MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMIC GRADUATE THESIS THEME: IMPROVE QUALITY CONTROL AT MY PHONG LEATHER SHOE FACTORY Student : Nguyen Hung Thanh Student ID : 19124312 Intake : 2019 Major : Industrial Management Supervisor 1 : M.S Truong Van Nam Ho Chi Minh City, June 2023 ACKNOWLEDGEMENT To complete this thesis, I would like to express my gratitude to Mr. Truong Van Nam who are working at Ho Chi Minh City University of Technology and Education for providing me with the opportunity to study, learn, and accumulate knowledge and skills to complete this thesis. I would like to express my sincere gratitude to My Phong Factory - Thai Binh Investment Corporation for providing me with an internship environment and supporting me in carrying out this project. I would like to thank the staff in the departments and the supervisors in the workshop for their enthusiastic guidance and answering my questions.
Nguyen Thi Thanh Hieu, who works in the QC department of the shoe factory, has helped me a lot in completing my thesis. During my internship here, I have learned a lot of valuable knowledge and lessons from my colleagues, and I believe that this will be essential for my future career. I wish all the staff and employees at My Phong Factory good health and prosperity as the company continues to grow and develop. Due to my limited knowledge and lack of practical experience, this thesis may contain some shortcomings.
Therefore, I hope to receive feedback and further guidance from my respected supervisors. Finally, I wish all my supervisors good health and great success in their work. Ho Chi Minh City, 4 April 2023 Student Nguyen Hung Thanh i LIST OF ABBREVIATIONS ABBREVIATION WHOLE WORD AQL Acceptable quality limit CEO Chief Executive Officer Co. Ltd Company Limited HR Human Resources JSC Joint Stock Company SOP Standard operating procedure QA Quality Assurance QC Quality Control ii LIST OF TABLES Table 1.
1 TBS Group business operation situation from 2018 to 2021. 1 Using the KAMET rule to analyze Delphi interview questions. 1 Quality control criteria for footwear at My Phong. 2 Classification standards for leather at My Phong.
3 Standard sizes from suppliers. 4 Errors of machinery during Flash 3.0 JR shoe production. 1 The product defect rate when using traditional sewing machines. 2 The product defect rate when using programmable sewing machines 45 Table 4.
3 Job candidate's interview profile. 4 The results of Round 2 of Delphi survey. 5 The remaining criteria after evaluation. 6 Statistics of machinery and maintenance costs for Flash 3.0 JR shoe model.
8 Comparing before and after applying Pareto method. 57 iii LIST OF FIGURES Figure 1. 1 My Phong Leather Shoes Limited Liability Company. 2 Organizational structure at My Phong Co.
3 TBS Group business operation situation from 2018 to 2021. 1 Example about Pareto chart. 2 Example about Ishikawa chart. 3 Some symbols used in flow chart.
4 Example about control chart. 1 My Phong leather shoe quality control process for samples. 2 Quality control process for mass production at My Phong factory. 3 The general quality control process at My Phong.
4 Process for incoming raw materials. 5 Simulation of the production line layout according to the I-shaped model. 6 Simulation of the production line in U-shaped model. 7 The process of controlling broken needles at My Phong.
8 The process of completing shoe soles. 1 The product defect rate when using traditional sewing machines. 2 The product defect rate when using programmable sewing machines 46 Figure 4. 3 Fishbone chart evaluates the factors affecting the productivity of workers at My Phong factory.
4 Pareto chart for machine error statistics. 5 Product completion rate chart. 58 iv TABLE OF CONTENTS LIST OF ABBREVIATIONS. ii LIST OF TABLES.
iii LIST OF FIGURES .iv TABLE OF CONTENTS. The reason for choosing the topic. Research subjects and scopes. Graduation thesis structure.
3 CHAPTER 1: OVERVIEW OF MY PHONG COMPANY A SUBSIDIARY OF THAI BINH INVESTMENT CORPORATION.1 Overview of My Phong Factory under Thai Binh Investment Corporation.1 An overview introduction of My Phong Leather Shoes Limited Liability Company .2 History of formation and development .2 Introducing about Thai Binh investment joint stock company .1 Introducing about Thai Binh invesment joint stock company .2 Areas of activities .3 Bussiness operation situation .4 Vision and mission .11 CHAPTER 2: THEORETICAL BASIS .1 The concept about quality .2 Role of quality .1 Incoming Quality Control (IQC) .4 Tools assisting quality control.5 Delphi Analytical method .23 v CHAPTER 3: THE CURRENT STATUS OF QUALITY CONTROL WORK AT MY PHONG FACTORY.1 The process of leather shoe quality control at My Phong.1 The process of sample control.2 Quality control process in mass production.2 The leather shoe production process at My Phong.1 Quality control process for leather shoes at My Phong factory.2 Importing and inspecting incoming raw materials.3 The process control of cutting, skiving, and printing.4 Quality control of the sewing process.5 Controlling and completing sole.6 Controlling process of finishing shoes.3 The status of the operation of the workshop and equipment at My Phong factory 40 CHAPTER 4: SOME SOLUTIONS TO IMPROVE PRODUCTION QUALITY AT MY PHONG LEATHER SHOES FACTORY.1 Assessing the production quality management situation at My Phong Leather Shoes Co.2 Some solutions to improve the quality control process at My Phong factory.1 Applying programmable sewing technology.2 Adjustment in term of personnel.3 Improving factory quality at My Phong. The reason for choosing the topic The leather shoe industry is currently one of the sectors with a high proportion in Vietnam's export turnover. Specifically, in the World Leather and Footwear Yearbook 2021 of the Portuguese Footwear Association, Vietnam ranks second in the world (after China) in terms of leather shoe exports, with about 1. According to experts' forecasts, the leather shoe industry is still a priority for development during the industrialization process, with a focus on exports due to its outstanding advantages such as low cost, high competitiveness, creating many job opportunities, and especially having many large markets such as the EU, the US, Japan… Despite having many advantages in terms of exports, overall, Vietnam's leather shoe industry still struggles to compete with well-established major brands in the world.
