SUGGESTION TO DESIGN AN EVENT LOGISTICS ACTIVITIES MANAGING SYSTEM

Do Ngoc Hien, Nguyen Thanh Tam, Le Ngoc Quynh Lam Ho Chi Minh City University of Technology, Vietnam National University Ho Chi Minh

ABSTRACT: Event organization industry is a new field in Vietnam, but it will bring potential benefits for effective and efficient companies. Unfortunately, local companies have not competed with foreign ones in this field in most aspects such as experience, creativity, technology and budget. Management of event logistics activities is an important competitive factor and usually Vietnamese event companies do not do well. This research would suggest a way to improve it and an application would be presented as an illustration with promising results. Keywords: event logistics system pro!ect management models assignment resource problem 1 INT!ODUCTION According to a survey of market research organization TA, event !as the second most commonly marketing tool used" Annually, there are more than U#$ %& 'illion costing for (romoting (roducts, in !hich U#$ )* 'illion (aid for organizing the events such as client meeting, introduction and sho! of (roduct" Ho!ever, event organization industry is a ne! field in Vietnam and in recent years ra(idly gro!s u(" +vent to introduce ne! (roducts or services is an indis(ensa'le activity of organizations, !here they can tell customers im(ortant information and advertise themselves ,)-" +vent organization (rocess is a com'ination of resources such as la'ors, materials, e.ui(ment, and tools to (rovide services assuring all su((orting and event activities ha((en in a right time, at a right (lace, efficiency and effectiveness" /t intends to give an im(ortant communication message for their customers ,%-" #ince 'ecoming the 0T1 mem'er,

advertising industry has 'een .uickly develo(ed in Vietnam and many foreign large ones (artici(ate in this market" As a result, many local advertising com(anies and event organizations have 'een founded, so a fierce com(etition on idea, .uality and (rice has ha((ened" Unfortunately, local com(anies have not com(eted !ith foreign ones in this field in most as(ects such as e2(erience, creativity, technology and 'udget" +vent is usually done 'y a grou( of relative mem'ers such as hotel, conference center, and3or advertising com(any" Therefore, event cost is (aid much more than necessary due to no (rofession" 1ne of im(ortant reasons is that management of event logistics activities is not efficient and effective, even in local (rofessional com(anies o(erating in event organization field" +vent logistics is kno!n as a net!ork of activities, facilities and (eo(le needed to organize, (lan and de(loy resources on an event and finish it effectively ,4-"

Unfortunately, it is rarely research in event logistics field and in Vietnam it is really a ne! one" This research !ould 'e (ro(osed a model that !ould hel( im(rove effective and efficient as(ects such as cost, time, and la'or force for organizing the event" " A##LICATION O$ MODEL #!O%ECT IN

Vietnam" A 'asic (ro6ect management (rocess is sho!n on igure %"

MANAGEMENT O!GANI&ING EVENTS

+vent organization is a (rocess follo!ing a strictly timeline at a s(ecific (lace !ith many logistics activities from the (re(aration stage to finishing one" $uring that (rocess, event logistics activities are done in se.uence and (laned scenarios" Actually, some activities using machines, e.ui(ment, tools and3or other re.uired resources make necessary su((orting (roducts such as meeting rooms, stages, s(ecial chairs or ta'les, !hile others create services such as designing invitation letter, invited guest list, sound, light, trans(ortation, and 'ooking hotel rooms" All made (roducts or services serving for event activities are in successive, overla((ing to form a flo! over time as sho!n on the igure )"

$igu'e 15 8ro6ect management (rocess ,*-

Com(le2, large (ro6ect is 'reakdo!n into many smaller su'(ro6ects, so they could get easier in managing, allocating resources, and assigning res(onsi'ilities" Therefore, (ur(oses of the event are clearer and it facilitates to 'uild u( a suita'le organizational structure to manage the !hole (ro6ect, !hich could follo! (yramid model, net!ork or a com'ination de(ending on the scale and sco(e of the (ro6ect and the num'er of event activities" 0hen the event logistics activities and tasks are identified and assigned, an o(timum se.uence has to 'e determined" $e(ending on availa'le resources, they can 'e (erformed in simultaneously or orderly" An activity or task often can start only after a given set of other activities or tasks has 'een com(leted" #uch constraints are referred to as (recedence constraints" +vent facilities or e.ui(ment, for e2am(le, could not 'e 'rought to

$igu'e 15 Timeline of event logistics activities

event (lace until a (rotect and security cam( has 'een set u(" im(ortant 6o'" After a good se.uence of logistics event activities or tasks is determined, a suita'le An arrangement of tasks or activities in an o(timum se.uence is an

