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MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING GRADUATION PROJECT INDUSTRIAL MANAGEMENT IMPROVING PROCESS TO REDUCE INDIRECT MATERIAL CONSUMPTION IN ASSEMBLING LINE A CASE STUDY AT INTEL PRODUCTS VIETNAM CO.,LTD SUPERVISOR: MASTER NGUYEN THI ANH VAN STUDENT: NGUYEN KIM NGOC TRAM SKL008223 Ho Chi Minh City, April, 2021 MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF HIGH QUALITY TRAINING GRADUATION THESIS TOPIC: IMPROVING PROCESS TO REDUCE INDIRECT MATERIAL CONSUMPTION IN ASSEMBLING LINE A CASE STUDY AT INTEL PRODUCTS VIETNAM CO., LTD Student name : NGUYEN KIM NGOC TRAM Student’s ID : 17124113 Class of : 2017 Major : INDUSTRIAL MANAGEMENT Instructor : Master NGUYEN THI ANH VAN Ho Chi Minh City, April, 2021 EVALUATION OF INSTRUCTOR Ho Chi Minh City,………………2021 Instructor Page i EVALUATION OF REVIEW LECTURER Ho Chi Minh City,………………2021 Reviewer Lecturer Page ii ACKNOWLEDGEMENT Firstly, as a student of the Faculty of Economics of Ho Chi Minh University of Technology and Education, I would like to thank all the lectures in here, they have always been enthusiastic in teaching knowledge and sharing value experiences to students Secondly, I want to thank honestly to my instructor – Nguyen Thi Anh Van for giving me a lot of meaningful advice during the research and her enthusiastic support for me to complete this thesis well As my knowledge is restricted, this thesis cannot avoid mistakes, I hope all of you to be willing to give me your comments as well as recommendations to improve better Thirdly, I would like to express sincere thanks to Intel Products Vietnam Co., Ltd for giving me the chance to complete the internship successfully This was my pleasure to support the MSE team and the manufacturing department and accumulate knowledge also improve skills Especially, I want to thank my instructor – Mrs Do Tuyen, MSE Manager, who always patiently instructed me and gave me helpful advice on my career orientation in Manufacturing field I want to thank Mr Nguyen Hoang Chuong, Control MSE Tech, who always helped and supported me enthusiastically Finally, I want to express my gratitude to my family, they are always a strong mental motivation for me to overcome all difficulties and support me to pursue future career path Ho Chi Minh City, 1st April 2021 Student Nguyen Kim Ngoc Tram Page iii 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 ABSTRACT There appears to be a great risk for businesses posed by the Covid-19 pandemic This urges manufacturing companies to save production cost to strengthen their businesses This study was conducted at Intel Products Vietnam to help the company to save its indirect material cost in assembling line Applying PDCA as the main approach, this study went through phases of the methodology to identify root causes and then carry out countermeasure actions to address the problem Finally, new process was proposed which helped to reduce 50% of indirect material per lot compared to old process Moreover, there is opportunity for the result of this study to be proliferated to other product platforms as well as other factories in Intel’s factory network Readers could find this study as a helpful lesson for conducting process improvement project under the abnormal time due to the pandemic Page iv 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 LIST OF ACRONYMS Acronyms The meaning of acronyms IDM Indirect Material IDM MSE Indirect Material Manufacturing Engineer CAM Chip Attach module BAM Ball Attach module ATM Assembly and Test Manufacturing VNAT Vietnam Assembly and Test VF Virtual Factory MI Manufacturing Integrator IPN Intel Part Number CT Cycle time MMS Manufacturing Management System Page v 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 System 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 LIST OF FIGURES Figure 0.1: Coupon consumption across product families Figure 0.2: Thesis process flow (self-design) Figure 1.1: Intel Products Vietnam Co., Ltd Figure 1.2 Intel evolution logo Figure 1.3 System-on-Chip products group (Intel Corporation, n.d.) 11 Figure 2.1: Summary content of chapter 15 Figure 2.2: MIBI model for business process improvement, adapted from (Adesola & Baines, 2005) 16 Figure 2.4: Steps of benchmarking process, adapted from (Dragolea & Cotirlea, 2009) 18 Figure 2.5: Radar matrix cycle as a methodology of EFQM Excellence model, adapted from (Sokovic, Pavletic, & Pipan, 2010) 19 Figure 6: PDCA cycle & DMAIC models, adapted from (Sokovic, Pavletic, & Pipan, 2010) 21 Figure 3.6: Overall assembly and test process flow 32 Figure 3.7: Process flow, container flow and coupon flow summary (self-synthesis) 36 Figure 3.8: Coupon states 36 Figure 3.9: Both sides of new coupon 37 Figure 4.3: Substrate (left) & coupon (right) with highlighted areas upon which epoxy machine would capture to identify 58 Figure 4.4: Substrate (left) & coupon (right) under capturing window view 58 Figure 4.5: Old coupon design (left) and proposal coupon design with label shifting down millimeter (right) 59 Page vi 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 LIST OF TABLES Table 2.2: Comparison table between different methodologies 26 Table 2.3: Successful cases of implementing PDCA approach in manufacturing industry 27 Table 2.4: Example of 5W1H as improvement