Unit2.cultural diversity

the Internal audit
Presented by: David 2
Luu Xa cement company
Overall picture of the company at night
Introduction
Luu xa Cement Company is a member unit of Vietnam Cement Corporation.
* Establishment:
It was established on March 04th, 1986 by Ministry of Construction.
* Position:.It is situated on Luu xa street, Thai Nguyen province,Viet nam.
* Certificate of Business Registration:
No 111584, Dated on June 21st, 1987
* Enterprise form: State
* Legal Representative:
- Mr. Le Huu Nho - Director.
* Business lines:
- Production and provision of Cement, Clanhke.
- Production of and trading in industrial and civil package
* Tel: (0280) 820906, 0982532881, 0982832881
* Fax: (0280) 855 113
* Webstie: www.ximangluuxa.com 
* Email: [email protected]  

the Product of Luu xa cement company
cement
Clanke
Stage 1: assessment of performance

Internal audit process includes four stage
Stage 2:Value chain activities and linkages

Stage 3: core competencies
Stage 4: Strength and weaknesses
Stage 1 . assessment of performance
At present, it includes two production lines, creating the total yearly capacity over 2.5 million tons.
Being applied with modern technology of Denmark, the Company has provided markets nearly 3 million tons of products.
The Lion brand of Luu Xa Cement Products symbolizing "The Sustainability, Safety and Stability" has been familiar to many key construction works of our countries such as: Ho Chi Minh Museum, Thang Long Bridge...
- After 24 years, Our Company is so proud of being the Labor Hero Unit in the renewal period as well as of being the leading Company in Vietnam Cement industry, making the positive contribution into the process of country modernization and industrialization. The Company has granted Merit Certificate, Flag, Medals. by authorities from Central to Local.
Achievement
Merit Certificate of protect invironment for a firm development
Green brand of the company
Trade mark of the company
Medals of the company
Stage 2:Value chain activities and linkages
I - Stage of Materials Preparation.
1 - Limestone:
- Limestone is exploited by the method of explosive drilling and layer cutting as required in the exploitation process and planning.

- After that, limestone is shoveled and transported to hammer crusher by large capacity equipments. Here, limestone is broken into 25 x 25 ballast and brought by conveyor to preliminary classification store, then separated into two typical piles of 15.000 tons.
lorries for Materials Preparation
Materials are transported to the factory
mixed Materials
2 - Claystone:

- Claystone is exploited by the method of bulldozing or shot drilling, then shoveled and transported to hammer crusher by large capacity equipments.
- Claystone is broken by hammer crusher to the size of 75mm (first breaking) and by thread rolling machine to the size of 25 mm (second breaking).
- After that, claystone is also transported to the preliminary classification store and separated into two different 6.600 ton piles.
Claystone
the classification system
3 - Control Additive

- In order to qualify clanker, the Company has made the process of handling and mixed blending comply with the regulated Modules and coefficients.

- Therefore, control materials, in addition to limestone and claystone, also include iron ore (rich in Fe2O3), bauxite ore (rich in Al2O3) and silicic rock (rich in SiO2).
II - Material Grinding.
Limestone, claystone and control additive are poured into grinder through DOSIMAT and electronic weighing system. The material grinder is integrated with the combined system of grinding and baking with intermediary dissociation. The capacity of No 1 grinding line is 248 tons hour, No 2 grinding line, 300 tons hour.
Automatically control sets to adjust the percentage of limestone, claystone, bauxite and iron ore into the grinder is managed by the computer to meet the analyzed data of QCX system, aiming at controlling to-order manufacturing coefficients.
After-grinding materials dust is transported to the homogenization silos by the system of elevator bucker and aerodynamic channel.

III -  Furnace
Luu xa Cement Line I is the rotary furnace line using dry method, closed process, 04-layer heat exchanging system (cyclone) and planet-typed cooling system which includes 10 sub-furnaces.
Fuel admixture consists of 85% slack 3 and 15% MFO oil. However, at present, the Company has improved itself to use 100% slack 3 and MFO oil is used only for drying furnace and supplementing fine coal when grinding coal.
The process of material inputting, grinding, packing and finally, outputting of Luu Xa Cement Line No 1 is made completely automatic.
Luu Xa Cement Line II is the rotary furnace line using dry method, closed process, pre-baking system (Canciner) which consumes only 715 kcal kg Clanhke, grating-typed cooling system, which can create the higher cooling effectiveness, high quality products and facilitate the grinding process.
The control system is completely automaticalized, modern and applied with the technology PJC Master Piece ABB

Furnace
Furnace
IV - Cement Grinding.
Clanhker from Silos, Gypsum and Additive from general storage are transported to grinder’s bunker by conveyor and elevator bucker. Quantity of Clanhke, Gypsum and Additive are controlled by the DOSIMAT weighing system. Cement grinder of line No I and II operates under the closed process (integrated with intermediary dissociation), capacity of No 1 line grinder is 176 (th) and No 2 line grinder, 200 (t/h). Fineness of after-grinding cement is 3.200 cm2g and moved to 05 powder cement containing silos by conveyor, aerodynamic channel. Total tonnage of these 05 Silos is 39.500 tons.


