Head OfficeSheraton Saigon Hotel & Towers, 88 Dong Khoi Street, Ben Nghe Ward, District 1 Ho Chi Minh City, Vietnam
Business activitiesProduction and sales of non-alcoholic beverages
Suntory PepsiCo Vietnam Beverage Company (SPVB), is 100% owned by foreign capital, and is a strategic alliance between PepsiCo Inc. and Suntory Holdings Limited, which was officially formed in April 2013. Our headquarters is located on the 5th Floor, Sheraton Hotel, 88 Dong Khoi Street, District 1, Ho Chi Minh City. Our corporate values are “Yatte Minahare” and “Giving back to society”. In the future, we will continue to pursue sustainable development objectives, bring benefits to our employees and business partners, and contribute to the communities where we do business and operations.
SPVB's quality and food safety policies are in accordance with standards set by the Suntory, PepsiCo, Pepsi Lipton groups and Vietnam Government. All company plants have FSSC 22000 certification. Additionally, the inspection related to the AIB International Consolidated Standards is carried out at all sites and special tools are provided to our sales teams to help them communicate information on quality to our customers.
Relationship with the Customers
Customer satisfaction is a first priority, and hotlines are in place to solicit customers' feedback and requests. Feedback is an essential part of our qualitative research, which is used to improve services, fine-tune marketing and increase satisfaction. In recent years, SPVB Sales team has come up with the conclusion that the sales volumes would increase proportionally if consumers found the store displays appealing. This idea was after rolled out to on-site execution that one of our DCR’s KPIs was actually to neatly arrange the products in the visi coolers and on racks with SPVB’s must-have products. Our DCR team was also required to ensure that the products are promoted by using posters and other display materials.
Contributing to consumer health
SPVB beverage portfolio in this market includes a diverse set of exciting beverages such as Pepsi, 7-Up, Mountain Dew, Sting, Mirinda, Aquafina Lipton, Revive, Tropicana, Twister and Tea Plus. We take our responsibility to improve the nutritional quality of our portfolio very seriously, and we are on a continual journey to transform our product portfolio to provide Vietnamese consumers which more nutritious beverage choices, for example, Oolong TEA Plus, which prevents fat absorption.
TEA+ Oolong Tea
TEA+ Oolong Tea was released in 2013 in Vietnam, starting a new segmentation of tea in Vietnam. This tea is made using the technologies we cultivated while developing Suntory Oolong Tea, a product that has been popular in Japan for more than 30 years. With a refreshing and delicious taste, TEA+ Oolong contains OTPP, a natural ingredient extracted from oolong tea leaves that assists in the suppression of fat absorption. By extracting and maximizing the OTPP in oolong tea leaves, TEA+ offers consumers a healthier lifestyle, while maintaining the delicious taste and floral notes that come from oolong tea. After 6 years since the launching, TEA+ has now achieved outstanding result No.1 in HCMC, No.1 in Modern Traded and hopefully aiming South leadership in next 2 years
TEA+ Oolong Lemon
TEA+ Oolong Lemon is a unique combination of oolong tea and delicious lemon flavor, launched in 2018 as the first of its kind in the Vietnam market. The special point about this product is that it brings not only refreshment and delicious flavor from the familiar lemon taste but also a healthier lifestyle by assisting in the suppression of fat absorption, thanks to the OTPP ingredient of oolong tea. This tea is made by using the technologies we cultivated while developing Suntory Oolong Tea—a product that has been popular in Japan for more than 30 years and is now the No. 1 bottled oolong tea brand* in Japan. (*2017 Euromonitor, brand shares of off-trade RTD tea in Japan, volume)
TEA+ Oolong No Sugar
Anticipating that Health & Wellness is now trending in Vietnam as Vietnamese consumers tend to reduce sugar intaking, TEA+ had launched Oolong No Sugar in 2019 to one-step-ahead capture this movement. This new variant is the combination of many goodness: TEA+ Oolong OTPP – prevention of fat absorption, authentic Oolong tea flavorful & aromatic sensation and sugar-free. Beyond this, TEA+ Oolong No Sugar with its premium mood & tone also reinforces TEA+ brand attributes in term Japanese-ness, Expertise & Good for Health. This new variant is now widely available in all Modern Trade channel across the country.
