THEORETICAL BACKGROUND ON IMPROVEMENT OF THE
Concepts of ISO systems and ISO 9001:2015
The International Organization for Standardization (ISO), established on February 23, 1947, aims to promote international standards in manufacturing, trade, and communication Its origins trace back to 1946 when delegates from 25 countries convened in London to create an organization for the coordination and unification of industrial standards To avoid confusion with varying acronyms in different languages, the founders opted for the short form ISO, derived from the Greek word "ISOS," meaning "equal." The development of International Standards is facilitated by over 250 ISO technical committees, where members can opt to participate in specific committees The standard development process typically follows a multi-stage approach: Proposal, Preparatory, Committee, Enquiry, Approval, and Publication.
ISO has published over 22,208 International Standards that encompass nearly all facets of technology and manufacturing, making it essential for businesses to carefully identify the most relevant standards for their needs While certain standards cater to specific industries, many widely recognized standards are versatile and applicable across various sectors Here are some of the most popular ISO standards that organizations can implement.
ISO 9001:2015 is the most widely recognized standard for quality management systems applicable across various sectors and organizations This standard is part of a family of fourteen quality management standards, first published in 1987 and updated approximately every seven years, with the latest version released in 2015 Currently, ISO 9001:2015 is the only standard within this family that offers certification, contributing to over 1,100,000 ISO certifications awarded in more than 170 countries (Charlet, 2017).
The standard outlines the implementation of a Quality Management System (QMS) designed to enhance your organization's ability to deliver quality products and services It emphasizes a customer-centric approach, prioritizes continuous improvement, and incorporates risk management and leadership processes that permeate the entire organization.
ISO 9000 consists of three key standards that provide essential concepts, principles, and terminology for quality management systems It is advisable to understand ISO 9000 before implementing ISO 9001 to enhance performance effectively Subsequently, the practices outlined in ISO 9004 can be adopted to improve the efficiency of your quality management system in meeting business goals and objectives.
ISO 14001:2015 is a widely recognized standard within the ISO 14000 family, focusing on environmental management systems (EMS) It is the only standard in this family that allows for organizational certification ISO 14001:2015 is built on the continuous improvement framework known as PDCA (Plan-Do-Check-Act), ensuring that organizations can effectively manage and enhance their environmental performance.
Although it is a voluntary standard, put in place by companies who want to improve their processes, it is now very popular, with nearly 350,000 certifications in 171 countries worldwide (Charlet, 2017)
Developing and implementing a food safety management system is essential for any organization within the food chain Various standards, including ISO 22001 for food and beverage and ISO 22002 for food manufacturing, are applicable to a wide range of entities directly or indirectly associated with food, such as restaurants, food manufacturers, and transportation services Adhering to these standards ensures compliance and enhances food safety across the industry.
It can be applied on its own or integrated with ISO 9001 Over 32,000 ISO 22000 certifications has been given out all over the world (Charlet, 2017)
Released in 2011, the ISO 50001:2011 energy standard is gaining significance as it guides companies in establishing an Energy Management System (EnMS) focused on enhancing energy efficiency and usage By implementing this standard, organizations can effectively reduce their energy footprint, lower greenhouse gas emissions, and cut energy costs.
While not mandatory, the rise of over 20,000 certifications and a 69% increase in 2016 compared to 2015 indicates that companies recognize the advantages of certification and believe it enhances their business processes (Charlet, 2017).
A committee of occupational health and safety experts has developed a new standard that incorporates key elements from existing International Standards, including OHSAS 18001, the International Labour Organization's ILO-OSH Guidelines, as well as various national standards and ILO international labour conventions.
ISO 45001 is a standard for occupational health and safety management systems that provides organizations with a framework to enhance employee safety, minimize workplace risks, and foster safer working conditions By implementing ISO 45001, businesses can effectively reduce the burden of workplace hazards and promote a healthier work environment.
