system, RO water system, super-pure water system. Organo (Viet Nam) Company Limited has accumulated priceless experience in Vietnam in the past more than 6 years. Vietnam is a developing country and many countries have invested in Vietnam.
Many industrial parks and plants were grown but the water treatment systems are so old so it make the water in Vietnam more and more polluted. Specializing in Water Treatment, Ultra pure water, Waste Water, Commissioning, Hardware and Equipment Design and Maintenance, Organo has been establishing in September 2010 but it has an promising future. Organo Planning & Design team work hand in hand with customers in conceptualizing, planning and implementing specific system according to their requirements. Organo also supply highly functional equipment and engineering systems, which is at the forefront of the industry.
Organo business is water treatment for plants for: electronic industries, general industries, power stations, water work and sewage, medical care and pharmaceutical industries. For electronic industries, Ultra pure water for cleaning semiconductors, liquid crystal panels and other electronic materials and parts is used not only by leading Japanese manufacturers but also by overseas companies. In step with the trend towards larger factories, Organo responds to needs for large flow volumes off 2000 cubic meters hour and is working to promote environmentally friendly closed systems that emit no effluent. 4 For general industries, Organo provide systems for efficiently manufacturing and treating process water, by effectively combining different systems to meet the needs off chemical, oil refinery, food, paper and pulp, textile, dyeing, automotive, plating and other industries.
For power station, water treatments for domestic thermal and nuclear power stations need to be highly reliable. Organo hold a 70% markets share in this sector and a particularly high market share in the market for water treatment systems for nuclear power stations. For medical are and pharmaceutical industries, Organo effectively combines different technologies, including distilled water production equipment for producing injection water and pure water steam generators for protecting drug manufacturing facilities from bacteria. Projects of company include DI Water Treatment Plant, Waste Water Treatment, Sewage Treatment Plant, Purified Water Treatment Plant.
Material and equipment almost are bought from oversea, especially from Japan. Budget for buying goods from oversea weight 70%, meanwhile, goods buying from Japan occupy around 60%. OV’s customers are big companies in pharmaceutical, cosmetics, power plants, industrial zones: Vedan, Mekophar, SMC Manufacturing, Mtek, Thermal Plant, Rohto, Shiseido, Naris, Mekophar, etc. Company also has some projects exported to Japan.
Goods are material and equipment to build the system, water treatment chemical, and outsource service. OV will design and consult the systems. The goods include product made in Vietnam and imported goods. Imported goods are pumps, pipe, fittings, equipment, tank.
Foreign origin goods include goods are directly imported by Organo and goods via agencies in Vietnam. Goods are bought via local suppliers for vessel fabrication, installation, construction, consumable material. Vessel fabrication, installation, construction cost a lot of money for a project. Human resources of company are young Vietnamese engineers and Japanese managers.
Young engineers with a keen spirit of learning and dedication contribute to the development of company. They have many advantages are they are active, enthusiastic, and progressive. 5 OV structure Company has head office in HCM city, one workshop in Hung Yen and one branch in Hanoi. Head office and customize engineering design for customer, propose the best solution to meet the client’s budget and technical requirements.
Permanent construction team (more than 40 people) including Japanese experts, professional engineers and well- trained workers strictly control the quality and progress, coordinate the installation work at site and in our workshop to ensure the efficiency and quality at its best. Departments of company includes: Technology (Process), Mechanical, Procurement, Accounting, Maintenance, Huaman Resources and Administration, QA-QC teams. Technology Department play an important role of company because characteristic of water industry. General Director Engineer Department General Manager Corporate Corporate Management Management Department Sales Dept.
Department Manager Manager Process ME & E & IC Procurement Human Accounting Administration Maintenance Resource Figure 1: OV chart 6 There are advantages for organizing projects within the existing functional organization: in-depth expertise, flexibility.