According to Mr. Nguyen Van Khanh, Vice Chairman cum General Secretary of the Ho Chi Minh City Leather and Footwear Association, "The export value of leather footwear in the past year reached USD 14.7 billion, an increase of 10% compared to last year. However, the weakness of Vietnam's leather shoe industry is its poor performance in shoe production, in parallel with the development of other supporting industries." Ensuring the quality control of input materials as well as output products is also a crucial part that cannot be ignored if businesses want their products to be highly competitive in the market. When quality control is ensured, risks that may arise during the production process such as product recalls, non-compliant raw materials, factories not meeting standards, etc.
will be addressed, thereby minimizing unnecessary costs. Additionally, when output products are ensured in terms of quality, they will contribute to increasing customer satisfaction and trust in the product, helping to build the company's reputation in the market. It can be said that quality is the "Golden Key" that helps leather shoe export companies assert their position in the market. Understanding the importance of quality control in the production process, Thai Binh Investment JSC has long viewed quality control and management as a vital factor for the company's survival.
This can be seen through the slogan of the TBS Group factory: "Do it right from the beginning - quality above all." 1 With this slogan, Thai Binh Investment Corporation is a company with superior production capabilities compared to other companies in the same field. It is estimated that the total revenue of TBS Group's specialized shoe production companies has reached from 5000-6000 billion VND each year. Despite achieving such successes, however, for a large-scale production company like TBS Group, quality inspection issues are inevitable, and product defects still occur, affecting the factory's revenue. As a subsidiary of TBS Group, My Phong Ltd is also influenced by the quality management policies of the parent company, and obviously, the weaknesses of the parent company also significantly affect the production activities at the My Phong factory.
Recognizing these current issues, the author has chosen the topic "The solutions to complete the quality control work at My Phong shoe leather factory." Through this topic, the author hopes that this will be a reliable theoretical basis to help the factory continuously improve quality control in the present and future. Research objectives To understand the quality control process of products at My Phong factory. To determine the current status of product quality management at My Phong factory. To propose solutions to improve the effectiveness of product quality control at My Phong factory.
Research subjects and scopes Research subjects The product quality control process at My Phong factory. Factors directly and indirectly related to the quality control process, such as: human resources, machinery, methods, raw materials, measurement, and environment. Research scope - Time scope: The research topic examines the current status of quality control at Mỹ Phong factory in 2022, and proposes solutions and recommendations until 2025. - Space scope: My Phong factory at Tieu Can district of Tra Vinh province.
- Content scope of the research: The research topic focuses on the quality control activities at My Phong Leather Shoes Company specifically addressing the following 2 aspects: overall quality control processes, quality control of raw materials, cutting, skiving, sole finishing, and shoe lasting. The research aims to analyze and propose solutions to enhance the quality control operations at the factory. Research methods Collecting documents about the quality control process, product quality situation, and quality reports from the Quality Management Department. Consulting the opinions of production and QA/QC departments in finding solutions to deal with quality incidents and improving product quality.
Observing and participating in quality control at each stage of the production process from input to output. Synthesizing and analyzing the collected data to propose solutions to improve product quality. Graduation thesis structure Chapter 1: OVERVIEW OF MY PHONG COMPANY A SUBSIDIARY OF THAI BINH INVESTMENT CORPORATION Chapter 2: THEORETICAL BASIS Chapter 3: THE CURRENT STATUS OF QUALITY CONTROL WORK AT MY PHONG FACTORY Chapter 4: SOME SOLUTIONS TO IMPROVE PRODUCTION QUALITY AT MY PHONG LEATHER SHOES FACTORY 3 CHAPTER 1: OVERVIEW OF MY PHONG COMPANY A SUBSIDIARY OF THAI BINH INVESTMENT CORPORATION 1.1 Overview of My Phong Factory under Thai Binh Investment Corporation.1 An overview introduction of My Phong Leather Shoes Limited Liability Company Company Name: My Phong Leather Shoes Limited Liability Company International Name: May Phong Enterprise Company LTD Tax Identification Number: 2100308539 Representatives: Vu Van Hai, Hsu Kuang Tien Address: Tan Dai Hamlet, Hieu Tu Commune, Tieu Can District, Tra Vinh Province Business Type: Limited Liability Company with 2 or more members Status: Active Phone number: 0294 3613 814 Website: www. 1 My Phong Leather Shoes Limited Liability Company Source: The HR Department 1.2 History of formation and development From the 1990s, the Vietnamese government identified that "Every country needs a strategy to build an independent and self-reliant economy, effectively utilizing international resources." Based on this perspective, the government recognized that opening up and integrating with the international community was the right direction for the development of the domestic economy.
As a result, a series of investment 4 attraction policies were proposed, including the leather shoe industry. Recognizing the potential for development in Vietnam, many countries around the world, including Taiwan, decided to invest in this market in Vietnam. The leather shoe production industry in Taiwan has a long history of development. However, due to the shortage of resources such as labor and materials in their country, their production still faces many obstacles.
Recognizing the policies and potential of Vietnam, the founder of My Phong Leather Shoes Co.