1.1.2.1 Seven principles of 9001:2015 ISO system
The ISO 9001 standard outlines the principles of a quality management system, providing a framework for organizations to effectively meet the needs of their customers and other stakeholders impacted by their operations It focuses on establishing processes that ensure consistent quality and customer satisfaction, without dictating specific objectives for organizations to achieve.
―quality‖ or ―meeting customer needs‖ should be, but requires organizations to define these objectives themselves and continually improve their processes in order to reach them
Customer focus is the foremost principle in the seven quality management principles, serving as the foundation for successful businesses It emphasizes the advantages of adopting a quality management system (QMS), which enables organizations to consistently deliver products and services that fulfill customer expectations and comply with relevant legal and regulatory standards To achieve customer focus in accordance with the ISO 9001:2015 standard, organizations should prioritize enhancing customer satisfaction and actively seek opportunities for improvement.
Understand the needs of existing and future customers
Align organizational objectives with customer needs and expectations
Aim to exceed customer expectations
Leadership: The leadership importance of top management has always been in any
Effective management support is crucial for the success of ISO systems, as ongoing oversight helps prevent potential issues Top management must actively demonstrate leadership and commitment to the Quality Management System (QMS) by being accountable for its efficiency, ensuring the availability of necessary resources, promoting continuous improvement, and aligning the Quality Policy and objectives with the organization's goals.
The ISO 9001:2015 standard emphasizes the importance of engaging all individuals who contribute to the quality management system's efficiency Defined as the involvement and contribution to shared objectives, this engagement fosters unity of purpose and direction within the organization Consequently, it allows for better alignment of strategies, policies, processes, and resources to achieve organizational goals To facilitate this, top management must actively involve and engage their teams.
Ensure that people’s abilities are used and valued
Enable participation in continual improvement
Enable learning and knowledge sharing
Enable open discussion of problems, constraints
Efficiency of applying ISO 9001:2015 in enterprises
In reality, there are numerous definitions of efficiency in many kinds of dictionary to create a common understanding among people Below are some definitions:
Longman Dictionary of Contemporary English: ―Efficiency is the quality of doing something well and effectively, without wasting time, money, or energy‖(Longman Dictionary of Contemporary English, 2018)
Cambridge Dictionary: ―Efficiency is the good use of time and energy in a way that does not waste any (Cambridge University Press, 2018)
Efficiency is defined as the assessment of actual output or performance in relation to the potential output that can be achieved using the same amount of resources, including money, time, and labor (WebFinance Inc., 2018).
Put simply, efficiency in ISO 9000:2015 is ―the relationship between the results achieved and the resources used‖ (ISO 9000, 2015)
1.2.2 Criteria to measure the efficiency of ISO 9001:2015 system
ISO 9001 is designed to ensure that an organization meets the requirements of both external and internal customers efficiently and cost-effectively by optimizing resource utilization Successful implementation of this system requires a thorough assessment based on specific criteria.
Labour productivity measures the output generated by each employee, indicating either an increase in production with the same workforce or a reduction in the number of employees needed to maintain output levels It is quantified using a specific formula, highlighting the efficiency of labor in generating results.
Labour Productivity = Output per period (units)
Number of employees at work
To maintain competitiveness, businesses must focus on reducing costs, and adopting ISO 9001 can significantly enhance worker productivity Research by Naveh and Levene (2010) and Feng et al (2007) indicates that ISO 9001 certification positively impacts operational performance, directly influencing internal operations and labor productivity By implementing a quality management system like ISO 9001, companies can simplify the achievement of higher labor productivity through well-defined work processes and guidelines.
ISO 9000:2015 defines quality as the extent to which an object's inherent characteristics meet stated, implied, or obligatory needs and expectations The ISO 9001 standard offers guidance and tools for organizations aiming to ensure their products and services consistently fulfill customer requirements, leading to ongoing quality improvement and enhanced customer satisfaction Compliance with ISO 9001 guarantees that customers receive high-quality products and services Additionally, enhancing product quality reduces the rate of returned defects, providing significant operational and business advantages for organizations.