determinations adopted from (Sunadi, Purba, & Hasibuan, 202) 30 Table 4.1: Team members 41 Table 4.2: Expectations of stakeholders from the project 43 Table 4.3: Key metrics to monitor 44 Table 4.4: Percentage of coupon usage causing by partial carrier and defect unit to total output of Mobile product (data from the start of 2021 to 26th April 2021) 45 Table 4.5: SIPOC map of assembly process 46 Table 4.6: 5W1H analysis for Lot size factor 51 Table 4.7: 5W1H analysis for reusing coupon practice 52 Table 4.8: Current state of coupon usage per lot for lot size 1680 55 Table 4.9: Scenarios of coupons needed when changing lot size 56 Table 4.10: Result of improvement plan after months of execution 60 Page vii 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 TABLE OF CONTENTS EVALUATION OF INSTRUCTOR i EVALUATION OF REVIEW LECTURER ii ABSTRACT iv LIST OF ACRONYMS v LIST OF FIGURES vi LIST OF TABLES vii TABLE OF CONTENTS viii INTRODUCTION 1 Rationale of the topic Objectives of the study 3 Scope of the study 4 Significance of the study Research method Structure of the study Thesis process CHAPTER 1: GENERAL INTRODUCTION ABOUT INTEL PRODUCTS VIETNAM CO., LTD 1.1 Intel Corporation 1.1.1 Preliminary introduction about Intel Products Vietnam Co., Ltd 1.1.2 History of formation and development of Intel Products Vietnam Co., Ltd 1.2.3 Vision and mission of Intel Products Vietnam Co., Ltd 1.2.4 Business strategy of Intel Products Vietnam Co., Ltd 1.2.5 Main products of Intel Products Vietnam Co., Ltd 10 1.2 Introduction the Manufacturing department 12 1.2.1 Preliminary introduction the Manufacturing department 12 1.2.2 Function of the Manufacturing department 12 1.3 Indirect Material Room Overview 13 1.3.1 Indirect Material definition 13 1.3.2 Type of Indirect Materials 14 CHAPTER 2: THEORETICAL BASIC 15 2.1 Reviews on process improvement methodologies: 15 Page viii 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 4.2 DO Step 6: Implement the solution Define new lot size in order to reduce coupon usage but the saving coupon has to exceed the loss due to lower lot size As mentioned above in 5W1H analysis for number of coupon usage with the lot size of 1680 that 12 coupons will be needed Two factors that directly contribute to this coupon usage number are lot size and pocket density on container Pocket density on container is perceived as a fix parameter because of configuration of machine Changing machine configuration was considered out of the context at the beginning of the discussion as mentioned above Adjusting the lot size would be a possible way to change the number of coupon needed for assembly process Current state of coupon needed by each module is shown as table below: Table 4.8: Current state of coupon usage per lot for lot size 1680 Source: Author research Above table shows that in assembly process, the number of coupons needed for the whole assembly process is the total of the number of coupons needed for CAM → Cure processes and the number of coupons needed for BAM When changing lot size, the number of coupons needed for these sections would vary Project team needs to define the optimum lot size so the sum of these numbers would be minimized without affecting to the output productivity Knowing the pocket density of container could help to easily calculate how many coupons would be needed for assembly process for every scenario of lot size changes Table below shows all scenarios of lot size ranging from 1680 to 1620 1620 is the common multiple of 15 and 18 so at this lot size coupon would be needed 55 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 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16 18 20 22 10 12 110 0 109 0 108 0 From the above table, there are possible lot sizes could help reduce the number of coupons usage per lot Lot size of 1674 would help reduce coupons (from 12 to 6) but it also leads to the reduction of output units Lot size of 1635 would help reduce coupons (from 12 to 3) but it leads to the reduction of 45 output units And lot size of 1620 would eliminate the usage of coupon in assembly process but it leads to the reduction of 60 output units Author made assessment of the trade-off between cost saving of coupon usage reduction and loss due to reducing output productivity Under Covid-19 situation, supplies of direct materials for production are in shortage leading to machines idling A small reduction in lot size would not affect the productivity of the whole 56 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 factory Author chose lot size of 1674 as a short term solution for saving the cost of coupon consumption during the time of direct material shortage Because of data confidentiality, the number of coupons saved per day when running at lot size of 1674 is not specified here Define how a processed coupon could be considered as clean and update SOP to instruct & allow operator to reuse coupon When studying on how to specify a processed coupon after Epoxy as clean, project team realized that the characteristics for a clean processed coupon are not clear and not easy for operator to detect by naked eyes Thus, it would be time consuming in sorting out processed coupon The effort of finding a good processed coupon could exceed the value of a coupon Moreover, allowing operator to reuse clean processed coupon