MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS MAJOR: INDUSTRIAL MANAGEMENT CONTROL INPUT FACTORS TO IMPROVE THE EFFICIENCY OF PRODUCTION PREPARATION FOR THE WOLVERINE WORLDWIDE PRODUCT CHAIN- TBS GROUP INSTRUCTOR: NGUYEN DANH HA THAI STUDENT: VO DUC HUY Ho Chi Minh city, August 2024 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION GRADUATION THESIS COURSE TOPIC: CONTROL INPUT FACTORS TO IMPROVE THE EFFICIENCY OF PRODUCTION PREPARATION FOR THE WOLVERINE WORLDWIDE PRODUCT CHAIN – TBS GROUP Student : VO DUC HUY Student ID : 20142216 Major : INDUSTRIAL MANAGEMENT Supervisor : NGUYEN DANH HA THAI, M.A Ho Chi Minh City, August 2024 INSTRUCTOR'S COMMENTS ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- City. Ho Chi Minh City, date 18 month 08 year 2024 Instructor guides Pagei REVIEWER'S COMMENTS ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- City. Ho Chi Minh City, date 18 month 08 year 2024 Lecturer reviews Pageii THANK YOU First of all, I would like to thanks and send my best wishes to all teachers, lecturers of the Faculty of International Training of Ho Chi Minh City University of Technology and Education who have always enthusiastically taught and supported me in the process of studying at the school, creating many opportunities for me to learn and practice throughout my study program in Management Industry. I would like to express my deep gratitude to Nguyen Danh Ha Thai M.A, who is the lecturer of the graduation thesis, for taking the time to observe, orient the topic, and guide me devotedly so that I can complete the graduation thesis "Control input factors to improve the efficiency of production preparation for the Wolverine Worldwide product chain - TBS Group".
I would also like to express my sincere thanks to the Board of Directors of Thai Binh Investment Joint Stock Company and all the employees at the factory for creating conditions for me to have practical contact with the company and have my questions answered, helped me to learn a lot of experience and provide data for her to complete the report in the most complete way. I would also like to express my sincere thanks to Mr. Truong Van Nam, who directly guided me at the business with the brothers and sisters working in the production operation department for giving me the opportunity to learn and experience in a professional working environment. It is the first time I have experienced the actual production environment, besides, I also have many limitations in knowledge and practical experience, so it is inevitable that there will be shortcomings in this thesis.
I am looking forward to receiving valuable comments from teachers to be able to improve my knowledge in the field, and also an opportunity for me to improve my own capacity, and my work at businesses in the future. Finally, I would like to wish the teachers always good health and good work on the teaching path, and at the same time, I would also like to wish all the staff of Thai Binh Investment Joint Stock Company to achieve a lot of success and strong development! City. Ho Chi Minh City, date 18 month 08 year 2024 Student Pageiii LIST OF ACRONYMS ACRONYMS EXPLAIN A&M Administration and Management AHP Analytic Hierarchy Process ARIMA Autoregressive Integrated Moving Average ART Artical BOM Bill Of Material CN CI Mechanical Engineering Technology COB Chairman of the board CPM Corporate Performance Management EVFTA EU-Vietnam Free Trade Agreement FTA Free Trade Agreement IE Industrial Engineering LEFASO Vietnam Leather, Footwear and Handbag Association MG1 Factory Sewing & Assembly 1 Factory MP1 My Phong 1 Factory HR Human resource OEE Overall Equipment Effectiveness PO Purchasing Order QA Quality Assurance QC Quality Control R&D Research and Development SOP Standard Operating Procedure TBS Group Thai Binh Investment Joint Stock Company WWW Wolverine World Wide Pageiv LIST OF TABLES Table 1.1 The process of formation and development of Thai Binh Investment Joint Stock Company .2 TBS Group's business activities in the period of 2018 – 2022 .1 Random index corresponding to the number of RI factors .1 Forecasting and allocation .2 Production plan of each shoe code (Unit:1 pair) .3 Production Plan Analysis .4 Human resource allocation at My Phong 1 factory .5 Ratio of suppliers to meet the number of raw materials in May .6 List of leather suppliers for COHESION Shoe code – W25755 May/2024 .7 Number of existing machinery and equipment at My Phong 1 Factory .8 Existing Labor Allocation WWW Product Chain .9 Planning and implementation January - May (2024) .1 Matrix comparing the importance of the criteria .2 Consistent medium-weighted and vector tables .3 Supplier importance matrix according to the criterion "Price" .4 Average weighted table and consistent vector according to the "Price" criterion .5 Supplier criticality matrix according to the "Quality" criterion .6 Average weighted table and vector consistent "Quality" criteria .7 Supplier importance matrix according to the "Brand" criterion .8 Medium weight table and consistent vector "Brand" criteria .9 Matrix of supplier criticality by criterion "Service" .10 Average weighted table and consistent vector of "Service" criteria .11 Supplier importance matrix according to the criterion "Shipping" .12 Average weighted table and consistent vector of "Shipping" criteria .13 Supplier importance matrix according to the criterion "Payment" .14 Average weighted table and consistent vector of "Payment" criteria .15 Summary table of average weights on each supplier price criterion .16 Summary table of average weights after inspection .17 Supplier Evaluation Score .18 Production data from 01/2024 - 05/2024 at the factory Assembly .19 Statistics on production time from 01/2024 - 05/2024 at the factory Assembly .20 Calculating Values and OEE .21 OEE Value Table at the Factory Assembly from 01/2024 -05/2024 .22 Comparison of world OEE and OEE in May 2024 at the factory Assembly MP1 .23 Downtime at the line assembly 6 times from January - May 2024 .24 Group devices by condition and importance. 82 Pagevi LIST OF FIGURES Figure 1.1 Logo of TBS Group .2 TBS's Field of Activity .3 Saucony and Merrell brand shoes .4 Vera Bradley and Tory Burch bags .5 Green Tower Di An project and Mai House Sai Gon project of TBS Group .6 TBS Group's logistics warehouse.7 Organizational Structure Chart .8 Chart of revenue and profit of TBS Group in the period 2018 – 2022 .9 Wolverine Chain Organizational Structure Diagram .10 Organizational structure diagram of My Phong 1 factory .1 The causal chart shows the causes of quality problems .2 Hierarchical tree diagram of AHP evaluation criteria .3 OEE measurement tool and perspectives of performance integrated in the tool .1 Overview of the production plan divided by stages .2 General process of shoe production at the sample factory .3 Factory Sewing Process .4 Production process in the department assembly .5 Diagram of the production planning process at the sample sewing factory .6 The chart shows the supplier's current collaboration priorities.7 SOP formation process at Sample Product Development Center .1 Fishbone Diagram: factors affecting the material synchronization rate .2 Current input material quality control process .3 Proposed input material quality control process .4 Recommended HR training process .5 Chart of changes in OEE values at the factory Assembly from 01 - 05/2024 .6 Comparison chart of world OEE and OEE in May 2024 at the factory Assembly MP1 .7 Chain Downtime Pareto Chart Assembly 6.
