VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY
HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY
PHAN LE MINH PHUONG
INTEGRATING ISO 9001:2015 STANDARD AND LEAN SIX SIGMA TOOLS INTO A QUALITY MANAGEMENT
SYSTEM THE CASE STUDY OF A FURNITURE MANUFACTURING COMPANY
Major: Industrial Engineering
Major code: 8520117
MASTER’S THESIS
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THIS THESIS IS COMPLETED AT
HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY – VNU-HCM
Supervisor: Dr Nguyễn Vạng Phúc Nguyên Examiner 1: Dr Lê Đức Đạo
Examiner 2: Dr Đỗ Thành Lƣu
This master’s thesis is defended at HCM City University of Technology, VNU-
HCM City on 8th July 2023
Master’s Thesis Committee:
1 Chairman: Assoc Prof Dr Đỗ Ngọc Hiền 2 Secretary: Dr Lê Song Thanh Quỳnh 3 Reviewer 1: Dr Lê Đức Đạo
4 Reviewer 2: Dr Đỗ Thành Lƣu 5 Member: Dr Trần Quỳnh Lê
Approval of the Chairman of Master’s Thesis Committee and Dean of Faculty of Mechanical Engineering after the thesis being corrected (If any)
Trang 3i VIETNAM NATIONAL UNIVERSITY HO CHIMINH CITY
HOCHIMINH CITY UNIVERSITY OF TECHNOLOGY SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness
THE TASK SHEET OF MASTER’S THESIS
Full name : PHAN LÊ MINH PHƢƠNG Student ID :
2170119
Date of birth : 18/01/1982 Place of birth : Gia Lai
Major : Industrial Engineering Major ID :
8520117
I THESIS TITLE:
Integrating ISO 9001:2015 Standard and Lean Six Sigma Tools into a Quality Management System The Case Study of a Furniture Manufacturing Company (Tích hợp Tiêu chuẩn ISO 9001:2015 và các cơng cụ Lean Six Sigma vào Hệ thống quản lý chất lƣợng của công ty sản xuất đồ gỗ nội thất)
II TASKS AND CONTENTS:
Create a concept map for integrating the quality management system of a furniture manufacturing company with the ISO 9001:2015 Standard and Lean Six Sigma methodology
Establish a methodology to implement the integrated system of ISO 9001:2015 and Lean Six Sigma tools into the furniture manufacturing company's quality management system
III THESIS START DAY: 06/02/2023
IV THESIS COMPLETION DAY: 11/06/2023
V SUPERVISOR: Dr Nguyễn Vạng Phúc Nguyên
Ho Chi Minh City, date month year 2023
SUPERVISOR
(Full name and signature)
HEAD OF DEPARTMENT
(Full name and signature)
DEAN OF FACULTY OF MECHANICAL ENGINEERING
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ACKNOWLEDGEMENTS
Firstly, I would like to express my sincere gratitude to my thesis advisor Without his invaluable help and dedicated involvement at every step of the process, this thesis would not have been possible
Secondly, I would like to extend my heartfelt thanks to all the teachers in the Department of Industrial Engineering who have enthusiastically imparted a wealth of knowledge to me during these two years
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ABSTRACT
ISO 9001:2015 and Lean Six Sigma methodologies are widely adopted by companies worldwide nowadays While there have been studies integrating these approaches into a single framework, they have generally remained at a generic level without delving into specific sectors In Vietnam, there is a growing need to implement ISO 9001:2015 and Lean Six Sigma as a means to assess a company's readiness to join the global supply chain However, many small and medium Vietnamese companies are facing difficulties in applying the above systems due to the lack of available guidance to facilitate the integration of these practices
This research focuses on developing an integrated system of ISO 9001:2015 and Lean Six Sigma tailored specifically for the furniture manufacturing industry The aim is to enhance the industry's capabilities and improve its competitiveness in the market Building upon previous integration frameworks, this research provides a detailed examination of each ISO 9001 requirement and identifies the appropriate processes and Lean Six Sigma tools to complement them
The proposed integrated system has undergone review and been accepted for implementation at a furniture manufacturing company It is specifically designed for the furniture manufacturing industry, enabling the application of ISO 9001:2015 and Lean Six Sigma with greater ease and efficiency It also reduces the risk of misapplying ISO standards and Lean Six Sigma tools
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TÓM TẮT LUẬN VĂN THẠC SĨ
