MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING CAPSTONE PROJECT INDUSTRIAL MANAGEMENT ASSESSMENT OF APPLICATION OF SUPPLIER QUALITY MANAGEMENT PROCEDURE AT BOSCH VIETNAM CO., LTD LECTURER: PhD. TO TRAN LAM GIANG STUDENT: NGUYEN THI UT SKL012384 Ho Chi Minh City, November 2023 MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS ---------- THESIS ASSESSMENT OF APPLICATION OF SUPPLIER QUALITY MANAGEMENT PROCEDURE AT BOSCH VIETNAM CO., LTD Student: Nguyen Thi Ut Student ID: 20124436 Major: Industrial Management Advisor: PhD. To Tran Lam Giang Ho Chi Minh City, November 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS COMMENTS OF ADVISOR ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, DD/MM/YYYY Advisor Page i HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION COMMENTS OF REVIEWER ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, DD/MM/YYYY Reviewer Page ii HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION ACKNOWLEDGEMENTS I would like to sincerely thank the teachers in the Department of Economics, Ho Chi Minh City University of Technical Education for imparting useful knowledge during the years of studying at the university. The knowledge I acquired during the study process is not only the foundation for the research process but also an asset for me to start a job in a new environment.
Furthermore, I would like to send my sincerest and deepest thanks to HD teacher To Tran Lam Giang, who she always loves, supports and gives dedicated guidance throughout the process of completing the thesis. In addition, I would also like to thank the Board of Directors of Bosch Vietnam Co. for allowing and creating favorable conditions to intern at the company. I would like to thank Ms.
Nguyen Thi Anh Nguyet and Mr. Le Xuan Ngoc of the department PQA for supporting and creating conditions to complete the thesis during the internship at the company. However, due to limitations in professional knowledge as well as practical experience and limited internship time here, errors in the thesis are inevitable. I really hope to receive comments from teachers.
These comments will always be the motivation for me to try harder. Once again, I sincerely thank all. Ho Chi Minh City, 2/11/2023 Student name Nguyen Thi Ut Page iii LIST OF ABBREVIATION Abbreviation Explanation CVT Continuously variable transmission ERP Enterprise Resource Planning FMEA Failure Mode and Effects Analysis HcP Ho Chi Minh city Plant IATF International Automotive Task Force KPI Key Performance Indicator LOG Logistics Department MSE Manufacturing department PQA Purchasing Quality Assurance R&D Research and development SPC Statistical Process Control SQM Supplier Quality Management TEF Technical Function Department WI Work instruction Page iv LIST OF TABLE Table 2.1 Symbols and function in flowchart .1 Flowchart control quality input process .2 Flowchart reaction plan when detecting defects on coils .3 Type of defect and measure.4 Element quantity and defect rate from January to May 2023 .5 The number of coils used and reject rate from January to May 2023 .6 Require information in 8D report .9 Resolve the problem score .10 Action for overall score .11 Score of Supplier ABC in 2022 .12 Flowchart of audit process .3 Use 5xwhy to define root cause .4 Identify tasks and person in charge (PIC) and deadline .5 Defect and how to detect .6 Timeline of training video .7 Type of question on the test .8 Data before and after apply WI .9 Feedback from operator about WI and training .10 List of potential suppliers .12 Delivery times score .14 Supply ability score .55 Page v LIST OF FIGURES Figure 1.2 Proportion of sales by business fields .3 Bosch’s Brand in Mobility Solutions.4 Product of HcP .5 Company organizational structure of HcP .6 Structure of departments in the quality management department.1 Classify suppliers by risk level .2 Select a new supplier process .4 Fishbone analysis to find the part dimension out-off standard .5 5xwhy analysis example .6 Pareto Chart of the Distribution of the Forbes List .7 Example for flowchart .8 Phases of the PDCA cycle .1 Pushbelt manufacturing process .2 Defect on coil (corrosion) .1 Elements production process .2 Reject rate of quantity coil from Jan to May 2023 .4 Check coil before production .49 Page vi TABLE OF CONTENT INTRODUCTION TO THE REPORT. Overview of the study.
Purpose of the study. Scope and object. Structure of report. 2 CHAPTER 1: INTRODUCTION TO THE COMPANY .1 Overview on Bosch group .2 Introduction to Bosch Long Thanh.
5 CHAPTER 2: THEORETICAL BASIS .2 Supplier Quality Management .3 Tools to improve supplier quality management. 26 CHAPTER 3: REALITY OF APPLICATION SUPPLIERS QUALITY MANAGEMENT PROCEDURE AT BOSCH LONG THANH .1 Overview of product at Bosch .2 Overview of supplier quality management at Bosch .3 Current status of ABC supplier quality management at Bosch. 37 CHAPTER 4: SOLUTIONS TO IMPROVE THE SUPPLIER QUALITY MANAGEMENT PROCEDURE AT BOSCH LONG THANH .1 Assessing the advantages and limits of quality management on supplier ABC45 4.2 The solutions to improve the supplier quality management procedure at Bosch Long Thanh. 58 Page vii INTRODUCTION TO THE REPORT 1.
Overview of the study Integration brings companies the chance to export their goods to the international market. It is the opportunity to increase their production volume, market expansion as well as the reputation. How can domestic companies achieve such goals? The key that helps companies achieving such goals is quality (Zhao & Gu, 2023). Quality brings opportunities for businesses but also enhances competitions between businesses (Adams & Richey, 2014).
