MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT ACTUAL SITUATION OF INVENTORY MANAGEMENT AND PROPOSED SOLUTIONS APPLICATION OF TECHNOLOGY 4.0” AT MATAI (VIETNAM) CO., LTD LECTURER: TRUONG PHUONG QUANG STUDENT: NGUYEN CANH DUNG SKL012387 Ho Chi Minh City, November 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION THESIS ACTUAL SITUATION OF INVENTORY MANAGEMENT AND PROPOSED SOLUTIONS APPLICATION OF TECHNOLOGY 4.0” AT MATAI (VIETNAM) CO., LTD NGUYỄN CẢNH DŨNG Student ID: 19124056 Major: INDUSTRIAL MANAGEMENT Advisor: NGUYỄN PHƯƠNG QUANG, Senior Lecturer. Ho Chi Minh City, November 2023 i COMMENTS OF ADVISOR ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, DD/MM/YYYY Advisor iii ACKNOWLEDGEMENT First, I would like to send my sincere thanks to Ho Chi Minh City University of Technology and Education for creating conditions for me to participate in the graduation Thesis in this semester. Having the opportunity to participate, evaluate and work directly with the organization allows me the opportunity to use the information I have learned and gain valuable practical experience to prepare for future work. At the same time, I'd want to express my gratitude to Matai Co.
I'd like to express my heartfelt gratitude to Mr. Tran Van Thuan, Head of Maintenance and Warehouse Management Department, for his unwavering support and direction in offering clear guidance throughout the thesis work, as well as excellent suggestions and relevant information throughout this project. And I'd like to thank Mr. Nguyen Phuong Quang for his enthusiastic assistance in completing my thesis.
Thank you for offering me wonderful advice and a very relevant issue in my present life. I wish you all good health and success in your career and life. During my graduation thesis, I learned a lot of new and practical things that can aid me in my future employment. Due to my poor professional skills, I am unable to prevent inaccuracies while composing this report.
I am looking forward to collecting comments from department professors to enhance the substance of the report and my professional expertise. I'd like to thank everyone who has supported me in the past, including the firm, the school, the department employees, and the instructors once again. Ho Chi Minh City, November 2023 Student name Nguyen Canh Dung iv TABLE OF CONTENTS Introduction. Reason for choosing this topic:.
Research object and research scope. STRUCTURE OF THIS STUDY. 3 CHAPTER 1: OVERVIEW ABOUT MATAI CO.1 Introduction to Matai.2 History and Development .3 Mission, vision and core values. Company organization chart.
12 CHAPTER 2: LITERATURE REVIEW .1 Overview of inventory management. Concept of inventory management. The role of inventory. Inventory control goals.
Classification of inventory .2 Benefits and costs of holding inventory .3 Inventory management control systems. Perpetual inventory system:. Periodic inventory system:. ABC classification inventory system:.
JIT application system. The economic order quantity (EOQ). 28 v CHAPTER 3: CURRENT STATUS OF WAREHOUSE MANAGEMENT AND DATABASE BUILDING AND DATABASE MANAGEMENT SYSTEM FOR MATAI COMPANY LIMITED (VIETNAM). Machinery and equipment table.
Forecasting at Matai Co. Matai's inventory management system. Just in time at Matai Co. Database overview for Matai company .6 Build a database-based system.
Manage customer contracts. Build a database system for inventory. Build a database system for order category management. Build a database system for production statistics.
56 CHAPTER 4: ASSESSMENTS AND SUGGESTIONS TO IMPROVE THE EFFICIENCY OF INVENTORY MANAGEMENT AT MATAI COMPANY LIMITED (VIETNAM). Remaining aspects in inventory management at the company. Company development policies .3 Proposing solutions to improve inventory management in Matai. Set up AGV operating vehicle.
Real-time improvement solution in warehouse using GPS. Using professional warehouse management software. 82 LIST OF ABBREVIATION vi Abbreviations Meaning AGV Automation Guided Vehicle CH Handling cost per unit CO Cost per order CO., LTD Company Limited EOQ Economic order quantity FSSC Food Safety System Certification GA General Affair GPS Global Positioning System HR Human Resources ISO International Organization for Standardization JIT Just in time LLC Limited liability company PP/PE Polypropylene / polyethylene QC Quality Control RFID Radio frequency identification ROL Reorder Level SWM Smartlog Warehouse Management System THC Total handling cost TIC Total Incremental Cost TOC Total Ordering Cost UV Ultraviolet vii viii LIST OF FIGURES Figure 1.2 Matai’s organizational chart .1 Graphical Determination of Economic Order Quantity .1 The bags of ingredients are put into the warehouse for storage .3 Belt weaving machines to create belt .4 circular loom used to weave fabric .5 Staff preparing and printing semi-finished products .6 staff sewing products .7 Staff packing packages .10 Goods ready to be exported .11 Manage customer contracts.12 Illustration about customers data .13 Database system for inventory .14 Database system for order category management .15 Illustration about ordering categories management .16 database system for production statistics .1 The development process of management information systems.2 Basic components of RFID .3 Diagram depicting the operating principle of RFID.5 Illustration of satellites in the GPS system .6 The first satellite determines the distance d1.7 Satellite 2 determines distance d2 .8 Satellite 3 determines distance d3 .9 Satellite 4 determines distance d4 .10 Features of SWM. 78 ix LIST OF TABLES Table 1.1 Main products of Matai .1 Inventory cost group .2 ABC classification inventory .1 Machinery and equipment .2 Compare inventory levels over the past 3 years of Matai Co.3 Statistics on disruptions due to lack of raw materials .1 List of technologies.
Reason for choosing this topic: Import-export activities are considered a measure of the process of integration into the global economy during the period of economic liberalization. Business enterprises are important to a country's economy. Only when companies expand can the economy grow. Each business can be considered a cell of the economy.