Hiện nay, hệ thống quản lý chất lượng theo tiêu chuẩn ISO 9001:2015 và phương pháp Lean Six Sigma được các cơng ty trên tồn thế giới áp dụng rộng rãi Mặc dù đã có những nghiên cứu để tích hợp các cách tiếp cận này thành một hệ thống duy nhất, nhưng chúng vẫn dừng ở các mơ hình chung chung mà khơng đi sâu vào bất cứ lĩnh vực cụ thể nào Tại Việt Nam, nhu cầu triển khai ISO 9001:2015 và Lean Six Sigma như một cách thức để đánh giá mức độ sẵn sàng tham gia chuỗi cung ứng toàn cầu của một công ty ngày càng tăng Tuy nhiên, nhiều công ty vừa và nhỏ của Việt Nam đang gặp khó khăn trong việc áp dụng các hệ thống trên do thiếu các tài liệu hướng dẫn thực hiện tích cả tiêu chuẩn ISO 9001:2015 và các công cụ Lean Six Sigma vào hệ thống quản lý hiện có của cơng ty
Nghiên cứu này tập trung vào việc phát triển một hệ thống tích hợp ISO 9001:2015 và Lean Six Sigma được thiết kế riêng cho ngành sản xuất đồ nội thất Mục đích là để tăng cường khả năng và nâng cao khả năng cạnh tranh của nó trên thị trường Dựa trên các mơ hình tích hợp đã đề xuất trước đó, nghiên cứu này thực hiện xem xét chi tiết về từng yêu cầu của ISO 9001 và xác định các quy trình và công cụ Lean Six Sigma thích hợp đáp ứng các yêu cầu của tiêu chuẩn, qua đó từng bước hình thành hệ thống quản lý tích hợp
Hệ thống tích hợp đề xuất đã được xem xét và được chấp nhận để triển khai tại một công ty sản xuất đồ nội thất Hệ thống được thiết kế đặc biệt cho ngành sản xuất đồ nội thất, cho phép áp dụng ISO 9001:2015 và Lean Six Sigma một cách dễ dàng và hiệu quả hơn, giúp làm giảm nguy cơ áp dụng sai các tiêu chuẩn ISO và các công cụ Lean Six Sigma
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THE COMMITMENT OF THE THESIS’ AUTHOR
I hereby declare that the master’s thesis titled ―Integrating ISO 9001:2015 Standard and Lean Six Sigma Tools into a Quality Management System The Case Study of a Furniture Manufacturing Company‖ is the research work that I have personally undertaken and completed I received scientific guidance from Dr Nguyen Vang Phuc Nguyen at Ho Chi Minh City University of Technology to support and guide me in writing my thesis The results of this study have not been published in any other separate studies I have followed the appropriate rules and guidelines when incorporating results and quotations from other authors' documents into my essay The citations and references from books, newspapers, and websites have been presented in accordance with the reference list of the thesis
Author
Trang 8vi TABLE OF CONTENTS Chapter 1 OVERVIEW 11.1 Introduction 11.2 Problem description 11.3 Research goal 21.4 Research question 21.5 Research objective 21.6 Research structure 3
Chapter 2 LITERATURE REVIEW 4
2.1 ISO 9001:2015 Quality management system Requirements 4
2.2 Lean & Six Sigma methodology 7
2.3 The integration between ISO 9001:2015 and Lean Sigma 9
Chapter 3 INTRODUCTION OF RESEARCH SUBJECT 13
3.1 Introduction of Minh Duong Furniture Corporation 13
3.1.1History 13
3.1.2Company’s achievements: 13
3.1.3Company organization 14
3.2 Minh Duong’s Quality management system 14
3.2.1Current documentation system 14
3.2.2Gap analysis 16
Chapter 4 METHOD 21
4.1 ISO 9001:2015 Standard and Lean Six Sigma Methodology Integration Model 21
4.2 Approach ISO 9001:2015 Requirements and Applicable Tools 22
4.2.1ISO 9001:2015 Requirements 22
4.2.2 24
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Chapter 5 ANALYSIS OF ISO 9001 REQUIREMENTS AND SUGGESTED LEAN
SIX SIGMA TOOLS ON QUALITY MANAGEMENT OPERATIONS 33
5.1 Context of the organization (ISO Clause 4) 33
5.2 Leadership (ISO Clause 5) 37
5.3 Planning (ISO Clause 6) 39
5.4 Support (ISO Clause 7) 44
5.5 Operations (ISO Clause 8) 46
5.5.1Operational planning and control (Clause 8.1) 46
5.5.2Requirements for products and services (Clause 8.2) 47
5.5.3Control of externally provided processes, products, and services (8.4) 47
5.5.4Production and Service provision (ISO Clause 8.5) 48
5.5.5Release of products and services (ISO Clause 8.6) 51
5.5.6Control of nonconforming outputs (8.7) 51
5.6 Performance evaluation (ISO Clause 9) 51
5.6.1Monitoring, measurement, analysis, and evaluation (9.1) 51
5.6.2Internal audit (ISO Clause 9.2) 53
5.6.3Management review (ISO Clause 9.3) 54
5.7 Improvement (ISO Clause 10) 55
5.7.1General (ISO Clause 10.1) 55
