VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

FACULTY OF MECHANICAL ENGINEERING

🙞···☼···🙞

PROCUREMENT MANAGEMENT (ME2113)

PROJECT:
AN ANALYSIS OF THE PROCUREMENT ACTIVITIES AT
O TESLA COMPANY
Lecturer : Prof. Dr. PHAN THI
MAI HA
Class : CC01
Group : 09

GROUP MEMBERS
No. Full name Student ID

1 Lê Ngọc Bảo Khanh 2352509

2 Lê Nhật Ánh 2452103

3 Trương Quốc Tuấn 2453371

4 Phạm Huỳnh Minh Nguyên 2452864

5 Nguyễn Hoàng Bảo Quyên 2453096

Ho Chi Minh City, November 2025

ACKNOWLEDGEMENT

First and foremost, we would like to express our sincere gratitude to Assoc. Prof. Dr.
Phan Thi Mai Ha for her dedicated instruction and guidance throughout the
Procurement Management course. Her comprehensive lectures and valuable insights
provided us with the essential theoretical framework—ranging from supplier selection
to inventory management, which served as the foundation for this research.
We are deeply grateful to the Board of Directors and the staff of O Tesla Industrial Co.,
Ltd. for allowing us to conduct this case study on their enterprise. In particular, we
would like to thank Mr. Nguyễn Hữu Phẩm, General Director, and the procurement and
technical teams for their openness and support.
We sincerely appreciate the time and effort the company staff spent assisting us during
our field visits and interviews. Their willingness to share practical insights regarding
the company’s Make-to-Order (MTO) model, supply chain challenges, and internal data
such as inventory records and procurement process diagrams—was invaluable to the
completion of this report.
Finally, we would like to thank our fellow group members for their collaboration,
research efforts, and commitment to analyzing the data and proposing practical
solutions.
Despite our best efforts to combine classroom theory with practical reality, this report
may contain inevitable shortcomings. We look forward to receiving comments and
feedback from the lecturer to improve our knowledge and future research.
ABSTRACT

This report analyzes the procurement management activities of O Tesla Industrial Co.,
Ltd., a manufacturer of coffee roasting machines operating under a flexible Make-to-
Order (MTO) business model. The research aims to evaluate the efficiency of the
company’s current procurement strategy, material management, and supplier
relationships to identify operational risks and propose strategic improvements.
By combining theoretical frameworks with practical data analysis—including internal
inventory records, purchasing workflows, and supplier evaluation criteria—the study
assesses how O Tesla balances cost optimization with product quality. The findings
indicate that while O Tesla effectively minimizes capital tied up in inventory through a
Lean strategy and strict BOM adherence, the company faces significant challenges.
These include a high dependency on a limited number of suppliers for critical
components, the absence of a formal Material Requirements Planning (MRP) system,
and a reactive purchasing process driven by manual requisitions, which increases the
risk of stock-outs and production bottlenecks.
To address these limitations, the report recommends shifting from a reactive to a
proactive procurement approach. Key proposals include diversifying the supplier base
to mitigate supply chain disruption, standardizing supplier evaluation KPIs (such as
OTIF and defect rates), and strengthening cross-functional integration between
planning and purchasing departments. Furthermore, the report suggests adopting long-
term strategic partnerships and framework agreements to optimize costs and ensure
stable material availability for sustainable growth.
 TABLE OF CONTENTS

ACKNOWLEDGEMENT ........................................................................................... 1

ABSTRACT .................................................................................................................. 3

TABLE OF CONTENT ............................................................................................... 4

LIST OF TABLES ........................................................................................................ 8

LIST OF FIGURES ...................................................................................................... 9

ABBREVIATION TABLE ........................................................................................ 10

CHAPTER 1: GENERAL INTRODUCTION ........................................................ 12

1.1 Problem Statement ............................................................................................ 12

1.2 Research Objectives .......................................................................................... 12

1.3 Report Structure ................................................................................................. 13

1.4 Overview of O Tesla Industrial Co., Ltd............................................................ 13

1.4.1 Business Model ........................................................................................... 13

1.4.2 Product Portfolio ......................................................................................... 15

CHAPTER 2: RESEARCH PROCESS AND PROCUREMENT STRATEGY .. 22

2.1 Research Process ................................................................................................ 22

2.2 Research Approach ............................................................................................ 22

2.2.1 Theoretical Approach.................................................................................. 22

2.2.2 Practical Approach ...................................................................................... 22

2.2.3 Data Collection Methods ............................................................................ 23

2.3 Purchasing decisions Business Strategy of Otesla company ............................. 23

2.3.1 Competitive Priorities ................................................................................. 23

2.3.2 Competitive Strategy .................................................................................. 25

2.3.3 Purchasing Strategy .................................................................................... 26

2.3.4 Supply Chain Strategy ................................................................................ 27

 2.4 Procurement Strategy ......................................................................................... 28

2.5 Evaluation and Recommendations of Procurement Strategy ............................. 29

2.5.1 Evaluation ................................................................................................... 29

2.5.2 Recommendations ....................................................................................... 31

CHAPTER 3: MATERIAL MANAGEMENT - MRP ........................................... 34

3.1 Material Process ................................................................................................. 34

3.2 BOM and MRP................................................................................................... 34

3.3 Business Objectives in Material Management ................................................... 35

3.4 Management of Materials .................................................................................. 35

3.4.1 Current Status of Materials in Otesla's Make-to-Order Model ................... 35

Current Status of Materials in Otesla .................................................................. 35

3.4.2 Role of Material Management .................................................................... 36

3.5 Evaluation........................................................................................................... 37

CHAPTER 4: INVENTORY MANAGEMENT ..................................................... 39

4.1 Functions and roles of inventory ........................................................................ 39

4.1.1 Supporting the Lean strategy (capital optimization and efficiency) ........... 39

4.1.2 Supporting the Responsive strategy (ensuring customer service) .............. 39

4.2 Inventory Management Process ......................................................................... 39

4.3 Inventory Management Practices ....................................................................... 40

Inventory Management Practices ............................................................................ 40

4.4 Inventory Management Evaluation .................................................................... 41

4.4.1 Advantages .................................................................................................. 41

4.4.2 Disadvantages ............................................................................................. 42

CHAPTER 5: PROCUREMENT PROCESS AND FUNCTIONS ....................... 44

5.1 Material requirement identification.................................................................... 45

 5.2 Supplier Identification and Selection ................................................................. 48

5.3 Purchase order process ....................................................................................... 50

5.4 Delivery tracking ................................................................................................ 50

5.5 Receiving and incoming quality control (IQC) .................................................. 51

5.6 Document reconciliation and payment processing ............................................ 52

5.7 Evaluation of procurement performance ............................................................ 53

5.8 Recommendations: ............................................................................................. 54

CHAPTER 6: EVALUATION, SELECTION, AND BUILDING,

MAINTAINING RELATIONSHIPS WITH SUPPLIERS .................................... 56

6.1 Supplier Evaluation ............................................................................................ 56

6.2 Building and Maintaining Relationships with Suppliers ................................... 71

6.3 Proposed Solutions for Purchasing to Optimize Discounts from Suppliers ...... 72

6.3.1 Assessment of Current Relationship Status Between Company and

Supplier ................................................................................................................ 72

6.3.2 Proposed Solutions...................................................................................... 74

6.4 Conclusion .......................................................................................................... 75

CHAPTER 7: RELEVANT LEGAL FACTORS .................................................... 77

7.1 Contractual obligation in procurement............................................................... 77

7.2 Company Legal Status & Authority in Procurement ......................................... 78

7.2.1 Company structure ...................................................................................... 78

7.2.2 Authorities ................................................................................................... 79

7.3 Legal framework governing O Tesla’s procurement ......................................... 81

7.3.1 Terms of the seller ...................................................................................... 84

7.3.2 Terms of the buyer (O Tesla) ...................................................................... 85

REFERENCE.............................................................................................................. 87

APPENDIX A: PROCUREMENT DATA ............................................................... 88

APPENDIX B: TEAMWORK EVALUATION ..................................................... 96
LIST OF TABLES
Table 1.1 O Tesla Overview ......................................................................................... 13

Table 1.2 Some models designed for sample roasting, specialty coffee shops, and
small-batch artisanal roasting ..................................................................................... 16

Table 1.3 Some models designed for growing coffee businesses and medium-sized
roasteries. ..................................................................................................................... 16

Table 1.4 Some models designed for mass production and large-scale factories. ...... 17

Table 1.5 Some models of OD series helping gravity-based machines remove heavy
foreign objects (stones, metal, glass) from roasted coffee. .......................................... 18

Table 1.6 Some models of AB series helping emission control systems treat smoke and
odors to meet environmental regulations. .................................................................... 20

Table 1.7 Coffee Silos ................................................................................................... 21

Table 3.1 Current Status of Materials in Otesla .......................................................... 35

Table 3.2 Limitation of material management ............................................................. 37

Table 4.1 Inventory Management Practices ................................................................. 40

Table 4.2 Advantages of inventory management .......................................................... 41

Table 4.3 Disadvantages of inventory management .................................................... 42

Table 6.1 Supplier selection factors and evaluation methods ...................................... 58

Table 6.2 Weighted Evaluation of Criteria .................................................................. 59

Table 6.3 Selection of Suppliers from Criteria in Step 2 .............................................. 64

Table 6.4 Trial Items Ordered from 2 Selected Suppliers ............................................ 65

Table 6.5 Supplier Evaluation Criteria via Product .................................................... 66

Table 6.6 Weighted Evaluation .................................................................................... 67

Table 6.7 Supplier Selection ......................................................................................... 70

Table 7.1 O TESLA Quality Requirements ................................................................... 84

LIST OF FIGURES
Figure 1.1 O Tesla and its OTL - 1.2 model ................................................................ 15

Figure 3.1 Overview of O Tesla’s material flow under the MTO/ATO Model ............ 36

Figure 5.1 Flowchart of O Tesla’s procurement workflow.......................................... 44

Figure 5.2 Actual components of the coffee roaster, illustrating the machine’s unique
configuration and customization level, factors that directly influence the identification
of material requirements at O-Tesla. ........................................................................... 47

Figure 5.3 Fabrication of customized mechanical components used in O-Tesla

machines ....................................................................................................................... 48

Figure 5.4 Cross-Functional Procurement Process Map ............................................ 53

Figure 7.1 Company overview structure ...................................................................... 78

 ABBREVIATION TABLE

Abbreviation Full Name

ATO Assemble-to-Order

B2B Business-to-Business

B2C Business-to-Consumer

BOM Bill of Materials

CO/CQ Certificate of Origin / Certificate of Quality

COGS Cost of Goods Sold

EOQ Economic Order Quantity

GRN Goods Receipt Note

IQC Incoming Quality Control

JIT Just-In-Time

KPI Key Performance Indicator

MPS Master Production Schedule

MRP Material Requirements Planning

MTO Make-to-Order

MTS Make-to-Stock

NCR Non-Conformance Report

OTIF On-Time In-Full

OTL O Tesla (Brand Name)

PO Purchase Order

PR Purchase Requisition

QC Quality Control

R&D Research and Development

RFQ Request for Quotation

VAT Value Added Tax

VND Vietnam Dong (Currency)

WIP Work-in-Progress

QAA Quality assurance agreement

 CHAPTER 1: GENERAL INTRODUCTION
1.1 Problem Statement

Today’s economy is growing fast, and many companies follow similar business models.
Because of this, good procurement strategies are important for keeping costs low,
improving quality, and staying competitive. To understand this topic in a real business
setting, our group chose O Tesla – Modern Coffee Roastery Machinery as the case study
for our Procurement Management course.

During the study process, our group applied classroom knowledge together with hands-
on experience, including visiting the company and talking with staff members. These
activities helped us understand how procurement works in real operations and why it
affects the whole production flow. They also gave us a clearer view of the challenges a
make-to-order manufacturer faces when selecting suppliers and managing materials.

O Tesla produces modern coffee roasting machines with advanced features, and the
company depends on high-quality input materials such as stainless steel 304, imported
components, and certified thermostats. This shows that procurement is a key factor in
ensuring product stability, performance, and long-term reliability. With its strong
machine design, customer-focused solutions, and growing customer network, O Tesla
is a suitable case study to show how procurement decisions directly influence product
quality and the success of a make-to-order manufacturing business.

1.2 Research Objectives

Using the basic knowledge from the Procurement Management course, our group
analyzes the procurement activities of O Tesla, a make-to-order manufacturer of coffee
roastery machines. By combining class theory with our hands-on experience at the
company, we aim to identify the main challenges O Tesla faces in its purchasing
process, especially those related to supplier selection, imported components, delivery
time, and input quality. Based on these findings, we propose several solutions that can
help improve the procurement process, reduce purchasing costs, support more stable
production, and increase overall business performance.
1.3 Report Structure
The report's structure is systematically organized to address the comprehensive scope
of the procurement function, moving logically from foundational context to strategic
implementation, operational specifics, and critical compliance.
The document initiates with the General Introduction, providing the necessary overview
of the enterprise and its product portfolio to establish the operational framework. This
context naturally precedes the development of the Research Process and Procurement
Strategy, which defines the core strategic direction for purchasing activities in
alignment with the organization's goals.
The following sections detail the execution of this strategy. Material Management and
Inventory Management consecutively address the practical aspects of handling and
controlling physical inputs, ensuring the supply chain is both efficient and cost-
effective. These operational prerequisites lead into Procurement Procedures and
Functions of the Enterprise, which meticulously outlines the established workflow,
transaction processes, and associated organizational responsibilities.
Subsequently, the report focuses on external dependencies. Supplier Evaluation,
Selection, Development, and Relationship Management examines the vital process of
identifying, qualifying, and fostering sustainable relationships with key vendors. The
crucial element of regulatory adherence is addressed in the Relevant Legal Factors
section, confirming that all procurement and business activities maintain compliance.
The report concludes with Conclusion and Recommendations, synthesizing the findings
from the preceding analysis and proposing strategic improvements for the future.
1.4 Overview of O Tesla Industrial Co., Ltd.
1.4.1 Business Model

Table 1.1 O Tesla Overview

Category Information

O Tesla Industry Co., Ltd. (Operating under the brand OTL

Company Name
Roaster)
 Establishment January 16, 2018

Manufacturing and distribution of coffee roasters and auxiliary

Business
equipment.

A specialized manufacturer and distributor utilizing a flexible

business model combining manufacturing, Make-To-Order
General Description
(MTO) customization, and both retail and wholesale
(B2B/B2C) distribution.

General Director Nguyễn Hữu Phẩm (Legal Representative)

Headquarters/Administrative Office: No. 44, N5 Street, Tan

Binh Ward, Di An City, Binh Duong Province, Vietnam.
Store Locations
Production Factory: 398/33 DT743B, Tan Dong Hiep Ward, Di
An City, Binh Duong.

Operating Hours Monday to Saturday: 08:00 AM – 05:00 PM.

Coffee Roasters (Capacities from 1kg to 120kg): Models OTL-

01, OTL-03, OTL-06, OTL-12, OTL-30, OTL-60, OTL-120.
Products
Auxiliary Equipment: Destoners, afterburners for smoke
treatment, and storage silos.

Small to mid-sized machinery: Approximately 35,000,000 to

Quoted Price, Subject
85,000,000+ VND. Large-scale industrial configurations:
to VAT
Custom quotation.

Manufacturing/Customization (MTO), Retail, and Wholesale

Services
(B2B/B2C).
 The company utilizes a flexible model combining
Service Method manufacturing and MTO customization. Customers contact the
company for sales and support.

Figure 1.1 O Tesla and its OTL - 1.2 model

1.4.2 Product Portfolio

a) Coffee Roasting Machines

OTL Roaster offers a comprehensive range of roasters designed for energy efficiency,
precision, and consistency. The machines are suitable for various scales, from sample
roasting to large-scale industrial production.
 Lab & Shop Series (Small Capacity)

Table 1.2 Some models designed for sample roasting, specialty coffee shops, and
small-batch artisanal roasting

Model Sample Figure Capacity (kg/batch) Ideal Application

Sample roasting,
OTL - 1.2 1.2 kg
Training, Home use

Small Cafes, Specialty

OTL - 03 3 kg
Micro-roasteries

Medium Cafes,
OTL - 06 6 kg
Production startup

Commercial Series (Medium Capacity)

Table 1.3 Some models designed for growing coffee businesses and medium-sized
roasteries.
 Model Sample Figure Capacity (kg/batch) Ideal Application

Wholesale roasteries,
OTL - 12 12 kg
High-volume cafes

Growing wholesale
OTL - 15 15 kg
operations

Commercial
OTL - 30 30 kg distribution, Industrial
entry-level

Industrial Series (Large Capacity)

Table 1.4 Some models designed for mass production and large-scale factories.
 Model Sample Figure Capacity (kg/batch) Ideal Application

Large-scale
OTL - 60 60 kg factories, Instant
coffee production

Mass market
OTL - 120 120 kg distribution, Export
processing

b) Auxiliary Equipment

To ensure product purity and environmental compliance, OTL provides a full ecosystem
of support equipment.

Destoners (OD Series)

Table 1.5 Some models of OD series helping gravity-based machines remove heavy
foreign objects (stones, metal, glass) from roasted coffee.

Model Sample Figure Capacity (kg/batch) Ideal Application

 Specialty / Lab Roasting

Ideal for small specialty coffee

OD - 05 5 kg shops, sample roasting, or
boutique roasteries where small
batches require high purity.

Commercial Coffee Shops

OD - 15 15 kg Designed for medium-sized

cafes or roasteries doing daily
production roasts for retail.

Wholesale Production

Suited for growing businesses

OD - 30 30 kg supplying local cafes; high-
speed removal of stones for
continuous roasting.

Industrial Factory

Heavy-duty construction for

OD - 60 60 kg large-scale production lines;
critical for protecting large
industrial grinders.

Afterburners (AB Series)

 Table 1.6 Some models of AB series helping emission control systems treat smoke and
odors to meet environmental regulations.

Model Sample Figure Capacity (Rating) Ideal Application

Urban Roastery
Essential for shops located in
Matches 15kg
AB - 15 populated city centers or
Roaster
mixed-use buildings to
eliminate smoke complaints

Commercial Compliance
For standalone roasteries
Matches 30kg
AB - 30 requiring adherence to local air
Roaster
quality and environmental
regulations

Industrial Emission Control

High-capacity oxidation for
Matches 60kg
AB - 60 factories; capable of handling
Roaster
heavy smoke loads from dark
roasts continuously

Mass Production Plant

Strict environmentalm
Matches 120kg compliance for major
AB - 120
Roaster manufacturing facilities; often
legally required for operations
of this scale
 Coffee Silos

Table 1.7 Coffee Silos

Model Sample Figure Capacity (kg) Ideal Application

Inventory Management &

Degassing

Customizable Used for storing roasted beans

Silo OTL (Typically 150kg - for degassing before packaging.

