BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC SƯ PHẠM KỸ THUẬT THÀNH PHỐ HỒ CHÍ MINH GRADUATION THESIS INDUSTRIAL MANAGEMENT IMPROVING THE MANAGEMENT PROCESS TO OPTIMIZE SPARE PART COSTS AT BOSCH VIETNAM CO., LTD Lecturer: Ph. D NGUYEN KHAC HIEU Student Name : NGUYEN THI NGOC HAN ID student No : 15124017 S K L0 0 5 5 7 3 Tp. Hồ Chí Minh, July 2019 do an HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING GRADUATION THESIS IMPROVING THE MANAGEMENT PROCESS TO OPTIMIZE SPARE PART COSTS AT BOSCH VIETNAM CO., LTD Student Name : NGUYEN THI NGOC HAN ID student No : 15124017 School year : 2015 Major : INDUSTRIAL MANAGEMENT Lecturer : Ph. D NGUYEN KHAC HIEU Ho Chi Minh City, July 2019 i do an HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING H QUALITY TRAINING GRADUATION THESIS IMPROVING THE MANAGEMENT PROCESS TO OPTIMIZE SPARE PART COSTS AT BOSCH VIETNAM CO., LTD Student Name : NGUYEN THI NGOC HAN ID student No : 15124017 School year : 2015 Major : INDUSTRIAL MANAGEMENT Lecturer : Ph.
D NGUYEN KHAC HIEU Ho Chi Minh City, July 2019 ii do an THE SOCIALIST REPUBLIC OF VIET NAM Independence- Freedom-Happiness ******* Ho Chi Minh City, July 2019 GRADUATION THESIS OBJECTIVES Full name: Nguyen Thi Ngoc Han Student ID: 15124017 Major: Industrial management Class: 15124CL1 Lecturer: Ph.D Nguyen Khac Hieu Phone number: 0375042487 Start date: End date: 1. Subject: Improve the management process to optimize spare part costs at Bosch Vietnam Co. Initial data and documents: From TEF 4.2 department, LOG, Purchasing and website of Bosch Vietnam HcP - Plant 3. Content: Find out about the current spare part management procedures applied at Bosch HcP Plant, based on actual work during the internship and make suggestions to improve management activities spare part.
Product: Thesis Dean Faculty Instructor iii do an ACKNOWLEDGEMENTS First, I would like to express my deep gratitude to all teachers from the faculty of High quality training and Economics at Ho Chi Minh City university of Technology and Education who have devotedly taught us over the past 4 years. The knowledge as well as the skills that I have learned over the years will be a strong foundation for me to build my career path. I would like to express my deep gratitude to Mr. Nguyen Khac Hieu - Lecturer of Ho Chi Minh City University of Technical Education.
He has made good orientations and contributions to help me improve the topic in the best possible way. Furthermore, I would like to thanks Bosch Vietnam - HcP Plant, TEF4 department - for facilitating me to complete my internship at this company. In particular, I would like to express my sincere thank you Ms. Le Cam Tien for enthusiastically guiding me and helping me quickly integrate into the new environment.
In addition, I would also like to thanks Mr. Nguyen Phuc Tam, my buddy at Intel for his kindness to guide me to access more new software to support my work, give me some ideas to accomplish the thesis. Their knowledge supported me a lot to complete this essay. Once again, I would like to thank you all teachers and all alumni so much.
I wish everyone succeeds in life, wish Bosch Vietnam - HcP Plant and Bosch global will grow up. Student Name Nguyen Thi Ngoc Han iv do an DEFINITIONS AND ABBREVIATIONS LOG: Logistic department TEF: Technical function department ETC: Engineering Testing Current Product department FCM : Facility management department CTG: Account controlling department CP/PIR-VN : Purchasing department LOG-VN: Logistic department at RBVN office QMM: Quality department MFG: Manufacture department PM04: Maintain planning module in SAP of TEF PM: Plant manager HoD: Head of department T-code : Transaction code in SAP MRP: Material Requirement Planning RFQ: Request For Quotation R.P: Re-order Point MAZE: Maschinenersatzteile (machinery spare parts) PR: Purchasing Requisition PO: Purchase Order ZD: The defected part ZN: The repaired part ZI: The new part Active part : The part has been consumed for recent 01 year Slow moving part : The part hasn’t been consumed for recent 01 year v do an UC4 Job : Automatic Creation of purchase orders from Requisitions IFAO: List of non-mover items on Excel spare part analyze software Non-mover part : the part hasn’t been consumed for recent 4 year MIGO: update the status of part on system vi do an LIST OF TABLES Table 1. The function for department. Some misconceptions in spare part management.