TEA+ Matcha is a new TEA+ product that was launched in 2016 in Vietnam. With an authentic tea taste, and Theanine extracted by our advanced technology, TEA+ Matcha allows the drinker to enjoy relaxation and refreshment. We hope people can fully relax and enjoy their days with TEA+ Matcha.
GOOD MOOD – Value Added Water
Good Mood was launched in Vietnam on Apr 2019, establishing the new category of Value Added Water. Good Mood serves to bring consumers a new beverage option that is hydration as water, but taste good and feel good. Good Mood currently has 2 variants: Good Mood Water with Yogurt taste
Good Mood Water with Real Orange extract. Good Mood is perceived as a healthier drink, no added preservatives or artificial colorings, consumers can freely enjoy the tasty water without feeling any guilty. With its natural good taste, added with vitamin and mineral, Good Mood is a good water for daily hydration, help to uplift your mood everyday.
Relationship with Business Partners
Working with Business partners
SPVB treats all partners with fairness and respect. Since this joint venture started, SPVB has a network of suppliers and partners who work tirelessly to face all ups and downs in business with us. The relation with SPVB and some partners dated back to 27 years ago, when PepsiCo first started its operations in Vietnam. SPVB’s at its position today thanks to its partners’ contribution and collaboration.
To Create Harmony with Nature
-Water, Environment & Sustainable packaging -
Water & Environment
All SPVB plants and have acquired ISO14001 certification and fully complied with laws and regulations. All plants passed audit by third party with zero NC.
About Environment compliance: SPVB always comply Viet Nam law and regulations. Passed all government audits with zero violation. There were 6 government audits had done in 2020 with good result, had not nay negative comment noted in reports.
We set up environment sustainability KPI's for water usage and energy usage. These figures were reviewed weekly at manufacturing meeting and monthly at company operating review meeting. Below is the SPVB KPI's 2020 achievement vs. reduction target:
2020 Targets and Results
SPVB has established targets and policies for water conservation. In addition to reduce consumption and effluent, we also strive to recycle water from treatment processes, bottle washing/ rinsing and CIP, extend CIP cycle, add water usage KPI for new project to select the best technology.
Recycle treated wastewater to use for gardening and internal cleaning at Dong Nai Plant, Quan Nam Plant and Can Tho plant
To reduce impacts to underground water source and improve water usage KPI, SPVB apply using city water for production at 3/5 plants: Dong Nai, Can Tho, and Hoc Mon plant. In next year SPVB plan to apply for Bac Ninh Plant. Can Tho plant will be apply when deep well license ending in 2025 Analyses the water flow and find the priority point to focus on management.
CO2 emissions from both power and fuel are measured at our plants, with targets to reduce energy consumption and CO2 emissions. Methods include waste heat recovery, VFD for variable load motors/pumps/air conditioners, power-saving lighting, auto-timers at offices and eco oven for blowers, change compact lamp by LED to save electric consumption, apply natural light for workshop
SPVB applied some new technologies to reduce CO2 emission such as:
Apply Biomass boiler outsource replace for boiler using DO at Can Tho Plant (2018), Hoc Mon plant (2019). In 2020, it is continued for Quang Nam Plant, and Bac Ninh plant.
Apply Solar project at Bac Ninh Plant (2015), and Dong Nai Plant will be done in 2020 (1 MWH), will continue extend to 4 MWH at Dong Nai Plant, 3 MWH for Quang Nam Plant, 3 MWH for Bac Ninh Plant,
Many small projects to improve operation/system to save energy such as: VFD applied, heat recovery for all pipe/equipment.
Conduct GHG reduction audit in 2020 to find the opportunity to reduce CO2 emission. Target reduce 25% CO2 emission amount from 2015 to 2030 (absolution). Build up the system to tracking CO2e.
Reducing pollution and managing chemical substances
We comply thoroughly with all laws and regulations for the prevention of soil, water and air pollution. We carry out environmental impact assessments and obtain governmental approval for all plants. We have also implemented hazardous waste management systems, and environmental leaders are positioned at each site to ensure proper treatment and disposal.
