MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT THE ROLE OF SUPPLIER MANAGEMENT IN QUALITY MANAGEMENT SYSTEM: A CASE STUDY OF TIPA- TOSHIBA LECTURER: MBA. HUYNH ANH TUAN STUDENT: NGUYEN THI HOANG MY SKL012790 Ho Chi Minh City, May, 2024 MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS THESIS TOPIC: THE ROLE OF SUPPLIER MANAGEMENT IN QUALITY MANAGEMENT SYSTEM: A CASE STUDY OF TIPA-TOSHIBA Student Name: NGUYEN THI HOANG MY Student ID: 20124151 Major: INDUSTRIAL MANAGEMENT Advisor: MBA. HUYNH ANH TUAN Ho Chi Minh city, May 2024 Public COMMENTS OF ADVISOR ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- HCMC, …. Advisor Page i COMMENTS OF REVIEWER ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- HCMC, ….
Reviewer Page ii ACKNOWLEDGEMENTS I extend my heartfelt appreciation to all the esteemed educators at the Faculty of Economics, Ho Chi Minh City University of Technology and Education, whose unwavering dedication to imparting knowledge has greatly enriched my academic journey. Their invaluable teachings have not only laid the groundwork for my thesis but have also equipped me with indispensable insights as I prepare to embark on my professional endeavors. A special note of gratitude goes to Mr. Huynh Anh Tuan, whose steadfast support and guidance have been instrumental in steering me towards the successful completion of my thesis.
His mentorship has been a source of inspiration and encouragement throughout this process. I am also profoundly grateful to Toshiba Industrial Products Asia Company Limited for affording me the opportunity to gain hands-on experience in a corporate setting. I would like to extend my heartfelt thanks to the Quality Assurance department for their unwavering support and for fostering a conducive working environment during my internship tenure. To all those who have contributed to my academic and professional growth, I offer my sincere appreciation and gratitude.
Student name Nguyen Thi Hoang My Page iii LIST OF ABBREVIATIONS Abbreviation Explanation CS Customer Service department DAX Data Analysis Expressions HEV Hybrid Electric Vehicle IEC International Electrotechnical Commission ISO International Organization for Standardization LVM Low Voltage Motor ME Manufacturing Engineer department MFG Manufacturing department NCP Non-conforming product NG Not Good PC Purchasing department PDCA Plan-Do-Check-Act PR Procurement department QA Quality Assurance QC Quality Control QMS Quality Management System QSHEMS Quality Safety Health Environment Management System TIC Toshiba International Corporation TIPA Toshiba Industrial Products Asia TIPS Toshiba Industrial Products and Systems Corporation Page iv LIST OF TABLES Table 1.1: The Basic Information about TIPA .1: Basic Symbols in Flowchart .1: The supplier selection and evaluation process .2: Supplier classification at TIPA .3: Current suppliers at TIPA .4: Suppliers with ISO certification .5: Supplier classification by Period group .6: The received material control process.7: The non-conforming product control process in the input process .8: The non-conforming product control process in the production process.9: Period division at TIPA .10: List of domestic suppliers belonging to Period group 23B .11: List of oversea suppliers belonging to Period group 23B .12: List of suppliers belonging to the Outstanding group. 44 Table 3 13: 5 Whys for manual supplier classification .14: Actual time for each step when using the old method .15: 5 Whys for Absence of Parent Supplier Evaluation.1: Filtering suppliers by group process .2: Details of the Power BI integrated project .3: Comparison of processing time between the two methods .4: 5 Whys for Motivation of Supplier Localization .5: Comparing parent supplier and alternative suppliers .6: Comparison of Benefits Between Parent Suppliers and Local Suppliers .7: The fundamental evaluation framework employed by the company .8: The factors are considered in relative frequency .9: Comparison table of company scores on a 3,90-point scale. 65 Page v LIST OF FIGURES Figure 1.1: Logo TIPA-Toshiba .2: The Front of Image about TIPA plant .3: The Organizational Structure of TIPA.4: Motor 3-phase high-efficiency electric motor used in industry.5: The Quality Management System manual at TIPA .6: The Functional Units in Quality Department at TIPA .1: Proposed framework on Sustainable Supplier Management .4: Deming’s PDCA for Process Control (1950s) .1: Supplier classification at TIPA .2: Supplier classification by Main-Sub type .3: Illustration of selecting suppliers by Outstanding group .4: Illustration of selecting suppliers by Outstanding group .6: Pareto chart of supplier group A .7: Pareto chart of supplier group B .8: Pareto chart of supplier group C .9: Pareto chart of supplier group D .10: Pareto chart of supplier group E .11: Assessment plan for suppliers in the Domestic Manufacturing group for period 23B .12: Assessment plan for suppliers in the Oversea Manufacturing group for period 23B.13: Illustrate how TIPA currently uses to find suppliers by group .14: Illustrate the error rate from parent suppliers .1: Tracking the steps in the Power BI integration project. 53 Page vi Figure 4.2: Illustrate the data migration .3: DAX used in Power BI .4: Illustrate the reporting results using Power BI .5: Comparing results from Power BI and Excel.