1.2.2.3 Satisfaction of the implementing units
Achieving a successful business requires an optimal balance among key organizational objectives, including cost, quality, and productivity Laszlo's concept highlights the importance of management focusing on their operations and assessing the satisfaction delivered to internal customers, rather than merely implementing cost-cutting measures to enhance the benefits of ISO 9000.
To fully realize the benefits of ISO 9000, companies must foster a transparent internal environment, allowing employees easy access to essential documents that outline their roles and processes Understanding the current and future advantages of the ISO 9001 standard is crucial, and this requires effective communication and the right motivations among staff A positive and integrated attitude towards ISO 9000 is vital for an organization's success.
The uniformity of the ISO document system is crucial for the efficiency of an ISO framework Without a clearly defined structure that outlines document layers, types, and their interrelationships, managing ISO documents becomes challenging, often resulting in conflicts and confusion during use Furthermore, this lack of organization hampers the management of document changes, increasing the risk of relying on outdated materials and potentially leading to the production of subpar quality products.
1.2.2.5 Processing time for quality issues
Inefficient handling of non-conformities can significantly impact the effectiveness of an ISO system When processing times are excessive and procedures overly complicated, employees may find it inconvenient to follow established protocols To maintain timely production, they often resort to proposing solutions that receive verbal approval from their leaders, which addresses immediate issues but neglects proper documentation of inappropriate processes, products, and corrective actions This lack of record-keeping ultimately hampers the ability to generate comprehensive reports on the quality of raw materials, by-products, and final products, as well as the overall efficiency of management operations.
1.2.3 Factors influencing the efficiency of ISO 9001: 2015 system
ISO 9001 is increasingly adopted by manufacturing and service organizations to enhance product and service quality; however, the implementation process often faces various challenges To successfully adopt the ISO 9001 standard, organizations must address these barriers By systematically analyzing the factors that influence the successful implementation of ISO 9001, managers can better understand how different elements impact the adoption process (Gopal and Attri, 2017).
1.2.3.1 Motivation factors (Driving force) towards obtaining the ISO 9001 certification
Research indicates a significant link between companies' motivations for certification and their outcomes Subba (1997) suggests that the effectiveness of ISO 9001 hinges on its alignment with its original purpose Surveys conducted by SEPSU (1994) and Jones (1997) reveal that firms motivated primarily by "customer pressure" experienced fewer benefits compared to those with a "developmental view." Companies that treat ISO 9001 certification merely as a marketing tool often adopt a minimalist approach, leading to limited internal performance improvements (Douglas et al., 2003; Polsinska et al., 2006; Quazi and Jakobs, 2004) Conversely, organizations driven by a genuine desire to enhance quality and internal processes tend to achieve more substantial positive outcomes.
Implementing an ISO 9000 certification can bring numerous benefits to an organization, both internally and externally While the primary motivation for adopting a quality system often lies in external advantages, the actual outcome typically results in a significant increase in internal benefits These intangible advantages include more transparent working procedures, improved employee communication, a lower degree of non-conformities, and enhanced overall efficiency.
It is the most important criteria affecting the implementation and performance outcomes of ISO 9001 Lee et al (Lee et al., 2009) showed that managers in organizations
ISO 9000 can provide a competitive advantage only when top management is fully committed to its implementation from a strategic viewpoint This commitment is crucial as it drives the establishment of quality management systems by allocating necessary resources and fostering continuous improvement through the development of values, goals, and systems that meet customer expectations and enhance organizational performance Top managers must align the value of ISO 9000 certification with the organization's strategic objectives A higher level of commitment from top management correlates with a better understanding of ISO 9000, leading to improved performance measurement and communication.
Customer satisfaction significantly impacts future interactions with an organization, affecting their likelihood to repurchase, recommend the business to others, and accept its pricing without seeking cheaper alternatives.