All waste sludge of WWTP at all plant is collected and re-use for other purposes such as:
- Used as additive of bio fertilizer
- Used as additive of brick production
Moreover, all generated sludge not be landfill, reduce environment impact.
Find the best contractor in waste treatment technology to sign contract. And do supervise and valuation the treatment process to maximize the waste is recycle instead of incineration or landfill
“Mizuiku – I love clean water” program
Mizuiku is an initiative of Suntory Holdings Limited (Suntory) implemented in Japan since 2004. The program celebrates its 15th anniversary in 2019. In 2015, the program was successfully piloted in Vietnam’s Northern region with the purposes of educating pupils on water preservation and providing water filtration systems to the remote areas of Vietnam. The original format was customized to suit the Vietnam’s conditions and create an interesting learning platform for children.
Since 2017, the Central Council of Ho Chi Minh Young Pioneer Organization (CCYPO) and the Vietnam National Union of Students (VNUS) collaborated with Suntory Group, Suntory PepsiCo Vietnam to implement the program at the nationwide scale.
Up to the present, the program has been expanded from 6 to 76 schools across Vietnam with nearly 38,000 receiving education classroom teaching on water resource preservation. 14 sanitary support and 68 clean water filtration systems installed also helped providing clean water for over 39,000 Vietnamese locals. In 2019, Mizuiku successfully launched the first time ever series of picture books for children with the Mizu icon as the teller of water preservation stories. Mizuiku continues to be a part of the Joint Program between the Ministry of Education and Training and the Ho Chi Minh Communist Youth Union from 2017 till now as one of an experiment programs for the children in the entire Vietnam.
2021 marks the 7th year of Mizuiku in Vietnam and is the 5th year the program be implemented at the nationwide scale. This year the program will be newly established in 15 primary schools in Lang Son, Quang Nam and Dong Nai provinces, additionally to the current 76 full-format schools as of 2020
In the future, it is hoped that "Mizuiku - I love clean water" can continue to receive the attention of state departments and branches as well as communication agencies in Vietnam so that this practical program can be expanded and promoted more comprehensively to the community and society.
We measure solid waste generation and recycling rates at our plants, with targets for reduced waste and increased recycling. We recognize the importance of following 3Rs practices (Reduce, Reuse and Recycle).
We incorporate 3Rs into product design by creating lighter packaging; to conserve resources and reduce energy consumed during transportation (related production and design are carried out in-house). We have also changed from PVC to OPP labels for PET bottles, and from PVC to ACL labels for glass bottles. This helps to reduce environmental impact and encourage proper recycling. Additionally, used materials at our plants are collected for sale to third-party companies for reuse or recycling.
Many lightweight projects are applied to reduce waste plastic discharged to environment, reduce environment impact.
Packaging Recycling Organization Vietnam (PRO Vietnam)
As one of the founding members of PRO Vietnam, Suntory PepsiCo Vietnam aims to:
- Raise awareness about packaging recycling and waste separation
- Complete the packaging collection ecosystem
- Cooperate with government on 3R recycling activities
- Support recycling programs
Plastic packaging recycling initiative
Since 2020, SPVB has cooperated with VNUS to build eco-brick toilets for primary schools. Each eco-brick is created by stuffing sand, chopped plastic bags, and cement into a bottle. Thanks to more than 1,300 volunteers whom contributed over 300 working days, for the first time ever, 9 eco-brick toilets were built in Vietnam, which helped:
- Recycle plastic bottles, plastic waste, nylon
- Recycle about 32,500 plastic bottles and 270 kg of shredded plastic
- Save 25% construction costs
- Ensure water sanitation for primary school students
Join hands to clean beaches in Vietnam
From 2019 – 2020, SPVB has joined hands with Vietnam National Union of Students (VNUS) to organize 10 beach clean-up activities. As a result, nearly 2,500 local volunteers & Suntory PepsiCo members participated and almost 30 tons of garbage was collected.
To Create Harmony with Society
- Giving Back To Society -
Giving back to society
Suntory PepsiCo dedicates to contribute to the society and generate positive impacts on people around us as we grow. We only succeed when we can share it with the community. That is the way we show our appreciation.