57 Page vii TABLE OF CONTENT COMMENTS OF ADVISOR. Page i LIST OF ABBREVIATIONS. Page iv LIST OF TABLES .Page v LIST OF FIGURES. Page vi TABLE OF CONTENT.
Page viii INTRODUCTION TO THE THESIS. Scope and object. Structure of thesis. 2 CHAPTER 1: INTRODUCTION ABOUT TIPA-TOSHIBA.
Toshiba's Formation and Development History. General Information about TIPA. The Product of TIPA. Introduction to the Quality Department at TIPA.
Quality Safety Heath Environment Management System. Quality Department at TIPA. The functions of the Quality Department. 11 CHAPTER 2: THEORETICAL OVERVIEW.
Quality Management System. The role of Supplier Management in Quality Management System. Key Principles of Effective Sustainable Supplier Management. 19 CHAPTER 3: ANALYSIS OF THE STATUS OF SUPPLIER MANAGEMENT AT TIPA-TOSHIBA.
Overview of Supplier Management at TIPA. Supplier Audit Process. Control of Incoming Products. Handling non-conformities product.
Current State of Supplier Management at TIPA. Assessing the advantages and limitations of Supplier Management at TIPA. 47 CHAPTER 4: PROPOSING AN INTEGRATED SOLUTION OF POWER BI AND SUPPLIER LOCALIZATION TO ENHANCE THE SUPPLIER MANAGEMENT SYSTEM AT TIPA-TOSHIBA. Integrating Power BI for Data Analysis.
Motivation for the solution. Benefits of Integrating with Power BI:. Implementing the solution. Motivation for the solution.
Benefits of Supplier localization. Implementing the solution. 72 Page x INTRODUCTION TO THE THESIS 1. Rationale In an increasingly competitive global market, manufacturing companies are facing relentless pressure to maintain and enhance their competitiveness.
To succeed in this challenging business environment, Supplier Management becomes incredibly important and strategic. As highlighted in studies by Humphreys et al. (2001) and Yeung & Chin (2004), Supplier Management is not just about sourcing, but also involves a range of complex activities such as supplier assessment and selection, monitoring supplier activities, and supplier certification. These activities not only ensure a reliable and quality supply source but also optimize cost and time efficiency in the supply chain.
The research by Trent & Monczka (1999) has indicated that supply quality plays a crucial role in influencing the quality of an organization's products, processes, and services. An unreliable supplier quality can lead to imbalances in input ratios in products, causing instability and uncertainty in the manufacturing process. Additionally, a supplier's ability to meet customer requirements also plays a significant role in the organization's success in the market. Therefore, mastering and optimizing the Supplier Management process is not only crucial for maintaining and enhancing the quality of products and services but also an effective way to strengthen competitiveness and achieve sustainable success in today's global market.