5+ Tons) Essential for maintaining

workflow continuity in
industrial plants (buffer storage
between roasting and packing)
 CHAPTER 2: RESEARCH PROCESS AND PROCUREMENT STRATEGY

2.1 Research Process

Step 1: Study the theoretical background, outline the research framework, and
analyze the company’s procurement activities through import–export data, accounting
documents, and the purchasing process diagram.

Step 2: Analyze the procurement activities at O Tesla Industrial Co., Ltd.,

clarifying the strengths, limitations, and factors affecting the effectiveness of this
process.

Step 3: Propose solutions to improve and enhance the efficiency of procurement

activities.

2.2 Research Approach

2.2.1 Theoretical Approach

In manufacturing companies, procurement activities are usually divided into direct

procurement and indirect procurement. Direct procurement relates to supplies for
production, such as raw materials, components, or items that make up the final product.
In contrast, indirect procurement refers to goods and services that do not directly enter
the production process but are still necessary to keep the business running. Since
procurement works closely with many departments, it needs to make accurate decisions
that fit the company’s business model. Then, using a clear procurement model helps
activities follow a logical order, makes it easier to control the process, and allows
flexible adjustments when needed.

2.2.2 Practical Approach

As a company that manufactures coffee roasting and grinding machines, procurement

plays an important role in keeping both product quality and production on track. Most
of the company’s procurement is direct, focusing on raw materials and mechanical –
electronic parts that determine how durable and efficient the machines will be. In
addition, the company also makes indirect purchases for operational needs, such as
safety gear, consumable supplies and management services. Good procurement directly
affects the company’s profits, especially through material costs, the quality of
components, and whether deliveries arrive on time. The procurement process is
organized systematically, with the team working closely with the production department
to define requirements, select suppliers, sign contracts, and monitor progress through
documentation and inventory reports. This approach helps control costs, meet
production schedules, and secure input quality. However, some challenges remain,
including heavy reliance on a limited number of suppliers and the limited adoption of
modern management tools, which reduce supply chain flexibility when market
conditions change.

2.2.3 Data Collection Methods

To collect data, two approaches were applied:

Internal data collection: with the support of staff at O Tesla Industrial Co., Ltd.,
procurement reports, inventory records, and accounting documents were accessed. This
ensured that the data were accurate and closely reflected actual operations.

Literature review: information was gathered and synthesized from scientific

articles, professional journals, and research studies related to procurement in
manufacturing enterprises. These references provided a basis for comparison and
analysis.

2.3 Purchasing decisions Business Strategy of Otesla company

2.3.1 Competitive Priorities

In the Make-to-Order (MTO) model, competitive priorities play an important role in

guiding all production and purchasing activities at O Tesla. Based on the characteristics
of mechanical and electronic products and the strict requirements of the coffee roasting
equipment market, the company focuses on four main competitive priorities.
Quality is a key priority for O Tesla because when making coffee roasting and grinding
machines in the Make-to-Order (MTO) model. These products need strong mechanical
parts, stable heating, and accurate control components. Because of this, the quality of
materials is very important for the machine’s safety and lifespan. For this reason, O
Tesla follows strict quality standards, chooses suppliers who can provide stable and
reliable parts, and checks all materials carefully before production. By putting quality
first, the company can reduce defects, avoid rework, and build trust with customers.

Because production only starts when an order is received, delivery accuracy is important
in the Make-to-Order model, where the production schedule depends completely on
having the right materials at the right time. Any delay in lead time can cause late
delivery to customers. Therefore, O Tesla prefers working with suppliers who have
stable delivery performance, quick responses, and clear order tracking. Maintaining a
high level of delivery reliability helps the company meet its commitments to customers
and improve overall satisfaction

O Tesla can meet many custom requests from customers, including changing the drum
size, adjusting the power, adding extra features, or creating a special design. Because
the company produces small batches and many different models, the purchasing team
needs to react quickly by changing material types, ordering the right quantities for each
job, and working with suppliers who can respond fast. Thanks to this focus on
flexibility, the company can serve many kinds of customers, handle special requests
more easily, and still keep production running smoothly

Although O Tesla does not follow a low-cost strategy, the company still focuses on
managing costs effectively to maintain profit margins and keep production sustainable.
The company looks at cost not only as the purchase price but also as the total cost of
ownership, which includes inventory, transportation, defects, and rework. Because O
Tesla works under the Make-to-Order model, it keeps almost no raw material inventory.
This means cost efficiency depends on accurate ordering based on the BOM, choosing
suitable suppliers, and controlling operating expenses. With this approach, O Tesla can
balance cost and value while still protecting its key priorities, such as quality and
flexibility

Based on its production model and market characteristics, O Tesla defines its
competitive position with three core priorities includes quality, flexibility and on-time
delivery, while cost is controlled and improved only after these main priorities are met

2.3.2 Competitive Strategy

O Tesla’s competitive strategy grows directly from the company’s strengths in

mechanical engineering and its flexible Make-to-Order model. Instead of competing
with large brands on price, O Tesla focuses on creating machines that are reliable, long-
lasting and well-built. This quality-based approach helps the company stand out in a
market where many low-cost machines cannot meet the technical needs of serious
roasters

Customization is another central element of the strategy. Because O Tesla builds each
machine after receiving an order, the company can adjust drum size, motor power,
features or design to match the customer’s roasting style and business model. This
ability is especially valuable for small roasteries and coffee shops, who often need
equipment that fits their space, workflow or roasting profile. Customization also reflects
one of the company’s core advantages, which is the flexibility of small-batch production
supported by strong in-house engineering.

Cost efficiency supports all these goals. Although O Tesla does not compete through
low prices, the Make-to-Order model helps control costs by reducing inventory,
avoiding excess materials and ordering parts based on the exact BOM for each machine.
This keeps operating expenses manageable and allows the company to offer good value
without lowering quality.

Because of these strengths, O Tesla positions itself in a niche market rather than
competing head-to-head with large international manufacturers. By focusing on small
and medium-sized buyers who value quality, customization and strong technical
support, the company creates a clear and sustainable competitive position that fits its
capabilities.

2.3.3 Purchasing Strategy

Purchasing plays an important role in O Tesla because every component has a direct
impact on machine performance. Working under a Make-to-Order model and producing
in small batches, the company needs a purchasing approach that keeps inventory low
while ensuring flexibility and reliable supply.

In this model, materials are mainly purchased after an order is confirmed. This helps
the company avoid storing unnecessary items, reduces holding costs and ensures that
each material matches the exact BOM required for the order. This approach not only
limits excess inventory but also contributes to cost optimization by avoiding capital tied
up in unused materials.

Reliable suppliers are especially important for O Tesla. Because the production plan
depends heavily on on-time deliveries, the company prefers partners that can provide
stable lead times, consistent quality and responsive communication. When selecting
suppliers, O Tesla considers several factors such as technical capability, delivery
performance, responsiveness and their ability to support customized orders. Having
dependable suppliers helps the company schedule production more confidently, limit
disruptions, avoid unnecessary delays, and support cost optimization by enabling more
stable pricing and favorable commercial terms, even when order quantities are relatively
small.

Because order volumes are small, O Tesla places a strong focus on long-term supplier
relationships. Stable partners allow O Tesla to offer better pricing, faster technical
support and higher priority in periods of high demand, which are especially valuable
when handling customized products.

For key components such as motors, sensors and control boards, O Tesla applies
additional risk-management measures. These items have longer lead times and greater
impact on production, so the company uses dual sourcing whenever possible or
maintains a small buffer stock for parts that are difficult to replace. This approach helps
ensure continuity in production and prevents unexpected stoppages if one supplier
experiences delays or supply issues.

To protect the overall quality of the final machine, incoming inspection is treated as a
critical step. With low production volumes, any defect discovered after assembly can
be highly costly, so careful checking at the receiving stage helps ensure that only high-
quality parts enter production.

2.3.4 Supply Chain Strategy

Because O Tesla produces in small batches and avoids holding unnecessary inventory,
the company follows a lean supply chain that focuses on moving materials into
production at the right time rather than storing them in advance. This approach helps
control costs while maintaining the flexibility needed to handle different product
specifications.

To make this lean system work effectively, purchasing, production and delivery must
operate under a shared order-driven plan. Close synchronization ensures that materials
arrive when needed, production stays on schedule and customer delivery commitments
can be met without delays. This alignment also reduces the risk of excess inventory and
improves overall process efficiency.

Such synchronization cannot be achieved without strong supplier collaboration. Since

O Tesla does not rely on long-term forecasts, it works closely with suppliers to maintain
short-term visibility of capacity, lead time and order status. Transparent communication
allows both sides to adjust quickly when customer requirements change, which is
especially important in a customized production environment.

However, operating with low inventory also increases exposure to supply risks,
particularly for imported or highly technical components. To manage these risks, O
Tesla carries out regular supplier capability assessments, adopts dual sourcing where
possible and maintains small buffer stocks for parts with long lead times. These actions
help protect the production schedule from disruptions and ensure the continuity of
operations.

In addition to risk control, the company also aims to shorten the supply chain whenever
possible. By working with domestic suppliers for mechanical parts and supporting
materials, O Tesla reduces delivery time, lowers logistics costs and avoids delays
related to international transportation. Localization also improves responsiveness,
which benefits both production and after-sales service.

Bringing these elements together, O Tesla adopts a hybrid supply chain strategy. Lean
principles guide its purchasing and production activities, while a responsive approach
shapes its after-sales and customer support. This combination allows the company to
maintain cost efficiency while still adapting quickly to customer-specific requirements,
providing a balance between operational effectiveness and high service quality.

2.4 Procurement Strategy

Toward Suppliers

To ensure stable production, maintain high product quality and support the Make-to-
Order model, O Tesla develops its procurement strategy around four main directions:

Ensure consistent input quality

Because mechanical and electronic components strongly influence machine durability,

O Tesla selects suppliers based on technical capability, material specification accuracy
and their ability to meet quality standards over time. Incoming inspection focuses on
critical features to ensure that each batch meets the required tolerances.

Select reliable and predictable suppliers

In an environment with low inventory and order-based production, predictable delivery

is essential. O Tesla evaluates suppliers on lead time stability, communication
responsiveness and their ability to accommodate small-batch or customized requests.
Reliable suppliers help the company keep production on schedule and meet customer
delivery commitments.

Build long-term strategic supplier

Since order quantities are relatively small, O Tesla emphasizes long-term cooperation
to secure stable pricing, priority allocation and continuous technical support. Strategic
suppliers are involved early in discussing new product requirements or design changes,
helping reduce mismatch risks and improving production readiness.

Manage risks for critical components

For motors, sensors and control boards with long lead times, O Tesla applies risk-
mitigation practices such as dual sourcing and maintaining small buffer stocks. Regular
capability assessments also help identify potential risks early and prevent production
interruptions.

2.5 Evaluation and Recommendations of Procurement Strategy

2.5.1 Evaluation

Strengths

O Tesla demonstrates a clear and well-defined orientation toward input quality—an

essential requirement in small-batch mechanical and electronic manufacturing.
Suppliers are selected based on strict technical criteria and the stability of their
component performance, while the company’s rigorous incoming inspection procedures
help minimize assembly errors and reduce the risk of costly rework. In addition, the
practice of purchasing materials strictly according to each order’s BOM allows the
company to avoid excess inventory and optimize working capital, which is particularly
suitable for products that involve multiple configurations and frequent design
adjustments such as coffee roasting and grinding machines. Another strong point is the
company’s long-term relationships with key suppliers: despite small order quantities,
these partnerships provide more predictable pricing, faster technical support and better
alignment during product design modifications. Finally, O Tesla has a solid awareness
of risks related to high-tech components. The use of dual sourcing and maintaining
small buffer stocks for critical items such as motors, control boards and sensors
demonstrates that the company is building an appropriate foundation for managing
supply chain vulnerability in a Make-to-Order environment.

Limitations

Despite these strengths, several structural limitations still constrain the stability and
scalability of O Tesla’s procurement system. The most significant issue is the high
dependence on a limited number of suppliers, especially for critical components, where
only one or two viable sources exist. This creates substantial risk, as any delay, shortage
or price fluctuation directly disrupts production and delivery commitments. Lead times
are also long and inconsistent particularly for imported items and because the company
maintains very low inventory, even a single late shipment can halt the entire production
schedule, especially when design changes or add-on orders arise. In addition, O Tesla
lacks short-term forecasting and planning tools such as a 2 – 4 week rolling forecast;
procurement is activated only after an order is received, which aligns with MTO but
leaves the company unprepared for urgent, large-volume or highly customized orders.
Supplier evaluation is another weakness, as the company has not yet standardized KPIs
like OTIF, defect rate or responsiveness, resulting in assessments that rely largely on
subjective judgment and limit the ability to compare suppliers or renegotiate effectively.
Low inventory, while cost-efficient, increases operational risk because the company
often lacks spare materials to respond quickly when components fail, BOMs change or
customers request modifications. Furthermore, materials have not been classified
according to their criticality, meaning procurement cannot allocate resources or manage
risk effectively across different categories such as critical, strategic or routine items.
Finally, purchasing strictly by BOM for each order although appropriate for MTO
prevents O Tesla from benefiting from economies of scale; with small order quantities,
the company struggles to negotiate better prices, secure production priority or obtain
faster deliveries, which increases cost pressure while quality standards must still be
maintained.
 Overall

O Tesla’s procurement strategy is well aligned with the Make-to-Order (MTO) model
and has established a solid foundation in terms of input quality, supply reliability and
operational flexibility. However, several limitations, including dependence on a small
supplier base, the lack of short-term forecasting tools, the absence of standardized
supplier KPIs, extremely low inventory levels and the inability to benefit from
economies of scale, make the procurement system less proactive and insufficiently
stable to support the company’s future expansion.

2.5.2 Recommendations

Based on the points mentioned above, some suggestions for improvement are as
follows:

Diversify suppliers for critical components: To reduce the high dependency on a small
supplier base, O Tesla should develop at least two qualified suppliers for critical
components such as motors, control boards and sensors. Diversifying sources will help
mitigate the risk of production interruptions caused by delays, shortages or price
fluctuations. In addition, the selection and monitoring of these suppliers should be
supported by standardized KPIs such as on-time delivery, defect rate, technical
responsiveness and the ability to fulfill small-batch or customized orders, so that
performance can be evaluated objectively rather than based on subjective judgment.

Standardize the procurement process: The current procurement workflow contains

several disconnected steps, which can lead to delays and miscommunication. O Tesla
should consolidate these into a clear, standardized procedure that covers request
verification, BOM confirmation, supplier selection, price approval, order placement,
delivery tracking, quality inspection and system updating. A unified process will
increase transparency across departments, minimize errors and reduce the
administrative workload of the procurement team, ultimately improving coordination
with production planning.
Implement structured material classification (Kraljic or ABC / XYZ): A formal material
classification system will help O Tesla allocate procurement resources more efficiently
and manage risks more effectively. Critical or strategic items such as motors, PCB
boards and sensors should be closely monitored, sourced from multiple suppliers and
reviewed frequently. Leverage items, including steel and mechanical components, can
be purchased in larger batches to gain cost advantages. Routine items, such as bolts and
wiring, should be standardized to reduce ordering time and administrative effort. This
structured approach ensures that procurement decisions match the importance and risk
level of each material category.

Improve procurement data management and inventory tracking: To enhance decision-

making, O Tesla should maintain more systematic data on actual lead times, minimum
safety stock levels, usage rates for different product models and historical defect records
by supplier. By strengthening data accuracy and accessibility, the company can predict
material needs more effectively and respond quickly to market or design changes. This
will also support the creation of short-term demand forecasts and help prevent
emergency orders that increase costs and disrupt production schedules.

Strengthen technical collaboration with core suppliers: Instead of maintaining a purely

transactional relationship, O Tesla should expand technical cooperation with its
strategic suppliers. Early supplier involvement in design adjustments or new product
development can reduce mismatch risks, shorten validation time and facilitate smoother
customization for customers. Stronger collaboration also improves suppliers’
understanding of O Tesla’s quality standards and technical requirements, leading to
more consistent component performance.

Share short-term forecasts and preliminary production plans: Although long-term

forecasting is difficult in a Make-to-Order environment, O Tesla can still share short-
term forecasts or rolling production plans covering 2–4 weeks. Providing suppliers with
visibility into near-term demand enables them to prepare materials, capacity or safety
stock in advance, which reduces lead time variability and minimizes last-minute
procurement pressure.
Establish a periodic supplier evaluation system: To improve supplier management, O
Tesla should implement a formal and periodic assessment process using measurable
KPIs such as on-time delivery rate, incoming quality acceptance rate, responsiveness,
and flexibility in handling customization and low-volume orders. This scoring system
will allow the company to identify strategic partners, encourage continuous
improvement and replace underperforming suppliers when necessary. A structured
evaluation mechanism also strengthens negotiation power and supports future cost
optimization
 CHAPTER 3: MATERIAL MANAGEMENT - MRP

3.1 Material Process

The material process at Otesla begins with the technical department, which identifies
production material requirements and issues a corresponding Purchase Requisition
(PR). Upon receiving the PR, the accounting/purchasing staff searches for potential
suppliers, obtains quotations, compares alternatives, and selects a vendor based on
price, quality, and delivery capability before finalizing the purchase contract. Once
materials arrive, the Quality Control (QC) department inspects them for both quantity
and conformity to specifications. Depending on production needs, the materials are
either transferred directly to manufacturing or stored as inventory. The accounting
department then processes payments in accordance with contractual terms, maintains
documentation, and monitors supplier performance. However, because the process is
fully reactive and depends on manual Purchase Requisitions, Otesla faces difficulties in
forecasting material needs, highlighting the absence of a formal MRP system.

3.2 BOM and MRP

Otesla does not currently operate a formal Material Requirements Planning (MRP)
system. Instead, purchasing activities are initiated reactively through Purchase
Requisitions issued by the technical department. While this approach partially aligns
with the company’s Lean orientation, the absence of MRP increases exposure to
production delays, particularly for components with long or uncertain lead times.

Despite lacking MRP, Otesla manages a multi-level Bill of Materials (BOM).In MTO
systems, the accuracy and structure of the BOM directly determine planning reliability,
as each customer order may require a different configuration. Each machine model has
its own BOM version depending on capacity, configuration, and optional features,
making BOM control both complex and highly variable across orders.

The BOM hierarchy is structured as follows:

Level 0 represents the finished coffee roasting machine.

Level 1 comprises major assembly units that form the core functionality and often
involve long fabrication or procurement lead times due to the inclusion of strategic
Group A materials.

Level 2 includes electronic components and measuring devices essential for precision,
automation control, and machine stability.

3.3 Business Objectives in Material Management

As a manufacturer of coffee roasting machines operating under a Make-to-Order (MTO)

model, Otesla’s material planning objectives must reflect its hybrid supply chain
strategy Lean in production and Responsive in service. The company’s foremost goal
is capital optimization, demonstrated by maintaining zero finished-goods inventory and
minimizing unnecessary stock. Material planning must also ensure input quality,
particularly for certified imported components such as burners, motors, and control
software, which play a critical role in product performance. At the same time, Otesla
faces a high stock-out risk due to its low raw-material inventory level (938 million
VND), especially for items with long lead times; therefore, an MRP-based approach
would help determine appropriate safety stock levels for strategic components. Finally,
the emergence of 194 million VND in WIP at the end of 2024 signals process imbalance
across welding, assembly, and electrical stages, highlighting the need for improved
planning to synchronize production flow and prevent bottlenecks. Together, these
objectives reflect the need for a more structured and predictive planning system, one
that MRP could support effectively.

