MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS MAJOR: GRADUATION PROJECT OF THE INDUSTRIAL MANAGEMENT ENHANCING INVENTORY MANAGEMENT EFFICIENCY BY APPLYING DIGITALIZATION A CASE STUDY OF INTEL PRODUCTS VIETNAM CO. INSTRUCTOR: HUYNH ANH TUAN MA STUDENT: NGUYEN THI KIM NGAN SKLO12385 Ho Chi Minh city, 5/2025 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 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS 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 FACULTY OF ECONOMICS Ho Chi Minh City University of Technology and Education COMMENTS OF ADVISOR Ho Chi Minh City, 07 Nov, 2023 Advisor FACULTY OF ECONOMICS Ho Chi Minh City University of Technology and Education COMMENTS OF REVIEWER Ho Chi Minh City, 07 Nov, 2023 Reviewer vi DISCLAIMER This thesis document contains confidential and proprietary information related to Intel Corporation. All personally identifiable information, intellectual property, and business-related details, including but not limited to names, identification numbers, project codes, and equipment specifications, have been replaced with artificial terms to protect the privacy and intellectual property of the involved parties. Legal Disclaimer: No license (express or implied, by estoppel or otherwise) to any intellectual property rights is granted by this document. This document contains information on products, services and/or processes in development.
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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 viii FACULTY OF ECONOMICS Ho Chi Minh City University of Technology and Education ACKNOWLEDGEMENTS Throughout this academic journcy, 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 ix 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 Th G 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 LIST OF TABLES Table 1.
Terms at Intel (Source: TEGT Department) xi LIST OF FIGURES Figure 1. Intel evolved over the years. Intel evolved over the years. Vietnam Assembly/Test Manufacturing.-----------«~=-<e>e=zexeee=rrreee 14 Figure 6.
Intel Product Vietnam Organization (Source: HR Department). Email sent by GSC (Source: TEGT Department\). Email sent by GSC (Source: TEGT DepartmenI) .----- «se se 28 Figure 10.------<-=-<<<<s=s+eexe=eeeereeeeesereeersesessseersre 33 Figure 11. UZB/LDOI Review Process on system (Source: TEGT Department).
Data Retrieval for System Development by SQL PathFinder(1).Data Retrieval for System Development by SQL PathFinder (2). Data Retrieval for System Development by SQL Server. Data Transformation for System Development by Power Query. Requ€st áCCCSS tO SVSÍCTN.Ăằ--SESSSke-YoSresrdiooookcesrredrkeexeeeaoi 4I Fipure 17, The overall interface of the high-risk parts review system (source: TEG-AF [Ocpar[ITICHI).
High risk parts list of AE (source: TEG-AF Department). High risk parts list of MI°G (source: TEG-AF Dept). Hiph 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 DEDÙ kh ácjccccooccead 44 Figure 23. VNAT Critical Part List: Summary DOI by Area (sourcc: TG-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: TI/G-A ).------eeceee-eeeeeeeceeeex 46 Figure 27.
Filter by Department (GGU10L PA BE So eeseneiiieioiadderseienseneekeboo 47 Figure 28. Filter by Module (Department Page). Filter by Machine Type ( Machine Type Column). Input Proposed Max ( Proposed Max Column).
«e«ecxexesexeeve xii Figure 31. Input Proposed ROP (Proposed ROP Column) Figure 32. Input Proposed ROP (Proposed ROP Column) Figure 33. Provide Justification for Proposed Changes (Justification Column).
Submit ATK Change Request (If Applicable). Filter type of risk (Source: TEG-A E).----------~-===e=e====eeeeeeeesese 53 Fipure 357, DỌI THoner Daslibonid s2 222 c0 0550 ung 54 Figure 38. Read me - DOI Trigger on Dashboard.------2---====sezs<se=sesz+e 55 Figure 39.UZB/LDOI review results - WW202338. UZB/LDOI review results - WW202339.
UZB/LDOI review results - WW202340. UZB/LDOI review results - WW2023441.-----<----ee=s=zexreeezeex 56 Figure 43. Review results monitoring (WW202338 to WW202340). Building the Application using Power App Tool (Source: TEGT DEpiftiitD Sieieeneneninnnroiiriikoana r0 0100220202 59 Figure 45.
Interface of the VNAT Cost Eco System Application (Source: TEGT Pepe t immer) isssisicaccsccecotssce pice Se i Sa aac sca aT Eee 59 Figure 46. VNAT Cost Eco System: Cost Processes (Source: TEGT Department). All documents, guidelines of VNAT cost processes (Source: TEGT Department). VNAT Cost Eco System: Cost Stories.
VNAT Cost Eco System: Cost Wcbpages.«-------eee-eeeereeeerrreee 62 Figure 50. All dashboard used for controlling, ©OSt .-------«+-«=xe+e+xeessesxe 62 Figure 51. VNAT Cost Eco System: Request Pages. Request BO, ATK, xPOR, Purchasing.