Statistical safety level for spare part. Classifying spare part based on the usage level within 12 months. Flow chart for transfer over stock to overhaul purpose. 50 vii do an LIST OF FIGURES Figure 1.1: Shareholding and Voting Rights of shareholders in Robert Bosch GmbH .2: Business sectors in Bosch Group .3: Facts and figures about Bosch in Vietnam 2017 .4: HcP Plant in Long Thanh-Dong Nai.5: Push belt - a product in HcP .1: Flow chart of creation new part process .2: Flow chart of Order Process .3: Order process for Overhaul and End-user .4: Process flow chart for non-mover control .5: Process for New part return at Bosch .6: Reasons for returning spare parts from PM team .7: Spare part cannot found information in system compare to new parts request return (1 Jan to 13 Mar, 2019) .8: Quantity and Cost of parts lost .9: Fish bone diagram to find out reasons for parts lost .1: The return area of spare part staff .2: Sample of new part return label in system (up to date 3/2019) .3: Labels in real which were filled information by technicians .4: No label was stuck as the process .5: Interface of WH app (Available spare parts) .6: Operation principles for update part by using WH parts app .7: Interface for WH app (Set up new part) .8: The return area of spare part staff after improvement .9: Interface for History Data App .74 viii do an Figure 4.10: Procedure recording spare part history status.11: Procedure order spare part from History Data App .12: Procedure return spare part from History Data App .78 ix do an TABLE OF CONTENTS ACKNOWLEDGEMENTS.
iv DEFINITIONS AND ABBREVIATIONS. v LIST OF TABLES. vii LIST OF FIGURES. Reason to choose the topic.
Some objectives in this research. The meaning of the topic. 3 CHAPTER 1: OVERVIEW OF BOSCH VIETNAM LIMITED COMPANY – HCP PLANT. The process of formation and development.
Milestones in company history. Bosch business section:. The process of formation and development. Product and consumer market at HcP.
17 CHAPTER 2: THEORETICAL FRAMEWORK. General about inventory management. Inventory management type. Inventory management control.
Spare part management. Type of spare part. Classification of maintenance spares. Classification of maintenance spares based on the nature of the spare.
Classification of maintenance spares according to their consumption. Life cycle of spare part. Spare part inventory. Myths about spare parts management program.
Spare part management and other system. Benefits of spare part management. Cost control for spare part: role of maintenance. Three ways to improve maintenance spare part management.
What is barcode?. What is the function of barcode scanning?. How barcode works?. 34 xi do an 2.
What is SQL?. What is the main role of SQL?. 35 CHAPTER 3: THE SPARE PARTS MANAGEMENT PROCEDURE AT BOSCH VIETNAM. The responsibilities of spare parts management procedure.
Some processes related to tasks in internship period. Creation of a New Spare Part. Figure Part Creation Flow Chart. General comments on the process from actual observation:.
Some good points:. Figure Part Creation Flow Chart. General comments on the process based on actual observation:. Optimization and Modification of MRP spare part details.
General comments on the process based on actual observation. 52 xii do an 3. Status of daily internship related to processes. 52 CHAPTER 4: EVALUATIONS AND RECOMMENDATIONS.
Some evaluations from practical observation. Some suggested solutions. Improve the management procedure base on available resources. Develop management application.
82 xiii do an INTRODUCTION 1. Reason to choose the topic With the orientation of industrialization, modernization and trade agreements that Vietnam has signed, there are countless opportunities as well as attracting many foreign investors to Vietnam. Many multinational corporations open branches with representative offices in Vietnam or invest billions of euros in Vietnam. In which, Bosch Group has built the largest factory of CVT belts (continuously variable transmission) in Long Thanh Industrial Park, Dong Nai with the name HcP (Ho Chi Minh Plant), and another factory is located in Tilburg, Netherlands.
In addition to technology transfer as well as product creation process, in Vietnam, HcP has built the management process by itself due to the positioning of enterprises and the economic environment of Vietnam, HcP. There are always improvements to optimize resources. With technology characteristics, HcP products are undergoing a series of complicated processes as well as many different types of machines are able to produce push belts that meet the standards committed to customers. However, in order to be able to run the machine smoothly, effectively, preventive maintenance or corrective maintenance requires both maintenance engineers, spare parts management teams and stakeholders to cooperate closely, so there are the need of improvements in the management process to meet the right time, sufficient spare parts for machines, make sure to follow the maintenance plan, avoid stopping machines to affect the production plan.
Recognizing the importance of spare parts management which influence the operation of the machines in particular and the efficiency of the whole plant in general, I implemented the topic of internship “Improving the management process to optimize spare part costs at Bosch Vietnam Co. Some objectives in this research General objective: - Evaluation and analysis of processes related to spare parts management. 1 do an - Based on practical observations and knowledge to provide solutions that help limit purchase order late and minimize the amount of spare part lost. Detail objectives: - Systematizing knowledge related to inventory management.
- Synthesizing, analyzing, evaluating factors affecting ordering decisions, managing inventory. - Determining the causes of difficulties in managing spare parts in stock. -Through the actual situation, come up with innovative solutions to minimize the problems that the factory is facing. - Building spare part management apps basically base on Visual Studio 2017 platform.
Research scope Research subjects: - Processes and activities related to managing spare parts at Bosch Vietnam. - Order and return spare part process among of stakeholders. Research scope: - HcP-Dong Nai factory: TEF workshop, temporary part of Spare part team and LOG 105. - Research period: within the period from December 10th, 2018 - March 15th, 2019.
Research Methods Data collection method - Secondary information source: + Consult documents (books, newspapers and Internet) to find out about products and orientation of the company. + Refer to information, essays on the Internet as well as in HCMUTE’s library. + Refer to documents related to spare parts management process of HcP. - Primary information source: + Observe the actual situation at enterprises through internship activities.
2 do an Methods of data analysis - Sampling method, synthesizing, descriptive statistics the amount of parts required to return by team PM - The comparison method records between the amount of spare parts which required return from the spare part team and the updated information from LOG. - Statistical methods are applied to statistically, record the delayed order status compared with the customer's confirm date for overhaul maintenance plan.