3.4 Management of Materials

3.4.1 Current Status of Materials in Otesla's Make-to-Order Model

The material profile shows high capital turnover but also reveals production bottlenecks
and vulnerability caused by minimal raw-material buffers. These issues reinforce the
need for structured material planning.

Table 3.1 Current Status of Materials in Otesla

Indicator Value (End of 2024) Status and Risks

938 million VND Achieved a high Material

(Decreased by 58.85% Turnover Ratio, but poses a risk
Raw Materials
compared to the of Stock-out if the supply chain
beginning of the year) is disrupted.

Reflects an imbalance in
production (bottlenecks between
Work in Progress
194 million VND the Welding, Assembly, and
(WIP)
Electrical teams), resulting in
capital being tied up.

Reactive operations, leading to

Based on Purchase
Planning Origin high Ordering Costs due to
Requisition
frequent small lot purchases.

The material flow at OTESLA begins when a customer places an order, which triggers
the R&D team to create the Bill of Materials (BOM). The BOM then becomes the basis
for planning and procurement activities. Following this, the Purchasing department
sources the required components, and the Production team proceeds with assembly,
testing, and final delivery. This sequential flow reflects the characteristics of both the
MTO and ATO models.

Figure 3.1 Overview of O Tesla’s material flow under the MTO/ATO Model

3.4.2 Role of Material Management

Otesla’s operation under both Make-to-Order (MTO) and Assemble-to-Order (ATO)

models makes the Bill of Materials (BOM) an essential foundation for material
management, even in the absence of a formal Material Requirements Planning (MRP)
system. The BOM serves as the primary reference for determining all components
required in production, including their specifications, quantities, and codes. This
ensures that the Engineering department can prepare accurate Purchase Requisitions,
which is critical given the company’s reactive purchasing approach.

Beyond its purchasing function, the BOM also plays a central role in product costing.
It provides the baseline structure for calculating the Cost of Goods Sold (COGS) for
each coffee roasting machine. When fluctuations occur in the market prices of
materials—such as steel or electronic components these adjustments are reflected in the
BOM. This enables Otesla to update unit costs, assess gross profit margins, and
establish competitive yet accurate pricing for each product configuration. Therefore,
while the BOM is actively used for purchasing and costing, the absence of MRP limits
Otesla’s ability to use the BOM for timing, scheduling, and material flow optimization.

3.5 Evaluation

OTESLA is implementing a Make-to-Order (MTO) production model and a Hybrid

supply chain strategy (Lean + Responsive). This model leads to significant advantages
in capital management but simultaneously creates considerable risks in material
management in the absence of MRP.

Table 3.2 Limitation of material management

Limitation Point of Explanation

The BOM indicates what is needed but does not specify

when it is needed (based on the Master Production Schedule
- MPS). Purchasing based on the Purchase Requisition can
No Timing easily result in materials arriving too early (increasing
storage costs) or too late (causing 194 million WIP).
The increase in WIP suggests that procurement is delivering
electrical components before the welding team is ready for
 them. To fix this, Purchasing should align delivery dates
with the welding schedule, not just the order confirmation
date.

In the absence of MRP, the Engineering department only

requests materials for the current order (Lot-for-lot). This
Small Lot Purchasing
leads to high Ordering Costs due to the necessity of frequent
Planning
orders and the loss of bulk purchasing negotiation
advantages (Volume Discount).

The Purchase Requisition may struggle to accurately

integrate the long Lead Time of secondary components.
Ignoring Actual Lead
MRP would automatically calculate the reorder point based
Time
on Lead Time, helping to mitigate the risk of Stock-out
(currently high with inventory at 938 million VND).

Overall, the evaluation indicates that while O Tesla’s current BOM-based reactive
purchasing model supports customization, the lack of an MRP system poses growing
risks to operational efficiency, cost control, and lead-time synchronization.
 CHAPTER 4: INVENTORY MANAGEMENT

4.1 Functions and roles of inventory

Inventory management at O Tesla serves a dual purpose, supporting both the Lean
strategy to optimize capital and the Responsive strategy to ensure customer service.

4.1.1 Supporting the Lean strategy (capital optimization and efficiency)

To support the Lean strategy, O Tesla focuses on optimizing capital efficiency through
several inventory practices. Maintaining finished goods inventory at 0.0 VND allows
the company to release a significant amount of working capital and improve overall
cash flow. At the same time, minimizing inventory levels helps reduce the risk of
product obsolescence, especially in an industry where coffee roasting machines evolve
rapidly in terms of technology. In addition, keeping Raw Materials at an appropriate
threshold ensures a fast and efficient turnover of materials into final products,
reinforcing the company’s objective of maintaining a lean and efficient operation.

4.1.2 Supporting the Responsive strategy (ensuring customer service)

O Tesla maintains a small amount of safety stock for critical Group A components. This
acts as protection against sudden supply chain disruptions and enables production to
start immediately upon receiving customer requests. The company also manages a
dedicated inventory of spare parts and warranty components, allowing the technical
team to deliver fast and effective after-sales service and minimize customer downtime.
In addition, all incoming materials are subject to a strict quality control (QC) process,
serving as the first layer of defense to prevent defective components from entering
production and avoiding future warranty costs.

4.2 Inventory Management Process

The inventory management process occurs after the inspection of quantity and quality
(QC) following supplier delivery, where materials are either stored (if used later) or
directed into production (if urgent) to ensure that only materials meeting standards are
stored, and items are kept in inventory only when not immediately required for
production. QC plays a critical role in validating materials upon receipt and inspecting
the quality of finished products after repairs, necessitating regular inventory checks to
reduce the risk of defective materials increasing Work in Progress (WIP) costs or
warranty expenses. Materials are released into the production process (Inventory
Withdrawal) based on purchase requisitions.

The scale of O TESLA’s warehouse is assessed as moderate and streamlined, focusing

primarily on high-value and large-sized items. At the end of 2024, the total inventory
value reached 1.132 billion VND, which is relatively small compared to the company's
total revenue of 12.7 billion VND and therefore aligns with the characteristics of a lean
manufacturing model. The main components stored in the warehouse consist mostly of
raw materials and materials, which represent the majority of inventory value, including
high-tech components such as motors, burners, and metals. All inventory is stored
directly at the coffee roasting machine production facility located in Đồng Nai.

Because O TESLA produces coffee roasting machines with capacities ranging from 1
kg to 120 kg per batch, the warehouse must provide suitable storage for a wide variety
of materials. Large components such as motors, roasting drums, and machine frames,
typically made of steel or metal—require spacious storage areas and must be organized
according to mechanical standards. In addition, sensitive components including
automatic controllers, electronic circuit boards, and imported burners require dry
storage conditions with strict temperature and humidity control to prevent damage.

Overall, the scale and organization of O TESLA’s warehouse lean toward a Functional
Warehouse model, where the emphasis is placed on precise management of each type
of material (consistent with ABC analysis) rather than the expansion of physical
warehouse space. Maintaining low material inventory levels, specifically 938 million
VND in raw materials, indicates a high turnover capability and contributes to optimizing
available storage capacity.

4.3 Inventory Management Practices

Table 4.1 Inventory Management Practices

 Indicator Value (End of 2024) Analysis of Management Practices

The management method prioritizes

production based on orders (Make-to-
Order). The company does not hold
Finished Goods 0.0 VND
finished goods, which optimizes working
capital (cash increased by 7.6 times) and
mitigates the risk of depreciation.

WIP has increased from 0.0 VND. This

indicates an escalation in the production
process (more complex machinery or
Work-in-Progress multiple orders being manufactured).
194,000,000 VND
(WIP) Costs WIP management at Otesla needs to focus
on balancing the Welding, Assembly, and
Electrical departments to prevent material
bottlenecks in the WIP stage

Raw materials decreased significantly

from 2.28 billion VND to 938 million
VND, indicating fast material turnover
and proper clearance of old inventory.
Raw material 938,000,000 VND
This aligns with O TESLA’s lean
inventory objectives but also increases
the risk of stock-outs if supply disruptions
occur.
4.4 Inventory Management Evaluation
4.4.1 Advantages

Table 4.2 Advantages of inventory management

Advantage Data and Practice

 The value of Finished Goods and Inventory is 0.0
VND (at the end and beginning of the year). This
demonstrates the company's strict adherence to the
Effective Working Capital
Make-to-Order model, optimizing capital and
Management
releasing a significant amount of cash (16.7 billion
VND in cash and cash equivalents, an increase of
7.6 times).
The no-finished-goods policy completely
Minimization of Obsolescence / eliminates the risk of product obsolescence due to
Damage Risk technological changes or market demand
fluctuations.
The value of raw materials decreased significantly
Good Control of Material from 2.28 billion VND to 938 million VND in
Inventory 2024. This indicates a rapid turnover of materials
and effective management of old inventory.
The quality control process inspects materials upon
receipt and conducts detailed checks after
Focus on Input Quality retrieving defective machines, demonstrating the
company's emphasis on material quality, thereby
minimizing post-sale costs.
4.4.2 Disadvantages

Table 4.3 Disadvantages of inventory management

Limitation Risk Analysis

 Maintaining raw material inventory at a very low level
(only 938 million VND) may lead to sudden stock-out
situations if there are supply chain disruptions (such as
Production Disruption Risk
delays in importing motors or burners). This threatens the
(Stock-out Risk)
ability to maintain production schedules (a criterion for
selecting suppliers in the procurement diagram).

The emergence of 194,000,000 VND in WIP at the end of

the year (while at the beginning it was 0) may indicate an
Suboptimal Management of imbalance among production teams (Welding, Assembly,
WIP Costs Electrical). If WIP is not processed promptly, capital
becomes tied up in unfinished products.

There is a lack of information regarding the formal

application of advanced inventory planning models such

Lack of Inventory Planning as MRP (Material Requirements Planning) or EOQ

Data (Economic Order Quantity). Purchasing based on
"Purchase Requests" may lack strategic insight and be
susceptible to subjective judgment.

Due to the trend of purchasing in small batches or Just-In-

Time (JIT) to reduce inventory, the company may incur
High Ordering Costs more frequent ordering and shipping costs, along with
repeated transaction processing costs for non-strategic
items.
 CHAPTER 5: PROCUREMENT PROCESS AND FUNCTIONS

The procurement process at O Tesla is driven primarily by customer-specific machine

orders and the material requirements generated for each production job. Although the
company operates under a MTO model, only producing machines when customer orders
are confirmed, the planning and purchasing teams still work with daily updated
schedules to check material status, review in-transit items, and identify what must be
procured to meet production deadlines. Because every machine is customized with
unique technical specifications, O Tesla must ensure that all required materials are
accurately identified, ordered on time, and quality-checked before being used in
assembly.

Figure 5.1 Flowchart of O Tesla’s procurement workflow

To manage this process efficiently, O Tesla applies a structured workflow that connects
material planning, supplier engagement, purchasing, delivery follow-up, receiving
inspection, inventory updates, and payment procedures. This integrated system helps
prevent material shortages, avoids production delays, and ensures machines are
delivered to customers on schedule.

5.1 Material requirement identification

The identification of material requirements at O Tesla is carried out directly for each
customer order, as the company operates under a MTO model where every machine has
its own technical configuration. Once the R&D department finalizes the BOM for a
specific order, the planning team combines the BOM data with the actual inventory
balance, incoming materials, and the production schedule to determine which items are
still required. This ensures that only the exact materials needed for the job are
purchased.

To validate the accuracy of material availability, the planning team cross-checks three
core internal reports: (1) the material receiving report, (2) the material issuance report
for each production job, and (3) the daily inventory report. Comparing these three data
sources allows planners to clearly identify what has already been consumed, what is
still usable, what is pending receipt, and which items may become insufficient if the
production schedule changes.

As part of the MRP decision workflow, the planner follows a structured evaluation
sequence before deciding whether materials can be issued to production. The process
begins with an inventory check to verify the actual on-hand quantity for each BOM
item. This is followed by an in-transit review of materials already being delivered by
suppliers. The Planner then assesses the urgency of each requirement by analyzing the
production schedule and determining whether a shortage would immediately affect
assembly progress. Based on these checks, a final decision is reached: if available and
incoming quantities are sufficient, materials are released to production; if not, the
Planner generates a purchase requisition (PR) and forwards it to the procurement team
for immediate action.
Based on this consolidated information, the Planner calculates the net material
requirement for every part number by comparing the required quantity, current stock,
and in-transit quantities. Components with stable usage or long lifecycle are
additionally evaluated against minimum–maximum stock thresholds, while specialized
parts used only for certain machine models are purchased strictly according to the BOM
and the customer’s delivery timeline. Any material identified as insufficient or at risk
of delay is included in the PR list.

In practice, O-Tesla’s material portfolio is highly diverse—including mechanical parts,

electrical and electronic components, sensors, motors, wiring, accessories, and
consumables such as bolts or adhesives. Some components, particularly imported items
with long lead times, require early monitoring and advance ordering as soon as the
initial BOM is available to avoid affecting the machine assembly schedule. In addition
to identifying missing materials, O-Tesla also reviews consumption patterns from
historical issuance reports. High-usage items such as thermal insulation sheets, COSE
Y terminals, thermocouple cables, and CDV electrical wires are monitored closely due
to their frequent use across multiple machine models. Conversely, key components with
high unit cost but low purchase frequency such as burners, Ecoflam heating modules,
and specialized mechanical assemblies are treated as critical materials. These items
require stricter tracking, supplier confirmation, and early ordering to avoid production
interruptions, since delays in these components directly affect machine assembly
timelines.

Accurate and timely identification of material requirements is therefore the foundation

for a smooth procurement workflow at O Tesla. It not only prevents material shortages
and production disruptions but also allows the procurement team to prioritize critical
items, manage long lead time risks and ensure that each machine can be assembled and
delivered according to customer expectations.
Figure 5.2 Actual components of the coffee roaster, illustrating the machine’s unique
configuration and customization level, factors that directly influence the identification
of material requirements at O-Tesla.
 Figure 5.3 Fabrication of customized mechanical components used in O-Tesla
machines

5.2 Supplier Identification and Selection

Step 1: Purchasing request initiation and internal coordination

The purchasing process at O Tesla begins when the Planning Department identifies a
material shortage that cannot be covered by existing stock or incoming deliveries.
Instead of treating this as a routine administrative step, the emphasis is placed on early
communication between planning and purchasing to ensure that procurement activities
align with the production schedule. Once the shortage is confirmed, the Planner reviews
the urgency level of the requirement and assigns the appropriate sourcing pathway.

For standard requirements, the planner prepares a formal purchase requisition (PR) that
specifies the necessary quantity, required delivery date, and any technical instructions
from the BOM or R&D. This PR functions as the official document authorizing
Purchasing to initiate the sourcing process. It ensures that all relevant departments share
a consistent understanding of the requirement, thereby reducing the risk of
miscommunication.

For urgent requirements, O Tesla applies a fast-track mechanism. Instead of waiting for
the PR to be fully processed, the Planner notifies the Purchasing Department directly
through internal communication channels so that supplier engagement can begin
immediately. While the PR may be completed afterward for record-keeping, Purchasing
is allowed to proceed without delay. This practice is particularly important in a MTO
environment, where component shortages can halt machine assembly and affect
customer delivery commitments.

By the end of Step 1, Purchasing receives a complete and validated request, enabling
the team to proceed with supplier evaluation and quotation activities.

Step 2: Request for quotation (RFQ) and price comparison

After receiving the purchasing request from Planning, the Purchasing Department issues
RFQs to suppliers with whom the company has established working relationships or to
vendors known to be capable of providing the required materials. Depending on the
technical specifications, RFQs may be sent to multiple suppliers simultaneously to
ensure competitive offers. Each RFQ includes the part number, required quantity,
technical drawings or specifications, and the expected delivery date to ensure quotation
accuracy.

Once responses are received, Purchasing compiles all quotations into a comparison
sheet for evaluation. Price is not the sole consideration; lead time, payment terms, stock
availability, historical delivery reliability, and quality performance recorded through the
IQC system are also assessed. This multi-criteria evaluation allows O-Tesla to balance
cost efficiency with production continuity and risk mitigation.

For materials with complex specifications or long lead times, Purchasing may request
suppliers to reconfirm stock availability or provide updated production schedules before
finalizing the comparison. In urgent cases, the team may directly engage the most
reliable supplier instead of conducting a full RFQ cycle, but the justification for this
deviation is documented for traceability.

So the outcome of this step is a consolidated comparison that forms the basis for supplier
selection in the next step.
 Step 3: Supplier Selection

Based on the comparison prepared in the previous step, Purchasing selects the supplier
that best meets the company’s requirements in terms of price, lead time, material
availability, and historical performance. For items with technical complexity, the
evaluation may also include a technical alignment check with Engineering to ensure
that the quoted specifications fully match the design requirements.

Once the selection is made, Purchasing reconfirms key terms with the chosen supplier
unit price, delivery schedule, minimum order requirements, and any special conditions.
This step ensures that there are no deviations between the quotation and the final
agreement.

After confirmation, the purchase order (PO) is generated and sent to the supplier. The
PO includes all contractual details such as part number, quantity, price, delivery
deadline, and shipping instructions. The supplier’s formal acknowledgement marks the
completion of the ordering process and serves as the binding reference for subsequent
delivery and invoicing activities.

5.3 Purchase order process

The Purchase Order (PO) process begins when Purchasing receives the Purchase
Requisition (PR) from Planning, or proceeds without a PR in urgent cases to avoid
production delays. Based on the selected supplier’s quotation, the purchaser prepares
the PO with all required information and then submits it for internal approval according
to the company’s authorization matrix. After the PO is approved, Purchasing issues it
to the supplier, whose confirmation serves as the official basis for production, delivery
scheduling, and subsequent follow-up activities.

5.4 Delivery tracking

After the PO is issued, Purchasing monitors the supplier’s delivery status to ensure
materials arrive according to the agreed schedule. This includes following up on
production progress, shipment dates, and any potential delays. When the supplier
provides a delivery notice, Purchasing updates Planning and relevant departments so
they can prepare for receiving and production scheduling. Any deviations from the
committed timeline are escalated promptly to minimize impact on the manufacturing
plan.

5.5 Receiving and incoming quality control (IQC)

When materials arrive at the factory, the Receiving team first verifies the delivery
against the PO and Delivery Note, confirming the correct quantity, packaging condition,
and part identification. After quantity verification, the goods are transferred to the IQC
team for technical inspection. IQC evaluates the materials according to a standardized
checklist that varies depending on the part type. Mechanical parts are inspected for
dimensions, machining accuracy, tolerances, weld finishing, and surface defects, while
electrical or electronic components undergo model verification, visual inspection, and
basic functional checks such as continuity or voltage rating validation.

