MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING CAPSTONE PROJECT INDUSTRIAL MANAGEMENT INCREASE OUTPUT BY IMPROVING OEE IN AN AUTOMATIVE COMPONENT PRODUCTION LINE: A CASE OF BOSCH VIETNAM LECTURER: NGUYEN THI ANH TUYET, PhD. STUDENT : HA THI NGOC ANH SKL010203 Ho Chi Minh City, 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING THESIS INCREASE OUTPUT BY IMPROVING OEE IN AN AUTOMATIVE COMPONENT PRODUCTION LINE: A CASE OF BOSCH VIETNAM HA THI NGOC ANH Student ID: 19124002 Major: INDUSTRIAL MANAGEMENT Advisor: NGUYEN THI ANH TUYET, PhD. HO CHI MINH CITY, 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING THESIS INCREASE OUTPUT BY IMPROVING OEE IN AN AUTOMATIVE COMPONENT PRODUCTION LINE: A CASE OF BOSCH VIETNAM HA THI NGOC ANH Student ID: 19124002 Major: INDUSTRIAL MANAGEMENT Advisor: NGUYEN THI ANH TUYET, PhD. HO CHI MINH CITY, 2023 COMMENTS OF ADVISOR ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, May 4, 2023 Advisor i COMMENTS OF REVIEWER ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, May 4, 2023 Reviewer ii ACKNOWLEDGEMENTS First and foremost, I am grateful for the help and assistance from the Faculty of High Quality, along with the guidance from my advisor Mrs.
Nguyen Thi Anh Tuyet. Working with such a caring and professional individual like you has been my honor. I would like to express my sincere gratitude toward my parents and friends for your unconditional support during my journey at HCMC University of Technology and Education. I would not have made it this far without your kind words and hours of everyone effort.
Finally, I want to express great sincerity to the people at BOSCH – my internship company for allowing me to learn so much and meet a lot of great seniors. Thanks to MSE1 and my Buddy for letting me participate in so many projects that help enrich my knowledge and skill in a professional environment. HCMC, May 4, 2023 Student name Ha Thi Ngoc Anh iii LIST OF ABBREVIATION Abbreviation Explanation DMAIC Define – Measure – Analyse – Improve – Control FGD Focus group discussion FMEA Failure Mode and Effects Analysis FTA Failure tree analysis HMI Human-Machine Interface LPC Limited Production Certification OEE Overall Equipment Effectiveness POT Plant operating time TPM Total productive maintenance VOC Voice of customer WI Work Instruction WIP Work in process iv LIST OF TABLES Table 2. 1 Related research works.
1 OEE and Cycle time of each process. 1 The OEE breakdown in January 2023. 2 Downtime by Availability loss activities in January. 3 Quality scrap goods in January.
4 Solution for Step Control Sensor issues. 5 Solution for Tool safety issues. 6 Solution for Oil leakage issues. 7 Solution for Damage Ejector issues.
8 Status of Action plan by 10. 9 Process Control Plan. 64 v LIST OF FIGURES Figure 1. 3 Flowchart of thesis methodology.
4 PDCA cycle Gantt chart. 1 Bosch customer demand. 2 MSE1 Customer’s demand vs. 3 Process flow to produce the element.
4 Cycle time & OEE index in every process. 1 Fine Blanking process. 2 Phases of tool inside machine. 3 Fine blanking machine.
4 Target setting for each factor. 5 Quality (%) in January. 6 Availability (%) in January. 7 Availability’s loss Pareto chart.
8 Human-Machine Interface. 9 Failure tree analysis for Step Control Sensor issues. 10 Fine blanking tool. 11 Failure tree analysis for Tool safety issues.
12 Fine blanking tool. 14 Failure tree analysis for Oil leakage issues. 15 Quality's loss Pareto chart. 16 Element with Break out issues.
17 Critical / Functional part in side tool. 19 Failure tree analysis for Break out issues. 20 The Element with Damage Ejector issues. 21 Critical / Functional part in side tool.
22 Failure tree analysis for Damage Ejector issues. 23 Failure tree analysis for Stuck conveyor Fine Blanking issues. 25 Monthly OEE comparison. 26 Fine Blanking OEE Index in March 2023.
27 Availability loss before and after improvement. 28 Quality loss before and after improvement. 63 vii TABLE OF CONTENT LIST OF ABBREVIATION.iv LIST OF TABLES. v LIST OF FIGURES .vi TABLE OF CONTENT.
viii INTRODUCTION TO THE REPORT. Scope and object. Structure of the report. 2 CHAPTER 1: INTRODUCTION TO BOSCH VIETNAM CO.1 Overview of Bosch Vietnam Co.2 Company history and development .3 Organization chart of the company .4 Field of activity.
9 CHAPTER 2: LITERATURE REVIEW.2 Cycle time definition.5 Previous related research works.6 The gap between previous research results and current situation. 28 CHAPTER 3: REALITY OF AN AUTOMATIVE COMPONENT PRODUCTION LINE IN BOSCH VIETNAM .1 Current situation at a manufacturing. 36 CHAPTER 4: SOLUTION TO INCREASE OUTPUT BY IMPROVING OEE IN AUTOMATIVE COMPONENT PRODUCTION LINE. 1 Define the improvement element in OEE’s factor.