+ach event could 'e considered as a (ro6ect, so a harmoniuos com'ination of (ro6ect management and event organization !ould 'ring many essential 'enifits ,7- for event industry in

estimation com(letion time 9+TC: for every activities or tasks is re.uired" Conse.uently, a ;antt chart should 'e develo(ed, !hich is a good tool to (resent the se.uence, .uantity, time of necessary logistics activities for an event" An event generally follo!s a cycle including (lanning, controlling, and finishing stages as sho!n on the igure 4"

another event or (arts of another large event during the (eak time of the resources" /n addition, a risk (lan for ada(ting any change that could effect to the event (ur(oses should 'e made" <isk is an im(ortant issue that should 'e managed or (lanned for actions if une2(ected events ha((en" ( OVE!VIE) O$ EVENT LOGISTICS

ACTIVITIES IN VIETNAMESE EVENT O!GANI&ATION COM#ANIES /n Vietnam, there are more than %&& organizations (roviding (rofessional event services and many other un(rofessional ones o(erating in this field" This figure accounts for around )&= of com(anies o(erating in media
$igu'e (5 ;eneral cycle for an event ,%-

and advertising industry ,>-" Almost Vietnamese com(anies o(erate as a (art of grou(s, so they only do a su'(ro6ect of a large event" They usually organize small events such as !edding, music, o(ening, and meeting events, !hile im(ortant and large ones are usually organized 'y foreign com(anies" According to marketing research organization TA, event organization industry increases around average 4&= a year, 'ut most Vietnamese com(anies are small and medium, so they hardly com(ete !ith other foreign com(anies o(erating in this field" Although event is usually a((reciated and !illing to s(end much money, effectiveness and efficiency of the event in terms of costs and results are al!ays (aid high attention" Therefore, event organizations have to manage logistics costs at the minimum level to com(ete !ith others" Unfortunately, Vietnamese (rofessional event organization com(anies usually cannot com(ete !ith foreign ones o(erating in Vietnam

/n the first stage, creation of ideas, (lanning for the event is done, so !orkload is set u( at average level" /f the event is acce(ted, detail (lanning and (re(aration for that event are done, so !orkload is increased at commonly highest" /n the ne2t ste(, manager only follo!s u( the (ro6ect (rogress and makes the modification if necessary, so the !orkload is decreased at the lo! level until the date of event" This is a long and idle time of event resources" At the right time 'efore the event, !orkload is increased due to the censorshi( of all (re(aration for the event" $uring the event, organizer !orkload is decreased at the lo! level" 1rganizer only manages, controls, and res(onds !ith any change during the event" inally, after the event, a ne! cycle has to 'e set u(" To im(rove efficiency and effectiveness in using the resources, (rofessional event organizations can use them to (re(are for

market due to some reasons" A common event organization com(any, for e2am(le, faces !ith some (ro'lem as follo!ings" 9): O'gani*a+ion ,'oce--. it is not follo!ed officially or some com(anies do not issue a standard (rocess for organizing events" 9%: Chec/0i-+5 #hortcomings in resources assignment sheet, activities or tasks checklist, monitoring and controlling rules" 94: )a'ehou-ing. not good in managing? most e.ui(ment, tools, or machines are not arranged in good !ays like *# system and miss managing information system" 97: Managemen+ o1 ,'og'e--5 #chedule delays are regularly ha((en due to not enough necessary resources at the event time, so some event logistics activities could not finished" As a result, some com(laints are gotten from the customers" 9*: E2en+ manage'. integration of su'(ro6ects is a (ro'lem" /n addition, human managing skill is not done !ell" 9>: G'ou, 0ea3e'. they are good in e2(erience and 'ecome grou( leaders, so (rofessional skills to ada(t different event ty(es are not met" 9@: Co-+45u3ge+5 1nly 'ased on e2(erience to estimate it, so it is usually !rong" 9A: S+a+i-+ic- an3 1o'eca-+ing. /t is rarely done ,@-" ;enerally, effective and event efficient logistics event activities organization managing system do not meet re.uirements of an com(any" Therefore, a good one could su((ort the com(any im(rove its com(etition" 6 A SUGGESTION TO DESIGN AN EVENT LOGISTICS SYSTEM <esources re.uirements for events have to 'e identified and de(end on ty(e of events" Therefore, a classification of events should 'e ACTIVITIES MANAGING