5.7.2Nonconformity and corrective action (ISO Clause 10.2) 55
5.7.3Continual improvement (ISO Clause 10.3) 57
Chapter 6 A PROPOSED DESIGN of integrated QMS and LSS 59
6.1 Propose the Integration Approaches of ISO 9001:2015 and Lean Six Sigma methodology into Minh Duong’s quality management system 59
6.2 Propose Integrated QMS Process matrix 60
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6.3.1Manufacturing management Process 64
6.3.2Facility/Equipment/Tooling management: 78
6.3.3Labor management 80
6.3.4Material management 82
6.3.5Technical management 84
6.3.6Quality Control 85
6.3.7Nonconforming product management 88
6.3.8Scheduling and Order management 89
6.3.9Purchasing and Supplier management 92
6.3.10Document and Change management 94
6.4 Overall Process metrics 97
Chapter 7 CONCLUSIONS AND RECOMMENDATIONS 105
7.1 Conclusions 105
7.2 Recommendations 105
REFERENCES 107
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TABLE OF FIGURES
Figure 2.1: Amount of ISO 9001 certified companies 7
Figure 2.2: Development history of Lean & Six Sigma (Perdana, 2008) 8
Figure 3.1: Minh Duong organization chart 14
Figure 3.2: Minh Duong Documentation System 15
Figure 3.3: Minh Duong process interaction chart 16
Figure 3.4: Compliance status 17
Figure 3.5: Minh Dƣơng KPI monitoring system 17
Figure 3.6: Post Painting quality inspection 19
Figure 4.1: ISO 9001:2015 Standard and Lean Six Sigma Methodology Integration Model 22
Figure 4.2: The structure of ISO 9001:2015 Standards in PDCA Circle 23
Figure 4.3: Power and Interest Grid 25
Figure 4.4: Turtle diagram 28
Figure 5.1: Power and Interest Grid 37
Figure 5.2: Quality Policy 38
Figure 5.3: Risks/opportunities management process 41
Figure 5.4: High-level process chart 42
Figure 5.5: Quality objectives and Plan 44
Figure 5.6: Improvement project prioritiser 57
Figure 6.1: The Concept map of Proposed Integrated Quality Management System 60
Figure 6.2: Manufacturing process flowchart 65
Figure 6.3: Manufacturing process flowchart with clouds 66
Figure 6.4: Fishbone diagram 67
Figure 6.5: 5Why analysis 68
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Figure 6.7: Manufacturing process - Turtle diagram 70
Figure 6.8: 3 C Follow Up Chart 72
Figure 6.9: Daily/weekly compliance checklist 72
Figure 6.10: Post painting rework rate 76
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TABLE OF TABLES
Table 2.1: Definition of quality 6
Table 2.2: Summary of research on integrating ISO 9001:2015 and LSS methodology 9
Table 3.1: Quantity of Production output versal Total work in progress 19
Table 5.1: PESTLE Analysis 34
Table 5.2: SWOT Analysis 35
Table 5.3: List of interested parties' needs and expectations 36
Table 5.4: Delegation of Authority 39
Table 5.5: Organization’s Risks and Opportunities 40
Table 5.6: Outsourcing process – Requirements and Explanation 47
Table 5.7: Control of Production - Requirements and explanations 49
Table 5.8: Monitoring, measurement, analysis, and evaluation 53
Table 5.9: Internal audit management – process information 53
Table 5.10: Internal audit management – process metrics 54
Table 5.11: Internal audit management – process information 56
Table 5.12: Internal audit management – process information 56
Table 6.1: Propose Integrated QMS Process matrix 61
Table 6.2: List of applicable ISO 9001 requirements for Manufacturing process 65
Table 6.3: Containment to quickly fix the process 68
Table 6.4: Manufacturing process – Competence requirements 73
Table 6.5: Manufacturing process metrics 74
Table 6.6: Manufacturing support process vs ISO 9001 Requirements 77
Table 6.7: Facility / Equipment / Tooling management – process information 78
Table 6.8: Facility / Equipment / Tooling management – process metrics 79
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Table 6.10: Labor management - process metrics 81
Table 6.11: Material management – process information 82
Table 6.12: Material management – process metrics 83
Table 6.13: Technical management – process information 84
Table 6.14: Technical management – process metrics 84
Table 6.15: Quality control – Process information 85
Table 6.16: Quality control – Process metrics 87
Table 6.17: Nonconforming product management – process information 88
Table 6.18: Nonconforming product management – process metrics 88
Table 6.19: Order management vs ISO 9001 Requirements 89
