MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT ENHANCING OPERATIONAL EFFICIENCY THROUGH RISK-BASED THINKING: FMEA INSIGHTS FROM PROFOR VIETNAM LECTURER: HUYNH ANH TUAN ,MA STUDENT: LE BAO TRAM SKL012720 Ho Chi Minh City, April, 2024 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS THESIS TOPIC ENHANCING OPERATIONAL EFFICIENCY THROUGH RISK-BASED THINKING: FMEA INSIGHTS FROM PROFOR VIETNAM Student : Le Bao Tram Student ID : 20124333 Year : 2020 Major : Industrial Management Instructor : HUYNH ANH TUAN, MA Ho Chi Minh City, April 2024 COMMENTS OF INSTRUCTOR ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Ho Chi Minh City, April 2024 Instructor, Huynh Anh Tuan Page i COMMENTS OF REVIEWER ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Ho Chi Minh City, April 2024 Reviewer, Page ii ACKNOWLEDGEMENT First of all, I want to express my deepest gratitude to all the teacher of the University of Technology and Education in general and the Faculty of Economics in particular, who have dedicatedly provided explained valuable knowledge over some time. While studying at the school, I acquired solid knowledge which greatly aided me in writing my graduation thesis. I would also like to send my sincere thanks to my instructor - Mr. Huynh Anh Tuan.
Thanks to your thoughtful comments and guidance, I was able to complete this thesis. Thank you for introducing me to the internship opportunity at PROFOR Co. Next, I wish to express my sincere gratitude to the company's leadership for granting me this internship opportunity. Additionally, I am grateful to everyone in the company for their shared knowledge, dedicated assistance, and enthusiastic responses to my inquiries.
As my own knowledge and experience are still limited, there may be inevitable mistakes in my graduation thesis. I eagerly anticipate receiving feedback from the teachers. Best regards! Ho Chi Minh City, April 2024 Student, Le Bao Tram Page iii LIST OF ACRONYMS Co. Company Limited FMEA Failure Mode and Effect Analysis ISO The International Organization for Standardization (S), (O), (D) index Severity index, Occurrence index, Detection index RPN Risk Priority Number PDCA Plan – Do – Check – Act N/a Not answer Page iv LIST OF TABLES Table 2.1: FMEA matrix on Excel .1: Expected planning table .2: Cost planning table (unit: VND) .3: List of members .4: Summary processes and functions after performing component analysis .5: Severity assessment table .6: Occurrence assessment table.7: Dectective assessment table .8: FMEA matrix: Structure, Functional and Failure analysis and RPN index .9: FMEA matrix: recommended actions, and optimization implementation.
54 Page v LIST OF FIGURES Figure 1.2: The figure of Front view of PROFOR Co.3: Evidence of ISO 9001:2015 certification at the factory of PROFOR Vietnam Co.4: Information about the PROFOR company's factory on the official website .5: Organizational chart of PROFOR Vietnam Co.6: PROFOR product sample showroom .7: Close-up of glass display cabinets displaying products .8: Finished product of hot forging process - the most important production area of the company.10: Typical customers of PROFOR Co.1: Status of the packaging area before (left) and after (right) when implementing 5S.2: PROFOR's hot stamping line is placed close together to increase working efficiency (Figure above lacks a cutting machine) .3: Hot forging process at the factory.4: Cutting machine and the input materials .5: The Annealing machine .7: Hot forging machine .8: Semi-finished products have not been deburred or punched .1: WBS diagram for FMEA project implementation .2: Gantt chart of Implement FMEA project .3: Flow chart Implement FMEA project. 39 Page vi TABLE OF CONTENT COMMENTS OF INSTRUCTOR. i COMMENTS OF REVIEWER. iii LIST OF ACRONYMS.
iv LIST OF TABLES .v LIST OF FIGURES. Overview of the study. Purpose of the study. Object and range of the study.
Structure of the study. 3 CHAPTER 1: OVERVIEW OF PROFOR CO. General information of PROFOR Co. History of formation, vision, mission and core value of the company.
History of formation. Vision and Mission of the company. Core Value of the company. Organizational structure of PROFOR Co.
Business fields and main products of the company. Main customer of PROFOR. 12 Page vii CHAPTER 2: THEORETICAL BASIS. Quality and the International Quality Standard ISO 9001:2015.
Concepts of quality. Overview of ISO 9001:2015. Risk and Risk-based Thinking. Risk is the heart of ISO 9001:2015.
Concepts of Risk-based thinking. Overview of the FMEA. How is Failure analysis in FMEA different from other tools. Classification of FMEA and scope of application of each type of FMEA.
Basic components of the FMEA analysis table. Benefits of applying FMEA in businesses. FMEA implementation process in businesses. 22 CHAPTER 3: THE CURRENT SITUATION OF QUALITY MANAGEMENT SYSTEM AND HOT FORGING LINE AT PROFOR CO.
The reasons that PROFOR should apply Risk-Based Thinking and FMEA to its manufacturing processes. The Relationship Between Risk-Based Thinking and FMEA. Current status of the quality management system at PROFOR Co. 25 CHAPTER 4: IMPLEMENTING THE FMEA PROJECT AT PROFOR COMPANY LIMITED…….
Information of project. Role of members. Implementing the FMEA project at PROFOR factory. FMEA project team.
Preventive actions plan .61 Page ix INTRODUCTION 1. Overview of the study The international quality management standard ISO 9001:2015 mentions the concept of Risk-based Thinking in section 6.2 a, specifically addressing "Action to address these risks and opportunities". ISO 9001:2015 mandates that organizations must be cognizant of risks that may arise during production and quality management processes, and they must develop plans and take action to mitigate these risks. This preventive action helps businesses and factories reduce costs by addressing risks as they occur, minimizing the frequency of risk incidents, and increasing the number of finished products.