Green Summer is a campaign for students in joining volunteering programs and held by Vietnam National Union of Students every summer. Throughout the campaign, many volunteers nationwide contributed effectively to society, through activities such as building and renovating countryside roads, bridges and charity houses, participating in ensuring safety traffic, and urban civilization communication activities; supporting in university entrance exams. Below are some highlights of Green Summer from 2018 - 2020:
✓Green Summer Campaign national Kick-off events in Long An (2018), Bac Kan (2019), and Quang Binh (2020) with +6.5K volunteers
✓19 water treatment systems in 8 provinces (Quang Nam, Ben Tre, Ha Giang, Lang Son, Quang Ninh, Hai Phong, Quang Tri, Binh Dinh)
✓25 sport grounds/playgrounds for children in Bac Ninh, Hanoi, HCMC, Danang, HCMC, Can Tho, Ca Mau, Phu Tho
✓More than 593,000 bottles of products and 13,300 t-shirts for volunteers
Helping Hands program is an employee volunteering and donation program, that employees are provided with opportunities to care for community and the world we live in. It has launched in August 2011 supporting to enhance SPVB's core values and to build the corporate culture, engage employees for long term commitment and contribution to both business and society sustainable growth. The total raised funds by employees will be approved for matching by the company. It's a good platform for all - our employees, community and business. Since 2011, 10 SPVB Helping Hands committees were formed, about 150 HH programs were initiated, more than 11.2 billion VND was used to build 6 schools, 3 houses and 3 libraries for children in mountainous/remote areas, award thousands of scholarships, support 1,600 eye surgeries, present gifts for the disabled and the older people in social centers.
Education - Dynamic Contest
For years, SPVB has been taking advantage of all resources to bring the best opportunities for Vietnamese young talents to learn and exchange from people inside and outside the country.
For the last 24 years, SPVB have been accompanying the “DYNAMIC – The future entrepreneurs” contest and since 2017, we are proud to become its co-organizer with University of Economics Ho Chi Minh City for the new DYNAMIC start up version where the students had room to conceive and develop their own business ideas. Here are some highlights of Dynamic of the recent years:
✓Expand the participation of more universities: 14 participating Universities nationwide
✓DYNAMIC 2019 kick off events at 4 regions in 7 Universities reached +2,000 students
✓Cross functional contribution incl. local Sales/Finance/Marketing joint functional trainings for DYNAMIC students
Urgent Community Support
Putting people as its core value for business development, the company focuses on improving the health and life quality of the community through social activities.
Over the past 27 years, the company has been back in Vietnam, the company has provided hundreds of thousands of products for communities suffering from natural disasters and pandemic, hundreds of heart operations, thousands of Tet gifts, scholarships, medical centers, educational and clean water constructions across the country.
Suntory PepsiCo Friendship Golf Tournament
The Suntory PepsiCo Friendship Golf was organized from 2001 to recognize the companionship, contribution and cooperation of its partners and friends to the overall success of the company. Since 2007, the event has been organized to raise funds for poor people living in poverty. This is the 16th edition of this popular event.
From 2007 to 2015, the raised fund from the tournament has been used to conduct 380 heart surgery donations, award 40 scholarships and sponsored thousands of Tet gifts for orphans and the elderly, support 30 disabled athletes with excellent academic results, build 6 health centers, 28 houses, 4 kindergartens and 2 informatics centers. In 2016 & 2017, nearly 1.7 billion was used to build 6 water supply systems in 5 schools and one island district of Ben Tre province to provide clean water supply for more than 4,000 people and children here and provide 74 water filters for more than 1,600 students in 7 schools and about 7,000 patients each year at two infirmaries in Tan Tru District, Long An Province.
Over 2.8 billion VND was raised from Suntory PepsiCo Friendship Golf 2018 and 2019 events by Suntory PepsiCo Vietnam in collaboration with the Sponsoring Association for the Poor Patients of Ho Chi Minh City was donated to bring clean water to students in Ben Tre Province via the "Clean Water for Primary Schools" program. In 2020, the tournament raised a fund of up to VND1,780,000,000 - the highest amount over years of organizing, given to disadvantaged children with cancer through Ho Chi Minh City Sponsoring Association for Poor Patients.
