MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS GRADUATION THESIS TOPIC: ANALYZING THE KAIZEN EVENT APPLICATION IN DIRECT MATERIAL MANAGEMENT AT INTEL PRODUCTS VIETNAM CO. Student : Hoang Khanh Linh ID : 17124172 Course : 2017 Major : Industrial Management Instructor : MBA Huynh Anh Tuan Ho Chi Minh City, August 2020 THANKFUL LETTER Firstly, I would like to express my sincere thanks to all teachers working at the faculty of Economics because of your great efforts in teaching, training, building up a strong knowledge foundation for students. I firmly believe that the knowledge, experiences, and skills that I have learned here will be very valuable and useful for my career path when I graduate in the future. Secondly, giving my sincere thanks to my instructor Mr.
Huynh Anh Tuan who instructs, guides me enthusiastically. He has driven me to the right way, given me motivation, and a chance to recognize not only problems but also solution identifications that help me to complete my graduate thesis. Thirdly, I would like to express my deep thanks to the manager departments of Intel Products Vietnam Co., for giving me the opportunity and favorable conditions to work, study and experience in a professional international environment. The experiences that I have at Intel will give me many advantages in my future work.
Finally, I would like to express my sincere thanks to my manager Mr. Nguyen Thai Huy, my buddy Ms. Trinh Casey Mai Suong, Mr. Tran Cong Khanh, Mr.
Pham Dinh Lam Giang, and other colleagues at MI MFG department who helped, guided, gave me practical insight and necessary documents during the internship and implementation of this graduation thesis. During the internship as well as the graduate thesis, I may have small mistakes due to limited pieces of knowledge and skills, I hope to have my teachers and company idea contributions to improve myself. Once again, I would like to send my sincere thanks and wishes for health, success, happiness to all of you guys HCMC, date …month…year…… Student Hoang Khanh Linh Page iii LIST OF ACRONYMS ACRONYMS EXPLANATION IPV Intel Product Vietnam EPX Type of material (Epoxy) FOL Front of line RIL Rapid Integrated Lean PM Preventive Maintenance SC Station Controller SLI Single Lot Number MT Manufacturing Technician IW Intel Warehouse MFG Manufacturing AE Assembly Engineer DMR Direct Material Room DMRA Direct Material Replenishment Automation PDCA Plan-Do-Check-Act DO Direct Observation VA/NVA Value Added/ Non-Value Added ATM Assembly-Test-Manufacturing VNAT Vietnam Assembly & Test OS2 Organizer Specialist Sup Supervisor Page iv LIST OF TABLES Table 2.1: Seven Quality Tools .1: Roles and responsibility .3: Define role and responsibility .3: Total lots counted on system .5: The changes in the consume of units before and after using new process. 61 Page v LIST OF FIGURES Figure 1.2: Intel Products Vietnam .3: Intel Products Vietnam Organization .4: CPU Haswell Core i5 was assembled and tested in Vietnam .6: The Process of Substrate .7: Some components of a chip .8: Example of the indirect material .1: Deming’s wheel PDCA.1: The RIL event flow .2: High level flow of EPX.3: Epoxy fishbone analysis .4: Current State Map .5: Future State map .6: the differences between before & after applying new process .7: the diagram of differences between before & after applying new standard .8: Freerzer EPXS phase 2-10k before and after RIL .10: Team member in EPX Saving RIL .2: Ordering material process .4: A hole in MBB of substrate bundle .5: small lot and expired day .8: New substrate control process .9: waste in DMR .11: The comparison between the difference before and after using new process.
62 Page vi TABLE OF CONTENTS THE INSTRUCTOR’S COMMENTS .i THE REVIEWER’S COMMENTS. ii THANKFUL LETTER. iii LIST OF ACRONYMS .iv LIST OF TABLES. v LIST OF FIGURES .vi TABLE OF CONTENTS.
Reason for subject selection. Objectives of the research. Subject and scope of research. The structure of the research.
3 CHAPTER 1: INTRODUCTION OF INTEL PRODUCTS VIETNAM CO.1 General introduction about Intel Corporation.2 General introduction about Intel Products Vietnam.2 History and development .3 Vision and Mission .4 Scope of activities .3 Direct Material Room Overview. 12 CHAPTER 2: THEORETICAL BASIC .3 The Kaizen concept .4 The Kaizen Event .1 The Kaizen Event definition .2 Purpose of the Kaizen Event .3 Four phases of the Kaizen Event. 28 CHAPTER 3: ANALYSIS OF THE KAIZEN EVENT APPLICATION IN THE DIRECT MATERIAL MANAGEMENT AT INTEL PRODUCTS VIETNAM.1 The real state of Kaizen application at Intel Products Vietnam .1 Four phases of a Kaizen event at Intel .2 Basic Kaizen Event flow at Intel:. Encouraging the employee to do Kaizen Event together.2 Analysis of Kaizen Event application in Direct Material Management at Intel Products Vietnam.1 Apply Kaizen Event model through the RIL event in VNAT.2 VNAT RIL for Phase 2 10K CNLUSFF syringes material saving.3 The Limitations in the Kaizen Event implementation process.
46 CHAPTER 4: PROPOSING THE APPLICATION OF KAIZEN EVENT IN SUBSTRATE PROCESS CONTROL FOR DIRECT MATERIAL MANAGEMENT AT INTEL PRODUCTS VIETNAM .1 Substrate Control Process Improvement .1 Material ordering and receiving process in VNAT .3 Find Out Solution.4 Estimated Flow of Implementing Kaizen for substrate control process .5 Estimating the effectiveness of the countermeasures .2 Some solutions to decrease limitations of the Kaizen Event at VNAT. 63 LIST OF REFERENCES. 67 Page viii INTRODUCTION 1. Reason for subject selection Nowadays, thanks to the rapid development of technology, the world increases profound changes in all fields from business, production to management, from trade to agriculture at rapid speed and makes us feel amazed.