Customer satisfaction is an emotional response based on the comparison between prior experiences and expectations of a product or service versus actual performance post-interaction (Vavra, 2002) To align with ISO 9001 standards, organizations must thoroughly understand their context and possess in-depth knowledge of customer requirements by fostering strong communication links Keeping customers informed about progress and proposed changes is essential (Jackson and Ashton, 1995), necessitating the implementation of an effective information gathering and dissemination system within organizations.
1.2.3.4 Dynamic and continuous quality improvement
THE REAL SITUATION OF ISO 9001:2015 SYSTEMS IN SOME
Introduction of Habeco Corporation
The predecessor of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (Habeco) is Hommel Brewery which was built in 1980 by the French with an initial size of
In 1954, the North of Vietnam was fully liberated, but before retreating, French troops sabotaged Hommel Brewery by destroying machinery and burning crucial technical documents By 1957, under the Vietnamese government's economic recovery initiative, the brewery was restored and renamed Hanoi Brewery With the dedicated assistance of Czech beer experts, the first successful trial of beer was conducted on May 1, 1958, by skilled worker Mr Vu Van Boc from the former Hommel Brewery.
On 15 th August 1958, the 13 th anniversary of the successful August Revolution and the formation of the Provisional Democratic Republic as well as the 4 th celebration of the capital’s complete liberation, the first Vietnamese bottle beer named Truc Bach was born in the great joy of employees of Hanoi Brewery It is a product that asserted the ownership of Vietnamese workers and served the essential needs of the Vietnam society at that time From this milestone, Hanoi Brewery entered a new era - the period of brand affirmation in Vietnam beverage industry and become the pride of Hanoians From then on, August 15 th is chosen as the traditional day of Habeco
In 1993, Hanoi Brewery transformed into Hanoi Beer Company, initiating a new operational model The company focused on expanding its investments, modernizing equipment, and boosting production capacity to 50 million liters annually By 2001, this capacity was further increased to 100 million liters per year.
On 6 th May 2003, the Ministry of Industry (now the Ministry of Industry and Trade) issued Decision No 75/2003/QD-BCN to establish Hanoi Beer – Alcohol - Beverage Corporation (abbreviated as Habeco) From 16 th June 2008, the corporation officially changed from a state to a joint stock corporation under the Decision No.1863 / QD-TTg dated 28/12/2007 and Decision No 575/QD-TTg dated 16/5/2008 by the Prime Minister This is an important turning point for Habeco to affirm its position in the integration period
In 2010, Habeco launched a state-of-the-art brewery in Melinh, Hanoi, capable of producing 200 million liters of beer annually, making it the most advanced brewery in Southeast Asia Over the years, the company has expanded significantly, now operating two main breweries, 17 subsidiaries, and six associated companies across northern and central Vietnam With a total production capacity exceeding 800 million liters, Habeco consistently ranks among the top three beer producers in Vietnam, holding a substantial market share.
With over a century of tradition and advanced technology, Habeco's modern equipment and skilled staff have earned the affection of millions of consumers both in Vietnam and internationally Hanoi beers, crafted through generations, hold a significant place in consumer trust and stand as a source of pride for Vietnamese brands As a prominent player in the beverage industry, Habeco has successfully expanded its market presence, distributing products not only domestically but also to countries like Taiwan, Korea, England, Germany, the USA, and Australia Below are some of the remarkable achievements Habeco has accomplished in recent years.
International Asia Pacific Quality Award (IAPQA), 2006;
Golden Europe Award for Quality and Commercial Prestige 2005, Otherways Management & Consulting Association, Paris, France;
29th International Award for the Best Trade Name in Madrid, Spain in 2004;
Gold Star Award of Vietnam, continuously received since 2003;
Gold Star Cup for ―Brand and Trademark‖
2.1.2 Vision and mission of Habeco Corporation
Vision: Hanoi Beer – Alcohol - Beverage Joint Stock Corporation is aiming to become a strong and leading company in Vietnam beer, alcohol and beverage industry
Provide Vietnamese and regional consumers with quality, food safety and hygiene beverages
Contribute to the creation of Vietnamese drinking culture and support for responsible drinking
Have responsibility to the government and society in social security activities
Research and develop strategic, added-value brands to meet the increasing demand of domestic and foreign consumers
2.1.3.1 Truc Bach can and bottle beer
Truc Bach, the first domestic beer in Vietnam since 1958, is named according to Truc Bach Lake - a place associated with the millennial land of civilization Thang Long - Hanoi
Habeco's premium beer is crafted using top-quality imported ingredients, including Saaz hops, one of the four noble hops grown exclusively in the Zatec valley of the Czech Republic, along with spring barley sourced from renowned regions in France and the Czech Republic.