BO Request - Request Ïist. BO Request - Create new BO request. BO Request - Edit Bo Request. BO Request - Dclete BO Request.
ATK Request - Request list.----c-sc--ccccceecerrrceeeeeerereeeeeeerrrre 65 Figure 58. ATK Request - Create new ATK RGRNICEE ssnsccsscccsassacosseresronscasxsnssnanssosonseraaed 66 Figure 59. ATK Request - Edit AT Ñequest.-s555s«secescseeesseereeereeseeereer 66 xiii Figure 60. ATK Request - Delete ATK Request.
5-2 ss=+e+zceeeszezzszeexxxl xiv TABLE OF CONTENT COMMENTS OF ADVISOR v COMMENTS OF REVIEWER vi DISCLAIMER Vii ACKNOWLEDGEMENTS ix LIST OF ABBREVIATION x LIST OF TABLES xi LIST OF FIGURES xii TABLE OF CONTENT xv INTRODUCTION 1 Le.nanonnnsserersesossncssnsnnnsunseonstnsneneenasewa snmcatonmreetionesoomenacepeesensonapesnepeononenseney 1 2 ODI ORTEVE Ỹẽã"". 2 3 Scope and object.ccccxscsscSckebiecikLssceiikasbsressekksdkeoesiu 2 5 Šr0cf0rE GỀ TEDOKE:-cccc6cccix6czcG222000006G12152401ã135G020442114264GGi2xxdAi4zsig02230142a06d,61S 3 CHAPTER 1: INTRODUCTION ABOUT INTEL PRODUCTS VIETNAM CO. General introduction about Intel Corporation.--------<«=eee=essezsexeese 5 BENT, TQ QfVENueeeesenmreessnsmensnestnbnstoreerrannrsroaenesssrsroeenseresessesee 5 11. l1, Tntel’s:vision ccna een il 11.5: IntelSemiissionsscscncscnccaess see HH V3.6: TRE SVAÏUĐSSGbiEtcciiiisieiieiiisasiivebiosueokelSossckosessoie i 1.
General introduction about Intel Products Vietnam (VNAT Factory). 13 V1: - (OGEVIGÍ(codceiitirdibikiiiiisiaidsbiidikeiesiilGEekkkiGieSdstdbenixgMeS6ESeslesolliasi 13 1. History and devclopmeni. — Vision and mission.-«---«-5--<5<55<svserereeerreeeeerrrerererereseeree 16 CHAPTER 2: LITERATURE REVIEW 17 2.
Literature review about digitalization 2. General concepts of digitali2ALGR. General concepts digitalization in business. Literature review about inventory management.
/Gefefl©oco©epHofoopnN ME. General concepts of supply chain management. General concepts of inventory managemet. --- << =<=z == 23 CHAPTER 3: ANALYSIS OF THE STATUS OF THE VNAT FACTORY IN THE INVENTORY MANAGEMENT AND METHODOLOGY DEPARTMENT.25 3:1: ‘Some terms; concepts at Intel asssssnncnie aaa 25 3.
The status ofrisk control in inventory management at Intel. TPi€Vious?Tbk coHHGÌSYNHcccecseijbeiiieiikeiiicbozaisiikkeoadaaseo 26 3. Current risk control syst€m.----«-s<<=c=c=c=ceceezrszsreresee 27 CHAPTER 4: PROPOSED SOLUTIONS FOR ENHANCED INVENTORY MANAGEMENT AT INTEL PRODUCTS VIETNAM CO.30 ASL», ESRIINOBIS CRIES orecaenesetiasindasnsencaaneasoioestatt tau voeensteonreveatentiesacdnnensareeasbehiesdteseinhons 30 4. _ Problem Statement ofthe UZB/LDOI Tracking Process.
Ideal state of the UZB/LDOI Tracking Process Control Project. Implementation plan for the UZB/LDOI Tracking Process Control PROPOSE -uscinniuoinoieddliididiossiesoldsodliii66x2sst30lá4394044GasstkaksctediseibesetstskteiksklC 33 4. — Finance plan for the UZB/LDOI Tracking Process Control Project. Process Review UJZ/1.DOI Parts (Hiph-risk parts) on system.
UZB/LDOI parts system (High — risk parts system). — Overview about UZ⁄2B/LDOI parts system. Parts Within TrPpPETSCODEG 20602020 ened 45 434. Review UZBILDOI cece ee 46 435.
Assessing Project Efficiency: A Four-Week Monitoring Review. — Evaluating User Compliance in Relation to thẻ Project. Limitations of the UZB/LDOI Tracking Process Control Projcct. Proposed Strategies for Overcoming Current Project L.
Overview about VNAT Cost Eco Sysf€m. Cost Webpages BSS. REQUES PASE wsscsinssncssssscscassssrcensnsscssscocsascstnssissashasesseinissbeccenssceesicasseceesess CONCLUSION 67 REFERENCES 68 xvii INTRODUCTION 1. 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.