By identifying possible risks, it helps employees and managers improve their understanding of the production process in the business. From there, optimize work performance and increase customer trust when the business has high performance. FMEA is a tool that assists businesses in directly applying Risk-Based Thinking to their businesses. This is a tool to identify and analyze potential risks in the production process and provide control plans.
There are many large businesses that have successfully applied FMEA to their businesses. For example: Toyota Motor Corporation in the field of automobile manufacturing, Boeing Company in the field of aircraft manufacturing, Johnson & Johnson in the field of pharmaceutical manufacturing, Microsoft - one of the largest information technology corporations in the world, ect. However, implementing FMEA in businesses and factories also presents numerous challenges because they primarily need to identify risks that have not yet materialized. Businesses cannot predict all potential risks during the quality management process.
This ability depends on the experience and expertise of administrators, employees, and quality management specialists. This is also one of the factors causing difficulties for small and medium-sized businesses and factories. hey struggle with hiring highly qualified staff, assessing the majority of possible risks, evaluating their severity, prioritizing risks, and, most importantly, devising optimal measures to prevent problems. Besides, businesses and Page 1 factories may encounter challenges in shifting employees' mindset and integrating FMEA into their operations.
Thereby, the student chose the thesis report topic: “ENHANCING OPERATIONAL EFFICIENCY THROUGH RISK-BASED THINKING: FMEA INSIGHTS FROM PROFOR VIETNAM”. Aims to understand the risks that have existed at PROFOR Vietnam's medium-sized processing workshop. Provide solutions and recommendations to help the company more closely control unwanted factors affecting the company's products. Besides, if successfully implemented, it can help factory employees in particular, and small and medium-sized enterprises in Vietnam in general, raise awareness and the importance of Risk-Based Thinking and FMEA in businesses.
Purpose of the study 2.1 General objective This study aims to learn about Risk-Based Thinking and FMEA tools. Apply this tool to a company or small processing workshop such as the workshop of PROFOR Company Limited. Learn about the common advantages and disadvantages of applying FMEA.2 Detail objeactive - Learn about ISO 9001:2015, Risk-based thinking and its position in ISO 9001:2015. - Learn about the FMEA tool: benefits, implementation process, components,.
- Identify Failures that need improvement based on the FMEA tool during the production process at PROFOR Co. - Evaluate the FMEA implementation process: results, advantages and difficulties. Object and range of the study Page 2 Research object: Production process, defects and current control measures at PROFOR Co. Research scope: About space: At PROFOR Vietnam's processing workshop at address 29D, group 8, Trang Bom district, Dong Nai province, Vietnam.
About time: From 2/2024 to 4/2024 4. Research methods General method of collecting information: Collecting information and actual images at the factory of PROFOR Co. At the same time, research primary data from research available on the Internet and school library. Data analysis method: Conduct evaluation, analysis, and comments from the data compiled during the project implementation process.
Synthetic analysis: Evaluate the advantages and difficulties still encountered during project implementation. Structure of the study Except for the introduction and conclusion, the study includes 4 chapters: Chapter 1: Overview of PROFOR Co. Chapter 2: Literature review Chapter 3: Current status of PROFOR Co. Chapter 4: Implementing the FMEA project at PROFOR Co.
Page 3 CHAPTER 1: OVERVIEW OF PROFOR CO. General information of PROFOR Co. Name in Vietnamese: Công ty TNHH PROFOR Việt Nam International Name: PROFOR Company Limited Abbreviation: PROFOR CO., LTD Slogan: “Leading in Forging” Company logo: Figure 1.1: Company logo Source: Website of company Meaning of the name Profor: Professional Forging – Professional forging with the desire to become a professional mechanical processing company. Founded year: 2006 Address: 29D, Group 8, Trang Bom District, Dong Nai, Vietnam Company phone: (+84) 901 233 399 Official Website: www.vn Company tax code: 3603740916 Page 4 Market: Nationwide, USA, China 1.
History of formation, vision, mission and core value of the company 1. History of formation In 2006, in Trang Bom district - Dong Nai province, PROFOR Vietnam Co. started as a small mechanical workshop, with the initial name of “Công ty TNHH Thương mại và dịch vụ Tú Tài Phát” (it only has a Vietnamese name). The main fields of PROFOR Co., Ltd include designing and manufacturing dies, forging, plating, heat processing of mechanical parts, and stamping of mechanical components with high durability and precision for use in the mechanical industry.2: The figure of Front view of PROFOR Co., Ltd Source: Author’s summary After a period of construction and development, the company was granted ISO 9001:2015 certification.3: Evidence of ISO 9001:2015 certification at the factory of PROFOR Vietnam Co.
Source: Author’s summary In July 2020, with hard work and continuous efforts, PROFOR Vietnam expanded its factory scale to 4,000m2, with a total area of 70,000m2. From nothing, PROFOR has now successfully exported its mechanical products to the US market - one of the most demanding markets, with orders of up to 80 billion.4: Information about the PROFOR company's factory on the official website Source: Website of Company Page 6 1. Vision and Mission of the company Vision “We strive for a leading market position in all that we do Our customers are convinced of our reliability and quality” PROFOR always strives to lead the market and does so in every action. PROFOR's products and services make customers completely worry-free about quality and achieve high reliability from customers.
Mision “We are committed to achieve 100% Customer Satisfaction by ensuring “First Time Right ” and adhering to World Class Development Processes.” The company is committed to customer satisfaction at the first delivery. Processes and methods that are considered optimal and most effective in developing products, services or technology solutions.