2 Fine blanking process. 2 Quality loss list. 3 Analyse and Improve. 75 x INTRODUCTION TO THE REPORT 1.
Rationale In the present era, the demand for using automobiles is increasing, especially in large cities and countries with developed economies (Williamson, 2006). Accompanying this development is the demand for automotive components to manufacture, repair, and maintain various types of cars. According to the Global Automotive Component Market Report, the demand for automotive components is expected to continue to increase in the coming years due to the growth of the automotive market and the development of automotive industrial zones worldwide (Chiarini, 2015). Increasing market demand for a wider variety of products, combined with customers' increasing demand for high-quality products delivered on time, has forced manufacturing firms to produce and deliver quality products without fail.
Therefore, manufacturing firms work enthusiastically to maintain their market position against competitors. Due to the increased level of competition, manufacturing firms are under constant pressure to improve the performance of their operations. Bosch is no exception. As one of the leading suppliers of automotive components, it continuously improves its production lines by enhancing the efficiency of the manufacturing process to meet customer demands.
The author chooses the topic: “Increase output by improving OEE in an automotive component production line.” That aims to improve the OEE of the production line and increase output to meet customer demand. Objective As stated above, this study applies the DMAIC method to improve the OEE of production lines, increasing output and meeting customer needs. The specific objectives of this thesis are: 1. Review theories related to OEE and DMAIC improvement tool 2.
Analysis of the current situation of the production line to define the bottleneck 3. Improve OEE by applying the DMAIC method to solve the problem that happens at the bottleneck 3. Scope and object - Scope: * Space: MSE1 Department of Bosch Vietnam Co. Long Thanh Industrial Park, Tam An Commune, Long Thanh District, Dong Nai Province, Vietnam * Time: The study was conducted over a period of 3 months, from January 2023 to March 2023 * Object: The Element production line 04 in MSE1 department at the Bosch Vietnam Co.
Research methodology In the research, the author used both qualitative and quantitative research methods. The qualitative research method was used to collect information about the problems that influence the production process and limit the OEE index, affecting the output. Qualitative research used interview methods (focus group discussion) to gather opinions from operators, engineers, and production experts about the problems and ways to address them. These interviews provided the author with an in-depth understanding of the current state of the production line and the issues that the factory is facing.
The quantitative research method was used to measure the influence of production problems on the OEE index and propose improvement solutions. To do this, the author used statistical techniques to analyze the collected data, assess the impact of production problems on the OEE index, and propose improvement solutions. Combining qualitative and quantitative research methods in the study of increasing output by improving the OEE index of the production line will ensure the accuracy and feasibility of the research results. Qualitative research helps the author better understand the current state of the production line.
In contrast quantitative research helps to evaluate the impact of production factors on the OEE index and propose improvement solutions. Structure of the report The expected structure of the thesis includes four main chapters and a conclusion section. • Chapter 1: Introduction to Bosch Vietnam Co., Ltd 2 • Chapter 2: Literature Review • Chapter 3: Reality of an automotive component production line at Bosch Vietnam Co., Ltd • Chapter 4: Solution to increase output by improving OEE in Automotive component production line • Conclusion 3 CHAPTER 1: INTRODUCTION TO BOSCH VIETNAM CO., LTD In this chapter, the author will introduce the Bosch Vietnam Co., Ltd overview such as name, address, logo, product, vision, mission, core value, competitor, strategy, etc. So that readers can look at the company and research object of this thesis.1 Overview of Bosch Vietnam Co., Ltd According to information collected from the website of Bosch Vietnam Co., Ltd - Bosch Vietnam Co., Ltd is manufacturing with head office at the Ho Chi Minh City plant (HcP) in Dong Nai Province - Address: Road No.
8, Long Thanh Industrial Park, Tam An Commune, Long Thanh District, Dong Nai Province, Vietnam - Company’s logo: Figure 1. 1 Bosch’s logo Source: https://www.com - Product of Bosch (HcP): Pushbelt Figure 1. 2 Pushbelt Source: https://www.com 4 The push belt comprises hundreds of specially designed steel elements strung together along two high-alloy steel loop packs. By varying the number of loops in the packs and the width of the steel elements, the push belt can be adjusted to the power required.
CVT with push belt can be found in various micro, mild, and full hybrid configurations, with benefits in comfort and fuel economy; one example is DH-CVT (The dedicated hybrid continuously variable transmission). A multi-speed solution with push belt CVT for electric vehicles allowing electronic components downscaling and improved efficiency and performance. - Product of MSE1: Element Front View head pin head notch ear pillar radius saddle-flank roll over right* left* leg height long saddle shape body body notch flank angle leg Figure 1. 3 Element Source: MSE1 department of Bosch Vietnam Co., Ltd - Vision: The vision of Bosch Vietnam Co., Ltd is to be a leading supplier of innovative technology and solutions in Vietnam and the ASEAN region.
The company aims to achieve sustainable growth by delivering high-quality products and services that meet the needs of its customers and contribute to the development of society and the environment. 5 - Mission: Bosch is motivated by the desire to develop products that are “Invented for life,” that spark enthusiasm, improve quality of life, and help conserve natural resources. The “We are Bosch” mission statement reflects this. It summarizes the values, strengths, and strategic orientation of Bosch.
- Core value: Bosch Vietnam Co., Ltd is guided by core values that shape its culture, behavior, and decision-making. These core values are: Customer focus: The company puts the needs and expectations of its customers at the center of everything it does, striving to exceed their expectations and deliver value to them. Innovation: Bosch Vietnam Co., Ltd encourages innovation and creativity, continuously seeking new and better ways to improve its products, services, and processes. Sustainability: The company is committed to sustainability and takes responsibility for minimizing its environmental impact and contributing to the sustainable development of society.
Teamwork and respect: Bosch Vietnam Co., Ltd fosters a culture of collaboration and respect, recognizing that diversity and teamwork are essential to achieving its goals and objectives.