Building a beautiful culture
To Create Harmony with Employees
SPVB promotes local employment and national workforce development. Additionally, we also value diversity and inclusion, and train our employees and management in these values. One of our key performance indicators for management is our female employment ratio, which we consider a key aspect of workforce diversity in Vietnam.
At Suntory PepsiCo, we are passionate about growing our business and we recognize that in order to do this we must continually support and develop our employees.
With the purpose to provide our employees with the expertise they need to fulfill their role and make an impact on your business, we build up a well-rounded training portfolio which includes: Leadership skill, General Skill and Functional skills. which is led by 3 core capability development teams: Talent Development – Training, Sales Training & Operations Capability Development.
Formed in early 2018, Sales Training team has quickly built up their knowledge & credibility with partners through various training programs & initiatives to improve functional capability for Sales team both front line & back-office. One of the most successful & impactful programs that Sales Training team organized are ASM Academy, Sales Sup Essentials, DCR Refresh, Saturday Learning & Fritalk, etc.
Together with the introduction of Operations Capability Framework, Operations Capability Development team was established in 2020 with the mission of developing Operations capabilities for SPVB, building up functional competencies including develop and manage of training & roadmap for all levels to build on an engaged and high-performance Operations team. In their 1st 6-month of operation, Operations Capability Development team has successfully built & introduced the Operations Capability competency framework for the 1st time in SPVB, organized workshop cascade & competency assessment for all supervisor level up in 5 plants, analyzed the TNA & built action plan to fill gaps for supervisor level up. Moving forward, Operations Capability Development team will continue to cascade competency framework to front line employees at technician/operator level & standardize new-comer training program in Operations as well as delivering training followed master plan.
Regarding soft skills development, each year around 40 – 50 courses nationwide were organized for employees by Talent Development – Training Team, equivalent to over 10,500 training hours to enhance employee’s capability both general & leadership skills along many Functional training workshops based on functional capability building plan customized for each function based on competency gap analysis.
Agile learning culture which encourages self-learning ownership & inspired employees to take advantage of all learning opportunities following 70:20:10 model:
- 70 – Learn on the job: Assignments, cross-function projects
- 20 – Learn from others: Sharing is Caring/Lunch & Learn session, Fritalk, Protalks
- 10 – Official trainings: Sales learning portal AMENA & New e-learning portal Suntory University x LinkedIn Learning, offline training, library, maximize the flexible learning budget for management (DBA) “Becoming Agile Learner” series & Campaign 21 promoted employees to quickly learn, unlearn & relearn by building a new digital learning habit. Upcoming SPVB will continue to drive Internal learning & sharing culture with enhanced Internal Trainer Club scheme & activities synchronized with Helping Hands, promoting both Agile learning of SPVB & Giving back to society spirit of Suntory Global.
Since July 2015, in order to promote recognition cultures in SPVB, E-kudos - the first ever recognition online tool has been launched. This initiative receives a big support from Line managers and employees. There is about 7000 e-kudos granted every year.
In Organization Health Survey 2019 conducted by Tower Watson, with more than 97% response rate, SPVB has received outstanding results with 19 out of 20 categories getting higher scores compared to OHS 2017 (Such as Action Planning, Innovation, Collaboration, etc.). Especially, Sustainable Engagement score – key variable of the survey – has achieved 90 scores, +2 vs OHS 2017. We surpass Global Food & Beverage Norm – showing the intensity of our employees’ connection to the organization.
To help promote a healthy work/life balance, SPVB offers flexible working hours to the managerial levels up. In addition to flextime, female employees may also reduce their working hours in order to facilitate childcare when the children are under 1 year old. Excessive overtime is discouraged, and a work-from-home system is available. Besides, SPVB promotes the team activities such as the team building activities and trips, the sport programs and the healthy living promotion campaign for the healthy living style to enhance the awareness of the employees and their family on the health protection and prevention.
Health and safety
Health & Safety is becoming the top priority of SPVB company in 2020 in order to bring a healthy and safe working environment to all employees, contractors, visitors, etc. With the joining of new H&S Director from March-2020 – Dr. Quan Hong Duc, all H&S strategies, programs, activities are just re-sharpened, clear structures and instructions are given that support very much on the journey of building up new vision, mission, policy via 5 Must-Win-Battles (MWB): Building People, Building Systems, Building Compliance, Building Standards and Building Technology. Many safety projects and programs were implemented at Nationwide level, plant level and sales offices of the company. These activities have helped the company significantly improve working environment, raise all employees’ awareness and safe working skills.
