The Effective Solutions Helping Vietnamese Businesses In Overcoming The Covid-19 Pandemic Crisis

Made-in-Vietnam Lean Management School (registered for IP in Vietnam and Globally) is a valuable DNA system to help Vietnamese enterprises have resistance to overcome crisis and gain sustainable development.

Assoc.Prof. Nguyen Dang Minh, President of the GKM Lean Institute

During the crisis, the global supply chain was broken, the aggregate demand of society declined, causing the delay of the activities of many businesses. However, businesses that have been applying the Made-in-Vietnam Lean Management School are very firm in the crisis, it is the DNA set of this management school helps entrepreneurs to gain the resistance coping with the negative effects of Covid-19. Thanks to the unified implementation of the Made-in-Vietnam lean management DNA system at all levels in a comprehensive manner (Strategy, Human Resources, Technology, Finance, Quality, etc) entrepreneurs, businesses have been overcome the crisis spectacularly.

By this chance, we have interview Assoc.Prof. Nguyen Dang Minh, President of the GKM Lean Institute. The shared experience of GKM Lean Institute is a valuable reference to the Vietnamese business community, together holding hands to overcome crisis for a sustainable development of businesses and contributing to sustainable development of the country’s economy.

Q1: Could you tell us why the Made-in-Vietnam Lean Management is a DNA system that helps businesses to have resistance against Covid-19?

A1: As entrepreneurs already know, the Made-in-Vietnam Lean Management School is built by a unique Vietnamese management Gene system to sustainably develop Vietnamese businesses in the unique circumstances of Vietnam, helping businesses Vietnamese enterprises adapt and stand firm in different environments, even in the context of the environment with many bacteria and concentrated virus (virus caused by economic crisis, disease crisis, harmful bacteria) of stagnation, poor quality bacteria, low productivity, etc.). This valuable Gene system helps businesses enhance resistance, have a good immune system, always towards true values, purify day and night to eliminate wasteful expenses in the enterprise operating system such as the  mind-set of short-term, the colourful operating enterprise, methods, the  poor quality products and services, etc. Lean Immunity System of the enterprise will help businesses continuously improve the quality of human resources at all levels, train and nurture people with Lean TAM THE and Lean Thinking, have effective working skills. As a result, they have enthusiasm to accompany their businesses to overcome all difficulties and challenges of life.

Q2. The Covid-19 pandemic makes Vietnamese businesses face many challenges that need to be overcome, according to the experience of businesses that are standing firm by applying the Made-in-Vietnam lean management school, could you please share the strategic solutions helping the businesses standing firm and overcoming the crisis for a sustainable development?

A2: Enterprises (including large and small enterprises) that have been implementing Made-in-Vietnam Lean Management School (for 1 year or more) have implemented concurrently the solutions of Made-in-Vietnam Lean Management School in all business activities:

• Day and night identify and minimize tangible and intangible waste costs, specifically the unnecessary electricity, water, storage and warehouse costs and redefine the lines of business and products which are ineffective, inefficient, and the cumbersomeness organizational structure, and etc.). This is a big source of funding for activities to maintain sustainable business and production.
• Determine real expenses, irrevocable expenses such as wages, social insurance. In case the companies do not have a works, if the enterprise has reserves, the reserves will be used; if the enterprise does not have a contingency fund, seek social support to ensure the minimum wage to maintain life for workers. If neither of the above sources are available, it is necessary to negotiate with workers to share the difficulties of overcoming the crisis. Thank to being trained by Tam The, most of them have shared difficulties with the owners.
• The third is to look for short-term revenue-generating solutions such as changing products and services, serving the needs of the domestic market during the epidemic time. For example, some manufacturing enterprises make foam screens, garment enterprises have switched to masks, food businesses have changed to online ordering, etc.

Q3: The Covid-19 pandemic also brought us many profound experiences, what do Vietnamese businesses need to do in re-planning their development and business strategies to help businesses develop sustainably after the epidemic and even when there are new outbreaks, new crises?

A3: According to the strategy of Made-in-Vietnam Lean  Theory, in the consulting/ training programs of the GKM Lean Institute, we also advise businesses to re-plan their institutional development strategies, to improve their business strategy, in concrete:

• Enterprises should build a flexible organizational structure, unify management operating system in a lean and efficient operation even in the harshest environments.
• Businesses should choose products and services for business based on criterion which are not too dependent on the supply of raw materials from a country, need to put eggs in multiple baskets to diversify the supply.
• Vietnam is a country with a market of more than 90 million people, businesses operating in the field of manufacturing components should pay more attention to the consumption products and essential services that our country has to import. Enterprises should research the market to find for themselves a product or a group of near-industry products which they can convert to invest for production, helping the market to have the replacement for imports. Therefore, we will proactively manage the market changes. Every business needs to research the domestic market also and not too dependent on foreign markets too much because this is also a solution to reduce risks and sustainably develop business even when the international supply chain is broken.
• We have advantages in agriculture, therefore, it is needed to research and develop agricultural technology, promote deeper processing of tropical agricultural products to serve domestic demand and export.
• The sources of medicinal herbs should also be promoted to serve the health care of domestic consumers and for export.
• The products and services need to be shifted from Made in Vietnam to Made in Vietnam and Made by Vietnam, gradually taking the initiative in the components from material supply to domestic and foreign distribution chains. Vietnamese enterprises having the same DNA system of Made-in-Vietnam Lean Management need to work together to improve the production and service supply chain and to optimize costs in production and business.

