MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT EXPANDING THE SCALE AND APPLYING DIGITALIZATION TO ENHANCE EFFECTIVENESS OF LAYERED PROCESS AUDIT (LPA): A CASE STUDY OF FRAMAS VIET NAM INSTRUCTOR: HUYNH ANH TUAN, MA. STUDENT: LE KIM HOANG SKL012753 Ho Chi Minh City, May 2024 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS THESIS EXPANDING THE SCALE AND APPLYING DIGITALIZATION TO ENHANCE EFFECTIVENESS OF LAYERED PROCESS AUDIT (LPA): A CASE STUDY OF FRAMAS VIET NAM Student: LE KIM HOANG Student ID: 20124255 Major: INDUSTRIAL MANAGEMENT Advisor: HUYNH ANH TUAN, MA. Ho Chi Minh City, May 2024 COMMENTS OF ADVISOR. Advisor i COMMENTS OF REVIEWER.
Reviewer ii ACKNOWLEDGEMENTS The completion of the thesis marks a notable achievement, marking the end of an educational journey and setting the groundwork for upcoming pursuits. Alongside personal dedication, the author acknowledges the invaluable assistance received from educators and peers at Framas Co., Ltd to complete this thesis. Firstly, the author would like to express special gratitude to Lecturer Huynh Anh Tuan - a dedicated and enthusiastic instructor who has always cared for and supported students wholeheartedly. The valuable suggestions from him not only helped the author improve the report but also provided important guidance in the author's academic and future career journey.
Simultaneously, the author expresses my appreciation to Framas Co. Vietnam for offering the invaluable chance to acquire hands-on experience within the esteemed organization. Specifically, IE Leader – Huynh Dac Anh Minh and QA Supervisor – Phan Thi Hong Ngoc consistently offered guidance, aiding the author in accomplishing tasks and surmounting challenges within the actual working enviroment. Furthermore, the author would like to express gratitude to coworkers from various departments and production workshops for their invaluable contributions made during the author's internship.
The author acknowledges that this is the first step into the process of participating in corporate internships, where professional knowledge and practical experience are limited. Therefore, the author hopes to receive feedback from respected teachers and colleagues at Framas to enhance this thesis better. In closing, the author conveys well wishes for the health and prosperity of teachers, colleagues, and staff at Framas Co. Wishing the company continuous strong development, and the author takes pride in contributing a small part to this journey with everyone! HCMC, April 25th, 2024 Student name Le Kim Hoang iii LIST OF ABBREVIATION No.
Abbreviation Explanation 1 BoD Board of Director 2 C&M Color & Material Department 3 CNC Computer Numerical Control machine 4 Coor. Coordinator 5 DTC Development Testing Center Department 6 fVN Framas Vietnam 7 HoD Head of Department 8 HSE Health – Safety – Environment Department 9 IE Industrial Engineering Department 10 ISO International Organization for Standardization 11 IT Information Technology Department 12 LPA Layered Process Audit 13 LTD. Company limited 14 OPL Opening Point List 15 P.C Person in charge 16 PDCA Plan – Do – Check – Action 17 POM Plant Operation Manager 18 PROD Production Department 19 QA Quality Assurance Department 20 QC Quality Control Department Responsible – Accountable – Consulted – 21 RACI Informed (Matrix) Specific – Measurable – Achievable – 23 SMART Relevant - Time-bound 22 SOP Standard Operating Procedure 24 WI Work Instruction iv LIST OF TABLES Table 3.1: LPA at fVN .2: LPA assessment layers .4: The total number of questions for each area .5: Total findings by month .6: The summary table of the number of findings for each area .7: The number of findings according to the Q scope .8: Category for ‘Machine’ findings .9: Total number of SOPs audited .10: The number of SOPs not mentioning safety .11: Auditors at level 2 .1: Team forming for project .2: Timeline for the project .3: Total document