If the materials meet all required standards, IQC registers the result as “Pass,” attaches
an acceptance tag, and releases the items to the warehouse. The warehouse team then
places the materials in their designated storage locations and updates stock records,
enabling Planning to issue them to production when needed.

In cases where defects are found, IQC classifies the materials as Fail and isolates them
in a dedicated non-conformance area to prevent accidental use. The failure is
documented in a Non-Conformance Report (NCR), which is shared with Purchasing for
follow-up with the supplier. Depending on the nature of the defect and the production
urgency, several corrective paths may be taken. The materials may be returned to the
supplier for replacement, or the supplier may be asked to rework the items if the issue
is fixable. In situations where rework is not possible and production deadlines are at
risk, Purchasing may coordinate with the supplier to provide an immediate alternative
batch. Internal rework can also be considered, but only when approved by Engineering
and when the correction does not affect the performance or safety of the final machine.
This cycle continues until conforming materials are obtained. Repeated failures from
the same supplier are logged and later referenced in supplier performance reviews.
Through this structured and transparent approach, O Tesla ensures that only qualified
materials enter the production flow, reducing rework, preventing assembly issues, and
maintaining overall product quality.

5.6 Document reconciliation and payment processing

Once the materials have passed IQC and are officially recorded in inventory, the next
step is the reconciliation of purchasing documents to ensure accuracy before payment.
The Accounting Department verifies four essential documents—the PR, the PO, the
Delivery Note, and the Supplier’s Invoice—to confirm that the delivered items fully
match the order in terms of quantity, specifications, unit price, and total value. This
cross-checking process also helps ensure consistency between the original request
initiated by Planning, the PO issued by Purchasing, and the goods physically received
by the warehouse. If all documents align and the invoice reflects the agreed terms,
Accounting proceeds with payment according to the schedule specified in the PO. Upon
completion, transaction details and supplier performance indicators—such as invoice
accuracy, completeness of supporting documents, and administrative responsiveness
are updated in the supplier’s record, contributing to future evaluations and sourcing
decisions.

In practice, discrepancies may still occur between the PO, delivery documents, and
issued invoices, including mismatched quantities, pricing errors, or incomplete delivery
notes. These issues require close coordination among Purchasing, Warehouse, and
Accounting to resolve before payment can proceed, as any unresolved inconsistencies
may delay settlement and affect supplier relationships. By maintaining a controlled and
traceable reconciliation process integrated across departments, the company strengthens
internal financial control, minimizes billing discrepancies, and ensures transparency
throughout the entire procurement cycle.
5.7 Evaluation of procurement performance

Procurement activities in the company involve multiple departments, including

Production, Production Planning, Purchasing, Warehouse, QC, and Accounting.
Therefore, procurement performance does not depend solely on the Purchasing
department but is strongly influenced by the level of cross-functional coordination. To
assess the extent of integration, the team analyzed the workflow based on the process
map shown in Figure 5.4, which illustrates the full cycle from material demand
generation to production use.

Figure 5.4 Cross-Functional Procurement Process Map

By examining this flow of information, several strengths and limitations in cross-

departmental coordination can be identified.

Strengths

Despite existing challenges, the company’s current procurement system still

demonstrates notable strengths. First, the core functions of the procurement chain, from
defining material requirements, issuing PRs and POs, tracking deliveries, to inbound
and outbound warehouse operations, are clearly assigned to the relevant departments.
This clarity helps avoid overlap, ensures accountability, and maintains a stable
workflow.

The Production Planning department (currently under Production) actively monitors

production progress and communicates material needs to Purchasing, which allows the
procurement process to run continuously under the company’s MTO model. In
warehousing operations, the separation of Raw Material and Finished Goods storage
enhances clarity and reduces handling errors.

Moreover, although the system is still simple and highly reliant on manual coordination,
it remains flexible and responsive, enabling quick adjustments when urgent material
requirements arise. This adaptability is particularly advantageous for a company
operating in a non-repetitive, order-driven manufacturing environment.
Limitations

The main limitation of the company’s procurement process is the lack of seamless cross-
functional integration, which causes information fragmentation and delays across
several stages. Because the Planning function is positioned under Production, material
requests are issued in small, unsynchronized batches that reflect production progress
rather than consolidated demand. As a result, Purchasing is frequently required to
operate reactively, slowing PO issuance and sometimes generating multiple POs for the
same items.

Additionally, Warehouse and QC operate as separate functional nodes with limited real-
time feedback channels to Planning or Purchasing. When materials fail QC inspection,
the information loop is not fast enough to prevent repeated fail cycles or delays in
warehouse intake. Similar issues occur when suppliers provide incomplete delivery
documents, preventing Warehouse from issuing the GRN and subsequently delaying
invoice matching. Finally, Accounting can process payments only when all upstream
documents are fully reconciled. Any delay in PO confirmation, goods receipt, QC
approval, or GRN creation extends the payment cycle, reduces internal efficiency, and
affects supplier relationships.

5.8 Recommendations:

Based on the strengths and limitations identified, the following key improvements are
proposed:
To address the current limitations, the company should strengthen cross-functional
integration throughout the procurement–to–payment flow. First, Planning should be
repositioned to operate independently from Production and work closely with Sales and
R&D to consolidate demand into clear, prioritized PRs instead of fragmented requests.
This integrated planning mechanism will enable Purchasing to move from a reactive to
a proactive sourcing approach, improving both PO accuracy and lead-time control.

Second, Warehouse and QC need a shared digital reporting system that provides real-
time feedback on receiving results, QC failures, and missing supplier documents.
Immediate data visibility will prevent repeated QC fail loops, accelerate GRN creation,
and reduce downstream delays.

Finally, the company should implement an end-to-end document synchronization

process so that PO confirmation, receiving records, QC approval, and GRN issuance
are completed without gaps. This streamlined flow will shorten the payment cycle and
strengthen supplier reliability.

Overall, reinforcing coordination among Planning, Purchasing, Warehouse, QC, and

Accounting is essential to reduce lead time, improve data consistency, and enhance
procurement performance.
 CHAPTER 6: EVALUATION, SELECTION, AND BUILDING,
MAINTAINING RELATIONSHIPS WITH SUPPLIERS

6.1 Supplier Evaluation

To maintain a stable source of goods, achieve standard product quality, and ensure
quantity requirements, selecting suitable suppliers is extremely important as it directly
affects the entire business process of the store. Therefore, supplier selection is not just
a step in the purchasing process but a strategic foundation requiring the company to
carefully consider and screen before making a decision to commit long-term to any
supplier.

Due to the diversity of product models and the fact that each product requires many
different detailed materials, the company needs numerous suppliers across different
product segments. Specifically, suppliers for O Tesla are classified by the following
product segments: Electrical and Automation Equipment Suppliers, Mechanical and
Industrial Equipment Suppliers, Material Suppliers (Steel, Stainless Steel, Plastic, etc.),
Gas and Supplies Suppliers, Consumables and Packaging Suppliers, and Insulation and
Heat Preservation Material Suppliers.

Consulting with O Tesla, the author group learned that their supplier selection process
is carried out according to the following steps:

Figure 6.1 Supplier Selection Process

 Step 1: Information Search

This is the first and equally important step in the entire business process because the
company needs to find a stable supply of goods for itself. It can be said that suppliers
have a huge influence on how a business operates.

Recognizing the importance of suppliers, O Tesla has researched sources for its raw
material items. Specifically, the methods of information collection include:

Via online information channels: Search for information on suppliers suitable for the
company's needs. Geographical location is checked to assess whether shipping
capabilities can meet deadlines. Some related information can be searched online, such
as brand value in the market and whether they have been involved in any quality-related
legal issues.

Direct contact with suppliers: Can discuss and ask in-depth questions about shipping,
pricing, time, supply quantity, etc.

Face-to-face meetings: To appraise transport contracts, customer contracts, and survey

warehouses.

Surveying other companies and suppliers: To cross-check, compare, and consider

suitability for needs. Conduct field surveys and consult the actual situation at similar
business stores.

Step 2: Evaluation and Selection of Suppliers

To select the most suitable suppliers among those approved in Step 1, O Tesla has
established scales to evaluate suitability with their business goals, which are ensuring
product quality as well as receiving reasonable prices to increase competitiveness in
output product costs. From there, the company created a specific evaluation scale
including the following factors:
 Table 6.1 Supplier selection factors and evaluation methods

Supplier
Evaluation Method
Selection Factor

- Does the supplier have a business license?

- How many years has the facility been operating?
- Collect reviews from retailers working with the supplier.
Reputation
- Provide a full address, operating facility, and contact methods.
- Has the supplier ever cooperated with electrical/electronic
equipment or household machinery manufacturing enterprises?

Geographical - Which province/region is the supplier in?

Location - How far is the supplier from the business stores?

- What is the shipping cost for periodic goods pickup?

- Does the supplier support shipping fees?
- Does the supplier have their own vehicles to move goods to the
store?
Shipping Support
- Is there paperwork or a contract ensuring delivery/receipt time?
Policy
- If components require special preservation (electronics,
sensors), does the supplier have specialized packaging?
- Does the supplier support small-batch delivery to suit Make-
to-Order?

- Must have full documentation for long-term cooperation.

Legal Regulations - The supplier side has no criminal record of fraud and is
business-verified, with a business license granted.

- What is the supplier's maximum production capacity/month? Is

it enough to meet O Tesla's surge demand?
Supplier Scale
- Is the supplier a genuine authorized distributor or an
intermediary?
 - Does the supplier have the financial health and warehousing
capacity to support flexible inventory models (e.g., holding
stock, JIT delivery, or future contract ordering)?
- Does the supplier have the ability to produce custom parts
according to O Tesla's drawings?
- Can contact be made to visit the supplier directly before making
a purchase decision?

- The supplier must have regulations for returning defective

goods. (If not, the store can propose adding this to contract
terms).
- The supplier must check goods before shipping to the store. If
Return and
the store detects errors, they can return them without incurring
Warranty Policy
additional shipping costs.
- Is there a commitment to replace components within 24–72
hours if they are critical components affecting production
schedules?

Table 6.2 Weighted Evaluation of Criteria

Criteria Evaluation Details (Level of Response) Score Weight

- Has a full business license, transparent address

and contact info.

- Operating over 5 years, experienced in

cooperating with electric/electronic/machinery
REPUTATION manufacturers. 3 1.0

- Reviews from other partners have a very good,

high market reputation.

- No fraud record, clean legal profile.

 - Has a business license.

- Operating for over 3 years.

2
- Has supplied industry but not extensively.

- Reviews from partners are stable.

- Lacks contact info or unclear address.

- Operating under 3 years, inexperienced with the

1
machinery industry.

- Negative information regarding reputation.

- No business license or signs of fraud. 0

- Located in the same province/city or within a

radius of < 50km from the O Tesla factory. 3
- Convenient for urgent processing.

GEOGRAPHICAL
- Distance from factory 50 - 200 km (neighboring 0.8
LOCATION 2
provinces).

- Distance over 200km or in a different

1
region/foreign country.

- Supports shipping costs for periodic orders.

- Has specialized vehicles, specialized packaging

SHIPPING
(anti-shock/static) for components. 3 0.8
SUPPORT POLICY
- Has a contract with a clear delivery time
commitment.
 - Supports flexible small-batch delivery for Make-
to-Order.

- Supports shipping but charges fees or only free

for large orders.

- Basic preservation packaging.

2
- Transport contract exists but weak commitment
on schedule.

- Supports small batches but limits frequency.

- No shipping support, no own vehicles.

- Poor packaging, unsuitable for electronic

1
components.

- Does not accept small, odd batches.

- No transport contract, frequently delivers late. 0

- Commits to signing a long-term principal

contract with full legal terms.
3
- Capacity profile and business verification papers
are full and transparent.

LEGAL
0.8
REGULATIONS - Basic papers available but the contract signing
2
process is slow or has minor omissions.

- No clear contract or incomplete legal papers for

0
long-term cooperation.
 - Large production capacity, easily meets surge
demand.

- Is a genuine distributor (Tier 1) or direct

manufacturer. 3
- Capable of producing custom parts per O Tesla
drawings.

- Ready for factory/warehouse visits for appraisal.

- Medium scale, meets regular orders but

struggles with sudden spikes.
SUPPLIER SCALE 0.8
- Is an intermediary agent (Tier 2, 3).

- Limited component customization capability. 2

- Allows visits but requires long advance notice.

- Supplier has a large warehouse; willing to hold

stock for O Tesla if requested.

- Small scale, narrow warehouse not enough to

hold minimum quantity.

- No product customization capability.

1
- Refuses facility visits.

- Supplier requires immediate delivery; cannot

hold stock.

RETURN,
- Clear return regulations for defective goods in
WARRANTY 3 0.8
contract, O Tesla incurs no return shipping fees.
POLICY
 - Commits to replacing critical components within
24 – 72 hours to ensure production schedule.

- Has a thorough QC process before delivery.

- Has a return policy but O Tesla bears part of

shipping fees.

- Time to replace defective parts is 3-7 days. 2

- Has goods checked but errors occasionally slip

through.

- No clear return regulations or refuses to return

defective goods. 0
- No commitment on troubleshooting time.

TOTAL MAX SCORE 15 5

Step 3: Contact and Negotiation with Supplier

In this stage, the company directly visits each supplier to examine the source of goods,
compare, and contrast with other suppliers. The company sends an RFQ (Request for
Quotation) to potential suppliers to review quality, features, services, prices, etc.,
thereby finding a suitable supplier helping the company achieve the best value for its
investment. After evaluation steps and making an offer, both parties negotiate,
contributing requirements to ensure their rights, then discuss to achieve a common goal.

For suppliers who do not align with the company's general principles or vice versa, if
no suitable change is made after agreement, the company consults other suppliers to
avoid wasting both parties' time.
Based on information after contact, evaluation, and negotiation, the company proceeds
to rank existing supply sources on a 10-point scale for objective quantification rather
than qualitative subjectivity.

Step 4: Initial Trial Order

At this step, the company has only classified suppliers with the most suitable criteria,
but has not yet decided on official suppliers for long-term strategic connection;
therefore, an initial trial order step is necessary to review the situation.

At this time, the company reviews whether the selected trial supplier meets the
requirements as agreed or not. Specifically: is the delivery time accurate, are the
components genuine, do they match the ordered models; is input price stability and price
suitability as initially agreed. If the supplier meets these basic requirements, the supplier
is considered trustworthy and reputable by the store, and can be categorized as a long-
term cooperative supplier. If the supplier does not meet those basic requirements,
transactions cease after the initial order experience.

Based on collected information, the author group will take a specific example of the
company planning to select a supplier for the Insulation and Heat Preservation Materials
segment (including materials like ceramic fiber, rubber sheets, terminal blocks, etc.).
Based on the scale and scoring method presented in Step 2, along with the criteria set
on a 3-point scale, the store evaluated 2 suppliers out of 4 under consideration,
specifically as per the table below:

Supplier 1: VIET NHAT INSULATION MATERIALS CO., LTD

Supplier 2: HD INSULATION TRADING CO., LTD

Supplier 3: BAO SON INDUSTRIAL CO., LTD

Supplier 4: HA GIA TRADING SERVICE CO., LTD

Table 6.3 Selection of Suppliers from Criteria in Step 2

 Criteria Weight Supplier 1 Supplier 2 Supplier 3 Supplier 4

Reputation 1 2 3 3 1

Geographical Location 0.8 3 3 3 2

Shipping Support Policy 0.8 2 3 2 2

Legal Regulations 0.8 2 3 3 1

Supplier Scale 0.8 1 2 3 1

Return, Warranty Policy 0.8 1 2 2 3

Total Score 9.2 13.4 13.4 8.2

Based on the total score of each criterion, we select both Supplier 2 and 3: HD
INSULATION TRADING CO., LTD (Supplier 2) and BAO SON INDUSTRIAL CO.,
LTD (Supplier 3) because they are tied in total score and the score difference between
individual criteria is insignificant.

Therefore, O Tesla decided to proceed with trial orders from both companies to evaluate
objectively and in most detail the criteria related to delivery and product quality.

Table 6.4 Trial Items Ordered from 2 Selected Suppliers

Product Quantity/Unit Supplier 2 Supplier 3

Ceramic fiber (96kg/m3,

8 sheets X X
3600*610*50mm)
Golden non-insulated pin terminal 4 pieces X X

Vulcanized rubber sheet

50mm X X
2mm*1m*10m

Buzzer 22mm - 220VAC 10 kg X X

Domino (Terminal block) 4P 60A 5 rolls X X

Grey Domino 2.5 mm2 4 sheets X X

Step 5: Evaluation of Suppliers After Trial Order Process

After receiving the trial batch, O Tesla proceeds to inspect and re-evaluate the 2
suppliers based on actual transactions. Due to the nature of Make-to-Order
manufacturing, evaluation criteria will focus on technical accuracy and schedule
adherence capability, specifically as follows:

Table 6.5 Supplier Evaluation Criteria via Product

Evaluation
Evaluation Details
Criteria

- Correct technical specs: Do dimensions, thickness, material

(e.g., correct density ceramic fiber, correct thickness rubber sheet)
match the drawing/request?
Product Quality - Appearance: Are materials torn, deformed, rusted (for metal
parts), or damaged during transport?
- Certificates: Are full CO/CQ (Certificate of Origin/Quality)
provided for industrial supplies?

- Delivered correct quantity ordered (not too much excess causing

Order Accuracy
inventory, not lacking causing assembly stoppage).
 - Correct Product Code (Part number) as in PO (Purchase Order).
- Unit price and total amount on invoice match the negotiated
quote.

- Did goods arrive at O Tesla's production site on the committed

date?
Delivery
- Capability to handle urgent orders (if any arise).
Schedule
- Was there early notification if a late delivery incident occurred
so the company could proactively plan production?

- Supplier feedback when defective goods are detected: Is there a

commitment for quick return/exchange (24-72h) as per initial
criteria?
Service &
- Delivery support: Are there suitable vehicles, support for
Technical
loading/unloading or packaging according to specs (e.g., wooden
Support
crates for fragile goods).
- Consulting: Can they advise on replacement solutions or more
effective new materials?

- Quick order confirmation process.

Process &
- VAT invoices, delivery notes are full, valid, and clear.
Documents
- Cooperative attitude of sales/technical staff from Supplier side.

Table 6.6 Weighted Evaluation

Criteria Evaluation Details (Level of Response) Score Weight

- Technical specs 100% accurate per 3 1.2

drawing/request.
 - New goods, intact packaging, full
CO/CQ.

- Defect rate in trial batch = 0%.

- Specs acceptable (within allowable

tolerance).
PRODUCT
- Minor appearance errors but function 2
QUALITY
(TECHNICAL) unaffected.

- Missing CO/CQ but supplemented later.

- Wrong technical specs, material not as

requested.
0
- Old, damaged goods, no documents
proving origin.

- Delivered on time or earlier. Clear route

notification.
3
- Responds well to urgent/small batch
orders.