1. H&S Vision – Mission:
One of the key safety changes at SPVB was the launch of the vision & mission of safety on 31st Aug 2020. EXCOMs and CEO already approved for the new H&S vision and mission after carefully reviewed the proposal of H&S Director. This is the first time the company has established a vision of Health & Safety and Well-being. The purpose of the vision is to inspire and guide strategies for safety programs and to make sense of our safety efforts. SPVB expects everyone from people working in all plants to those working in offices or in the field come home safe after work every day. Nothing is so urgent for someone who works in plant to take a shortcut or bypass safety procedures and systems. Nothing is so pressing for someone who is on motorbike in the field to overspeed over limit or drive in a rash manner. It is not just about safety. We also expect everyone go come home in good health and well-being to fully enjoy time with their family and your loved ones.
Come home safe every day is not just our Company Vision. It is our EXCOM’s expectation and also our strong request to all the Leaders of the Company to do the right things, develop meaningful procedures, eliminate hazards and risks and ensure the compliance including people’s behaviors…etc. Your efforts and commitment will be recognized and appreciated through the smiles on the faces of our employees’ family members when they see their loved one come home safe from plant or office every day. SPVB believes that Come Home Safe Every Day is one of the Core Values and Principles for our Business and Operations. So, let’s work together to make this a way of life in SPVB.
Concerning to Operations and Supply Chain in 2021, the safety mission for this year is Safety Culture of Compliance and Disciplines. In the past few years, especially in 2020, we have made progress and improvements in safety at our factories. By the end of 2020, all five factories & distribution centers achieved the goal of no accidents affecting workdays for SPVB employees, subcontractors and 3PLs. We have also completed a compliance assessment of the safety of Utility equipment in all five plants. The Work Permit program has been applied. Reporting safety incidents has gradually taken shape in our safety culture.
However, these advances are only a very small step in making SPVB a safe workplace, ensuring the physical and mental health of all employees. There are still unsafe behaviors from some employees. There are still non-compliance conditions, even violation of safety regulations and procedures. And so, there are still some accidents, unfortunate safety incidents occurred. Because of this, the Board of Directors value the action of our 2021 safety mission to promote a Culture of Safety, Compliance and Disciplines. This focus of actions will help us build a strong foundation and support the development of safety at a higher level.
Fostering a culture of safe compliance and discipline will help us set safety standards, help every employee understand safety practices and standards, and help you build habits safety compliance and enforcement during work. With this in mind, we will bring the safety culture of SPVB to a new level. In doing this, we help SPVB become a better place to work. With this in mind, your colleagues will be HOME SAFE EVERY DAY!
2. 5 Must-Win-Battles (MWB)
From approved SPVB H&S vision-mission, this was made into details via MWB to have clear goals, targets and programs to be achieved by different work levels at both Nationwide and Plant team. The MWB is categorized into 5 pillars to specify actions as following: Building People, Building Systems, Building Compliance, Building Standards and Building Technology. Under each pillar, key specific actions are identified with clear programs and persons to lead it to the success. These are the long-term strategies that SPVB defined for the next 5 years, event 10 years to help the continuity of the programs to build safety culture. Specifically, on 5 MWBs overall below will give a full roadmap of what SPVB want to achieve:
-MWB#1 (Building People): building commitment for leadership (ELSW), competence and skills for EHS Managers, Operation Managers, Line Supervisors, for people handling critical operations, and for operators.
-MWB#2 (Building Systems): building Safety Culture system, ISO 45001:2028 system; KPIs Lagging & Leading, H&S Management SOPs & Guidelines and data analysis & control.
-MWB#3 (Building Compliance): assurance the compliance of H&S legal requirement, safe operations of critical equipment and tasks, 12 Life Saving Rules, contractor safety management and H&S inspection.
-MWB#4 (Building Standards): Building standards of visual control system, for process safety, for machine safety designs, standards of behaviors, designs & layouts, and for preparedness & response to emergency.