Truc Bach Beer is a masterpiece characterized by its honey-like, transparent yellow hue and a thick, spongy white foam that is exceptionally smooth This beer offers a unique flavor profile, starting with a slight bitterness that transitions into a delightful sweetness from the malt.
2.1.3.2 Hanoi Premium can and bottle beer
Hanoi Premium bottle beer, launched in 2005, targets the premium beer segment Its compact and elegant design makes it the perfect choice for parties, formal dining, or a refreshing drink, ensuring an unforgettable experience for those who enjoy it.
In 2017, Habeco introduced Hanoi Premium can beer, featuring a revolutionary quality and contemporary design This premium beer aims to offer a distinctive experience for Vietnam's young, innovative, and trendsetting generation.
First introduced to Vietnamese beer lovers in 1992, the quality and convenience of Hanoi can beer make it become an indispensable gift for Vietnamese Tet holiday and other important occasions
Habeco's flagship product is a popular choice among beer enthusiasts during family and friend gatherings in the country, thanks to its consistent quality and the esteemed brand reputation linked to the capital city of Hanoi.
2.1.3.5 Hanoi can and bottle beer with green label
With the desire to better meet the needs of consumers in all parts of the country, in
2014, Habeco has launched Hanoi Green Label Beer - a product dedicates to beer lovers in the Central of Vietnam
Hanoi Green Label Beer embodies the perfect blend of tradition and regional taste, as reflected in its slogan "Traditional Flavors - Central Lifestyle", combining over 120 years of Hanoi Beer's heritage with the quintessential beer taste of the Central people This unique brew offers beer enthusiasts an unforgettable experience, with its mild flavor and exceptional quality paired with the breathtaking scenery of the Central region's white sandy coastlines.
2.1.3.6 Hanoi draught beer (Bia Hoi Ha Noi)
Since its inception in 1960, Bia Hoi Ha Noi has earned a distinguished reputation among beer enthusiasts, making it a favored choice for social gatherings among locals and a must-try for international visitors in Hanoi The unique experience of savoring Bia Hoi Ha Noi at the bustling pavements and street corners has become an iconic aspect of Hanoi's vibrant culture.
Uniaqua, launched in early 2015, aims to deliver high-quality drinking water sourced from natural groundwater Utilizing advanced technologies like reverse osmosis, membrane filtration, and UV sterilization, Uniaqua ensures a pure and fresh product for consumers.
Evaluation of the ISO 9001:2015 efficiency in Habeco breweries
2.2.1 The context of Habeco head quarter and its breweries
Currently, Habeco operates under a Joint Stock company model as part of its business strategy Over time, the corporation has developed and refined its organizational structure to enhance efficiency and effectiveness.
The head quarter consists of 11 departments located at 183 Hoang Hoa Tham and a research institute located in Hanoi - Me Linh Brewery with the total employees of about 140 people
In 2009, the Hanoi - Me Linh Brewery was established in Tien Phong commune, Me Linh district, Hanoi, boasting an impressive capacity of 200 million liters per year The brewery operates with four departments and three plants, employing approximately 290 staff members.