causes a great quality risk (as mentioned in SIPOC, most of operations require new coupon) since this practice is heavily human-dependent, it would lead to different practices between different operators Finally, this solution was dropped because of its unclear benefits and potentially great quality risk - Redesign coupon so window search of machine would not catch on the yellow label of coupon leading to mistakenly identify coupon as unit From the observation of material handling operator reusing processed coupon, author started to study why some processed coupons were still in good condition One engineer whose job is specialized in Epoxy machine was included in the team to help author investigation this With current configuration of Epoxy machine, the machine identifies substrate by capturing image and analyzing a specific area on the subject then the machine will dispense epoxy only on the substrate 57 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 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leading to machine mistakenly identifying coupon as substrate and dispensing epoxy on it For other coupons which machine could differentiate them would not be dispensed with epoxy and are considered to be reusable by material handling operator Figure 4.4: Substrate (left) & coupon (right) under capturing window view 58 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 Figure 4.4 shows white pixels in the capturing window (specified by the red rectangle) of both substrate & coupon are being analyzed If white pixels of the subject account for more than 25% of the area in the capturing window, machine would identify that subject as substrate For the specific case in figure 4.4, machine identified this coupon as substrate Re-programming machines to change the position of the capturing window so the capturing window would move away from the position of coupon’s label was not considered as a possible solution The reason for that is because re-programming epoxy machine would affect to other product platforms and the capturing window also serves as the starting point for dispensing epoxy Re-designing coupon label would be a possible solution to increase the reliability of machines in identifying substrate Author worked with coupon supplier to redesign coupon that new coupon design would have its label shifting down millimeters This new design would shift the reflective label of coupon out of capturing window of epoxy machine Figure 4.5: Old coupon design (left) and proposal coupon design with label shifting down millimeter (right) An experiment was carried out to test the hypothesis that if coupon’s label was shifted down mm it would help to increase the chance of epoxy machine correctly identifying substrate In this experiment, old coupon design and new 59 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 coupon design were both used The result came out as 100% epoxy machine would realize coupon with new design and would not dispense epoxy on them For old design, there were still coupon being mistakenly identified as substrate and got epoxy dispensed Since Intel Vietnam already stored enough coupons for the production plan of this year, coupon with new design will be applied after assembly process has consumed all coupon inventories After getting a “go” signal from the manager, author went on to align with coupon supplier about the new design will be the standard for Mobile product production New coupon design is expected to be used in the end of 2021 This re-designing coupon would be a long-term solution for this project 4.3 CHECK - STEP 7: MONITOR & EVALUATE THE IMPROVEMENT PLAN RESULTS This step is to detect any mistakes happening or countermeasures failure to steer the project back on its track This is also the 4th action item from the improvement plan Key metrics to determine the success of this project in table was being monitored after lot size changed Data captured on 4th March 2021 is shown in table below: Table 4.10: Result of improvement plan after months of execution Key metrics Coupon consumption Goal Current data (4th March 2021) Lower than per before Baseline January 2021) How different 12 coupons/lot 50% improved xx.x thousands/shift case since 1sth January 2021 No impact No impact case since 1sth January 2021 No impact lot Productivity Defect causing by coupon Unscheduled of downtime No impact case case xx.x thousands/shift case since 1sth January 2021 case since 1sth January 2021 60 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 As mentioned above, Covid-19 situation affected to the supplies of direct material of Intel Products Vietnam, leading to machine idling This is the reason that units reduction per lot didn’t affect to productivity of assembly process Last but not least, coupon consumption per lot was reduced by double, down to coupons per lot According to the return on investment (ROI) report, saving 42.000 USD for ATM in 2021 No case of defect causing by coupon and unscheduled downtime of machines due to coupon was recorded because the solution was only to resize quantity of unit per lot Changing machine configuration or reprogramming was not required 4.4 ACT Step 8: Standardize the new process When solutions yield the desired result, it is time to set the new process as the new standard and share it throughout the