Q4: In your opinion, how can Vietnamese enterprises improve their quality and obtain competitive price of products and services, to gradually regain domestic and international markets and develop sustainably during and after the pandemic?

A4: Thoroughly apply the solutions and tools of Made-in-Vietnam Lean Management School as an effective solution, a method of calculating the cost of products according to Made-in-Vietnam lean thinking. The methods and tools of Made-in-Vietnam Lean Quality Management System will help businesses reduce waste costs, focusing on improving product quality. Up to now, thousands of small and large enterprises in three regions of the country have participated in training programs, consulting and transferring solutions to apply the solutions of Made-in-Vietnam Lean Management School and achieving many satisfactory results such as: (Photo:  Made-in-Vietnam Lean CEO Training at THACO Truong Hai Auto Corp, Lao Cai Copper Refinery Plant, VNPT Dong Nai, MK Smart, Viettel, TID, Manutronics, SSP Moulding, Legroup, Truong Giang, Anova, and etc.

Q5: It needs technology to produce and do business, how should Vietnamese enterprises solve the problem of development and autonomy after the crisis?

A5: According to the Made-in-Vietnam Lean Management School, technology is divided into two main components: hard technology (machine tools, computer software, etc.) and soft technology (attributes related to the intelligence and skills of people in an enterprise to use hardware effectively, such as the thinking of methodology and work processes, etc.). Therefore, the solutions of Made-in-Vietnam Lean Management School are soft technology. Hard technology can be bought in a period of few weeks but soft technology must be built by businesses themselves in a few years.

In times of crisis, hard technologies need to be maintained, exploited and used to their full potential, optimizing their use, limiting the purchase and import of hard technology if not really needed.

For soft technology, this is the period when businesses “focus on mending, repairing boats”, which means that enterprises need to step up the training and self-training activities to constantly improve the management capacity and unify the DNA system of management at all levels of the enterprise. The collection of individuals and the technologies that people own in a business will be an invaluable resource for sustainable business development. Enterprises need to establish a systematic internal training structure so that they can conduct self-training and continuous training, strengthening their capacity through effective and lean training solutions as an effective solution. The Lean Institute GKM will assist businesses in setting up the training system and delivering training programs according to the Made-in-Vietnam Lean Management School.

Q6: Enterprises need to build a training system to unify the Management  DNA at all levels, in the Made-in-Vietnam Lean Management School, what has GKM Lean Institute has trained enterprises in?

A6: In the Made-in-Vietnam Lean School of Management, we conduct training and counselling at three levels with content relevant to each level. These programs have also been registered for intellectual property in Vietnam and internationally, showing its originality and efficiency.

• The first level is the Made-in-Vietnam CEO consulting program, which is aimed at helping senior executives such as the presidents, general directors, board members, deputy general director, etc. master the contents of the Made-in-Vietnam Lean Management School. These senior executives will be the core force in collaboration with the GKM Lean Institute to develop the business development strategy as well as the business strategies of the companies. We will design the program plans together with specific actions to transform the Made-in-Vietnam Lean Management DNA system into the entire companies.

(Photo:  Made-in-Vietnam Lean CEO Training at THACO Truong Hai Auto Corp)

• The second level is the Made-in-Vietnam Lean EMO training program for middle managers such as managers, deputy managers, managers, heads of groups, etc. This program helps middle-level administrators to grasp management contents, organically connect with senior administrators, and support senior administrators to transfer Made-in-Vietnam Lean Management operating system to staff degradation. Made-in-Vietnam Lean EMO Program was designed by GKM Lean Institute on the basis of Made-in-Vietnam Lean Management School and the specific conditions of each enterprise. The CEOs of the enterprise will join GKM Lean Institute do this customizing work.

(Photo:  Made-in-Vietnam Lean EMO training program at SSP Mouldings Company)

• The third level is the Made-in-Vietnam Lean FMO training program for employees including all employees of the company. This program helps the company’s employees capture the company’s Made-in-Vietnam Lean Management DNA system, understand the vision of senior and mid-level executives in the companies, and helps employees of the companies have working tools, methods, effective operational tools in daily work towards the goal of productivity and safety quality in the companies’ products and services. The Made-in-Vietnam FMO Lean Program was designed by the GKM Lean Institute based on the Made-in-Vietnam Lean Management School and the requirements of business leaders to customize tools and methods for each team and functional department in the businesses.

(Photo: Made-in-Vietnam Lean FMO Training  at JK Company)

In a nutshell, if we liken the business to a tree, senior executives (CEOs) are the roots and roots, middle managers will be trunks, and company employees will be tree branches. The roots of a tree will transmit vital energy, nutrients through the trunk to branches and leaves. The tree will bear fruit at the trunk, leaves and branches. In order for the tree to grow and grow strong, the DNA system of the tree must be homogenous, wherever the genetic fault is, it will wither and fade. This is also the profound meaning of the Made-in-Vietnam Lean Management School that helps businesses unify the DNA management system at all levels, overcome crisis and develop sustainably for a strong Vietnam.

Thank you very much, Assoc.Prof. Nguyen Dang Minh for providing meaningful answers and advices to the Vietnamese business community. We hope that businesses that have been successfully applying the School of Made-in-Vietnam Lean Management will work closely with the GKM Lean Institute, continuing to spread this School into practice, together overcome the crisis, develop sustainably  the Vietnamese business community, for a more and more beautiful country of Vietnam.

Interviewed by the GKM Lean Institute during the Covid-19 pandemic, April 2020