MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING CAPSTONE PROJECT INDUSTRIAL MANAGEMENT ENHANCING INVENTORY MANAGEMENT EFFICIENCY BY APPLYING DIGITALIZATION: A CASE STUDY OF INTEL PRODUCTS VIETNAM CO. LECTURER: HUYNH ANH TUAN MA. STUDENT: NGUYEN THI KIM NGAN SKL012385 Ho Chi Minh City, November 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS ------------ THESIS TOPIC: ENHANCING INVENTORY MANAGEMENT EFFICIENCY BY APPLYING DIGITALIZATION: A CASE STUDY OF INTEL PRODUCTS VIETNAM CO. Student: NGUYEN THI KIM NGAN Student ID: 20124019 Course: 2020 Major: INDUSTRIAL MANAGEMENT Instructor: HUYNH ANH TUAN MA.
Ho Chi Minh City, Nov 07, 2023 COMMENTS OF ADVISOR -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- Ho Chi Minh City, 07 Nov, 2023 Advisor i COMMENTS OF REVIEWER -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- Ho Chi Minh City, 07 Nov, 2023 Reviewer ii DISCLAIMER This thesis document contains confidential and proprietary information related to Intel Corporation. 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iii Intel, the Intel logo, are trademarks of Intel Corporation in the U. and/or other countries. *Other names and brands may be claimed as the property of others © Intel Corporation iv ACKNOWLEDGEMENTS Throughout this academic journey, the author extends heartfelt gratitude to the dedicated teachers at the Faculty of Economics, Ho Chi Minh City University of Technology and Education, whose guidance and knowledge sharing have been invaluable in shaping the author's academic foundation and professional readiness. Besides that, the author extends deepest appreciation to the thesis advisor, Mr.
Tuan Huynh, whose expertise, dedication, and unwavering support have been instrumental in shaping the direction of the research and ensuring its successful completion. The mentorship and insightful feedback provided by Mr. Tuan Huynh have been invaluable. The author would also like to express profound thanks to the Board of Directors at Intel Product Vietnam Co.
for their generous support and facilitation of the author's practical engagement. Special thanks to Mr. Nguyen Duc Loc, Mr. Ho Cong Tai of TEGT department and Mr.
Nguyen Phuc Tam of TEG-AF department for their unwavering support, mentorship, and constructive feedback throughout the various stages of this research project. Their contributions have greatly enriched the quality of this thesis. Acknowledgment is also extended to Mr. Nguyen Phuc Tam for providing essential resources, data, and access to facilities, which contributed to the depth and excellence of the research.
Lastly, the author expresses appreciation to all the participants and respondents who generously contributed their time and insights. In conclusion, the successful completion of this thesis stands as a testament to the collaborative efforts of these remarkable individuals and organizations. The author is profoundly grateful for their contributions. Ho Chi Minh City, 07 Nov, 2023 The author Nguyen Thi Kim Ngan v LIST OF ABBREVIATION ABBREVIATION EXPLANATION VNAT Viet Nam Assembly Test UZB Unplanned Zero Bin DOI Days of Inventory LDOI Low Days of Inventory GSC Global Supply Chain IPN ID Part Number PO Purchase Order IPV Intel Product Vietnam AE Assembly Engineering IE Industrial Engineering TE Test Engineering TEG AF Technical Equipment Group Assembly Finish TEG T Technical Equipment Group Test MFG Manufacturing ATK Adjust to Keep BOM Bill of Materials ROP Reorder Point Dept Cost Rep Department Cost Representative DM Department Manager BO Back Order POR Plan of Record vi LIST OF TABLES Table 1.
Terms at Intel (Source: TEGT Department) .26 vii LIST OF FIGURES Figure 1. Intel evolved over the years (Source: Intel® Products). Intel evolved over the years (Intel® Products). Intel’s Product Vietnam.
Vietnam Assembly/Test Manufacturing (Explore Intel's history). Intel Product Vietnam Organization (Source: HR Department). Email sent by GSC (Source: TEGT Department). Email sent by GSC (Source: TEGT Department).
UZB/LDOI Review Process on system (Source: TEGT Department). Data Retrieval for System Development by SQL PathFinder(1) (Source: TEGT-Department) .Data Retrieval for System Development by SQL PathFinder (2) (Source: TEGT-Department). Data Retrieval for System Development by SQL Server (Source: TEGT- Department). Data Transformation for System Development by Power Query (Source: TEGT-Department).
Request access to system (source: TEG-AF Department). The overall interface of the high-risk parts review system (source: TEG-AF Department). High risk parts list of AE (source: TEG-AF Department). High risk parts list of MFG (source: TEG-AF Dept).
High risk parts list of TE (source: TEG-AF Dept). Detail of high-risk part list (Source: TEG-AF Dept). VNAT Critical Part List (source: TEG-AF Dept). VNAT Critical Part List: Summary DOI by Area (source: TEG-AF Dept) .VNAT Critical Part List: Detail Data by Area (source: TEG-AF Dept).
UZB/LDOI Tracking: Guidance for Users (Source: TEG-T Department). Log in to the System (Source: TEG-AF). Filter by Department (General Page). Filter by Module (Department Page).
Filter by Machine Type (Machine Type Column). Input Proposed Max (Proposed Max Column). Input Proposed ROP (Proposed ROP Column). Input Proposed ROP (Proposed ROP Column).