This is why the author chose the topic “THE ROLE OF SUPPLIER MANAGEMENT IN QUALITY MANAGEMENT SYSTEM: A CASE STUDY OF TIPA-TOSHIBA”. By conducting a detailed study on the role of Supplier Management in the Quality Management System at TIPA, the author hopes to gain deeper insights into how TIPA applies Supplier Management strategies to optimize its manufacturing and supply operations, thereby improving product quality, optimizing costs, and fostering sustainable market growth. Objectives o Researching TIPA's Supplier Management Process. o Analyzing and evaluating TIPA's Supplier Management Process.
o Proposing solutions to improve issues in TIPA's Supplier Management process. Scope and object Scope: The research focuses on the Supplier Management Process at Toshiba during period 23A: from April 1, 2023, to September 31, 2023. Object: To study the Supplier Management Process at the Quality Assurance department. Research methodology Qualitative research methods: The author conducts a literature review on Supplier Management theories and documents related to the Supplier Management Process at TIPA.
Subsequently, the author analyzes and discusses with internal staff and internal documents to understand how the company manages suppliers. Quantitative research methods: The author gathers data related to suppliers in TIPA's management process, with modifications made to ensure data security for the company. Using actual data to analyze the most comprehensive overview of the supplier evaluation process at TIPA. Structure of thesis The structure of the report consists of 4 chapters: Chapter 1: Introduction about TIPA-Toshiba Chapter 2: Theoretical overview Chapter 3: Analysis of the status of Supplier Management at TIPA-Toshiba Chapter 4: Proposing an integrated solution of Power BI and supplier localization to enhance the Supplier Management System at TIPA-Toshiba.
2 CHAPTER 1: INTRODUCTION ABOUT TIPA-TOSHIBA 1. Toshiba's Formation and Development History Figure 1.1: Logo TIPA-Toshiba (Sources: Company Website) Toshiba Corporation, a renowned Japanese company, manufactures electronics and computers for both consumer and business purposes. Its headquarters are located in Tokyo. Formed in 1939 through the merger of Tokyo Electric Company, Ltd.
and Shibaura Engineering Works, Ltd., it was initially known as Tokyo Shibaura Electric Company, Ltd. The company adopted its current name in 1978. Dating back to 1875, Shibaura's origins trace to inventor Tanaka Hisashige's factory, which focused on producing engines for ocean-going vessels. Mitsui Business Combine (zaibatsu) assumed control and transitioned into manufacturing powerful steam engines, then expanded into machine tools in the 1890s.
With Mitsui's backing, Tokyo Electric Light Company began producing electric lightbulbs with bamboo filaments in 1890. After World War II, the merged corporation severed ties with Mitsui due to the dissolution of the zaibatsu but reconnected in 1973. US General Electric Company had close ties with Toshiba's predecessor companies. In exchange for GE's assistance in modernizing Tokyo Electric's technology, the company granted General Electric an interest in 1907, leading to the mass production of Mazda electric lamps in Japan.
A similar agreement was signed with Shibaura in 1909, marking the significant introduction of Western technology into Japan. GE remains one of Toshiba's major shareholders. 3 Collaborating with Sony Corporation and International Business Machines Corporation (IBM), Toshiba developed the Cell Broadband Engine over four years starting in 2001. This advanced computer chip powers various products, including the Sony Playstation 3, Toshiba high-definition televisions, and IBM supercomputers.
Toshiba launched a line of notebook computers based on the Cell processor in 2008. Toshiba's product range includes laptops, high-definition televisions, DVD players, digital video recorders, printers, copiers, lighting products, surveillance systems, medical imaging equipment, and liquid crystal displays. Additionally, it manufactures industrial motors, electronics, and electricity production equipment. Numerous subsidiaries operate in foreign countries.
Business philosophy: “Committed to people, committed to the future”. General Information about TIPA Toshiba Industrial Products Asia Co., Ltd (referred to as TIPA) – a subsidiary of Toshiba Corporation in Vietnam – was established in 2008. The company's new factory aims to produce and export highly efficient industrial electric motors that meet global standards. Throughout Toshiba's 115-year history of developing and manufacturing electric industrial motors, it has consistently contributed to social development.
With the new factory and extensive experience operating in Vietnam, TIPA plays a crucial role in Toshiba Corporation's global manufacturing network. It works alongside TIPS in Japan and TIC in the US, manufacturing components essential for Toshiba's electric motors.