organization Author presented this minor change in lot size and how it would help save indirect material to factory manager to get approval After getting a “go” signal from the manager, author went on to align with all shifts that lot size of 1674 units will be the standard lot size for Mobile product production This new lot size will be a standard lot size until factory consumes its entire old-design coupons, expected to be the end of 2021 So, lot size of 1674 is a short term solution for reducing the consumption of coupon for Mobile product in assembly process When old-design coupon having been consumed all, coupon with new design will be new standard for assembly process At that time, Lot size of 1680 units would be the standard lot size in order to utilize capacity of the constraint machine and 12 coupons would be needed for each lot However, with new-design coupon, after coupons going through Epoxy module, coupon wouldn’t be dispensed with epoxy so we could re-use those coupons Because of the unfavorable conditions when this project taking place, author found it difficult to conduct a comprehensive experiment to determine how many times we would be able to reuse new-design coupon without affecting the quality 61 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 of those used coupons Author would conduct this experiment when supplies of material were in good condition and group gathering was totally safe from the risk of spreading Covid-19 virus Step 9: Close the improvement project After more than months of conducting this project, author finally completed the project with expected outcome With the new standard process, only coupons will be needed for each Mobile lot in the assembly process Moreover, there’s a potential for driving the coupons consumption per lot down if new-design coupons is brought to production When project is completed, not only project goal of reducing coupon consumption by 50%, but also expectations of stakeholders were all met This aspect shows that author did not locally try to achieve its goal without considering the impact of the project to others This well alignment with other stakeholders will help the new process being sustained effectively since all stakeholders get benefit from it 4.5 SUMMARY RESULT OF THE PROJECT After understanding the business context and selecting PDCA cycle as the approach for this project, author followed the framework of it to conduct this project ➢ Voice of customer was collected when the project started to understand what stakeholders expect from the project Then, stakeholder expectations were translated into key metrics of project to measure the result of the project Next, baseline data of all key metrics were collected to serve as parameters for future reference (before-after comparison) ➢ Pareto chart of coupon consumption forecast of different product families was used to select which product family to be focused first Mobile product was selected to be the product family of this project With the only reasons for coupon to be used in the assembly line, the magnitudes of contributing to coupon consumption of the reasons were compared 62 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 The amount of coupon consumption because of empty pocket was more than 700 times compared to the amount of coupon because of defect unit Having identified that, author decided to focus on finding solution for the reason of high coupon consumption due to empty pocket on container ➢ SIPOC mapping technique was used to map process flow of assembly process to help author understand how coupon is involved in the process To seek further information of the process, direct observation was conducted From the result of SIPOC map and direct observation, contributing factors to the number of coupon consumed by each lot were identified Each of contributing factor was carefully analyzed using the integration analysis of 5W1H and 5-whys Then, action plan with action items was established to address the problem: • Firstly, lot size was finally decided to change to 1674 to reduce coupons consumption per lot Changing lot size is a short-term solution • Secondly, studying how to set criteria to define a used coupon as clean was not successful due to concern of human dependent in the new practice • Thirdly, new coupon design was tested and the result of the experiment was very promising New design coupon was then defined and would be used when factory uses all current coupons This new design coupon is long term solution • Finally, key metrics were being monitored throughout the process of implementing the solutions All key metrics were met and it could be concluded that this project was successful 63 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37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 5.1 CONCLUSIONS This study was conducted at Intel Products Vietnam with the purpose of reducing indirect material in assembly process of the company After understanding the business context and studying the problem, the student participated in a project team to conduct this study Overall, all objectives of this study were met and the project yielded the desired result for the company After reviewing some methodologies in chapter 2, a summary table comparing strengths and weaknesses of different methodologies was established