Provide Justification for Proposed Changes (Justification Column). Submit ATK Change Request (If Applicable). Filter type of risk (Source: TEG-AF). DOI Trigger Dashboard.
Read me - DOI Trigger on Dashboard .UZB/LDOI review results - WW202338. UZB/LDOI review results - WW202339. UZB/LDOI review results - WW202340. UZB/LDOI review results - WW202341.
Review results monitoring (WW202338 to WW202340). Building the Application using Power App Tool (Source: TEG-AF Department). Interface of the VNAT Cost Eco System Application (Source: TEG-AF Department). VNAT Cost Eco System: Cost Processes (Source: TEG-AF Department).
All documents, guidelines of VNAT cost processes (Source: TEG-AF Department). VNAT Cost Eco System: Cost Stories (Source: TEG-AF Department). VNAT Cost Eco System: Cost Webpages (Source: TEG-AF Department). All dashboard used for controlling cost (Source: TEG-AF Department).
VNAT Cost Eco System: Request Pages (Source: TEG-AF Department). Request BO, ATK, xPOR, Purchasing (Source: TEG-AF Department). BO Request - Request list (Source: TEG-AF Department). BO Request - Create new BO request (Source: TEG-AF Department).
BO Request - Edit Bo Request (Source: TEG-AF Department). BO Request - Delete BO Request (Source: TEG-AF Department). ATK Request - Request list (Source: TEG-AF Department). ATK Request - Create new ATK Request (Source: TEG-AF Department).
ATK Request - Edit ATK Request (Source: TEG-AF Department). ATK Request - Delete ATK Request (Source: TEG-AF Department) .68 x TABLE OF CONTENT COMMENTS OF ADVISOR. i COMMENTS OF REVIEWER .v LIST OF ABBREVIATION. vi LIST OF TABLES.
vii LIST OF FIGURES. viii TABLE OF CONTENT. Scope and object. Structure of report .3 CHAPTER 1: INTRODUCTION ABOUT INTEL PRODUCTS VIETNAM CO.
General introduction about Intel Corporation. General introduction about Intel Products Vietnam (VNAT Factory). History and development. Vision and mission .16 CHAPTER 2: LITERATURE REVIEW.
Literature review about digitalization. General concepts of digitalization. General concepts digitalization in business. Literature review about inventory management.
General concepts of supply chain. General concepts of supply chain management. General concepts of inventory management.24 CHAPTER 3: ANALYSIS OF THE STATUS OF THE VNAT FACTORY IN THE INVENTORY MANAGEMENT AND METHODOLOGY DEPARTMENT. Some terms, concepts at Intel.
The status of risk control in inventory management at Intel. Previous risk control system. Current risk control system .28 CHAPTER 4: PROPOSED SOLUTIONS FOR ENHANCED INVENTORY MANAGEMENT AT INTEL PRODUCTS VIETNAM CO. Problem Statement of the UZB/LDOI Tracking Process.
Ideal state of the UZB/LDOI Tracking Process Control Project. Implementation plan for the UZB/LDOI Tracking Process Control Project 34 4. Finance plan for the UZB/LDOI Tracking Process Control Project. Process Review UZB/LDOI Parts (High-risk parts) on system.
UZB/LDOI parts system (High – risk parts system). Overview about UZB/LDOI parts system. Parts Within Trigger Scope. Review UZB/LDOI.
Assessing Project Efficiency: A Four-Week Monitoring Review. Evaluating User Compliance in Relation to the Project. Limitations of the UZB/LDOI Tracking Process Control Project. Proposed Strategies for Overcoming Current Project Limitations.
Overview about VNAT Cost Eco System. Rationale In recent years, digitization has become an increasingly vital trend across various industries, marking a profound shift from traditional work processes to digital frameworks. How organizations manage and optimize assets, production processes, and services has significantly transformed under the influence of digitization. In today's rapidly evolving world, the ability to harness, process, and apply digital information has become a crucial factor in the success and survival of organizations.
Many large enterprises globally are vigorously undergoing digital transformation, and Intel, one of the leading names in the technology sector, is no exception. Intel has always been committed to developing and producing cutting-edge technological products, and to maintain competitiveness in the ever-changing world of technology, they have invested heavily in digitizing their entire supply chain. In a recent real-world case at Intel Products Vietnam Co., a notable incident occurred. Employees at the factory failed to follow the proper procedure for inspecting and identifying components (referred to collectively as "Parts") that were running low.
As a result, the entire inventory of parts necessary for the production process was depleted within a short period, and the factory had to temporarily halt operations for two weeks. This event caused significant inconvenience and losses for the company. It is from this incident that we recognize an area where digitization can have a substantial impact: the implementation of a real-time data-based inventory management and tracking system. The goal is to enable organizations to quickly identify and respond to risks related to dwindling inventory, thereby avoiding unforeseen production stoppages (line downs), ultimately optimizing performance and minimizing inventory management-related risks.
Therefore, the author has chosen the topic: “Enhancing inventory management efficiency by applying digitalization: A case study of Intel Products Vietnam Co.” Through this, I hope that Intel Products Vietnam Co. can enhance inventory management efficiency, reduce the risk of production stoppages, and promote their sustainability and competitiveness in their challenging industry through the process of digital transformation.