DELIVERY
- Late 1-2 days but with prior notice. 1.0
SCHEDULE
2
- Difficulty when requesting urgent
delivery.

- Late over 3 days without a valid reason.

0
- Affects O Tesla assembly schedule.
 - 100% correct quantity, type, item code.
3
- Invoice documents are absolutely
accurate.

ORDER - Minor error in quantity (slight

1.0
ACCURACY excess/shortage) but handled immediately. 2

- Invoice info error required correction.

- Wrong item code, serious quantity error.

0
- Price calculated incorrectly vs agreement.

- Enthusiastic, supports defective goods

return within 24h. 3

- Good technical advice, fast response.

SERVICE &
- Supports return but process is slow (3-5 0.8
SUPPORT
days). 2

- Slow information response.

- Hard to contact, evades responsibility

0
when goods are defective.

TOTAL MAX SCORE 12 4

After selecting 2 suppliers HD INSULATION TRADING CO., LTD (Supplier 2) and

BAO SON INDUSTRIAL CO., LTD (Supplier 3) from the scored evaluation with
considered weights, O Tesla continues to perform an evaluation of these 2 suppliers
based on criteria to decide whether to maintain a long-term relationship. The evaluation
and decision are based on criteria mentioned in the table above and evaluated on a 3-
point scale.

Supplier 2: HD INSULATION TRADING CO., LTD

Supplier 3: BAO SON INDUSTRIAL CO., LTD

Table 6.7 Supplier Selection

Criteria Weight Supplier 2 (HD) Supplier 3 (Bao Son)

Product Quality 1.2 3 (3.6) 2 (2.4)

Delivery Schedule 1.0 3 (3.0) 2 (2.0)

Order Accuracy 1.0 3 (3.0) 3 (3.0)

Service & Support 0.8 2 (1.6) 3 (2.4)

TOTAL 11.2 9.8

From the evaluation table, we can perceive that:

Supplier 2 (HD) currently has strengths in very standard material quality

(Ceramic fiber correct density), very punctual delivery. However, support
service is not yet very flexible (e.g., return procedures are a bit rigid).

Supplier 3 (Bao Son) has very good, enthusiastic customer service. However, the
trial batch had some rubber sheets with minor thickness errors (though usable)
and delivery was 1 day later than expected.

Based on actual evaluation results, Supplier 2 (HD) has superior scores in technique
and schedule - two vital factors for O Tesla's assembly process. However, Supplier 3
(Bao Son) has strengths in service and competitive pricing.

Therefore, O Tesla decides:

 a) Select HD INSULATION TRADING CO., LTD as the strategic (main)
supplier for large orders and high technical requirements.

b) Still maintain cooperation with BAO SON INDUSTRIAL CO., LTD in the role
of back-up supplier to ensure supply safety, avoid supply chain disruption
risks, have initiative in goods sourcing, and avoid dependence on a fixed source

c) However, to improve Bao Son's performance, O Tesla plans to share technical

standards more clearly and require them to commit to a quality improvement
roadmap (from score level 2 to level 3) in subsequent batches if they want to
increase order proportion.

6.2 Building and Maintaining Relationships with Suppliers

a) Business Specifics and Supplier Role: Operating under the "Make-to-Order"

model, the company does not stock large quantities of finished products but only
proceeds with assembly upon customer request. With the process of assembling
complete coffee machines from specialized components, the company is
currently cooperating with a network of about 18 main suppliers. Unlike
common commercial models (where suppliers can replace each other), each of
the company's suppliers is responsible for a distinct and indispensable group of
components (such as: electric cables, terminal heads, electric motors, steel,
stainless steel pipes, etc.). Consequently, to mitigate the risk of delays that could
halt the entire assembly process, the company classifies supplier relationships
into two primary groups to implement appropriate management policies:

Strategic Partners: These are suppliers achieving the highest evaluation

scores (such as HD Insulation Company in the previous example). They serve as
the primary source, ensuring strict technical requirements are met. This
relationship is built upon long-term commitment and information sharing.

Backup/Potential Partners: These are suppliers with strengths in pricing

or service but require technical improvement (such as Bao Son Company). This
 relationship focuses on maintaining orders at a moderate level to nurture the
supply source and support capacity enhancement.

b) Relationship Strategy: Due to the interdependent nature of components in the

assembly chain, the company does not advocate changing suppliers continuously
or applying short-term price pressure. Instead, the company focuses on building
relationships based on "Trust and Synchronization".

c) Conclusion on Relationship Type: The goal of maintaining this relationship is to

ensure stability in quality and delivery schedule, helping the assembly process
occur seamlessly immediately upon receiving an order. This is a mutually
beneficial cooperative relationship, where the company views suppliers as
important links in the value chain. Therefore, the company is building and
developing relationships with suppliers towards a Coordinated Partnership,
prioritizing long-term commitment and rapid response capability instead of
purely transactional buying and selling per order.

6.3 Proposed Solutions for Purchasing to Optimize Discounts from Suppliers

6.3.1 Assessment of Current Relationship Status Between Company and Supplier

Advantages:

Methodical, Objective Selection and Evaluation Process: The company does not choose
partners emotionally but has a clear 5-step process. Using quantitative methods (scales
and weights) to evaluate key criteria such as: Reputation, Location, Transport Policy,
Legal, Scale, and Warranty. This helps eliminate the risk of choosing the wrong partner
from the start.

Good Supply Chain Disruption Risk Management Strategy: The company does not rely
solely on one source for an important item. A typical example is selecting Supplier HD
as main (due to good technique) but keeping Supplier Bao Son as backup (due to good
service). This method helps the company both ensure quality for difficult orders and
have a safe backup plan.
Win-Win Cooperation Mindset: Instead of immediately eliminating a supplier not yet
absolutely standard (like the case of Bao Son delivering 1 day late or small errors), O
Tesla chooses to share technical standards and request an improvement roadmap. A
strategy of not changing suppliers continuously helps maintain stability, especially
important for the "Make-to-Order" model.

Clear Supplier Categorization: Dividing suppliers by segments (Electrical, Mechanical,

Material, Gas...) helps the company easily manage in-depth and optimize sources for
each specific component group.

Disadvantages:

High Dependency and Chain Risk: Due to product characteristics being assembled from
specialized components that are not interchangeable, dependence on the network of 18
suppliers is very large. This is a fatal weakness of this model if the progress of all links
is not strictly managed.

Backup Supply Quality Not Yet Synchronized: Although there is a backup plan (like
Supplier Bao Son), actual evaluation shows the backup supplier still has issues
regarding technique (thickness error) and schedule (late delivery). This creates pressure
for O Tesla's Quality Control (QC) department to inspect goods from backup sources
more carefully.

Lack of Flexibility from Strategic Supplier: The main supplier (HD), while strong
technically, has a weakness in "support service not yet very flexible". In emergency
situations or when quick exchange/return is needed, this rigidity can cause difficulties
for O Tesla in immediate incident handling.

Pressure on Managing Small, Odd Orders (Make-to-Order): The Make-to-Order model

requires suppliers to support small-batch delivery. However, not every supplier is ready
or has the capacity to meet this well (as mentioned in scale evaluation criteria), easily
leading to conflicts regarding transport benefits and costs.
6.3.2 Proposed Solutions

Based on the analysis of pros and cons in supplier relations, as well as the goal of
optimizing input costs, the author group proposes specific solutions for O Tesla as
follows:

a) Apply "Blanket Purchase Order" Strategy to overcome single-order limitations:

O Tesla operates on a Make-to-Order model, so small orders are unavoidable, leading

to difficulty negotiating good prices and high shipping costs. The solution to resolve the
above problem is:

Commit to Total Quantity: Instead of signing contracts for each small order, O Tesla
should sign a principle contract for the whole year (or 6 months) based on minimum
production forecasts. Example: Commit to buying 1000 ceramic fiber sheets/year.

Multiple Deliveries: Request the supplier (like Supplier HD) to hold stock and deliver
scattered shipments according to actual demand (Call-off orders).

Benefit: The supplier has assurance of stable output so they will be willing to provide
commercial discount rates (usually 5-10% off for large quantity orders) even though O
Tesla still receives goods in small batches.

b) Supplier Support and Development Program (Supplier Development):

To minimize risk from "lack of quality synchronization" of the backup supplier (like
the case of Supplier Bao Son), O Tesla needs to shift from passive to active:

Technical Sharing: O Tesla's technical department should work directly with Bao Son's
production department to clarify allowable tolerances in technical drawings, avoiding
recurring thickness error faults.

Rapid Feedback Mechanism: Establish a direct communication channel (Hotline/Work

Zalo Group) between O Tesla purchasing staff and Supplier's warehouse management
to update progress in real-time, overcoming the weakness of late delivery.
Goal: Upgrade the backup supplier to a standard equivalent to the main supplier,
creating a balance so O Tesla has better price negotiation power with both parties.

c) Negotiate Discounts Based on Payment Terms (Financial Discount):

Besides direct product discounts, O Tesla can optimize cash flow and costs through
payment negotiation:

Early Payment Discount (2/10 net 30): Propose to the strategic supplier (HD) that if O
Tesla pays within 10 days (instead of 30 days debt), the supplier will reduce the total
invoice value by an additional 2%. This is attractive to suppliers needing fast capital
turnover.

Volume Rebate: Agree that if total purchase value in the year reaches a certain milestone
(e.g., 1 billion VND), the supplier will rebate 2-5% of sales at the end of the year.

d) Optimize Transportation by Consolidation:

To solve the shipping cost problem for small orders:

O Tesla should plan a fixed ordering schedule (e.g., close orders every Tuesday) for
regular consumable supplies.

Combine buying multiple different types of supplies from the same supplier (if they
have diverse supply capability) to consolidate into one truck trip, reducing logistic costs
per product unit.

6.4 Conclusion

Chapter 6 has deeply analyzed the supply source management process at O Tesla, from
searching, evaluating, and selecting to building strategic relationships. Research results
show the "backbone" role of suppliers for the Make-to-Order production model, where
a delay of a small component can also paralyze the entire machine assembly line.

Through a strict 5-step quantitative evaluation process, O Tesla has succeeded in

screening and classifying partners. The selection of HD Insulation Trading Co., Ltd. as
the strategic supplier and Bao Son Industrial Co., Ltd. as the backup supplier is a
concrete demonstration of the company's risk management mindset and balance
between quality and cost.

However, to maintain a sustainable competitive advantage, O Tesla cannot just stop at

ordinary buying and selling relationships. Shifting to a "Coordinated Partnership"
model is an inevitable step. By applying solutions such as signing framework contracts,
developing backup supplier capacity, and being flexible in payment negotiation, O
Tesla will not only ensure stable goods sources but also optimize input costs. This will
be an important premise helping the company improve profit margins and maintain
credibility regarding delivery schedules with customers in the future.
 CHAPTER 7: RELEVANT LEGAL FACTORS

7.1 Contractual obligation in procurement

Contractual obligations are the legal duties that arise when two parties enter into a
purchasing agreement. In procurement activities, these obligations become effective
once both parties accept the contract terms and exchange something of value such as
goods, services, or payment. From that moment, the agreement is legally binding, and
each party is required to perform their responsibilities as stated in the contract. These
responsibilities define what each side must do or must not do, ensuring clarity and
minimizing misunderstandings throughout the purchasing process.

Within the procurement context, contractual obligations commonly include

commitments related to delivery timelines, product quality, technical specifications,
pricing, payment schedules, warranties, and confidentiality requirements. Suppliers are
expected to provide goods that meet agreed standards, deliver them on time, and comply
with safety and quality regulations. Meanwhile, the buyer must make timely payments,
perform proper inspection upon receipt, and follow internal procurement procedures.
Failure to comply with these obligations may cause operational disruptions, financial
losses, or reputational harm to the company.

Contractual obligations are grounded in established legal principles, meaning that once
a valid contract is signed, both parties are fully bound to the terms they have agreed
upon. Any failure to fulfill these commitments constitutes a breach of contract. In
procurement, breaches such as late delivery, supplying defective goods, or failing to
pay on schedule can seriously affect production efficiency and supply chain stability.
When such breaches occur, the affected party is entitled to seek remedies under the law.
These remedies typically include financial compensation for losses, legal demands
requiring the breaching party to perform their duties, or the termination of the contract
to release both sides from further responsibilities.

The enforcement of contractual obligations is important to ensure that procurement

operations remain reliable and legally compliant. When obligations are not properly
performed, the harmed party may pursue legal action to recover losses, require proper
performance, or end the contract to prevent further damage. By clearly defining and
enforcing these obligations, the company ensures stable supply operations, reduces
risks, and protects its commercial interests in the procurement process.

7.2 Company Legal Status & Authority in Procurement

7.2.1 Company structure

Figure 7.1 Company overview structure

The organizational structure of O Tesla company defines the distribution of

responsibilities and the level of authority held by each department in procurement -
related activities. At the top of the structure, Nguyen Huu Tham is the president, holds
the highest decision - making authority and is responsible for approving the company’s
strategic direction, budgets, investment plans, and all major policies. The president also
has the legal authority to represent the company in signing key contracts or delegating
this authority to other managerial positions when necessary. Supporting the President is
the vice president, who oversees daily operations and acts on behalf of the President
when he is absent.

Within this structure, the purchasing and supply chain department plays a central role
in procurement. Its primary responsibility is to ensure the efficient sourcing of essential
materials, machinery, and spare parts required for production. The department
coordinates closely with suppliers, production, and sales teams to secure stable supplies
while meeting quality, cost, and delivery requirements.

The department is managed by the purchasing manager, who leads the procurement
team and is directly responsible for supplier selection, negotiation, evaluation, and
ensuring timely delivery. The purchasing manager is also the key person who may hold
delegated authority to negotiate or sign purchasing documents within limits approved
by the president. Supporting this role is the Purchasing Assistant, who handles order
coordination, documentation, supplier quotations, stock monitoring, and
communication with logistics and accounting.

The sales manager also interacts with procurement by providing demand forecasts and
coordinating on stock levels to ensure inventory aligns with market needs. Although not
directly involved in procurement decisions, this role contributes important information
required to plan purchasing activities accurately.

7.2.2 Authorities

Express Authority

Express Authority is the formal power granted to the Purchasing Manager by the
company’s regulations or job descriptions. It allows the manager to negotiate, issue
purchase orders, and sign contracts within approved budget and policy limits. This
authority must be clearly documented to avoid legal misunderstandings

Implied Authority

It is granted automatically with Express Authority. It allows procurement staff to

perform routine tasks such as contacting suppliers, obtaining quotations, clarifying
specifications, coordinating deliveries, and preparing paperwork. Staff cannot sign
contracts or make financial commitments unless specifically delegated, as these fall
under Express Authority

Emergency Authority
Emergency Authority is used only in urgent situations when standard approval
processes cannot be followed. In such cases, the Company Director can make
immediate procurement decisions to protect operations, such as during sudden supply
disruptions or risks to production continuity

To ensure continuity and efficiency in the procurement process, the company

establishes a clear structure for purchasing authority and workflow. The Purchasing
Manager is responsible for sourcing and selecting suitable suppliers based on the
internal demand submitted by various departments. Once the requesting departments
prepare a list of required materials, the procurement staff contact suppliers to obtain
quotations and evaluate their suitability. After reviewing these quotations, the
Purchasing Manager conducts negotiations on pricing, delivery terms, quality
requirements, and other contractual conditions.

During this process, the Sales Manager may provide demand forecasts, expected pricing
levels, or market information to ensure that procurement decisions align with business
plans. The accountant may also estimate budget requirements to determine whether the
proposed purchase meets financial targets. Once all terms are finalized, the Purchasing
Manager signs the contract to formalize the transaction and ensure its legal validity.
After the agreement is signed, the procurement team monitors delivery, quality
inspection, documentation, and inventory procedures until the materials are transferred
to the warehouse. Payments are processed in accordance with the agreed schedule and
supported by the necessary legal and accounting documents.

Purchasing Authority & Workflow

To ensure the work flow and continuity of the procurement process. O Tesla has used
purchasing authority: the official right or power to approve, request, or make purchases
on behalf of a company and each level of it to assign specific responsibilities to manage
procurement activities efficiently and minimize risks.

The Purchasing Manager sources and selects suppliers based on internal demand.
Departments submit lists of required goods, and procurement staff contact suppliers to
obtain quotes and evaluate suitability. The Purchasing Manager then negotiates terms
and conditions with selected suppliers

The Sales Manager reviews and adjusts contract terms and pricing to align with
company strategy and budget. The Accountant estimates the budget to determine cost
targets. At this stage, further negotiations may cover price, shipping, delivery time,
quality assurance, and financial compensation. When the contract is finally agreed on
by both counterparts, the Purchasing Manager will sign the final contract to initialize
the purchasing activities that ensures the contractual obligation will be legal, while the
Sales Manager will be the main responsible for the contract and suppliers. Once signed,
the suppliers' shipment will be delivered, after going through quality control, the goods
can be stored in the warehouse to wait for production, during this payment will be made
in periods with the staff making legal documents for storage.

Figure 7.2 Purchasing procurement of O Tesla

7.3 Legal framework governing O Tesla’s procurement

O Tesla must follow important Vietnamese laws when buying materials and working
with suppliers. These laws ensure that all activities related to contracts, payments, and
business operations are legally compliant. The production and business activities at O
Tesla are governed by several key legal documents, including the:
 Civil Code / Commercial Law

These laws provide the basic legal principles for all civil and commercial relationships.
These laws define how contracts are formed, the rights and responsibilities of the
parties, compensation rules, and how obligations must be fulfilled. Any business
contract must follow the Civil Code 2015 (No. 91/2015/QH13) to be legally valid.

Commercial Law 2005 (No. 36/2005/QH11) governs commercial activities such as

buying and selling goods, supplying services, logistics, payments, and trade
promotions. It regulates how businesses interact with each other in commercial
transactions and protects the rights of both buyers and sellers.

Enterprise Law

Enterprise Law 2020 (No. 59/2020/QH14) explains how companies are established,
organized, and managed. It includes rules about company structure, shareholder rights,
responsibilities of the board of directors, and how businesses must operate legally in
Vietnam.

Law on Accounting 2015 (No. 88/2015/QH13) controls how companies record

financial information. It sets the rules for invoices, bookkeeping, financial statements,
and how long documents must be stored. It ensures transparency, accuracy, and
accountability in financial activities.

Product Quality Law/Safety Law

Law on Standards and Technical Regulations 2006 (No. 68/2006/QH11) states that
every product must comply with national standards (TCVN) and technical regulations
(QCVN) before entering the market such as Quality Management Systems is TCVN
ISO 9001:2015 in Viet Nam, which standard for ensuring consistent product quality and
continuous improvement and ISO 12100 Safety of Machinery provides general
principles for machine design to reduce hazards. These standards ensure that O Tesla’s
raw materials, machinery, and equipment meet required safety and quality levels.

Contract Types
O Tesla mainly uses three types of written contracts in its procurement process
including framework agreements, procurement contracts, and quality assurance
agreements (QAA). These contracts help the company ensure efficiency, flexibility,
and legal reliability when working with suppliers and customers.