Then, evaluation each methodology accordingly to the criteria to select the most appropriate one Finally, PDCA cycle was chosen as the main approach for this thesis With PDCA cycle as the framework, other techniques and tools were also used in the study Pareto chart was used to clearly illustrate the problem and help to select Mobile as the product family for this study to focus on SIPOC mapping technique was applied to map the current process for author to thoroughly understand the assembly process Direct observation (gemba) was performed to identify the discrepancy between what was supposed to happen and what actually happened in the factory floor Then, root causes of the problem were defined which was the combination of lot size and container type The contributing factor of non-standard practice of reusing processed coupon was not developed into a new Standard Operation Procedure because the practice is heavily humandependent, posing the quality threat Evaluation of different scenarios for trading off between the reduction of efficiency due to reducing lot size and the saving for reducing coupon consumption was carried out Lot size of 1674 was chosen as the optimum solution for short term Finally, lot size of 1674 was set as the new process which would help to reduce 50% of coupon consumption per lot 64 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 Experiments were conducted to test hypothesis of using new design coupon And only when the experiment yielded the desired result, the new design coupon would become the new standard for long term solution This longterm solution would possibly help to further reduce the consumption of coupon per lot and increase the productivity of the production line With respect to the main objective of this thesis, it is concluded that with the new process, coupon consumption per lot will reduce by 50% compared to the old process in short term At the end of the project, expectations of all stakeholders were met This is to ensure that there would not be any unaware conflict of interest happening due to the result of the project One highlight of this project is that the project was taking place while the Covid19 pandemic was spreading all over the world Although facing many difficulties, author still managed to make it happen to help the company reduce indirect material consumption cost in this critical time Thus, author defined the machine idling problem as an opportunity for reducing lot size and yet sustaining the same level of productivity (lean mindset of seeing problem as opportunity) Respecting to the methodology used in the study, PDCA cycle, the result is quite similar to key learnings derived from the study of (Jagusiak-Kocik M , 2017) PDCA cycle helps team member to have an overview of the project so everyone knows what they are expected to (internal barrier) Thus, PDCA model is simple and versatile approach for process improvement in any companies and helps to overcome external barrier Perhaps, the best strength of PDCA cycle is that it provides a learning framework for proliferating result of one project to another with similar nature 5.2 RECOMMENDATIONS After ending the study, there is a clear direction for author to follow which is to study and apply long term solution for the problem When supplies for direct material is sufficient and preventive measure for the pandemic is lifted off, author should study how many times a new-design coupon could be recycled If result from experiment shows that new-design coupon would be used more than time, 65 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 the percentage of coupon saving per lot will increase more Then, not only coupon saving would be increase, but also output capacity would return to 1680 units Based on the result of this study, it is recommended to continue to work on other product platform to explore more cost saving opportunities following the same flow as this project Besides, the result of this project should be shared to other factories of Intel so they could study and explore opportunity to so in their own assembly process Throughout this project, the biggest limitation was that it took so long for the project to be completed; it took more than months since the idea had been raised There were many difficulties contributing to this limitation Most of project meetings were online meeting, team member were not familiar with this type of meeting leading to ineffective meetings Other difficulty was that social distancing guidelines from Intel Corporation dictated that Intel Products Vietnam must only allow essential workers to work on the company facility; other workers must work from home to reduce the risk of spreading the virus The significant reduction of employees working onsite led to the delay of project’s experiment since engineers had to prioritize for sustaining tasks This limitation is also a learning point for author to better adapt to new norm of collaboration in the future 66 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.99 37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.C.33.44.55.54.78.655.43.22.2.4.55.2237.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.55.77.77.99.44.45.67.22.55.77.C.37.99.44.45.67.22.66 REFERENCES Adesola, S., & Baines, T S (n.d.) 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