Table 6.20: Order management – process information 89
Table 6.21: Order management – process metrics 91
Table 6.22: Purchasing vs ISO 9001 Requirements 92
Table 6.23: Purchasing and Supplier management 92
Table 6.24: Purchasing and Supplier management – process metrics 94
Table 6.25: Document and Change management vs ISO 9001 Requirements 94
Table 6.26: Document and Change management – process information 94
Table 6.27: Document and Change management – process metrics 96
Table 6.28: List of prototype operational process 96
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LIST OF ABBREVIATIONS
Continuous Improvement CI
ISO 9001:2015 Standards ISO 9001
Lean Six Sigma LSS
Quality management system QMS
Small and medium enterprises SMEs
International Organization for Standardization ISO
British Standard Institution BSI
Single Minute Exchange Dies SMED
Work-in-progress WIP
Non conformity NC
Non conformity report NCR
Value Stream Map VSM
Total preventing maintenance TPM
Bill of Materials BOM
Cost of Non-Quality CONQ
Purchase order PO
Purchaser request PR
Request for Quotation RfQ
Standard Operating Procedures SOP
Work Instructions WI
Human Resources HR
First-Expired, First-Out FEFO
First-In, First-Out FIFO
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CHAPTER 1 OVERVIEW
1.1 Introduction
In recent years, Vietnam has been the destination for some world-famous furniture brand names such as IKEA, and ASHLEY… or huge clients like COSCO, and WALMART Many furniture manufacturing companies have attended the supply chain of those famous brand names and many more want to join the network Vietnam has the advantage of being a low-cost country with a large and skillful workforce which is the most prerequisite condition to attract foreign investors [1] Not only that, but the government also issues policies to prioritize foreign investors with many kinds of tax incentives [2] If Vietnam can maintain those strengths, it is still the ideal hub for furniture manufacturing for the next decade
A common difficulty preventing those Vietnamese companies to be accepted into the world-famous furniture brand supply chains is that they do not have a mature management system that could assure the consistent quality of products and competitive product cost while still maintaining social accountability By the implementation of ISO 9001: 2015 Standard (ISO 9001), a manufacturing company could meet the prerequisite condition to be a subcontractor for many famous supply chains ISO 9001 could help to deliver the product with consistent quality and the application of Lean Six Sigma (LSS) methodology could help tackle the cost-saving objective However, even though many companies try to implement both ISO 9001 and adopt LSS but only a few of them succeed
1.2 Problem description
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lack of discipline in the workforce makes it more difficult and costly to implement and maintain the system as the company must arrange more resources in facilitating, supervising, and auditing to keep the system working Thirdly, top management’s mindsets and commitment are crucial as the employee will shadow the leader’s behavior In many failed cases, top management was not taking their role fully [4], [5] Generally, there are objective difficulties that prevent Vietnamese SMEs from participating in the supply chains of world-renowned furniture brands and they need support to be able to move forward The failures in the implementation of ISO 9001:2015 & adoption of LSS methodology by Vietnamese SMEs make them struggle and fight hard to be competitive in the market
There have been various research studies on the integrated systems of ISO 9001:2015 and LSS methodology over the last few years However, these studies focus on developing integration frameworks rather than specifically addressing the implementation of the integrated system for a specific subject in real life
1.3 Research goal
The thesis goal is to establish a custom-built integrated system between ISO 9001:2015 and Lean Six Sigma tools at a specific manufacturing company for exploring all possible benefits of implementing those systems with minimal resources
1.4 Research question
What are the suitable models for integrating ISO 9001:2015 & Lean Six Sigma for small and medium manufacturing companies?