In 2017, the corporation established the Hanoi - Hoang Hoa Tham brewery The brewery organizational structure includes 3 departments and 1 production plant with approximately 300 employees
From the establishment of Hanoi Beer – Alcohol - Beverage Joint Stock Corporation in 2008, the corporation has 13 production sites which run as both subsidiaries and associated companies
Habeco is dedicated to enhancing its production capacity and product quality while fostering a better working environment for employees, conserving raw materials and energy, and strengthening its corporate position Since 2001, Habeco's headquarters and two breweries have implemented ISO 9001:2000 standards, achieving certification in June 2002 Acknowledging the significance of environmental protection and social responsibility, the corporation adopted an environmental management system in accordance with ISO 14001:2004 starting in 2004.
In response to the growing consumer focus on food safety and health, Habeco prioritizes hygiene and food safety to build long-term customer trust This commitment was solidified with the implementation of the ISO 22000:2005 food safety management system in 2006 To enhance product quality and innovate new offerings, the Technical Institute of Brewing was established in 2007 By 2015, the institute relocated to a new facility at Melinh Brewery, equipped with advanced analytical instruments and a pilot production system In 2018, the institute further strengthened its capabilities by establishing an Analysis Center that adheres to ISO/IEC standards for testing and calibration laboratories.
Currently, each production site within the Habeco group operates its own management system All companies have developed and obtained certification for the mandatory food safety management system ISO 22000 While all companies have established a quality management system ISO 9001, some have yet to achieve certification The implementation of the ISO 14001 environmental management system is incomplete, particularly among smaller companies in areas with lower demands for such systems, resulting in a lack of ISO 14001 certification.
Table 2.1: ISO standards in Habeco member companies
No Company’s name ISO 9001 ISO 14001 ISO 22000
1 Hanoi - Kimbai Beer Joint Stock x x
No Company’s name ISO 9001 ISO 14001 ISO 22000
2 Hanoi - Thaibinh Beer Joint Stock
Habeco Haiphong Beer Joint Stock
Invalid certification because of not conducting surveilances and re- certification audits after 1 st certification audit in 2012
Investment and Development Joint Stock
5 Hanoi - Nghean Beer Joint Stock
6 Hanoi - Quangbinh Beer Joint Stock
7 Trading 89 Beer Joint Stock Company x x
8 Hanoi - Namdinh Beer Joint Stock
9 Thanhhoa Beer Joint Stock Company x x x
10 Hanoi - Haiphong Beer Joint Stock
11 Hanoi - Hongha Beer Joint Stock
12 Hanoi - Haiduong Beer Joint Stock
Apply but didnot get certification audit x x
13 Hanoi - Quangtri Beer Joint Stock
* Source: ISO Department of HABECO
2.2.2 The real situation of applying ISO 9001: 2015 in some Habeco breweries
The assessment of ISO application ịn Habeco head quarter and member companies is based on the criteria set out in Chapter 1 Primary data collection was done as follows:
In-depth interviews were conducted with senior managers, ISO representatives, department heads, specialized staff, and production workers at Habeco group to gather insights on ISO 9001 implementation Following the interviews, participants were given a questionnaire to assess the effectiveness of ISO 9001 in their company on a scale of one to ten, providing a comprehensive evaluation of the standard's implementation.
A total of 292 completed questionnaires were received from 310 distributed, resulting in a high response rate of 94.2% Eighteen questionnaires were excluded due to incomplete information Among the 292 valid responses, 78 were collected from high and middle managers at Habeco headquarters and its affiliated companies The collected data was analyzed to determine mean values, which were then utilized to create charts for evaluating the effectiveness of ISO systems.
Internal audits were systematically conducted across all departments and production plants within the Habeco group, with each audit team consisting of 3 to 4 members from the Habeco headquarters Following each audit, internal auditors completed standardized questionnaires designed for both leaders and workers of the member companies, enabling a comprehensive evaluation of ISO implementation and facilitating comparisons with previously obtained results.
Expert interviews with senior ISO 9001 professionals were conducted to determine the optimal levels for each criterion By comparing these desired levels with the current scores evaluated by internal auditors and the companies themselves, the effectiveness of ISO 9001 implementation was thoroughly assessed.