V - Cement Packing and Outputting.
 From bottom of containing Silos, passing discharge door, cement is transported to bunkers of packing machine or in-bulk cement outputting parts.
System of packing machine includes: Line I consists of 06 packing machines of 12 taps and 100 tons hour each. Line II consists of 02 packing machines of 08 taps and 120 tons hour each. Packaged cement will be moved by conveyor to outputting channels of roadway, railway and waterway
* sale promotion and brand Advertising of Luu Xa Cement Company are performed through the following channels:
- Take part in Fair and Exhibition
Advertise its brand through Radio, Television, Local and Central articles and specific magazines.
Stick large advertisements to intersections, gateway of big cities, near crowded .
Advertise products through social activities: sport and physical training, arts, humanitarian activities...
Consider Distributors as the intermediary to approach potential consumers and keep up with market developments.
* Luu Xa Cement Company`s distribution system
Procedures on buying and delivery are made: Public, transparent, simplest and safe in terms of monetary transaction and products delivery.
For Distributors having signed with the Company, the following papers are required when buying products:
+ Paper of monthly product buying and receiving.
+ The discussion will be performed by the Company’s leader or representative on the basis of market’s current situation and production conditions.
Stage 3: core competencies
The company has ability to Expand production scale, diversify products and Operate luu xa Line III in third quarter of 2009.
The company has ability to  Qualify technology in order to improve product quality, equipment capacity, reduce cost as well as improve professionalism of staff.
The company has ability to Remain current sales in traditional markets, at the same time expand targeted sale to the new areas, perform cement export.
Two cement production lines typed as reverser furnaces which apply the dry method, closed process, system of heat exchanging cyclone and combustion chamber – Canciner at furnace top. The capacity of line I is 1.1 million tons year, line II, 1.2 million tons year. At present, the Company is planning the establishment of Line III which can create the capacity of 1.2 million tons year, expected to be operational in the Third quarter of 2009.
All of Company’s three lines are applied with advanced and modern technology designed and provided by F.L Smidth (Danish). The key line and subordinate stages are mechanized and automated. Center control room, computers, equipments and system of technological diagram are also provided with status-indicating lights and Camera in order to make it easy and timely for operators to detect and treat the problems.
Company construction is located at two main places Production place, and Finished products place. They are connected closely to each other .
The traffic is very convenient to export the products to other places by cars ,containers or by trains.
A / Strengths
Luu Xa Cement Company includes 40 Offices, Workshops, Representative offices and a factory. All these offices and departments cooperate to eachother to do all the company’s work in order to have best results of the company.
The company has strong financial and the merterials are available in all the country.
The company has skillful employees and high level knowledge managers. Under the Party’s guideline ,the General Department of Geology always sent these technical staffs to other places and even sent them to foreign countries with the aim at studying and bringing home new knowledge, new methods.
The traffic is very convenient to export the products to other places by cars, lorries, containers or trains ...


Luu Xa Cement Company includes two cement production lines which apply the dry method, closed process, system of heat exchanging cyclone and combustion chamber . The capacity of line I is 1.1 million tons year, line II, 1.2 million tons year. At present, the Company is planning the establishment of Line III which can create the capacity of 1.2 million tons year, expected to be operational in the Third quarter of 2009.
All of Company’s three lines are applied with advanced and modern technology designed and provided by F.L Smidth (Danish). The key line and subordinate stages are mechanized and automated. Center control room, computers, equipments and system of technological diagram are also provided with status-indicating lights and Camera in order to make it easy and timely for operators to detect and treat the problems.
The company has many competitors not only in Thai Nguyen but also in other provinces such as La Hien cement company, or Cao Ngan, Nui Voi cement company...
There is no river or sea traffic in Thai Nguyen so it limit the ability to export the product to other province or other countries.

B / Weaknesses
Conclusion
* Internal audit is a part of the situation analysis to identify the company’s strengths and weaknesses. It is an evaluation of the company’s financial condition as well as a survey and assessment of infrastructure human resources, technology development, procurement... The director and managers can base on the internal audit to give out the suitable strategies for the development of the company.

* Knowing that importance of internal audit, Luu Xa company always performs the internal audit every year to limit the weaknesses and develop the strengths. Therefore, in recent years the company has many more achievements and the products increase rapidly.

Diagram of consumption of the company from 2004 to 2007







Unit (1000 tons)


Grow by in the company from 2004 to 2007

Employees of the company
some Documental pictures of luu xa cement company
Good bye and see you again