82 Pageviii TABLE OF CONTENTS INSTRUCTOR'S COMMENTS. ii THANK YOU iii LIST OF ACRONYMS .iv LIST OF TABLES. v LIST OF FIGURES. vii TABLE OF CONTENTS.
Reason for choosing the topic. Subject and scope of research. Structure of the report's chapters. 5 CHAPTER 1: OVERVIEW OF WOLVERINE PRODUCT CHAIN OF THAI BINH INVESTMENT JOINT STOCK COMPANY .1 Overview of Thai Binh Investment Joint Stock Company .2 Formation and development process .3 Core Values - Vision - Mission of the Company .4 Business and product areas .5 Organizational structure of TBS Group .6 Production and business activities.
Introduction to the Wolverine Shoe Production Chain. Wolverine Chain Organizational Structure .2 Phong Machine Enterprise Company Ltd. 18 CHAPTER 2: THEORETICAL BASIS .1 Overview of production preparation .1 Concept of production preparation .2 Role of production preparation .2 Production preparation process.3 Factors affecting production preparation. 31 CHAPTER 3: THE CURRENT SITUATION OF PRODUCTION PREPARATION FOR THE WOLVERINE PRODUCT CHAIN OF THAI BINH INVESTMENT JOINT STOCK COMPANY .1 Wolverine Worldwide Chain Production Preparation Planning .1 Basis for making a preparation plan .2 Forecasting and order allocation .2 Overview of the shoe manufacturing process .3 Preparations for the production of the Wolverine Worldwide chain .2 Preparation of materials .3 Preparation of machinery and equipment .4 Assess the current situation of production preparation for the Wolverine product chain of Thai Binh Investment Joint Stock Company.1 Effectiveness of planning.2 Limitations and causes.
59 CHAPTER 4: IMPROVING THE EFFICIENCY OF PRODUCTION PREPARATION FOR THE WOLVERINE PRODUCT CHAIN OF THAI BINH INVESTMENT JOINT STOCK COMPANY .1 Solutions to improve the efficiency of input material control .1 Raw material input quality control process .2 Improving the professional efficiency of actual labor in production .3 Some solutions based on Overall Equipment Effectiveness of Assembly factory in My Phong 1. 75 Pagex CONCLUDE 85 LIST OF REFERENCES. 86 APPENDIX 88 Pagexi INTRODUCTION 1. Reason for choosing the topic According to information from the Vietnam Leather and Footwear Association (LEFASO), Vietnam's leather and footwear industry currently has a high position in the international arena, accounting for about 10% of the global export shoe market share, Vietnam is the 3rd largest footwear producer in the world, after China and India.
and ranked 2nd in the world in terms of exports. In 2023, the leather and footwear industry will be greatly affected by the global economic slowdown, businesses will face challenges such as reduced orders, high input costs, leading to reduced production and reduced working hours. It is estimated that in 2024, the total export turnover of leather and footwear will reach 26-27 billion USD, an increase of about 10% compared to 2023. In terms of export markets, 5 markets such as the US, EU, China, Japan, and South Korea account for 80% of total export turnover.
In particular, footwear production is an industry that makes good use of Free Trade Agreements (FTAs), especially in markets with the Vietnam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The production process and its effectiveness depend on the preparatory activities carried out before the start of production, which is collectively referred to as the production preparation process (Chapman, 2006; Brun et al. This process includes structural and technological preparation, taking into account organizational planning (Laarhoven & Zijm, 1993). The main purpose of production preparation is to formulate the design of new products and their production methods, to start production, and to continuously improve the product (Łapuńka et al.
Production preparation planning begins with material planning, HR planning, machinery and equipment preparation, and finally financial planning. Depending on the orientation and operation of each business, the distribution of attention to each component of the above preparation plan is different. However, developing a production plan is a necessary step before proceeding with production. Production preparation is an integral part of the operation of manufacturing companies, as it comprehensively shapes their technical and organizational level, influencing the economic results of business operations (Toni & Meneghetti, 2000).
Lack of production preparation can cause many typical consequences such as shortage Page 1 of raw materials leading to production disruptions, affecting product progress and quality, and causing unreasonable inventory of raw materials, waste of costs and appropriation of capital.