Framework Agreement

A framework agreement is used for goods or services that the company purchases
frequently and continuously over a long period, which is a key point for O Tesla since
it helps to have a steady supply of raw materials such as steel, electronic components
for its manufacturing lines. Rather than negotiating a new contract each time, the
company can establish a consistent agreement with several qualified suppliers in the
long-term. This agreement sets out the general terms such as conditions, pricing
methods, quality requirements, delivery schedules, and performance standards. O
Tesla’s production department determines the actual quantity needed for a particular
month or quarter, it simply issues a purchase order or call-off under the existing
framework. This system allows the company to purchase quickly without repeating the
entire procurement process, ensuring both efficiency and consistency in supply.

Procurement Contract

Procurement Contract in O Tesla is used when the purchase involves a specific, one-
time requirement. It is a legally binding document that clearly defines what is being
purchased, how much, when delivered, consequences if either party fails to meet their
obligations. Procurement contracts are especially important for large or customized
purchases that require precise technical specifications. This contract will specify the
model, technical standards, installation process, training requirements, warranty terms,
and payment schedule. Because such transactions involve high value and potential risk,
O Tesla needs a detailed and enforceable contract to protect its interests.

Quality Assurance Agreement (QAA)

O Tesla must establish a Quality Assurance Agreement (QAA) to ensure that suppliers
meet the company’s requirements in technical and quality standards. QAA focuses on
 quality control, production standards, testing procedures, defect management, and
compliance with regulations such as ISO standards or environmental requirements. This
agreement requires suppliers to maintain strict documentation, conduct regular quality
inspections, and allow O Tesla to perform audits or monitoring when necessary. By
using this, O Tesla can ensure a reliable long-term procurement system and strengthen
its legal protection.

7.3.1 Terms of the seller

Product quality

The seller must provide products that fully comply with the agreed model, quantity,
technical specifications, and quality standards. If the products fail to meet these
requirements, the seller shall be responsible for compensation. All materials used for
production must satisfy the following standards:

Table 7.1 O TESLA Quality Requirements

Standard Name Purpose

Ensures consistent product quality,

ISO 9001:2015 Quality Management System document, customer satisfaction

Control waste, emissions to ensure

ISO 14001:2015 Environmental Management
environmental safety

Limits hazardous substances in

RoHS / REACH (EU) Chemical & Material Safety
electrical and metal components

Ethical and sustainable Confirms coffee beans are ethically

Fair Trade / Organic
sourcing sourced and chemical-free
 Delivery Time

The Seller must deliver the goods on time upon receiving O Tesla’s payment
confirmation. A delay of 3 to 4 days may be accepted due to unexpected events;
however, the seller must notify the buyer of the delay at least 2 weeks prior to the
delivery date, except for unavoidable circumstances as defined by company regulations.
Any late delivery may be considered a contractual liability.

Exchange / Return policy

If the buyer changes or cancels the order after production has started, the seller will not
be responsible for any resulting costs and will not issue any refund.

if the goods are defective or incorrect due to the seller’s fault, the seller shall bear all
costs related to replacement or return them.

Invoice and Documents

The seller must provide all necessary papers and documents with the goods. The
delivery must include all certificates of origin, quality assurances documents, and any
other required paper work before dispatch. Also, all electronic VAT invoices must be
issued upon the arrival of the shipment, in accordance with the Law on Commerce 2005
– Article 52 and relevant decrees.

7.3.2 Terms of the buyer (O Tesla)

Receiving goods

This duty means O Tesla is responsible for receiving the delivered coffee machinery or
components and ensuring that all necessary arrangements are made to allow the seller
to complete the delivery. The company must check and inspect all parts within 2
working days from delivery date. Any defects reported after this period may not be
accepted by the seller. If the seller is ready to deliver but O Tesla does not accept the
goods, this constitutes a breach of contract and may result in penalties

Payment
The payment details including currency, payment method, schedule, and conditions
must be agreed upon by both sides. O Tesla is generally not required to make a deposit.
Full payment is made to the seller only after the goods have been received and checked,
in compliance with Civil Code 2015 – Article 440.

Confirm Order and Cooperate

O Tesla is responsible for verifying the accuracy of all order details, including quantity,
specifications, delivery timelines, before confirming the purchase. The company must
ensure the contract reflects complete and correct information. In addition, O Tesla shall
provide the seller with all necessary documents, contacts, and confirmations to ensure
a smooth and efficient purchasing process
REFERENCE

[1] W.C. Benton. (2010). Purchasing and Supply Chain Management.

[2] Procurement Management Lecture Slides by Lecturer Phan Thi Mai Ha

[3] Gunasekaran, A., & Ngai, E. W. T. (2005). Build-to-order supply chain

management: a literature review and framework for development. Journal of Operations
Management.

[4] O Tesla Industrial Co., Ltd. (n.d.). Home. Retrieved November 26, 2025, from
[Link]
APPENDIX A: PROCUREMENT DATA
Table A.1 Customer Demand List 2024

DATE Product name Unit Quantity

23/1/2024 6kg Capacity Coffee Roaster Machine 1

2kg Capacity Coffee Roaster Machine 1

Post-roast Coffee Destoner (30kg capacity) Machine 1

20/2/2024
3kg Capacity Coffee Roaster Machine 3

Smoke Afterburner for 30kg Coffee Roaster Machine 1

120kg Capacity Coffee Roaster Machine 1

CMS-30 Auto Coffee Roaster Machine 1

CMS-12 AUTO Coffee Roaster Machine 1

22/2/2024 Green Coffee Bean Loader / Suction Device Set 3

OD-15 Post-roast Coffee Destoner Machine 1

OD-5 Post-roast Coffee Destoner Machine 5

1kg Capacity Coffee Roaster Machine 2

1kg Capacity Coffee Roaster Machine 4

3kg Capacity Coffee Roaster Machine 5

3/5/2024
15kg Capacity Coffee Roaster Machine 1

Post-roast Coffee Destoner (15kg capacity) Machine 1

1kg Capacity Coffee Roaster Machine 1

6kg Capacity Coffee Roaster Machine 1

26/6/2024
Smoke Afterburner for 3~15kg Coffee
Machine 1
Roaster

4/7/2024 12kg Capacity Coffee Roaster Machine 1

 Airflow Control Valve Set 1

Roaster Exhaust Pipe 100mm Meter 7

Roaster Exhaust Pipe 120mm Meter 8

8/7/2024 1kg Capacity Coffee Roaster (Liquidation) Machine 1

30kg Pneumatic Loading System Machine 1

23/7/2024 Smoke Afterburner for 3~15kg Coffee
Machine 1
Roaster

30kg Capacity Coffee Roaster Machine 1

Post-roast Coffee Destoner (30kg capacity) Machine 1

30/7/2024 Automatic Control Set for 30kg/batch
Set 1
Roaster

Smoke Afterburner for 30kg Coffee Roaster Machine 1

12kg capacity coffee roaster Machine 1

12kg feeding blowing system Set 1

Coffee de-icing machine after roasting with

15/8/2024 Machine 1
capacity of 15kg

100mm roaster chimney Meter 9

120mm roaster chimney Meter 9

Coffee roaster with capacity of 60kg (CMS-

6/9/2024 Machine 1
60)

CMS-12 Coffee Roaster Machine 2

CMS-12 AUTO coffee roaster Machine 2

11/9/2024 CMS-06 Coffee Roaster Machine 1

OD-30 Coffee Stone Screening Machine Machine 1

OD-15 post-roasted coffee stone separator Machine 6

 OD-5 post-roasted coffee stone separator Machine 5

1kg capacity coffee roaster Machine 1

Coffee roaster with capacity of 1kg/batch

Machine 1
25/9/2024 (OTL-01)

Roaster table Set 1

Exhaust fan for airflow of 1kg roaster, 370w

26/9/2024 industrial motor, with speed change Set 2
potentiometer

Coffee stone separator after roasting with

28/9/2024 Machine 1
capacity of 5kg/batch

Coffee stone separator after roasting with

Machine 1
21/10/2024 capacity of 5kg/batch

12kg feeding blowing system Set 1

5/11/2024 6kg capacity coffee pot Unit 25

1kg capacity coffee roaster Machine 1

Roaster table Set 1

25/11/2024
Coffee stone separator after roasting with
Machine 1
capacity of 5kg/batch

5/12/2024 12kg feeding blowing system Set 1

12/12/2024 12kg capacity coffee roaster Machine 1

18/12/2024 6kg capacity coffee pot Unit 15

1kg capacity coffee roaster Machine 1

30/12/2024
Roaster table Set 1
Table A.2 List of Incoming Raw Materials in 2024
No. Item Name Unit Quantity
1 Electric Motor Pieces 77
2 Electrical Tape Roll 1
3 Cylinder Mounting Bracket Pieces 30
4 SS304 Threaded Reducer DN 25/15 Pieces 2
5 Airtac Pneumatic Cylinder 32*100S Pieces 1
6 Inverter (VFD) 0.75kW, 1P 220VAC Pieces 47
7 Potentiometer 5K RY Pieces 10
8 USB 3.0 Hub (4-port, Black, 1m) Pieces 35
9 Counter CT6S-1P4 Pieces 5
10 Power Supply Unit Pieces 11
11 48-Pin Connector Set Set 1
12 Ceramic Fiber / Insulation Wool Roll 22
13 Sensor Pieces 135
14 Impeller Dynamic Balancing (Service) Pieces 13
15 Schneider Fuse & Fuse Holder (1-Phase) Pieces 32
16 MCB 1P EZ9F34106 (Circuit Breaker) Pieces 188
17 Terminal Block Hanyoung HYBT - 15A Pieces 100
18 SS304 Solid Round Bar 10x6000mm Pieces 1,614
19 Circuit Breaker 2P 16A (Used) Pieces 3
20 Mounting Base/Foot 616650033 Pieces 20
21 Brass Wire Cup Brush 4" Pieces 1
22 Solder Wire (Large) Roll 10
23 Alarm Bell + Light 22mm 220VAC Pieces 1030
24 SS304 Welded Elbow DN 15 Pieces 4
25 Motor Terminal Stud 6-pin (Dia 6) Pieces 20
26 Buzzer/Siren 22mm-220VAC Pieces 14
27 Gas Pressure Switch GW150A6 Pieces 1103
28 Closed-end Wire Connector CE1X Bag 3225
29 Emergency Stop Button Cover Set 2
30 Stainless Steel Clamp (Sanitary) DN 32 Pcs 59
31 Wire Coil 0.5mm (Black, Lion brand) Coil 322
32 Burner for Coffee Roaster Pieces 64
33 Pneumatic Fitting 8mm (Bulkhead) Pieces 4
34 Wire/Cable 2*0.5mm2 Meter 603
35 Valve Manifold Base (3 stations) Pieces 102
36 Aluminum Air Valve Base (4 stations) Pieces 38
37 Indicator Light with Buzzer 220V Pieces 439
38 Schneider Indicator Light (Red) Pieces 5
39 Schneider Indicator Light 24V (Green) Pieces 16
40 Felt Polishing Disc 100*16mm Pieces 8
41 Heating Element 12KW, 3*380V Pieces 41
42 Nano Fan Dimmer (Speed Controller) Pieces 5
43 Hanyoung Terminal Block 15A Box 1
44 Terminal Block 6P Bar 236.1
45 Hyponic Geared Motor Pieces 15
46 Pressure Gauge Pieces 47
47 HMI Panel Dop-110CS Pieces 5
48 Magnetic Switch Mount for Cyl 63/80 Pieces 1
49 Striped Heat Shrink/Sleeve (Dia 6) Strand 30
50 Silencer M13 Pieces 8
51 Pillow Block Bearing Housing UCFL204 Pieces 9
52 Schneider 1-Hole Control Box Pieces 98
53 Gearbox Model: 7GBK-75BMH Pieces 1211
54 SS304 Flat Bar 100x30x500mm Bar 600
55 Blue Cutting Pliers Pieces 12
56 Stainless Steel Hex Nipple DN 15 Pieces 3
57 Argon Gas Bottle 33
58 Magnetic Contactor 24VDC (Used) Pieces 120
59 Twin Filter/Lubricator STNC LFC08 Pieces 56
60 Main Switch 4P 25A Pieces 2
61 HMI Touch Screen DOP 115WX Pieces 25
62 Wire Trunking 25*45 Pieces / Bar 3
63 Slotted Plastic Wire Duct 25*45 Pieces / Bar 19
64 SS304 Socket/Coupling DN 15 Pieces 5
65 Faceplate (1 Socket + 2 Switches) Set 300
66 iPad 9 Tablet (for 120kg Roaster) Pieces 7
67 MCB 1P 6A Schneider Pieces 719
68 Taiwan Acrylic Tube - AT100 Pieces 5
69 Black Ink Ribbon LM-IR50B Pieces 1
70 Illuminated Push Button 24V Green Pieces 20
71 Latching Illum. Button 2NO Green Pieces 3
72 Emergency Stop Button XB7 Pieces 13
73 Panel Label Holder 22mm Bag 119
74 Pneumatic Fitting M13-8 Pieces 32
75 Bulkhead Union (Panel Mount) Dia 8 Pieces 10
76 Plug / Cap M13 Pieces 201
77 3-Gang Socket Sino Pieces 161
78 Bulkhead Fitting for 8mm Tube Pieces 10
79 Hydraulic Rubber Hose (Steel Core) Meter 491.7
80 LB Bracket for MBL Cylinder Set 10
81 Cable Gland PG 1 1/4 Pcs 1176
82 2-Pin Plug PCE F0511 Pieces 495
83 AA Battery (Energizer) Pieces 30
84 Fan 120mm 220V Pieces 17.7
85 DIN Rail (Steel) Bar 2
86 Glass Relay / Intermediate Relay 24V Pieces 1388
87 Relay MY2N-GS-R DC24 Pieces 84
88 Flexible Conduit 1-1/2 Meter 234.2
89 U-Channel Steel 120 Kg 8
90 Vulcanized Rubber Sheet 2mm Kg 26
91 SS Tee SCH10 DN15 Pieces 14
92 NO Contact Block (Idec) Pieces 5
93 Thermostat 0-60°C Pieces 20
94 Steel Box Section / Hollow Section Kg 509
95 Gas Filter DN15 Pieces 45
96 Auxiliary Contact NO (Idec) Pieces 6
97 Flow Control Valve / Throttle 13-8 Pieces 100
98 Timer DMB51CN24B006 Pieces 31558
99 SS304 Threaded Cap/Plug DN 15 Pieces 3

100 Cabinet/Enclosure 300x300x200 Pieces 17.3

101 Thermal Insulation Fabric Kg 80

102 Solenoid Valve 4V210 - 08/24V Pieces 248
103 SS304 Angle Bar (V-Bar) Kg 20
104 Emergency Stop Ring + Label Set 50
105 Industrial Bearing 1201 Pieces 18501
106 Pneumatic Cyl MBL32*100S (+Accessory) Set 537
107 Slotted Trunking (Fishbone) 25*45 Bar 10

Table A.3 List of Suppliers

Supplier Code Supplier name

BACHVIET Bach Viet Engineering - Trading Co., Ltd.

TRIPHAT Duc Tri Phat Trading Service Co., Ltd.

CYCLO SM-Cyclo (Vietnam) Co., Ltd.

VIETNHAT Viet Nhat Industrial Equipment Trading Service Co., Ltd.

THUANPHAT Truong Thuan Phat Co., Ltd.

TAM PHAT Thanh Tam Phat Trading Service Co., Ltd.

POTECH Potech Energy Technology Co., Ltd.

BACHKHOA Bach Khoa Dynamic Balancing Co., Ltd.

 AUMY Au My Technology Trading Service Co., Ltd.

CISOARNET Cisoarnet Technology Co., Limited

PHUONGLAI Phuong Lai Co., Ltd.

GIAPHAT Dang Gia Phat Electrical Engineering Co., Ltd.

HOANGLONG Hoang Long Equipment Production Import Export Co., Ltd.

INOX Hai Duong Inox One Member Co., Ltd.

TEP TEP Co., Ltd.

HUYDAT Huy Dat Trading - Interior Decoration Co., Ltd.

KINHNAM Dai Kinh Nam Trading Import Export Co., Ltd.

DUCANH Duc Anh Electrical Equipment Co., Ltd.

Service operation process:

Figure A.1 Flowchart for handling machine errors on-site

 Figure A.2 Flowchart for operating the recovery machine

APPENDIX B: TEAMWORK EVALUATION

TEAM CONTRACT
Subject: Procurement Management
Lecturer: Associate Professor, Dr. Phan Thi Mai Ha
1. GOALS
Develop Procurement Management Competence
The objective is to build a solid understanding of procurement processes and their
importance in supply chain operations. Emphasis will be placed on procurement
planning, supplier evaluation, contract management, and cost analysis. Through this,
we will strengthen decision-making abilities and gain the skills necessary to manage
procurement activities effectively, while upholding ethical and sustainable practices.
Enhance Teamwork and Project Management
The objective is to improve the team’s capacity to coordinate effectively and manage
projects in a structured manner. Rather than working in isolation, responsibilities will
be shared, and support will be provided across all stages from task allocation to deadline
monitoring. This approach ensures that each member gains experience in organizing
tasks and integrating individual contributions into a cohesive final product.
Strengthen Communication and Presentation Skills
A key objective is to develop the ability to communicate technical ideas in a clear and
accessible manner. Emphasis will be placed on presenting complex concepts in ways
that can be understood by both technical and non-technical audiences. This competency
is critical not only for internal collaboration and project presentations but also for
professional development and future career advancement.
Build a Professional Work Culture
The team will prioritize the establishment of a professional working environment
characterized by respect, accountability, and mutual support. Such a culture promotes
comfort and confidence among members, thereby fostering creativity, efficiency, and
high performance. Ultimately, the aim is not solely to complete tasks, but to cultivate
professional collaboration practices that contribute to long-term growth and success.
2. Obstacles
Adapting to Real-World Practices
Procurement practices vary widely across industries and regions. Bridging the gap
between theoretical knowledge and the dynamic, real-world context of procurement can
be an obstacle for learners.
Complexity of Procurement Processes
Procurement involves multiple stages—such as planning, supplier evaluation,
negotiation, and contract management—that can be difficult to fully grasp without
practical experience.
Time Management
Balancing coursework, assignments, and other responsibilities can be difficult, leading
to stress or incomplete learning.
3. MEETING NORMS
Meeting place and time
1. In addition to the time we discuss in class, we will work mainly through the
Messenger group to discuss the project and proceed to divide the work once a week
through Google Meet to discuss the difficulties encountered, solutions, and
comments about the task we have done.
2. The online meeting will start at 10am on Saturday each week.
3. Each meeting will last an average of 1 and a half hours.
 4. The meeting will start and end on time.
5. If there is any member who can’t participate in the meeting, we will distribute
meeting minutes to inform. The meeting minutes will be written by random people
who participate in the meeting.
Rules
Respect Everyone's Time: Punctuality is a top priority. Everyone must be on
time for meetings to ensure a smooth flow and avoid wasting the group's time. If you
have an unavoidable reason for being late, notify the team beforehand and find a way
to catch up afterward.
Come Prepared: Don't show up empty-handed. Before each meeting, review
your tasks and prepare specific questions or discussion points. This helps us stay
focused on core issues and increases our overall efficiency.
Stay on Topic: To save time, discussions will be focused and to the point. Avoid getting
sidetracked with side conversations to ensure every issue is addressed thoroughly within
the meeting.
Keep Everyone on the Same Page: No one gets left behind. Every member must
have a clear understanding of their role and responsibilities. If you can't attend, it's your
responsibility to read the meeting minutes or summaries to stay connected with the
team.
Listen and Respect: Every opinion has value. Listen actively, avoid interrupting,
and respect others' viewpoints. A comfortable environment where everyone feels free
to share their ideas will foster creativity and lead to the best solutions.
Use Tools Effectively: We use one shared system. The team will agree on a
common platform (like Google Drive, Excel, or Messenger) for managing tasks. Each
member is responsible for regularly updating their progress, ensuring everyone can see
the project's big picture.
3. WORK NORMS AND DECISION MAKING
Work norms
How much time do you anticipate it will take to make the project sucess?
With 168 hours per week, we estimate it will take approximately 10 hours to do the
project. However, it is important to note that this timeframe may vary depending on
specific situational factors, project-specific complexity, and resource availability.
How will work be divided among team members?
Team role assignments vary depending on the type of project, individual skills, and
schedule. Tasks should be assigned based on each team member's skills or based on
self-selection.
How will deadlines be set?
We need to assess the scope and complexity of your project and set realistictimelines
for each task. We can rely on each group member`s schedule.
How will you decide who should do which tasks?
Assigning tasks that suit their strengths and areas of expertise.
Giving them tasks that align with their interests.
Where will you record who is responsible for which tasks?
Using a spreadsheet in Microsoft Excel or Google Sheets, we can list the tasks, who is
assigned the task, deadlines, and any additional details relevant to each task.
What will happen if someone does not follow through on a commitment (e.g.,
missing a deadline, not showing up to meetings)?
Delay the project schedule.
Disrupt the workflow and productivity of the entire team.
Other team members have to increase their workload or take on additional
responsibilities to cover the gap.
How will the work be reviewed?
Each person read the project several times and then explained the project in their own
way to the whole team.
The others will ask that person some questions related to making sure that the member
understands the project.
The keywords in the article, short content, and difficult problems will be saved as
multiple-choice quizzes (Can be saved in flashcards).