of Mold Setter area .4: Total questions at level 2 – Mold Setter .5: Total findings by month up to January 2024 .6: Saving time of LPA Web app .7: LPA process award proposal .75 v LIST OF FIGURES Figure 1.1: Image of Framas Vietnam Co.2: Logo of Framas Vietnam Co.5: Organizational chart of Framas Vietnam Co.6: The company's customers .7: The Heel Counter product .8: Some accessory products .9: Some Outsole products .10: Injection Molding machine .11: Plastic Molding mold .13: Plastic injection molding machine model .1: Layers of LPA .2: Symbols and shapes used in the flowchart .3: Example of Gantt Chart .1: Checklist for Level 1 – 2 – 3 .2: General LPA Report in 2023 .3: Area Audit Report .4: Chart illustrates the number of findings based on Q Scope .6: The time control mechanism is malfunctioning .7: Material box have no label .8: Hard copy are too old .9: Ventilation hood is too weak .10: Findings related to ‘Man’ factors .12: The current LPA system .1: Mold Setter area .2: Tracking Gantt chart .3: Some of the questions for Mold Setter area .4: Some findings at Mold Setter area in October .5: Dry Ice Blasting machine.6: Some SOPs in Mold Setter area.8: The part of code in the LPA web app .14: Update findings directly .19: Question Database section .20: Before and After of manual entry data .21: Before and After of dispose paper and storage data .22: Audit plan before adding auditors .23: Email proposing to add more auditors .25: Audit plan after adding auditors .75 viii TABLE OF CONTENT COMMENTS OF ADVISOR. i COMMENTS OF REVIEWER.
iii LIST OF ABBREVIATION. iv LIST OF TABLES .v LIST OF FIGURES. vi TABLE OF CONTENT. ix INTRODUCTION TO THE THESIS.
Scope and object. Structure of thesis .2 CHAPTER 1: OVERVIEW OF FRAMAS VIETNAM CO.1 Introduction about Framas Vietnam Co.1 General introduction to the company .2 History of formation and development of the Framas Vietnam .3 Vision and mission of the company .4 Fields of operation.6 Company's main products and customers .11 CHAPTER 2: LITERATURE REVIEW .1 Overview of Layered Process Audit (LPA).1 Definition and concept of Layered Process Audit .2 Effectiveness of LPA .3 Common challenges in implementing LPA .4 Importance of LPA in Quality Management.5 Benefit of expanding the scale of LPA .2 Literature review of digitalization .1 The concept of digitalization .2 Role of Digitalization in Quality Management .3 Impact of digitalization on LPA effectiveness.3 Some other concepts .23 CHAPTER 3: CURRENT STATUS OF THE LAYERED PROCESS AUDIT AT FRAMAS VIETNAM.1 Implementation of Layered Process Audit .1 LPA process at fVN .2 Objectives and Scope of LPA implementation at Framas .3 Framas's LPA layers. Timeframes in LPA issue resolution .2 Overview the current status of LPA at fVN. Impact areas of LPA implementation .2 By the Numbers: Understanding LPA Findings .3 Assess the current status of LPA Effectiveness .1 Strength of current LPA .2 Limitations of current LPA .44 x CHAPTER 4: PROPOSED SOLUTIONS TO ENHANCE THE EFFECTIVENESS OF LAYERED PROCESS AUDIT AT FRAMAS VIETNAM CO.1 Broadening Horizons: Expanding LPA to the Mold Setter area .1 Motivation for the solution .3 Contents of the solution .4 Benefits of the solution.
Digital Transformation: Building the LPA Web App .1 Motivation for the solution .3 Content of Webform Format .4 Benefits of solution .3 Setting the Bar: Training and Bonus .1 Motivation for the solution .3 Contents of the solution .4 Benefits of the solution .77 LIST OF REFERENCES.1 xi INTRODUCTION TO THE THESIS 1. Rationale In today's fast-paced business world, companies are always looking for ways to streamline their operations to stay competitive and ensure steady growth. One well- known method for achieving operational excellence is using Layered Process Audit (LPA). LPA is a systematic approach used by organizations to ensure quality, compliance, and continuous improvement across all levels of the organization.