However, competition is fierce in the context of a market economy. Vietnam has been a member of the World Trade Organization for some time now and although recent results have been positive, there are still challenges ahead. The openness of Vietnam's economy brings many benefits to businesses, including the ability to export goods to other markets more easily, access to more modern technology and diversified suppliers. However, the challenges that businesses face are not small.
In particular, Vietnam's economy is mainly based on agriculture, the economy is still fragile and small. The problem is whether domestic enterprises are strong enough to compete with foreign corporations and businesses. Businesses must know how to maintain their position in the face of such fierce competition. Best solve customer requirements by providing high quality Items at reasonable prices.
To accomplish so, organizations must monitor all phases of manufacturing and business process in addition to developing a suitable company plan. From locating reliable suppliers to acquiring raw materials to finding an assured market for the product, boosting the pace of capital turnover and achieving high production efficiency. Profit earnings generates conditions for capital accumulation and the expansion of industry. Inventory is a component of a company's working capital, and it accounts for a significant chunk of it.
As a result, inventory management is critical in the manufacturing and commercial operations of businesses. Especially for enterprises who import items and raw materials from other countries. Inventory management is in charge of keeping an appropriate quantity of inventory on hand to provide a smooth, continuous manufacturing process. Furthermore, guaranteeing that there are enough 1 items to fulfill market demands.
As a result of better addressing client requirements, organizations' market competitiveness improves. is a prominent container bag producer and one of the major exporters of packaging and textile goods for distribution in local and international markets. As a result, inventory management is one of the most pressing challenges. One of the company's primary responsibilities is to improve inventory management in order to preserve commodities and raw resources, as well as to store these things.
I've learned the value of inventory management thanks to the above concepts and my internship experience. Consequently, I decided to make "Improving inventory management and proposed to apply 4.0 technology at Matai Vietnam Co., Ltd" the subject of my thesis. Research Objectives: The author is applying SMART to get more details about the goal of the thesis: - Specific: I will look for remaining causes in inventory management and from there will come up with solutions to overcome them. - Measurable: Make comments about shortcomings through the documents provided and provide comments for businesses to consider, apply new technology and build to manage inventory effectively.
- Attainable: Technology including AGV, RFID, GPS, SWM to help optimize shipping processes, authenticate product information as well as real-time identification of inventory to improve processes Export and import processes as well as increase revenue for businesses in the long run. - Relevant: I will discuss with leadership departments how to apply and usefulness of new systems in warehouse management in general and the role of employees in general. - Over time: In the short time that modern technology has been applied to the factory, I believe there will definitely be clear results. Research object and research scope - Research object: Inventory and inventory management at MATAI (VIETNAM) CO., LTD - Research scope: 2 + Scope of content: Actual situation and solutions for inventory management + Scope of space: Warehouse management office at MATAI (VIETNAM) CO., LTD, Tan Thuan Export Processing Zone, Tan Thuan Dong Ward, District 7, City.
Ho Chi Minh + Time range: 21/8/2023 - 6/11/2023 4. Research Methodology • Information collection method Collect secondary information from company documents. Collect primary information: consult with the head of storage and maintenance at Matai. • Research methods The topic is carried out by collecting information, synthesizing, analyzing, and processing data to provide solutions to improve warehouse management.
STRUCTURE OF THIS STUDY Chapter 1: OVERALL MATAI CO., LTD COMPANY Chapter 2: LITERATURE REVIEW Chapter 3: CURRENT STATUS OF WAREHOUSE MANAGEMENT AND DATABASE BUILDING AND DATABASE MANAGEMENT SYSTEM FOR MATAI COMPANY LIMITED (VIETNAM) Chapter 4: ASSESSMENTS AND SUGGESTIONS TO IMPROVE THE EFFICIENCY OF INVENTORY MANAGEMENT AT MATAI COMPANY LIMITED (VIETNAM) Chapter 5: CONCLUSION. 3 CHAPTER 1: OVERVIEW ABOUT MATAI CO.1 Introduction to Matai With the assistance of Mitsui, Nihon Matai traveled to Vietnam in the early part of 1995 in search of investment prospects. They were drawn there by the low cost of labor and the government's efforts to entice international investment. As a result, Matai (Vietnam), a business with 100% foreign ownership, was founded.1 Matai Company Source: Nguyen Phuong Quang Company name: MATAI (VIETNAM) CO., LTD 4 + Address: Manufacturing area Tân Thuận, Tân Thuận Đông, District 7, HCMC.jp + Fax: (028) 37701775 + Capital: 5,4 million USD + Number of employees: 5 Japanese and 970 Vietnamese employees + Factory 1: 20.000m2 Working Mechanical department: 3 shifts 4 crews Sewing department: 2 shifts (6:00-14:00, 14:00-22:00) + Factory 2: 12.000m2 + Working time: 2 shift (6:00-14:00, 14:00-22:00) In the Tan Thuan export processing zone, Matai Vietnam is recognized as one of the bigger foreign-invested companies operating in Vietnam and is classified as a middle-class company.
On May 22, 1995, Matai received an investment license after almost a year of building buildings, assembling machinery, and testing production. After reaching its intended capacity in October 1997, the company began operating completely.2 History and Development With a 100% investment from Japan, Matai Ltd. Vietnam was established in March 1996 and has been in business ever since. has a 10,000 m2 footprint and a 20,000 items per month capability.
In October 1998, the original facility was expanded by 20,000 m2. With a larger working capacity of 50,000 items per month, the company achieved the first ISO-9001 standard in December 2000. The company continued to operate with the aim of improving both processes and products. The new "Neopallex bag's" manufacture is always being improved by the company.
A target of 60,000 items per month was set in January 2003.