Businesses face many competitors and must make efforts to maintain or improve their business performance to compete internationally. In the manufacturing sector, companies need to improve the quality of their products to gain advantage with customers. Manufacturers deal with significant challenges when it comes to ensuring the quality of their suppliers' products. This challenge becomes even more pronounced as manufacturing outsourcing becomes more common, increasing their reliance on suppliers for maintaining product quality.
Managing supplier quality becomes increasingly complex as suppliers take on larger and more intricate production tasks. It's not unusual to discover that incidents related to product quality can be traced back to issues with supplier quality. For example, in 2007, Mattel encountered a quality scandal when lead paints were found in toys sourced from Chinese suppliers (Tang 2008). In another example, Boeing experienced significant delays in launching its new 787 Dreamliner, partly due to quality issues with components provided by its suppliers (Sanders 2009).
Bosch, a well-known corporation for manufacturing high-quality products, has promoted progress in the automotive industry through the Bosch Long Thanh - an important member of the Bosch group. Bosch Long Thanh is specified in manufacturing transmission belts for gasoline vehicles, creating products with high reliability and performance. Bosch Long Thanh only produces one type of product and provides it for customers in automotive industry. It is a reason why the company needs to prioritize quality control of this product code, especially in controlling suppliers (because the company cannot control the quality of raw materials).
For the urgent reasons mentioned above, the author chose the topic "Assesment of application of supplier quality management procedure at Bosch Vietnam Co., LTD" with the goal of ensuring that the Page 1 company will continue getting high quality products. Besides, it helps to optimize costs and enhance competition in the business environment in the future. Purpose of the study - To comprehend supplier quality management procedure at Bosch Long Thanh - To analyze the supplier quality management (SQM) procedure and evaluate advantages and limitations based on reality implementation. - To recommend solutions for improving supplier quality management at Bosch corp.
Scope and object - Scope: The study focuses on the SQM activities of Bosch Long Thanh from January 1st 2023 – May 31st 2023 - Research object: Supplier quality control activities at Bosch Long Thanh 4. Research methodology - Qualitative research methods: The author has conducted research on theories and documents on supplier quality management. Then, the author analyzed and discussed with internal employees and internal documents to understand how the company manages supplier quality. - Quantitative research methods The author collected the results of the solution through an online questionnaire survey to collect information from subjects participating in the improvement after one month.
Structure of report The thesis is divided into 4 chapters, including: Chapter 1: Introduction about Bosch Long Thanh. Chapter 2: Theoretical basis. Chapter 3: Analysis of application supplier quality management procedure at Bosch Vietnam Chapter 4: The solution to improve the supplier quality management procedure at Bosch Vietnam Page 2 CHAPTER 1: INTRODUCTION TO THE COMPANY 1.1 Overview on Bosch group * Introduction to Bosch group: Bosch is a technology and equipment provider specified in the automotive industry, and it has business relationships with nearly all global automotive companies. Additionally, the group operates in various other sectors including handheld tools, household appliances, clean energy, security systems, smart homes, packaging solutions, construction solutions, mobility solutions, IoT and Industry 4.
The company's headquarters locates in Gerlingen, near Stuttgart, Germany. Stefan Hartung assumed the position of chairman in 2022. As of December 31, 2021, the Bosch Group has expanded its presence to 440 branches and subsidiaries in 60 countries worldwide, collaborating with 402,600 colleagues across the globe. The group has also allocated a total of 6.1 billion Euros for research and product development, supported by 76,100 researchers and engineers worldwide.
Company logo: Figure 1. Logo company (Source: Internet) Slogan: “Invented for life” Bosch business areas includes mobility solutions, industrial technology, consumer goods, and energy and building technology. Their contribution in the group revenue is Page 3 presented in figure 1.2 PROPORTION OF SALES BY BUSINESS FIELDS Industrial Technology Mobility Solutions Consumer Goods Energy and Building Technology 10% 7% 23% 60% Figure 1.2 Proportion of sales by business fields (Source: Bosch internal document) From the provided chart, it is evident that the mobile solutions sector commands the largest share of the group's overall sales. Consequently, it is crucial to prioritize tailored strategies for the growth and development of this sector to effectively target and capture the pertinent market segments.
Bosch brands in this field includes: Figure 1.3 Bosch’s Brand in Mobility Solutions (Source: Bosch internal document) * Overview on Bosch Vietnam - International name: Bosch Vietnam Co., LTD - Business area: Powertrain Solutions Page 4 - Headquater: Ho Chi Minh City, Vietnam Bosch established its first representative office in Ho Chi Minh City in 1994. Since 2007, the company has gone further with the establishment of Robert Bosch (Vietnam) Co. to represent its operations. At the moment, Bosch Vietnam operates diversely in all differences from sales, production, research and development (R&D) to global service centers.
Bosch Vietnam has two branches in Hanoi and Da Nang. Together with the powertrain factory in Dong Nai province, Bosch produces continuously variable transmission (CVT) belts for cars. The company also organizes R&D activities in Vietnam. Robert Bosch Engineering & Business Solutions Vietnam Co.
operates as a center for R&D of technology and industrial solutions. In addition, the Automotive Technology R&D Center in Ho Chi Minh also contributed to Bosch's development in Vietnam. Not only that, Bosch also supports technical and professional development through the Bosch Industrial Technical Vocational Training Center (Bosch TGA). In 2021, Bosch recorded revenue in Vietnam of about 192 million Euro (accounting for 0.2% of the group's revenue of 78.
As of December 31, 2021, the company employed more than 5,000 associates and had diverse business operations in Vietnam.2 Introduction to HcP * Introduction to HcP - Name: Bosch Viet Nam Co., LTD - Address: Road No. 8, Long Thanh Industrial Park, Long Thanh District, Dong Nai.