done 'efore allocation of resources is done" 9): Bevel )5 indoor event 9/+: or outdoor event 91+:" 9%: Bevel %5 each ty(e of event at level ) should 'e classified into three classes de(ending on the e2(ected attendants at the event as follo!ings" 0ith indoor events, they are small 9less than %&& (eo(le: C /+), medium 9range %&& D *&& (eo(le: /+% and large 9more than *&& (eo(le: /+4 classes" 0ith outdoor events, similarly they should 'e classified into small 9less than 4&& (eo(le: 1+), medium 9range 4&& D @&& (eo(le: 1+%, and large 9more than @&& (eo(le: 1+4" 94: Bevel 45 it de(ends on the ty(e of event and generally there are > ty(es of events as follo!ings" 9a: /+C)5 Arts Music ashion, 9': /+C%5 Com(any (arty 0edding Eirthday 9c: /+C45 8ress conference Common conference 0orksho(? 9d: 1+C)5 Anniversary, 9e: 1+C%5 1(ening ;round, 9f: 1+C45 estival air +2hi'ition" /n generally, an event could 'e fi2ed into one of eighteen ty(es of event" /t could hel( assign resources easier to organize any event" Actually, each event ty(e has its o!n resources re.uirements and com(etition on resources usually ha((ens" Therefore, (riority of events to 'e allocated resources should 'e identified" There are several tem(orary ty(es of im(ortant resources as follo!ings5 9): <)5 manager resource including event manager and grou( leader? 9%: <%5 #ound system? 94: <45 Bight system? 97: <75 Cam(, event house, (roduction (lace, and e2ecuting (lace? 9*: <*5 ;ra(hic design, (rinting, Camera, Video? 9>: <>5 8;, 8E, MC, Modern, #ecurity, #inger? 9@: <@5 Closing, Mascot, Tools, 9A: <A5 lo!er, ;ift,

memory

/tem,

$ecorate?

and

9F:

<F5
N o

Ta80e 15 Bist of events E2en+ con+en+ ;round to construct Transime2 $istri'ution Center unny air #aigon +2hi'ition 1(ening event of Nha Ee Conrock Com(any The Fth Annive rsary of $at Ianh ;rou( +ternal 'eauty night HCMC model Clu' Eusiness Net!orking Agency K #u((lier 0edding (arty at Thao $ien Village #aigon 'usiness man night #0ace A++e n3a nce Ty,e o1 e2en + 1+)C %

Trans(ortation and food services" /n additions, seven criteria could 'e used to determine event (riority as follo!ings" 9): #uita'le !ith com(any forte or strength5 in )> event ty(es mentioned a'ove, it is easy to determine !hich one is suita'le !ith com(any forte or strength? 9%: 8rofit5 it de(ends on the ty(e of event, customer, and market com(etition, so margins is e2(ected high or lo!, !hich usually ranges from %&= D *&=? 94: Coming date5 commonly, it follo!s the rule Gfirst come first serveH? 97: /m(ortance of loyal customers5 usually, com(any have a list of close customers, so they are usually considered to assign a (riority? 9*: #cale and #co(e of event5 Com(any a'ility to acce(t event com(le2 level, re.uired (rofessional, and feasi'ility? 9>: +vent time and (lace5 !henC!here com'ination in convenience for organizations? and 9@: <emaining time for event5 the event !ith shorter remaining time should 'e done sooner" Actually, com(any is usually not interested on com(le2 calculations and algorithms to arrange (riority for events !ith multi(le criteria" They usually set u( a 'rainstorming meeting to rank events !ith seven criteria as mentioned a'ove" This method is kno!n as a sim(le and efficient !ay" 7 A CASE STUDY An event organization com(any received orders in a month !ith detail information sho!n as in Ta'le )" Eecause of constraints of resources, com(any has to make a decision !hich one9s: should 'e undertaken" Therefore, a rank of events !as identified 'efore assignment of resources !as done"

#ong than % /8, Einh $uong Be Thanh Ton, $ist" ) Hie( 8huoc /8 %47, Ngo Tat To, Einh Thanh $ist" Model Clu' $ong Jhoi #t", $ist" ) <iverside 8alace, Een Van $on st", $isT" 7 Thao $ien, $ist" % 0hite 8alace

%*&

7&&

1+%C 4 1+%C )

%*&

*&&

/+4C %

4*&

/+%C )

>

)*&

/+)C 4

>&&

/+4C % /+%C %

*&&

There are seven criteria considered as mentioned a'ove, so a grou( of e2(erts !as set u( to evaluate event orders" +ach considered event !as scored from ) to * as mentioned a'ove follo!ing those criteria" The evaluated result is sho!n as in Ta'le %"
Ta80e "5 #core of event orders C'i+e'ia E2en+ 1+)C % 1 * " 7 ( * 6 * 7 7 9 % : 7