What happens if people have different opinions on the quality of the work?
This issue will be resolved by providing comments, consulting, and agreeing on how to
evaluate the quality of work among members and then make corrections if necessary.

What will you do if one or more team members are not doing their share of the
work?
1. Ask about that member's situation. (Ex: Did you encounter any difficulties
during the process? Did any unexpected problems arise? ... ).
2. Evaluate the work situation (Ex: Deadline, workload, ...).
3. Propose a solution.
4. Agree on the final plan and implement it.
How will you deal with different work habits of individual team members?
1. Unify common working flow.
2. In case of disagreement on the working direction for the whole group: Set a
common deadline to complete each piece of work for the whole team (Ex: 3 or
4 days before the reporting date). Whoever finishes first can submit it first and
check again.
2. Decision making:
Do you need consensus (100% approval of all team members) before making a
decision?
1. For assigned individual tasks, 100% input from all members is not required. This
ratio will decrease because decisions related to the part of each individual's job
are considered to contribute ideas.
2. Issues that may affect the group's progress, scores, and efforts of other members
must require 100% member approval to ensure individual and all team benefits.
What will you do if one of you fixates on a particular idea?
1. Evaluate the feasibility of the idea.
2. Evaluate the necessity of the idea.
3. Help teammates implement ideas/ Advise teammates and eliminate those ideas.
4. TASK REQUIREMENTS
Comprehensive completion of requirements: The submitted work must fully
and accurately address all objectives and directives outlined in the assignment prompt.
 Every element must be completed in its entirety, with no omissions or overlooked
details.
Rigorous, evidence-based reasoning: Central arguments should be articulated
with logical coherence and supported by verifiable evidence, relevant data, or well-
chosen examples. The progression of ideas must demonstrate critical thinking and
academic integrity.
Creativity and originality: The work should transcend mere replication of
existing materials by offering fresh perspectives, innovative approaches, and original
insights that distinguish it from conventional responses.
Professional presentation: The final product must reflect the highest standards
of academic writing, including clarity of expression, grammatical precision, stylistic
fluency, and overall readability.
Strict adherence to formatting conventions: All specifications regarding
length, structure, citation style, font, margins, and related formatting requirements must
be meticulously observed.
5. CHECK TEAM MEMBERS TASK
During group meetings, the facilitator will allocate specific tasks to each member.
Throughout the week, the timekeeper will oversee the team’s progress by monitoring
updates in the task tracking worksheet.
At subsequent meetings, members will present their progress reports, after which the
facilitator will review the completed tasks for quality and compliance with requirements
before assigning new responsibilities for the upcoming week.
Performance Assessment

Assessment Board

No. Criteria 4 3 2 1 0 Weight

1 Contribut Always provides Actively Contributes Very few No 30%
ion ideas or solutions contributes occasionall contributio contributio
(≥6 meaningful to most y (3–5 ns (only 1– n, even
contributions per issues ideas per 2 when
discussion through (about 6 discussion) comments asked.
both online contribution . Mainly per Only
meetings and s per responds discussion) simple
 Messenger group). discussion). when . Gives acknowled
Contributions Engage asked, minimal gments
include suggesting consistently rarely feedback, (e.g.,
new approaches, with group expands on rarely helps “Yes,”
analyzing work. ideas. with other “Okay”) or
problems, Actively tasks. no
commenting about participates response at
other members' in most all.
tasks or improving topics.
team outputs.

2 Quality Word/Report: Word/Repor Word/Repo Word/Repo Word/Repo 30%

of work Meets 95%-100% t: Meets rt: Meets rt: Meets rt: Not
of requirements, no ~80–100% 50–80% of only 30– submitted
spelling/grammar of requiremen 50% of or <30%
errors, include requirement ts, requiremen completed,
charts, tables, and s, minimal formatting ts, many many
references. errors, acceptable errors, errors,
- Presentation: No relevant but inconsisten unclear
reliance on images contains t style. structure.
notes/slides; included. errors. - -
confidently - - Presentatio Presentatio
answers ≥4 Presentation Presentatio n: Looks at n: Reads
questions. : Looks at n: Looks at notes 20 entirely
- Slides: ≥4 notes ≤10 notes 15 times, from
relevant images, times, times, answers notes/slides
clear concise answers 3 answers 2 only 1 , cannot
content, consistent questions. questions. question, answer
style, suitable - Slides: 3 - Slides: 2 little questions.
effects images, images, confidence. - Slides:
basic but simple - Slides: 1 No images,
consistent design, or low- poor
effects. minor quality formatting,
inconsisten image, too inconsisten
cies. much/too t or
little text, unusable
distracting style
effects

3 Punctualit Always complete Slightly Moderately Frequently Absent 20%

y/Deadlin tasks and take part late. late. late. from
e in meetings ahead Meeting: Meeting: Meeting: meetings
of time or on time ≤15 minutes ≤30 ≤45 with no
without reminders. late. minutes minutes reason and
Task: ≤30 late. late. tasks not
minutes Task: ≤60 Task: ≤1 submitted.
 late. minutes day late.
late.
4 Responsi Always proactive, Completes Completes Often Frequently 10%
bility & takes full assigned work but delays, avoids
Accounta responsibility, work with sometimes affecting responsibili
bility ensures results are little or no needs team ty, leaves
delivered reminders reminders/f progress tasks
ollow-ups unfinished

5 Follow Always follow Violate Violate Violate Violate 10%

group group rules group rules group rules group rules group rules
rules 2 times 3 times 4 times 6 times
2. TEAM WORK EVALUATION

WEEKLY EVALUATION DETAILS TABLE

Members
Wee Crite
Nhật Ánh Bảo Khanh Minh Nguyên Bảo Quyên Quốc Tuấn
k ria
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Week 1 4 4 4 4 3 4 3 2 3 4 3 3 2 4 4 3 3 4 4 4 4 4 3 4 4

Week 2 4 4 3 3 4 4 3 4 4 4 3 3 4 4 4 3 3 2 4 4 4 4 4 2 4
Week 3 4 4 4 4 4 4 3 4 3 4 3 4 4 3 4 3 4 4 3 4 3 4 4 4 3
Week 4 4 4 3 4 4 4 3 3 4 4 4 3 3 4 4 4 3 2 4 4 3 4 4 4 4
Week 5 4 4 3 4 3 4 4 4 3 4 4 3 4 3 4 4 3 4 3 4 3 4 4 3 4
Week 6 4 4 3 4 3 4 4 4 2 4 2 3 3 3 2 2 3 2 3 3 4 4 2 3 3
Week 7 4 4 4 4 3 4 3 4 3 4 3 3 3 3 3 3 3 4 3 3 3 4 2 4 3
Week 8 4 3 4 4 4 4 3 4 4 4 4 3 3 3 4 4 3 4 3 4 4 3 3 4 3
Week 9 4 3 4 4 3 4 4 4 4 4 4 3 3 3 3 4 3 4 3 3 4 3 4 4 3
Week 10 4 3 2 4 3 3 4 4 3 4 4 4 3 3 4 4 4 3 3 4 3 2 3 4 3
Week 11 4 4 3 4 4 3 3 3 4 4 3 2 3 3 4 3 2 3 3 4 4 4 4 4 4
Week 12 3 3 2 3 4 3 4 3 3 3 3 4 4 3 4 3 4 4 3 4 3 3 4 4 4
Week 13 3 3 2 3 3 4 3 3 4 3 3 4 4 4 4 3 4 3 4 4 4 3 4 4 4
Week 14 3 4 3 3 3 3 4 2 4 3 3 3 4 4 4 3 3 4 4 4 4 3 4 4 4
Week 15 4 4 4 2 4 3 4 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Total
3,8 3,7 3,2 3,6 3,5 3,6 3,5 3,4 3,2 3,8 3,3 3,3 3,4 3,4 3,7 3,3 3,3 3,4 3,4 3,7 3,6 3,6 3,4 3,7 3,6
Criteria

TOTAL 3,6 3,5 3,4 3,4 3,6

GROUP MEMBERS

No Name Student’s ID Tasks Completion

Leader
Project Outline, format
1 Lê Nhật Ánh 2452103 Chapter 2,5, support chapter 6 100%
Task tracking, Present Journal,
Appendix A
Chapter 3,4, Appendix A
2 Lê Ngọc Bảo Khanh 2352509 Company’s Information 100%
Team Contract, Present Journal

Phạm Huỳnh Minh Chapter 7

3 2452864 Diary, Slide Journal, Appendix B 100%
Nguyên
Timekeeper, team contract
Nguyễn Hoàng Bảo Chapter 6, support chapter 2,
4 2453096 100%
Quyên Powerpoint slides, Slide Journal

Chapter 1, abstract, conclusion,

Trương Quốc Tuấn 2453371 Chapter 6, Appendix A, Project
5 100%
Outline, format
Powerpoint Slides, Slide Journal

Summary of Team Performance Review: Procurement Management Course

This summary outlines the collective efforts and outcomes of the team during the
completion of the major assignment report and the scientific article required for the
Procurement Management course:
● Participating Members: 5 members
● Group Meetings Held: 12 sessions.
Overall Performance Review
The teamwork exhibited throughout the Procurement Management course was
exceptional. All five members demonstrated outstanding performance and high
responsibility across every aspect of the project. This included high-quality presentation
delivery, effective slide preparation, meticulous writing of meeting minutes, and the
successful completion of all work related to the major assignment.
Team maintained a consistently positive attitude, acted decisively, remained united, and
showed complete responsibility. The team successfully overcame every obstacle
encountered. Based on the work completion assessment scale, the team achieved a
remarkably high level of successful task fulfillment.
 3. DIARY

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
29 thg 8, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh No

Nguyên, Bảo Quyên

II. Objective
● Discuss the member contract: team roles, meeting plan, assessment
● Discuss the Journal & Business
● Divide the tasks for the week
III. Content discuss
1. Member Contract
Team Roles
● Note Taker: Minh Nguyên
● Presenters: Bảo Khanh, Nhật Ánh
● Timekeeper: Ming Nguyên
● Task tracking: Nhật Ánh
● Slide makers: Quốc Tuấn, Bảo Quyên
Meeting Plan & Schedule
● Team discussions and communication will take place mainly through
Messenger.
● Task allocation will be done during meetings.
● Two meeting formats:
○ Offline: meet after class or at the library.
○ Online: via Google Meet.
● Each member must prepare their assigned tasks before each meeting in order to
present updates.
● If someone cannot complete a task by the deadline or has any issues, they must
 inform the team in advance so others can help cover the work.
Assessment
The team will use a 4-point scale (0 → 4) to evaluate performance based on multiple
criteria:
- Contribution
- Ideas
- Research effort
- Quality of work
- Compliance with the team contract
- Meeting deadlines and attendance
Each member should consider what is needed to achieve a high score and propose
improvements.
A summary evaluation table for the entire team will be created.
2. Discussion Summary
Journal
- An email requesting approval for the journal topic has been sent; the team is
waiting for the instructor's response. Meanwhile, the team will gather multiple
research papers related to frameworks and models with a manageable level of
difficulty.
- These papers will be compiled into a priority list with short descriptions, ready
to send to the instructor if the initial topic is rejected.
- The team discussed the research topic and agreed to take turns presenting or
compiling weekly slides.
- A presentation slide template is needed.
Business
The team will search for data sources through personal connections or workplaces,
ensuring requirements of the assignment are met, including:
- Describe the purchasing function and its relationship with other departments.
- Identify key concepts in purchasing decisions, including negotiation techniques
and ethical issues.
- Propose a model for supplier selection and evaluation.
 - Explain the relationship between materials management & inventory control
and the purchasing process. Explain supply chain management.
Status of data sourcing:
- Nhật Ánh has requested revenue data from “Công ty TNHH TMDV Tin học
Không Gian Số” for the first 6 months of 2025.
- Bảo Khanh contacted a company and is waiting for a response.
- Minh Nguyên will ask his workplace for data next week.
3. Tasks
- Create a detailed weekly evaluation sheet (weekly time checking).
- Compile the group contract.
- Create the assessment table, including evaluation criteria using the 4-point scale
(conversion standards).
- Read and select research papers on relevant models/frameworks to send to the
instructor.
- Search for reliable data sources for the business project; choose an appropriate
company.
- Create a task-tracking sheet (managed by the Timekeeper).
Work spaceProcurement management

IV. Deadline
Context PIC Deadline Note

all + Minh
Meeting time + Vote 31/8
Nguyên

Weekly assessment Nhật Ánh 31/8

Journal finding + framework All 3/9

Business source All 8/9

All + Quốc
Assessment board and next week timeline 4/9
Tuấn

Task tracking board Bảo Quyên 6/9

Minh
Timeline 6/9
Nguyên
 Meeting Minute Date: 06/09/2025
Time: 10g30 - 11g30
Location: Google Meet
6 thg 9, 2025 10:30| | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên
II. Objective
● Finalize criteria and scoring method for the assessment (0 → 4 scale).
● Compile the member contract into a Word document.
● Report last week’s progress + status of business case data collection.
III. Content discuss
1. Weekly Progress:
● Ánh completed “Weekly Evaluation Details Table”

After discussion, the team agreed on five criteria to evaluate each member’s task
performance: Contribution, Quality of Work, Punctuality/Deadline,
Responsibility & Accountability, and Compliance with Group Rules.
Using these criteria, the team developed detailed requirements for assessing
each individual on a 0–4 scoring scale.
Finally, the team assigned weightings to each criterion. Contribution and Quality
of Work were considered the most important, each accounting for 30% of the
total score. The remaining criteria were weighted 20%, 10%, and 10%
respectively. Each criterion is labeled from 1 to 5 so evaluators can cross-
 reference them with the Weekly Evaluation Details Table.

-
● After having assessment, our team began doing the team contract and its outline
● Khanh will inform and contact with company in the following week
3. Tasks:
● Finishing team contact
● Analysis on the choosing journal
IV. Deadline
Content PIC Deadline Note

all + Minh
Meeting time
Nguyên
Tuấn +
Finishing team contract 13/9
Quyên

Finish diary Ánh 14/9

Minh
Timeline 15/9
Nguyên

Business case information chị Khanh

 Meeting Minute Date: 13/09/2025
Time: 10g30 - 11g30
Location: Google Meet
13 thg 9, 2025 10:30| | Internal meeting

Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên
II. Objective
Compile all information collected from Otesla company + Complete the team
contract
III. Content discuss
1. Compile information
The analysis work for the Otesla project is currently paused for key parts of Phase 3 and
Phase 4 because we are missing official documents. We sent a request for important
information regarding the Company Structure, Customer Aims, and confirmation of
basic factors like Products, Location, and Core Strengths of Otesla. Our detailed work
on the management model, company culture, and creating strategic recommendations
completely depends on receiving these documents. We are actively checking the status
and will send a second official request immediately to ensure we get this data quickly.
This is necessary to keep the project on track and finish it on time.
2. Complete team contract
After being assigned with the team contract, ours team are planning in order to complete
it before deadlines, and assigning members to do task:
● Anh: Leader, complete the outline of the team contract, doing assignment board
● Tuan: Helping with the assignment boards, doing working norms
● Quyen: Working the meeting norms, working norms to align with team rules
● Nguyen: Time tracking, doing general information for team contract
● Khanh: Help with the weekly assessment
 Meeting Minute Date: 1/10/2025
Time: 20g00 - 22h00
Location: Google Meet

1 thg 10, 2025 20:00| | Internal meeting

I. Attendees
Checking Absent

Bảo Khanh, Nhật Ánh, Quốc Tuấn, Minh Không

Nguyên, Bảo Quyên
II. Objective
● Finalize the outline of the chapters to be presented in the report.
● Assign members to complete and analyze the selected research papers and cross-
check each other’s content.
● Allocate tasks to each member for completing the assigned chapter.