Labor productivity is crucial in shaping wage policies, particularly in state-owned enterprises like Habeco, where enhancing wages requires demonstrable productivity gains The adoption of ISO 9001 positively impacts labor productivity by promoting strict adherence to established procedures and clear guidelines, creating a more organized workplace that minimizes production errors (Levine and Toffel, 2010) This structured environment reduces the time employees spend seeking solutions to problems, thereby boosting productivity Additionally, the "continuous improvement" principle of ISO 9001 encourages employees to engage in discretionary tasks, such as documenting new procedures and suggesting quality enhancements, further contributing to increased labor productivity.
Figure 2.1: Labor productivity in Habeco groups
* Source: Human Resource Department of HABECO
Labor productivity at Habeco is measured by the annual beer production per worker in liters Variations in labor productivity exist among different companies, as illustrated in Figure 2.1 Notably, HQ and ID demonstrate higher productivity levels, which can be attributed in part to their implementation of ISO standards.
The ISO 9001 system has been implemented for a significant period, with effective practices characterized by transparent procedures and work guidelines However, high labor productivity in North America (NA) and HHP does not necessarily indicate successful ISO 9001 application, as it often results from increased production volumes, overtime, and a reliance on seasonal workers Companies with a high proportion of manual labor, such as ND, KB, and QB, which have recently and inadequately adopted ISO 9001, tend to exhibit lower labor productivity Additionally, the Habeco group experienced only modest improvements in labor productivity from 2015 to 2017, attributed to a stable workforce and a mere 3 to 5% increase in beer production during that period.
Product quality is crucial for business survival and is a primary objective for companies like Habeco, which is dedicated to delivering meticulously refined products To assess product or service quality, it's essential to consider customer satisfaction, production output, and the volume of customer complaints Analyzing data from 2015 to 2017, Habeco experienced a gradual sales increase of 3% to 5%, and the yearly complaint comparisons during this period serve as a key indicator of product quality Currently, all bottled and canned beers are sold through Habeco's headquarters, while draught and local beers are distributed differently.
HQ KB TB HHP ID NA QB ND TH T89 HP HH HD QT
L abo r pro du ct iv it y (L it re s/perso n/y ea r)
Between 2015 and 2017, production companies were required to address product complaints by creating non-conformity reports that outlined the causes, solutions, and preventive actions However, due to ineffective ISO implementation, member companies did not consistently document customer complaints Consequently, the data presented in Figure 2.2 only reflects the number of complaints regarding bottled and canned beers over the past three years Notably, the decline in complaints during this period indicates an improvement in the product quality of Habeco.
Figure 2.2: Number of customer complaints on canned and bottled beers
* Source: ISO Department of HABECO
Based on the fact that different companies have different number of complaints and production output, in order to compare product quality produced by companies, the term
―returned product ratio‖ was introduced
Returned product ratio =Number of customer complaints in a year
Total output million litres in a year
Co m pla ined pro du ct s
Figure 2.3: Comparison of returned product ratios in Habeco companies
* Source: ISO Department of HABECO
It was shown that this ratio was lower over years partly due to application of ISO
In late 2015, Habeco implemented guidelines on equipment, technology, and quality control for its group companies to enhance quality management in accordance with ISO 9001 standards Despite these efforts, certain companies, such as HHP and NA, continued to experience high product return rates.
9001 systems were not be certified or not be properly concerned The product quality in
ID, HD was quite good Especially in QB, HP, TH, the number of defective products has declined year by year even to zero like TH in the year of 2017
Satisfaction on ISO 9001 application was based on interviews with senior and middle managers as well as employees in each company Asessment in the access and use of ISO
9001 documents was divided into 3 levels: completely satisfied, relatively satisfied and unsatisfied
HQ TB HHP ID NA QB TH HP HH HD QT
R etu rn ed p ro du ct ratio ( un it/m illi on litre s)
Figure 2.4: Assessment of satisfaction in ISO 9001 application
* Source: Interview results based on Appendix 5, 6