Started in 1970 when electronics were the first introduced, opened the door to a transformation of business processes and production systems, until 1990 when the official Internet appearance, the degree of spreading and creating a strong influence on the industrial revolution 4. Technologies such as cloud computing, IoT-Internet of things, AI-Artificial Intelligence, AR/VR- Virtual Reality/Augmented Reality, Big Data, Wi-Fi, Block chain, Nanotechnology,. meet the expectations of users by interdisciplinary and bringing people a better life. The explosion of technology cannot help to mention the great contribution of the smart chip.
Realizing the potential of data as well as technology is fertile ground for huge profits, the races in smart chip production are increasingly fierce among the tech tycoons. This shows that the technology market is fiercely competitive, in addition to some factors such as people, products, prices, ., quality is also an important factor associated with existence, development, and the success of an organization. According to Barbara B. Flynn (1994), quality management is first viewed as an element of the integrated approach known as World Class Manufacturing; quality management supports and is supported by JIT, human resources management, top management support, technology management and strategic management and include Material Management.
With the ambition to be more successful, the name and the product of an enterprise must meet the criteria that customers expect, which is called quality. If we want to have quality products in the output, we must ensure the quality materials in the input, controlling the quality of the input materials, improvements should be executed to improve the efficiency index of productivity, time, and machinery to eliminate the waste generated from the early stages of production to optimize resources. As mentioned above, the famous and powerful businesses such as Intel, Qualcomm, and Nvidia, Amazon, Google are interested in data mining through the invention of super- smart chips to gradually dominate the market share, take the competitive advantage of Page 1 the leader, they try to get ahead in the race to create top-of-the-line artificial intelligence technology, these chips starting to become more important than ever. The chips go through many stages, from the preparation of materials to assembly to the packaging of finished products, each stage has its quality assurance and control processes to ensure that after the chip is produced, they can work well and release on time to give the company a competitive advantage.
It requires Intel Products Vietnam Co. to control input materials strictly so that the manufacturing process is operating behind smoother. In addition, in the process of managing raw materials on the floor, Intel has also applied the Kaizen event and tools to support the Lean implementation, bringing efficiency to the management of materials at the company. Recognizing the importance of quality and the outstanding benefits of implementing Kaizen event for the management of raw materials for product manufacturing, as an intern at Intel Products Vietnam Co., along with the experience and knowledge learned at Ho Chi Minh City University of Technology and Education, I chose the topic "Analyzing The Kaizen Event Application in Direct Material Management at Intel Products Vietnam Co., Ltd " to deploy the graduation thesis.
Objectives of the research - Researching in the current status of Material management at Intel Products Vietnam Co. - Researching and analyzing the Kaizen Event application in the direct material management process. - Proposing a solution to improve the application of Kaizen Event in the direct material management process for substrate. Subject and scope of research - Research subject: The Kaizen event implementation to improve direct material management process.
- Scope of research: About time: Research on Kaizen event direct material management process from March 2020 to October 2020 Page 2 About space: Researching within the workshop of Intel Products Vietnam Co. Research Methodology During the internship and thesis research, I mainly use a combination of the following methods: - Collecting secondary data: open data is available to use from companies, written documents, diagrams, information on portals related to material management and Kaizen event implementation. Then I started to synthesize information, analyze the data, make an objective evaluation. - Collecting primary data: during the internship, I can observe the management process and directly implement some elements of the management process, thereby collecting useful data or backlog that needs to be dealt with.
In addition, there are some forms of collection such as consulting with buddies, interviewing CW and related departments for more data. The structure of the research - Chapter 1: The Introduction of Intel Products Vietnam Co. - Chapter 2: Theoretical Basic - Chapter 3: Analysis of The Kaizen Event Application in The Direct Material Management at Intel Products Vietnam. - Chapter 4: Proposing The Application of Kaizen Event in Substrate Process Control for Direct Material Management at Intel Products Vietnam.
Page 3 CHAPTER 1: INTRODUCTION OF INTEL PRODUCTS VIETNAM CO.1 General introduction about Intel Corporation. Intel Corporation was established on July 18, 1968 by Robert Noyce and Gordon Moore who pioneered the design of semiconductor. Intel Corporation is an American multinational corporation and technology company and has the main office in Santa Clara, California, in Silicon Valley. Intel is a combination of the words "Integrated" and "Electronic" Figure 1.1: Intel logo Source: Internet Intel has a long history of development, starting in 1971 when the first microprocessor was created, and this event began a technological revolution and historic inventions, still now, Intel has invented technology products, chips, and microprocessors that follow to Moore's law, Wikipedia, "It refers to Moore’s perception that the number of transistors on a microchip doubles every two years, though the cost of computers is halved." Intel focuses on exploiting primary and unprocessed data, and data has great potential for developing breakthrough technologies.
Data has emerged as a transformational force in an era where an explosion of devices permeate all our interactions, but data only has value when it can be turned into actionable insights. In addition, the increase in value of data is inseparably linked to three tech inflections happening today – AI, 5G’s transformation of the network, the growth of the intelligent edge. Organizations who can elevate these inflection points and push up actionable insights will lead the ways people can shape the world.