-MWB#5 (Building Technology): building online safety culture survey, OHS Lawsoft, BBRM (Behavior-Based Risk Management), online reporting system, BOMP (Behavior Observation Monitoring Program), H&S Online Management system.
3. Corporate H&S policy:
From the very first beginning, a new corporate H&S policy was approved and signed-off by CEO on 18/11/2020, the highest level in SPVB. This is a replacement of old H&S policy which was signed-off by individual Plant Director at each plant. The new policy was communicated and visualized at all 5 plants to show employees to alignment and strong commitment from the top leaders of SPVB to the ground – operators at shop floor. In another hand, the new policy is another way of outlining of 5 Must-Win-Battles which were defined above for long-term journey of building safety culture. With this, SPVB is confident to face challenges, to admit what we were not done well and commit to make improvement.
4. Reinforcement of leadership commitment
What are the best ways to motivate employees and increase safety? This is a crucial question for just about anyone in a workplace leadership role. In SPVB, EXCOMs, Plant Directors and EHS team (Nationwide and plant team) were together joined in a workshop called Executive Leadership Safety Workshop (ELSW) to share the H&S performance results, focused actions, sustained action for next year when putting priorities, KPIs. By sharing this together directly, this gained trust among us, gained the understanding of safety programs and together move forward with aligned H&S agenda. The ELSW was first-time organized in SPVB and also be considered as the importance of positive reinforcement from leadership. Moreover, the ELSW level 2 (plant level) is organized online to all 5 plants leading by Plant Directors and support from Nationwide EHS. The alignment with PDs on of H&S Focused Action (13 Elements) and KPIs (7 KPIs) was made and showing the strong commitment to EHS again.
5. 12 Life Saving Rules (LSRs)
In 2020, H&S found that company rules have general terms in safety while there are 12 golden safety rules from safety. This showed that in-alignment from SPVB document and made difficulty in communication, event for disciplinary controls made. With the purpose to unify and make clear alignment of “safety rules”, 12 LSRs were alignment among EHS and HR team and started to be applied at all plants, all facility that SPVB managing. 12 LSRs are the basis and set employee’s mind when they start to do something: think and behave safely.
6. Compliance Assessment
To assure the lesson learnt to be carried forward for the prevention of re-occurrence, the operations of boiler/NH3 and air-compressors in DOP is in compliance against local specific requirements and standards, the new program of assessment of design safety and operations safety compliance audit was carried out by professional and experts in the industry of SOSHI (Ho Chi Minh City Science of Occupational Safety and Health Institute). This is deep dive assessment to identify and detect wrong or improper designs of the equipment. The experienced assessors also help to identify at-risk behaviors of the operators and confirm the status of compliance against legal requirements and standards. The assessment was already completed for 5 plants in 2020 and new scheme of 2021 is continuous to defined and carried out.
7. Collaboration of Operations Capability (Ops Cap)
Operational Excellence (OE) Operations Capability (Ops Cap) is a new function established in 2020 and leading by Ms. Nguyen Thi Ngoc Lanh. The function is about to improve the competence and skills of all defined work levels including EHS function. Therefore, as a representative of Nationwide EHS team Mr. Mac Dang Them is assigned as project leader for EHS part and collaborating with OE-Ops Cap Director to build-up clear Competence & training matrix for each level with required PL (proficient level), following up and assess the effectiveness of those training courses. This is demonstrated that a work cannot be completed with Solo culture, collaboration among departments is a key factor leading to best performance of work.
Moreover, clearly defined skill sets were completed defined for each function and work level which including awareness competency, core competency and advanced competency. The focus in 2021 is to build competency for Manager, Executive and Supervisor levels on 2 key courses:
-BBRM (Behavior-Based Risk Management): completed for EHS Managers and now is rolling-out at plant
-RCA (Root Cause Analysis): completed for HMP and BNP and will continue to roll-out for other remaining plants
8. Safety Culture survey
Safety culture is the collection of the beliefs, perceptions and values that employees share in relation to risks within company. Safety culture is a part of organizational culture and has been described in a variety of ways. One of methods to know about safety culture level of one organization is safety culture survey done by their all employees. This activity was completed in July 2020 for 5 plants and was validated by Nationwide EHS team with the confirmation of each Plant Director. The final 2020 score for the whole Operations-Supply Chain confirmed by Mr. Nguyen Duc Huy (EVP-Ops SC), Mr. Dang Thanh Tan (EVP-Ops) and 5 Plant Directors is 38 (Supervision) in ELSW in Ha Noi 27 Jan 2021. With the target of 52 score of safety culture for 2021, all work levels right now know what to do, what are responsibilities to contribute on their works.