In the manufacturing of shoe soles and accessories, as seen at Framas Company, maintaining product quality is crucial. Following the company's standards during production is essential for achieving high product quality. That's why the company has adopted Layered Process Audits (LPA) to monitor and assess the production process. LPA focuses on defining factors that affect product quality and ensuring adherence to set quality standards.
However, during the internship and involvement in the LPA project, the author has identified some challenges and shortcomings in Framas' current LPA process. These include limited implementation throughout the company, which requires a significant amount of time for evaluating production processes and involves many manual steps. Additionally, issues regarding data storage and presentation in the LPA process have been observed. Based on this understanding, the author has selected the topic: " Expanding the scale and applying digitalization to enhance the effectiveness of Layered Process Audit (LPA): A case study of Framas Vietnam".
The aim is to assess the impact of these issues on the LPA process and suggest specific solutions related to expanding the scale of LPAs and adopting digitalization in th LPA process. The author hopes that these solutions will improve the LPA process, subsequently boosting production efficiency and product quality, thereby bolstering Framas Company's sustainable growth. Objective Analyze current state of the Layered Process Audits (LPA) implementation on the factory shopfloor. 1 Propose recommendations and solutions to enhance the application of the LPA process in the factory shopfloor.
Scope and object Research Objectives: The study focuses on the implementation process of Layered Process Audits (LPA) at Framas Vietnam LTD. Scope of the research: • Space: The focus is on the shopfloor areas of Framas Vietnam LTD. • Time: The research spans the evaluation of the LPA process from late 2022 to 2024. Research methodology During the internship at fVN, the author conducted observations and analyses related to the Layered Process Audits (LPA) process, identifying existing issues.
This report employs two main research methods: • Qualitative research: The author conducted interviews with experts, particularly those from the Industrial Engineering (IE) and Quality Assurance (QA) departments. These individuals offered invaluable insights due to their extensive experience with the project and deep understanding of the processes and current challenges. These conversations facilitated the collection of information regarding the measures taken to enhance the LPA process and insights into current challenges. • Quantitative research: Descriptive statistical techniques were employed by the author, utilizing tools to gather data on the frequency and quantity of findings.
This data was synthesized by month and area, with a focus on identifying the causes of errors. The analysis of this data served as the foundation for formulating recommendations and proposals to enhance the LPA process within the company. Structure of thesis The report is structured into four chapters outlined below: • Chapter 1: Overview of Framas Vietnam Co., Ltd 2 • Chapter 2: Literature Review • Chapter 3: Current status of the Layered Process Audit at Framas Vietnam • Chapter 4: Proposed solutions to enhance the effectiveness of Layered Process Audit at Framas Vietnam Co. 3 CHAPTER 1: OVERVIEW OF FRAMAS VIETNAM CO.1 Introduction about Framas Vietnam Co.1 General introduction to the company Framas, a prominent figure in plastic technology for the global sports industry, has effectively transitioned a shoe concept into the market, with a notable emphasis on material sustainability.
This journey entails intricate challenges for footwear brands, but Framas takes pride in its diverse team, well-versed in design, sustainability, manufacturing, cost optimization, branding, performance, and timely product launches. Specializing in plastic component development and production, they cater to renowned brands such as Adidas, Nike, and Reebok. Originating as a modest family enterprise in Pirmasens, Germany, Framas has evolved into a multinational corporation with over 3,200 employees, headquartered in Germany with manufacturing hubs across Asia. Beyond pioneering footwear innovations, Framas remains at the forefront of the entire plastic injection molding industry.
Framas Vietnam (abbreviated as fVN) focuses on manufacturing plastic products through Injection Molding technology. Here, you can explore various facets of shoe innovation, production processes, materials, components, techniques, economics, digitization, sustainability, performance, and innovation, all in a pressure-free environment.2 History of formation and development of the Framas Vietnam Figure 1.1: Image of Framas Vietnam Co., Ltd (Source: Framas.2: Logo of Framas Vietnam Co.