III. Content discuss

1. Checking Assignment:
● Making brief on the outline
CHAPTER 1: GENERAL INTRODUCTION
1.1 Problem Statement
1.2 Research Objectives
1.3 Report Structure
1.4 Overview of O Tesla Industrial Co., Ltd.
1.4.1 Business Model
CHAPTER 2: RESEARCH PROCESS AND PROCUREMENT STRATEGY
2.1 Research Process
2.2 Research Approach
2.2.1 Theoretical Approach
2.2.2 Practical Approach
2.2.3 Data Collection Methods
2.3 Theoretical Foundation
2.4 Procurement Strategy
2.4.1 Toward Customers
2.4.2 Toward Suppliers
2.5 Evaluation of Procurement Strategy and Process Efficiency
CHAPTER 3: INVENTORY MANAGEMENT
3.1 Warehouse scale
3.2 Inventory management
3.3 Inventory levels
3.3.1 … (list of items)
3.4 Evaluation
3.5 Limitations and Recommendations
3.5.1 Identified Limitations
3.5.2 Recommendations
CHAPTER 4: PROCUREMENT PROCESS AND FUNCTIONS
4.1 Determining Material Requirements
4.2 Supplier selection and evaluation
4.3 Ordering procedures and contract execution
4.4 Monitoring of transportation progress
4.5 Management of documents, invoices, and payment
4.6 Receipt of goods, quality inspection, and acceptance
4.7 Procurement process flowchart
4.8 Evaluation of procurement performance
4.9 Procurement Performance Evaluation
4.10 Recommendations and proposed solutions
CHAPTER 5: RELEVANT LEGAL FACTORS
5.1 Contractual Obligations in Procurement
5.2 Seller’s Obligations
5.3 Buyer’s Obligations
5.4 Legal Basis and Corporate Legal Status
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
6.2 Recommendations
REFERENCES
Assigning role member and deep analysis on the journal report as well as checking

+ 5/10 Sunday, deadline on analysis of the journal

Dịch + Phân tích báo Báo (LARG, MADM)
● Assignment divide
+ CHAPTER 1: GENERAL INTRODUCTION - Tuấn
+ CHAPTER 2: RESEARCH PROCESS AND PROCUREMENT
STRATEGY - Ánh, Quyên
+ CHAPTER 3: INVENTORY MANAGEMENT - Chị Khanh
+ CHAPTER 4: PROCUREMENT PROCESS AND FUNCTIONS
+ CHAPTER 5: RELEVANT LEGAL FACTORS - Minh Nguyên
+ CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
=> All updates are recorded in the file Tổng quan công ty Otesla
- The team will complete the content and upload it to the Canva slide deck:
- Procurement Strategy: Add details on who the suppliers are, what materials
they provide, the relationship between the suppliers and the company, relevant
constraints, and the purchase contract (obligations of the buyer and the seller).
→ Ánh, Quyên
- Legal Aspects: Authority to sign contracts — in the company, the director holds
the authority to sign purchase contracts on behalf of the business. Identify who
the director is. → Minh Nguyên

IV. Deadline
 Content PIC Deadline Note

all + Minh
Meeting time 1/10
Nguyên
Journal analysis All 5/10
Checking information All 8/10

Slide complètement All 15/10

Making brief description for the term project All 11/10

Meeting Minute Date: 9/10/2025

Time: 20g00 - 22h00
Location: Google Meet

9 thg 10, 2025 20:00| | Internal meeting

I. Attendees
Checking Absent

Bảo Khanh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên
II. Objective
● Finalize the outline of the chapters to be included in the report.
● Assign members to complete and analyze the selected research papers and cross-
check each other’s content.
● Distribute tasks for each member to work on their assigned chapter.
● Complete the presentation slides to submit to Ms. Hà next week.

III. Content discuss

1. Checking tasks:
● Checking the detailed description of the chapters:
CTY
● Company introduction 4 slides
● C1: Company name, industry, image, attached address, company premises
(photo). Business type: make-to-order company, main products, revenue
● C2: Purchasing strategy: must mention company products, strategic products,
differences compared to other competing companies. => What are the product
characteristics (differentiated), technology mentioned on the web 5-6 slides
(technical)
● What departments are included, what functions, must have a purchasing
department (find carefully what the purchasing department of a limited liability
company has).--> Through purchasing specialists, have this data.
● Have BOM-> Manufacturers, distributors that the company often uses to import.
Who uses the most. Related to BOM pitch, top filler supplier, ...
● C3: Policy factor: main policy of the company? (Quality maintenance policy,
product recall, product warranty, ..) What are the responsibilities of the seller and
the buyer? No deposit, how much percentage of the seller, what is the policy, the
customer has placed the order when the customer has paid. Give the order ->
give the money then do it
● Who is the director, what does the secretary do, write inside the role of the
purchasing department (what is it, department head, purchasing specialist, check
goods, check documents, process orders?), the person in charge of the order: the
purchasing specialist works mainly with the order. The manager only signs the
documents.
● What documents are used in the purchasing process, what purchasing must the
manufacturer meet its needs? (For example, create a table: department name,
supply, ingredient, through what standards, (ISO ...)?)
● C4: What is the material management method, what is the warehouse scale
(small warehouse scale), how are the goods managed, what are the applications
of BOM, MRP, SID (or SIP? I can't hear clearly) how many imported items at
the end of the period are all 0 => make to order signs. Specific up, system, how
is the electronics?
● C5: MRP carefully because she quite likes to talk about this part (analysis from
BOM)
 ● C6: JIT has not learned (can be combined with purchasing policy), solve related
tasks
● C7+C8: Purchasing procedures (important) must be shown, procurement
process/procedure must be shown and choose suppliers. Based on long-term
suppliers, quality assurance, easy procedures, attractive costs, time saving.
● Evaluate suppliers, she will have criteria and evaluate based on that (Criteria
table).
● C9+C10: 2-3 slides, state the reason for foreign construction
REFERENCES
Divide on roles

+ Saturday 11/10 deadline on journal context and update on: Dịch + Phân tích báo
Báo (LARG, MADM)
● Divide chapter responsibilities
+ CHAPTER 1: GENERAL INTRODUCTION - Tuấn
+ CHAPTER 2: RESEARCH PROCESS AND PROCUREMENT STRATEGY -
Ánh, Quyên
+ CHAPTER 3: INVENTORY MANAGEMENT - Khanh
+ CHAPTER 4: PROCUREMENT PROCESS AND FUNCTIONS
+ CHAPTER 5: RELEVANT LEGAL FACTORS - Minh Nguyên
 + CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
IV. Deadline

Content PIC Deadline Note

all + Minh
Meeting vote 12/10
Nguyên
Journal context All 11/10

Checking on update of context All 11/10

Finished slide All 13/10

Brief describe on what need to do All 13/10

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
16 thg 10, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Doing the small assignment Trung Thu festival
● Checking on the progress of the mid-term assignment
● Paper final analysis

III. Content discuss

1. Trung Thu Festival
Evaluate on the class assignment: On the area of the project: The group has been given
information about the location of the destination at Bach Khoa University with the
attendance number around 500 people, what is the primary focused on the festival is
creating joy and remarkable moment for children, costs of the festival: MC, workshops,
gifts. Asking on the gifts sent: Who is the sponsorship, amount,.... Then assign the task
for team member to do:
● Tuan + Quyen: doing the outline of the station of what to do and the overall costs
of the workshop: Here we have estimated around 500.000 VND for each
workshop with small decoration and making some traditional games for children
to enjoy.
● Khanh: Object and area focused
● Anh: Calculating on the cost of the festival with around 2.000.000 VND: costs
of the decoration and buying for the workshop, money for the stage mc, etc,..
● Nguyen: Timeline of the festival on what time should be done, time to do:
making a plan on what time to start up with the decoration, how to get volunteers.
Khanh: Giving general idea on what to do, checking ideas, creating a list of goods
that can be used as gifts, checking for sponsorship
This is the workspace of project: Mid-Autumn festival master plan
2. Checking on the journal and presentation
For the journal and presentation, the team will first review the progress of the journal,
checking which sections have been completed, identifying missing content, and
ensuring that references and citations are correctly formatted. A brief meeting will be
held to discuss the selected paper, summarizing its main points, key findings,
frameworks, and models relevant to the project, as well as analyzing its strengths,
weaknesses, and applicability. Based on this discussion, the team will decide which
points to include in the presentation, assigning members to present specific sections and
preparing concise briefs that highlight methodology, results, and conclusions, along
with visuals or diagrams to clarify complex ideas. In writing the journal, the team will
focus on clarity and coherence, linking the paper’s findings to the research objectives,
providing critical analysis rather than simple summaries, and drafting discussion
questions or insights to incorporate into the meeting or presentation. Moreover, having
a small rehearsal on what needs to be done on presentation day.

IV. Deadline
 Content PIC Deadline Note

Meeting time Nguyen 16/10

Meeting and rehearse All 20/10
Finish on document on writing All 21/10

Doing presentation All 24/10

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
23 thg 10, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Review on the team contract, and completing it since having no class

III. Content discuss

Checking for team contract
When checking the Team Collaboration Contract, the team should focus on four
key areas: First, review the Project Goal and Deadlines to ensure everyone is
working toward the same target (the final report delivery). Second, verify that all
members are adhering to their defined Roles and Deliverables to prevent
duplication or missed tasks. Third, confirm compliance with the Communication
Protocols, especially the mandatory Weekly Check-ins and the 48-hour feedback
policy, which keeps the flow of work efficient. Finally, remind of the three-step
Conflict Resolution Process so that if any disagreement arises, the team can
address it immediately through direct dialogue or escalation, minimizing project
delays.
Meeting Minute Date: 29/08/2025
Time: 10g30 - 11g30
Location: Google Meet
30 thg 10, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● The objective of the meeting was to align on the midterm project, review and
reassess the existing project outline
● Ask for more information about the company and arrange an online meeting to
discuss more about the company, its internal information.

III. Content discuss

1. Midterm Project Discussion
Here we have learned chapter 5 so our team is planning to discuss the current status of
the midterm project and identified areas in the outline that require revision. Members
agreed that several details remain unclear, making it necessary to request more
comprehensive information from the company. As part of the discussion, the team
decided to arrange an online meeting with the company to clarify outstanding issues
and gather all required data to move forward with the project. Moreover, checking on
parts of every team member and analyzing what is needed or not to adjust with the
whole team.
2. Meeting with the procurement department
The team will arrange a dedicated meeting with the procurement department to obtain
a clearer and more comprehensive understanding of the company’s overall operational
framework. By coordinating an appropriate time with the department manager, the team
intends to explore key aspects such as the procurement workflow, supplier selection and
evaluation processes, purchasing procedures, approval hierarchies, and the
department’s interactions with other units such as finance, logistics, and production.
This discussion is expected to provide valuable context on how procurement decisions
influence the company’s daily operations and long-term planning. The insights gathered
from this meeting will support the midterm project by strengthening the team’s ability
to analyze the company’s operations accurately and propose well-informed
recommendations. However, after having a small discussion with the leadership of the
procurement department we have noticed that the EOQ model won’t be able to apply to
this case so choosing another one.

IV. Deadline
Content PIC Deadline Note

Meeting time Nguyen 30/10

Arrange meeting time with company Khanh 27/10

Noting on which parts of the project need to

Tuan 30/10
adjustment

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
6 thg 11, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Start doing presentation of the midterm project, analysis on what to put in or not
● Keep finishing the remaining chapter of the midterm

III. Content discuss

[Link] presentation preparation
In this week's class, Ms. Hà required all randomly assigned groups to present the
progress of their course project. Each group was given 15 minutes to present, and we
revised the entire presentation slide deck accordingly. The next evening, we had an
online meeting to prepare the data and the methods for applying the lessons from the
course to the company. Each member’s task remained the same: Everyone continued
working on their assigned chapter and additionally worked on the section applying the
concepts to O TESLA. After a few days of working, the members had various individual
questions that needed clarification regarding the company’s data, documents, operating
procedures, and so on. We agreed that we would compile all the questions, and Khanh
would ask them all at once. The team will begin preparing the presentation for the
midterm project by analyzing the content to determine which elements should be
included, emphasized, or removed to ensure clarity and coherence. This involves
reviewing all collected information, selecting the most relevant data, organizing key
insights, and designing a logical storyline for the presentation. The team will also
structure the presentation to ensure a logical flow from introduction to conclusion while
incorporating visual elements such as charts, diagrams, and summary tables to enhance
clarity. Attention will be given to slide design, formatting consistency, and simplifying
complex ideas so the audience can easily grasp the key messages. Additionally, the team
will discuss presentation delivery strategies, including division of speaking roles,
timing, and methods for engaging the audience during the presentation.
2. Doing the remaining chapters
In parallel, the team will continue working on the unfinished chapters of the midterm
report to ensure the written submission is comprehensive, accurate, and academically
sound. This involves expanding partially completed sections with in-depth analysis,
refining theoretical frameworks, and integrating supporting data from research or
company information. Team members will verify that arguments are cohesive and
logically connected across chapters, ensuring alignment with the project outline and
overall objectives. The writing will be polished for clarity, consistency in tone, citation
style, formatting, and structure. The team will also cross-check facts, update outdated
information, and fill any gaps in explanation or evidence. By finalizing these chapters
thoroughly, the team aims to deliver a complete and well-developed report that
demonstrates rigorous understanding and thoughtful analysis of the project topic.
Here we divide the project:
 ● Nguyen: Legal aspects of company about the current legal status of company,
their structural, contracts, how do to the procurement methods of company after
receiving information
● Anh, Quyen: the procurement assessment, checking for more information when
being given about the internal operations of O TESLA, finding much more
information about the model being applied to this.
● Khanh: Check for general information of the company to adapt to the project,
doing MRP method for company detailed information, checking some graph of
the objects of company
● Tuan: Making more detail on introduction, the porfio of the company products,
overall structure, the recognition of the company in the internal and external
market in coffee machines.
IV. Deadline
Content PIC Deadline Note

Meeting time Nguyen 6/11

Assign tasks and checking Anh 8/11

Complement on the remaining and adjustment All 12/11

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
13 thg 11, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Checking on the project, reading and giving advice on every parts
 ● Small presentation for everybody to prepare for the final presentatio
III. Content discuss
1. Review on chapters, reading and giving advices
The team talked about the need to carefully check all the remaining chapters of the
project to make sure everything is clear, complete, and correct. This includes reading
each chapter again, finding parts that are missing information, and deciding which
sections need more research or details from the company. The team also wants to make
sure that all chapters are connected well and that the ideas flow in a logical way. Here
everybody can give their own opinions of the overall structure of an entire project and
everybody will find a way to solve it. Tuan + Anh + Khanh is the person who will
thoroughly solve an entire subject and modify it on the outline of the project.
[Link] presentations
To help everyone understand the work better, the team will prepare a small presentation
that explains what each chapter is about, what tasks still need to be done, and who is
responsible for each part. This presentation will help all members know the content of
every chapter, even the ones they are not directly working on. It will also make sure
everyone understands what they need to do and how their work fits into the whole
project. By doing this, the team hopes to work more smoothly together, avoid confusion,
and keep the same quality across all chapters. By having a clear visual overview of the
project, the team can communicate more effectively, make better decisions, and keep
everyone aligned with the project’s direction. This presentation will serve as a guide
during online or in-person meetings, helping members track progress, identify problems
early, and stay organized throughout the entire project. Ultimately, this approach aims
to improve teamwork, increase productivity, and ensure the final project is coherent,
polished, and high-quality.

IV. Deadline
Content PIC Deadline Note

Meeting time Nguyen 13/11

 Content PIC Deadline Note
Small presentation All 13/11
Checking contents All 13/11

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
20 thg 11, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Checking team members having problem and help them solve it

III. Content discuss

1. Problem finding and help to solve
Problem finding is a crucial stage in the development of any final report because it
establishes the foundation for the entire project and determines the direction of the
analysis, research, and outcomes. This phase involves thoroughly investigating the
situation, identifying gaps, and recognizing underlying issues that may not be
immediately visible. Effective problem finding requires careful observation, data
collection, stakeholder communication, and evaluation of existing processes or systems.
It means going beyond surface-level symptoms to uncover the true causes of a
challenge. Once the problem is clearly identified, the process of solving it begins by
breaking the issue into manageable components and evaluating possible solutions. This
includes conducting research, reviewing relevant literature or case studies, analyzing
data, and brainstorming different approaches.
Each potential solution must be assessed based on feasibility, cost, impact, resources,
and long-term sustainability. After selecting the best approach, the next step is
implementing the solution and monitoring its effectiveness through measurable
indicators or feedback from users or stakeholders. In the context of a final report, it is
important to document this entire process in a clear, structured, and logical manner. The
report should explain how the problem was identified, what methods were used to
analyze it, which solutions were considered, and why the final decision was chosen. It
should provide evidence to support conclusions, present findings objectively, and show
how the solution addresses the root cause of the issue. This demonstrates critical
thinking, problem-solving ability, and a deep understanding of the topic, all of which
strengthen the credibility and value of the final report.

IV. Deadline
Content PIC Deadline Note

Meeting Nguyen 20/11

Checking previous tasks Anh 22/11

Meeting Minute Date: 29/08/2025

Time: 10g30 - 11g30
Location: Google Meet
27 thg 11, 2025 10:30 | | Internal meeting
I. Attendees
Checking Absent

Bảo Khánh, Nhật Ánh, Quốc Tuấn, Minh None

Nguyên, Bảo Quyên

II. Objective
● Final reports reading
● Presentation rehearsal

III. Content discuss

1. Reports final reading and format
The final reading and formatting of the report is a critical stage in ensuring that the
entire document appears polished, precise, and fully professional. At this point, the
content should already be complete, so the focus shifts to refining clarity, accuracy, and
consistency. During the final read-through, it is important to move slowly through each
section, paying attention not only to obvious errors but also to the overall coherence of
the ideas presented. The reader should verify that all information—such as dates,
numbers, charts, and references—is factually correct and aligned with the research or
findings.
Paragraphs should transition smoothly, and the tone should remain consistent
throughout the document. This is also the stage when awkward phrasing, repetitive
wording, or overly complex sentences must be corrected to improve readability.
Consistency plays an important role here as well, including the uniform use of
terminology, abbreviations, fonts, margins, heading styles, and spacing. Every visual
element, such as charts and tables, should be checked to ensure each one is correctly
labeled, placed appropriately in the text, and referred to correctly. Anh will be the
person to modify the whole document and inspects every chapter thoroughly with
giving advice to change immediately in order to having time to submit the project

2. Finalize on presentation and rehearsal

Once the report is complete, the focus shifts to finalizing the presentation and rehearsing
for delivery. Preparing the presentation involves carefully selecting the most relevant
and impactful information from the report and transforming it into a clear, engaging,
and visually appealing slideshow. This begins with identifying the key points that need
to be communicated and organizing them into a logical structure that guides the
audience from the introduction to the conclusion. Slides should avoid excessive text and
instead highlight essential ideas using concise statements supported by visuals such as
charts, diagrams, or images that help clarify complex concepts. The design should
maintain a consistent style with uniform colors, fonts, and layouts so the presentation
feels cohesive.
Once the slide deck is complete, the rehearsal stage begins, which is just as important
as the creation of the presentation itself. Rehearsing helps presenters become
comfortable with the material, refine their pacing, and ensure that the delivery fits
within the allotted time. This process typically includes writing or reviewing speaker
notes, practicing aloud multiple times, and adjusting any sections that feel too rushed
or too slow. Effective presentation delivery requires clear articulation, confident body
language, controlled gestures, steady eye contact, and a well-modulated voice. It is also
essential to prepare for potential questions from the audience by anticipating what they
might ask and developing well-thought-out responses.

IV. Deadline
Content PIC Deadline Note

Formatting the final report Tuan 27/11

Presentation checking Anh 27/11

Content checking Anh 27/11

Meeting Nguyen 27/11