How to integrate ISO 9001:2015 Standard and Lean Six Sigma Methodology within the context of applying it to a specific manufacturing company?
1.5 Research objective
The objectives that need to be achieved as a complete sign of this research is below:
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Design a method for implementing the integrated systems between ISO 9001:2015 Standard and Lean Six Sigma tools into a quality management system of a furniture manufacturing company
1.6 Research structure
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CHAPTER 2 LITERATURE REVIEW
This chapter aims to present a brief discussion of the quality management system ISO 9001:2015 Standard, Lean Six Sigma methodology as well as the integration between ISO 9001:2015 Standard and Lean Six Sigma
2.1 ISO 9001:2015 Quality management system Requirements
The first term for discussion is Quality Quality has been defined in several different ways and there is not any universal definition of quality exists Reeves & Bednar, (1994) summarized some popular quality definitions, strengths, and weaknesses in Table 2.1:Definition of quality When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations [7] According to ISO 9000 Standard, quality is the degree to which a set of inherent characteristics of an object fulfills requirements [8] In this research, we use the definition by ISO 9000 Standard
Fulfilling customer’s requirements is crucial to the existence of an organization, so there must be a means to manage quality That is when the term Quality management system appears Compared with many different definitions of quality, QMS are defined quite uniformly The Quality management system is composed of all the organization’s policies, procedures, plans, resources, processes, and delineation of responsibility and authority, all deliberately aimed at achieving product or service quality levels consistent with customer satisfaction and the organization’s objectives When these policies, procedures, plans, and so forth are taken together, they define how the organization works and how quality is managed [7] This is also similar to the definition by ISO that the quality management system is a set of interrelated or interacting elements of an organization to establish policies and objectives about quality, and processes to achieve those objectives [8]
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process approach, which incorporates the Plan-Do-Check-Act (PDCA) cycle and risk-based thinking [10] In the latest version, ISO 9001:2015, its core elements are standardized by Annex SL, a high-level structure of ISO Standard This will help companies implement ISO 9001:2015 easily and integrate with other ISO Management Standards [11] Nowadays, there are over one million companies and organizations in over 170 countries certified to ISO 9001 [12] No organization is required to implement ISO 9001, except some governments or companies demand their suppliers must be ISO 9001 certified or at least conform to ISO 9001 The standard defines what organizations have to be complied with but does not dictate how to do it Organizations must define the level of conformance by themselves When an organization seeks registration, it must look for an accredited registrar firm to verify its conformance to ISO 9001 [7]
In short description, ISO 9001:2015 Standard is an international standard that specifies requirements for a QMS Potential benefits to an organization of implementing this standard are the ability to consistently provide products and services that meet customer and regulatory requirements, facilitating opportunities to enhance customer satisfaction; addressing risks and opportunities associated with its context and objectives; the ability to demonstrate conformity to specified quality management system requirements [10] Research by V Nguyen (2019) shows that the number of Vietnamese enterprises granted ISO 9001 certificates is not high This certification rate is not only significantly lower than developed countries but also lower than neighboring countries like Thailand, and Malaysia (Figure 2.1:Amount of ISO 9001 certified companies)
In this thesis, terms and definitions related to the quality management system are used as defined in the International Standard ISO 9000:2015 Quality management system – Fundamentals and Vocabulary [8]
Quality is “the degree to which a set of inherent characteristics of an object fulfills requirements”
Management system is “a set of interrelated or interacting elements of an organization to establish policies and objectives and processes to achieve those objectives"
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Requirement is a need or expectation that is stated, generally implied, or obligatory Documented information the information contains on the media that required to be
controlled and maintained by an organization
Table 2.1: Definition of quality
Definition Strengths Weaknesses
Quality is excellence
Strong marketing and human resource benefits
Universally recognizable - mark of uncompromising standards and high achievement
Provides little practical guidance to practitioners
Measurement difficulties
Attributes of excellence may change dramatically and rapidly
Sufficient number of customers must be willing to pay for excellence
Quality is value
Concept of value incorporates multiple attributes
Focuses attention on a firm's internal efficiency and external effectiveness
Allows for comparisons across disparate objects and experiences
Difficulty extracting individual components of value judgment
Questionable inclusiveness