1+%C 4 1+%C ) /+4C% /+%C) /+)C4 /+4C% /+%C%

)ei; Gh+

% * 7 4 7 * *
< "1

4 * ) % 4 7 4
< 17

% ) 7 * % % )
< 1=

% 4 * * 4 * *
< 16

% 7 ) 4 7 4 *
< <>

* 4 * * 7 7 7
< 11

% " ) 4 * 7 7 *
< 1"

common #ound systems %&m led A stage *m2)&m rame @&&m%, (allet )&&&m%, Car(et )&&&m% %*& chairs )& days
%

! (

(rofessio nal sound system ) (rofessio nal light system

(rofession al sound system ) (rofession al light system

common sound system % light systems, 4&m% led

! 6

A stage >m2)%m

A stage *m2)&m

A rank of event orders !as determined 'ased on total score of each one as sho!n in Ta'le 4" Therefore, manager is easy to select !hich one9s: should 'e done"
Ta80e (5 <ank of event orders !AN? 1 " ( 6 7 9 : = E2en+ +vent ) +vent A +vent @ +vent * +vent 4 +vent > +vent 7 +vent % Ty,e o1 e2en+ 1+)C% /+%C% /+4C% /+%C) 1+%C) /+)C4 /+4C% 1+%C4 To+a0 -co'e 9 <> 6 =( 6 61 ( := ( := ( := " >6 " (1 ! 7

%&&&m% (allet %&&m% Car(et

)& days

@ days

& days

/t is a 'etter result in com(arison !ith the e2(erience method done 'y the com(any" Actually, com(any only undertook t!o events, event A and event 7, so most resources !ere rarely used in the final !eek of that month" 9 CONCLUSIONS +vent organization industry is a ne! field in Vietnam, 'ut it !ill 'ring (otential 'enefits and also challenges for Vietnamese com(anies" +vent logistics activities management is an im(ortant system of any event organization com(any" This research suggests a !ay to integrate (ro6ect management models to manage event logistics activities !ith a case study as an illustration, and sho!s (romising results"

A suggested (rocess to assign resources in this case study 'rings a 'etter result" Com(any could undertake three or four events among eight considered ones" <esearch result suggested that com(any should select event ), event A and event * !ith its resource constraints !hile criteria are satisfied at the high level, as sho!n in Ta'le 7"
Ta80e 65 <esource assignment results E2en+ 1 @OE1;"A ! 1 ! ) event manager, 4 leader % E2en+ = @IE";"A ) event manager A leader ) E2en+ 7 @IE";1A ) event manager 4 leader ) !e3un3 an+ 'e-ou'ce ) leader )

THIBT ?B HC THDNG QUEN LF CGC HOHT IJNG LOGISTICS SK ?ICN

IL NgMc HiNn, NguyOn Thanh TPm, LQ NgMc QuRnh Lam

TrLMng NOi HPc EQch Jhoa, NHR; C HCM

TM TT: "#ng nghi$p t% ch&c s' (i$n l) m*t l+nh v'c m,i t-i Vi$t .am v) h&a h/n s0 mang l-i nhi1u l2i nhu3n ti1m n4ng cho c5c c#ng ty n6u ho-t 7*ng hi$u 8u9. :h#ng may l) c5c c#ng ty Vi$t nam (h#ng th; c-nh tranh n%i v,i c5c c#ng ty n<,c ngo)i v1 nhi1u m=t nh< > t<?ng, (inh nghi$m, (h9 n4ng s5ng t-o, c#ng ngh$, v) ng@n s5ch. Au9n l> ho-t 7*ng logistics s' (i$n l) m*t y6u tB c-nh tranh 8uan trCng v) th<Dng c5c c#ng ty Vi$t .am (h#ng l)m tBt vi$c n)y. .ghiEn c&u n)y 71 xuFt c5ch th&c c9i thi$n 7i1u 7G v) tr<Dng h2p 7i;n c&u 7<2c trHnh b)y nh< l) m*t minh hCa cho c5ch th&c 71 suFt v,i (6t 8u9 rFt h&a h/n. T kha: I$ thBng logistics s' (i$n M# hHnh 8u9n l> d' 5n b)i to5n ph@n b% nguJn l'c !E$E!ENCES ,)-" ,%-" ,4-" ,7-"
BLu V" N, T% ch&c s' (i$n, 9%&&F:" Sulia #", Krofessional Event "oordination,

,*-" ,>-"

Avraham #", Sonathan " E", and ;lo'erson

#", Kro!ect Management, 9)FF7: Vietnam Tello! (ages %&)%"

Nguyen T"T", and $o NCH", A design of event

9%&&7: Sohn S"C", and +d!ard S"E", The

,@-"

Management of Lusiness Mogistics,N %&&%:" Martin C", Mar(eting Mogistics, 9%&&4:"

logistics activities management system for M/1 Communications Com(any"