9. Safety Talk
Safety talk – talking about 1 simple topic in a short period of time (approx. 30 mins), delivered monthly by leadership team PD, Managers or even from an experience employee. This is a new program deployed in 2019 by Nationwide H&S team, continued in 2020 with the purpose to provide simple & easy-remember safety knowledge to employees; step-by-step enhance safety awareness and make safety as priority in daily routine and non-routine tasks. The simpler, the easier to apply in employees’ activities! Safety should be easy to talk about. Given to everyone’s interest, a topic was discussed and chose properly and suitably and to make more effectiveness of receivers – our employees. This activity became monthly routine and let employees spread the spirit of “leading by example” from leaders to operators.
10. Restructure of Nationwide EHS Division
In 2019, EHS Nationwide Division was merged with QA to become QAEHS Department. In 2020, Nationwide H&S was separated out of QAEHS while Environment section was still in QA (QAE department). Moreover, EHS Department at plant was also busy to solve issues, problems, not have time to focus on building up competences, give professional advice to another department, etc. The change in organizational structure of H&S (plus E-Environment) was rapid and not stable enough to sustain performances and leading changes in safety culture. With the purpose to re-structure Nationwide EHS Division and EHS plant team to have right focus, right role responsibility and right person, the new structure of Nationwide EHS Division and EHS plant team already approved from 5th Mar 2021.
Environment section re-join EHS team while EHS Managers at plants will functional report to EHS Director. Each member of Nationwide EHS is in charge for specific role such as System & Standards, Compliance, Data Analysis while EHS Manager at plant will take lead a Nationwide project to build more competences. With this new structure, SPVB strongly believe that this will bring much more benefits, success to EHS in near future.
11. GEMBA (standardized with new process)
GEMBA is an exercise which requires a discipline demonstrated through planning, route, frequency and the monitoring of the execution. We haven’t executed GEMBA on the way we’re expecting! GEMBA is also the exercise which requires reporting and following-up with the actions to address issues or solve problems! We also haven’t executed GEMBA on the way we’re expecting. An effective GEMBA also requires direct dialogues with staff or operators to motivate right behaviors and understand barriers or challenges that prevent them from doing the right things or behaviors. We’re doing GEMBA as they way we’re doing an INSPECTION!
3 factors are now stopping GEMBA from becoming effective?
■Lacking standards including safety standards for equipment, auxiliary equipment, tools and standards of behaviors for safe operations.
■No GEMBA report form is available. Personnel who complete a GEMBA do report on their own way (E.g. Take photos during GEMBA and send to EHS managers through Zalo. EHS managers collect information and consolidate GEMBA report by Excel files).
■No analysis of data collected from GEMBA exercises
Therefore, October 2020 it was the time for change! Changes in executing GEMBA in SPVB with GEMBA board (name of person L6+, frequency), GEMBA route (designed for each segment of plant), GEMBA report (complete and fill in the GEMBA Report when GEMBA is completed at each Pitstop during GEMBA Route), GEMBA dialogue (must interact and discuss with operators whenever a right behavior is observed to motivate employees or wrong behavior is observed to understand why the operator cannot perform right behaviors).
12. Safety value
Last but not least, SPVB is focusing to build “beliefs” for all employees via Safety Value with specific 6 actions to demonstrate. Belief is a psychologic term that when you believe a thing, you will do or follow that. Based on that methodology, Nationwide EHS set a group of 6 specific actions that employees need to comply with when they do a work as following:
-All meetings always start with safety
-Nothing is so urgent that safety is compromised
-Safety is always considered in every business decision
-Leaders always stop when noticing an unsafe act & condition
-No employee is allowed to operate a equipment unless health and safety risks are tolerated by proper control measures
-Health and well-being of employees are as important as their safety