Quality and value are different constructs
Quality is conformance to
specifications
Facilitates precise measurement Leads to increased efficiency Necessary for global strategy Should force disaggregation of consumer needs
Most parsimonious and
appropriate definition for some customers
Consumers do not know or care about internal specifications
Inappropriate for services
Potentially reduces organizational adaptability
Specifications may quickly become obsolete in rapidly changing markets
Internally focused Quality is meeting and/or exceeding expectations
Evaluates from customer's perspective
Applicable across industries Responsive to market changes All-encompassing definition
Most complex definition Difficult to measure
Customers may not know expectations Idiosyncratic reactions
Pre-purchase attitudes affect subsequent judgments
Short-term and long-term evaluations may differ
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Figure 2.1: Amount of ISO 9001 certified companies 2.2 Lean & Six Sigma methodology
The History of Six Sigma started when Shewhart developed tools of statistical process control and applied them at Motorola’s site It is a long journey from that moment to the year 1988 when Motorola won the US Baldrige National Quality Award and made the Six Sigma concept to be under the public’s attention Similarly, Lean started when Henry Ford standardized work and arranged conveyors to move products along the line which created the flow of production at his car factory in 1913 The story of Lean & Six Sigma development was presented in Figure 2.2: Development history of Lean & Six Sigma [15]
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Figure 2.2: Development history of Lean & Six Sigma [15]
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time, eliminating waste, and conducting preventive maintenance are to speed up business processes and return quick financial gains [14]
Lean and Six Sigma both aim to improve every aspect of the organization Six Sigma approach focused on identifying and eliminating anything that caused variation in the process while Lean methodology is about creating flow and using tools to identify and eliminate waste When a company uses both Lean and Six Sigma, significant improvements across the organization are achieved In 1986, The George Group was the first to integrate and popularize lean with Six Sigma LSS can be described as a methodology that focuses on the elimination of waste and variation, following the DMAIC structure, to achieve customer satisfaction with regard to quality, delivery, and cost It focuses on improving processes, satisfying customers, and achieving better financial results for the business [18] The integration of Lean and Six Sigma is inevitable because Lean cannot bring a process under statistical control, while Six Sigma alone cannot dramatically improve process speed or reduce invested capital [19]
2.3 The integration between ISO 9001:2015 and Lean Sigma
Together with the popularity of ISO 9001:2015, Lean & Six Sigma has become well-known within the SMEs community and in the academic environment In Vietnam, we usually see TQM applied in big corporates like Coca-Cola, Ford, and Toyota…while local SMEs implement ISO 9001 Plenty of them also try to adopt Lean and Six Sigma to save costs for the organization by eliminating waste and preventing non-quality Researchers are working on the integration between ISO 9001 Standard, Lean & Six Sigma as listed in the Summary of research on integrating ISO 9001:2015 and LSS methodology
Table 2.2: Summary of research on integrating ISO 9001:2015 and LSS methodology
Author(s) Year Description
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Karthi et al 2011 Obtain knowledge from previous research to evolve a roadmap for implementing Lean Six Sigma through ISO 9001:2008 standard-based QMS
Karthi et al 2012 The implementation of Six Sigma model via the ISO 9001 standard-based quality system
Bacoup et al 2014 Propose method to lead manufacturing or service companies to certification without creating more documentation
Marques et al 2016 Integrate LSS program and ISO 9001:2015 by making use of the high-level structure defined in Annex SL
Wirkus & Chmielarz
2018 Defined concept of integration of QMS and chosen Lean tools based on literature analysis and experience of the authors Fonseca &
Domingues
2018 Assess CI performance within Portuguese ISO 9001 certified organizations toward the adoption level of Kaizen, Lean and Six Sigma
Veena & Prabhushankar
2019 Define gap exists in implementation of Lean, Six Sigma and ISO 9001:2015, then develop a method to fill the gap
Sá et al 2022 Integrate Lean tools and ISO 9001:2015 in a way that the QMS to become more practical and dynamic, reinforcing the creation of value for the organization
Yusof & Lee 2022 Optimize the quality of the macarons products via the integration of Six Sigma and ISO 9001:2015 Quality Management System
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time are the most used lean principles or tools, and 5S, Jidoka, and Total preventive maintenance (TPM) are those that have been more formalized into ISO 9001 documents Marques et al (2016) propose ways to integrate Lean Six Sigma program and ISO 9001:2015 requirements by making use of the high-level structure defined in Annex SL and try to link LSS Tools with applicable clauses of ISO 9001:2015 Other authors look into the gap that exists in Lean implementation, Six Sigma methodology, and ISO 9001:2015 QMS by considering the dimensions such as objective; focus; management; organization; resource requirement; training; framework/model, and documentation, then a framework is developed which integrates all the three methodologies to fill the gap [23] Karthi et al (2011) defined the integration of LSS with the ISO 9001 standard and proposed a road map for implementing LSS through ISO 9001 (version 2008) Wirkus & Chmielarz (2018) defined the concept of integration of QMS (already implemented in the organization) and chosen Lean tools The concept has been developed based on literature analysis and the experience of the authors
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CHAPTER 3 INTRODUCTION OF RESEARCH SUBJECT
3.1 Introduction of Minh Duong Furniture Corporation 3.1.1 History
Minh Duong Furniture Joint Stock Company was established on 12/12/2002 by Mr Duong Minh Chinh as Chairman and Mr Duong Minh Dinh as General Director, under the name Minh Duong Co., Ltd with 100% capital Vietnam The company is registered to operate in many business fields, but mainly focuses on exporting and processing furniture On 11/12/2007, Minh Duong changed its name to Minh Duong Furniture Joint Stock Company, licensed by Binh Duong Department of Planning and Investment
During the past years, Minh Duong has received a lot of support and advice on Quality and Production Management from professional organizations such as Mekong Support Fund, Cooperation and Development Project from Denmark, the Netherlands With continuous efforts to expand business, improve revenue and reach more markets, within 10 years, Minh Duong has become one of the leading companies in Vietnam in the field of domestic export the seventh With head office and top management in Binh Duong province, Vietnam, Minh Duong directly employs more than 2,000 employees
The company's main products include living room, bedroom, dining table and chairs, TV cabinet, tea table We specialize in rubber wood, pine wood, oak wood, ash wood
3.1.2 Company’s achievements:
With the vision of "becoming the most competitive and reliable furniture manufacturing company in Vietnam with customers around the world", the company defines its mission as follows:
Provide high quality products with competitive price
Continually improve technology to provide a wider range of products Guaranteed on-time delivery
Provide professional customer service
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In the process of developing and attracting new customers and revenue, the company has achieved the following achievements:
Successfully passed the test of famous customers (SMETA, COSTCO) ISO 9001 certified by Bureau Veritas in May 2011
Certified 100% FSC or FSC Mix by Bureau Veritas in May 2018 5 consecutive years in the Top 50 Vietnam Furniture Exporters
Awarded Certificate of Merit for "BUSINESS ACHIEVEMENT IN WOODEN EXPORT"
Apply CSR (Commitment to Social Responsibility) to ensure all working conditions and facilities are up to standard
3.1.3 Company organization
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The scope of Minh Duong's quality management system covers 8 departments: Sales, Purchasing, Planning, Technical, Maintenance, Quality, Production, and Human Resources This year, ERP systems have been installed in the Sales, Planning, Accounting, Purchasing, Human Resources, and Planning Departments The company has also been certified with ISO 9001 since 2010 There are 47 documented processes, 112 templates, and organizational charts, as well as job descriptions available for all departments and nearly every position The documentation system is managed on shared drive and accessed privileges as in Figure 3.2:Minh Duong Documentation System Interaction between processes is defined as a requirement by ISO 9001:2015 and displayed in Figure 3.3:Minh Duong process interaction chart
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Figure 3.3: Minh Duong process interaction chart 3.2.2 Gap analysis
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Figure 3.4: Compliance status
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Business performance is evaluated daily on Production Output, Defect rate, Stock, and Receivables… Data presented in graphs and charts is visible to recognize its trending (Minh Dương KPI monitoring ) However, there is lack of action on the monitoring data as goals are not established and monitored Setting goals and striving to achieve the targets, combining the closed monitoring by this system would be a powerful tool to improve business performance
The processes to fulfill customer’s requirements (PKH-QT-01/02/03), which starts from the time Planning department issues the production plan for an order, reveals that it takes 6 weeks for an order to run through all process steps before it is ready for shipment The reason for 6-week long cycle is due to its habit of planning on a weekly basis, which means materials for a whole week are pushes into production without caring the amount of work-in-progress (WIP) currently stay on the lines nor the consumption at each stage Detail scheduling and progress monitoring at production team is not implemented as the consequence of productivity data’s insufficiency and lacking manpower to collect The production is in a Push mode, a reverse into Pull mode could help reduce total 6-week lead time A shift from a 6-day production batch (one week) to 3-day will reduce both the amount of work in process and lead time Data showing long cycle and high WIP in production are presented in Quantity of Production output versal Total work in progress
Another process to review is the Production Controlling process The nature of wooden furniture manufacturing is craftmanship, mostly depending on the worker’s skills and the quality of material input After each step in the manufacturing process, the semi-products are checked by operators and reworked if defective However, the defect rate check by the Quality Control inspector at the end of the Painting line is always approximately 50% (Post Painting quality inspection) which means the in-process inspection at Production is not effective
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stations before going into painting process The high defect rate after Painting (Figure 3.6:Post Painting quality inspection) is a direct consequence from lack of skill and competence management process
Table 3.1: Quantity of Production output versal Total work in progress
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CHAPTER 4 METHOD
This study obtains the output from previous studies about integrating ISO 9001: 2015 Standard and LSS methodology Combining the current business situation with the author's own experience, a set of Lean Six Sigma tools are selected and utilized to ensure that relevant requirements of the quality management system and its objectives are met Regarding the two research objectives identified in Chapter 1, this study is divided into two stages, which are: i Select a model of Lean Six Sigma is built on the foundation of ISO 9001:2015 and is applicable to furniture manufacturing, ii To approach the requirements of the ISO 9001 standard and Lean Six Sigma tools in preparation for the integration to be carried out in the next chapter of this thesis
4.1 ISO 9001:2015 Standard and Lean Six Sigma Methodology Integration Model
The first inputs for the proposed integrated system development are from previous research Among them, the ideas of integration of LSS tools and ISO 9001:2015 interface [26] and linkage of the organization planning level with PDCA method, ISO 9001:2015 requirements, and possible implementations of Lean tools [30] are the most remarkable one and are referenced for developing the proposed integrated system The target of this study is about processes and system, so PDCA approach is chosen in structuring the design, while DMAIC (the structured problem-solving method used in Lean Six Sigma, stands for Define, Measure, Analyze, Improve, and Control) is referenced in the planning of measurement, monitoring, and evaluation of process’s performance for the future improvement activities
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Figure 4.1: ISO 9001:2015 Standard and Lean Six Sigma Methodology Integration Model 4.2 Approach ISO 9001:2015 Requirements and Applicable Tools
4.2.1 ISO 9001:2015 Requirements
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documents and records (7.5) Guidelines and requirements for company operation are stated in Clause 8 Together with Clause 7, they are considered the "Do" phase in the PDCA cycle Clauses 9 (Performance Evaluation) and 10 (Improvement) take on the roles of "Check" and "Action," where various actions are implemented to monitor, measure, analyze, and evaluate the effectiveness and efficiency of the QMS The actions outlined in Clause 10 aim to make necessary improvements to ensure the QMS achieves its intended results
Figure 4.2: The structure of ISO 9001:2015 Standards in PDCA Circle
In the Standard, the term "shall" indicates a requirement that needs to be fulfilled, while "documented information" represents a policy or procedure that needs to be established, maintained, or a record to be retained as evidence of the activities The Standard is reviewed for all instances of "shall" and "documented information" Each occurrence of "shall" or "documented information" is an action, the establishment of a procedure, or the retention of a record to fulfill the requirements of the Standard
In summary, the authors walk through the following 4 steps in completing this thesis:
1 Conduct a search to find relevant keywords related to ISO-based requirements and documented information
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3 Summarize and synthesize the action to fulfill these requirements and applicable LSS tools into the Quality Management System
4 Conceptualize a model for integrating the ISO-based requirements and LSS tools The purpose of this approach is to create a comprehensive set of requirements for building an ISO-based quality management system integrated with practical LSS tools The quality management system established by this approach differs from the current practices, where ISO 9001 application often results in increased paperwork, non-compliance and Lean or Six Sigma activities are treated as separate and unsustainable
4.2.2 Lean Six Sigma Tools and Strategic Tools 4.2.2.1 Strategic Tools
PESTEL:
PESTEL is a useful analysis tool that helps businesses know the "big picture" of the business environment in which they operate, thereby identifying potential opportunities and threats in it PESTEL consists of 6 elements:
Political (politics) Economic (economics) Social (social) Technological (technology) Legal (legal) Environmental (environment)
These are 6 factors that directly affect the economy in general and each business Businesses are objectively affected by these external factors
SWOT:
SWOT is a well-known business analysis model This model includes 4 factors abbreviated by 4 letters, namely S - Strength, W - Weakness, Opportunity and Threat Strengths: Strengths that your project or business has that competitors do not have Weaknesses: Factors that your project or business is weaker than competitors Opportunities: Factors such as environment, weather, arising situations that provide