Improve quality control at my phong leather shoe factory

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING CAPSTONE PROJECT INDUSTRIAL MANAGEMENT IMPROVE QUALITY CONTROL AT MY PHONG LEATHER SHOE FACTORY LECTURER: M.S TRUONG VAN NAM STUDENT : NGUYEN HUNG THANH SKL010196 Ho Chi Minh City, June 2023 MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMIC GRADUATE THESIS THEME: IMPROVE QUALITY CONTROL AT MY PHONG LEATHER SHOE FACTORY Student : Nguyen Hung Thanh Student ID : 19124312 Intake : 2019 Major : Industrial Management Supervisor : M.S Truong Van Nam Ho Chi Minh City, June 2023 ACKNOWLEDGEMENT To complete this thesis, I would like to express my gratitude to Mr Truong Van Nam who are working at Ho Chi Minh City University of Technology and Education for providing me with the opportunity to study, learn, and accumulate knowledge and skills to complete this thesis I would like to express my sincere gratitude to My Phong Factory - Thai Binh Investment Corporation for providing me with an internship environment and supporting me in carrying out this project I would like to thank the staff in the departments and the supervisors in the workshop for their enthusiastic guidance and answering my questions Especially, Ms Nguyen Thi Thanh Hieu, who works in the QC department of the shoe factory, has helped me a lot in completing my thesis During my internship here, I have learned a lot of valuable knowledge and lessons from my colleagues, and I believe that this will be essential for my future career I wish all the staff and employees at My Phong Factory good health and prosperity as the company continues to grow and develop Due to my limited knowledge and lack of practical experience, this thesis may contain some shortcomings Therefore, I hope to receive feedback and further guidance from my respected supervisors Finally, I wish all my supervisors good health and great success in their work Sincerely Ho Chi Minh City, April 2023 Student Nguyen Hung Thanh i LIST OF ABBREVIATIONS ABBREVIATION WHOLE WORD AQL Acceptable quality limit CEO Chief Executive Officer Co Ltd Company Limited HR Human Resources JSC Joint Stock Company SOP Standard operating procedure QA Quality Assurance QC Quality Control ii LIST OF TABLES Table 1 TBS Group business operation situation from 2018 to 2021 11 Table Using the KAMET rule to analyze Delphi interview questions 24 Table Quality control criteria for footwear at My Phong 28 Table Classification standards for leather at My Phong 33 Table 3 Standard sizes from suppliers 33 Table Errors of machinery during Flash 3.0 JR shoe production 40 Table The product defect rate when using traditional sewing machines 44 Table The product defect rate when using programmable sewing machines 45 Table Job candidate's interview profile 49 Table 4 The results of Round of Delphi survey 50 Table The remaining criteria after evaluation 51 Table Statistics of machinery and maintenance costs for Flash 3.0 JR shoe model 54 Table Rearrange a data 54 Table Comparing before and after applying Pareto method 57 iii LIST OF FIGURES Figure 1 My Phong Leather Shoes Limited Liability Company Figure Organizational structure at My Phong Co.Ltd Figure TBS Group business operation situation from 2018 to 2021 11 Figure Example about Pareto chart 17 Figure 2 Example about Ishikawa chart 19 Figure Some symbols used in flow chart 21 Figure Example about control chart 23 Figure My Phong leather shoe quality control process for samples 25 Figure Quality control process for mass production at My Phong factory 27 Figure 3 The general quality control process at My Phong 30 Figure Process for incoming raw materials 31 Figure Simulation of the production line layout according to the I-shaped model 34 Figure Simulation of the production line in U-shaped model 36 Figure The process of controlling broken needles at My Phong 37 Figure The process of completing shoe soles 38 Figure The product defect rate when using traditional sewing machines 45 Figure The product defect rate when using programmable sewing machines 46 Figure Fishbone chart evaluates the factors affecting the productivity of workers at My Phong factory 49 Figure 4 Pareto chart for machine error statistics 55 Figure Product completion rate chart 58 iv TABLE OF CONTENTS LIST OF ABBREVIATIONS ii LIST OF TABLES iii LIST OF FIGURES iv TABLE OF CONTENTS v The reason for choosing the topic Research objectives Research subjects and scopes Research methods Graduation thesis structure CHAPTER 1: OVERVIEW OF MY PHONG COMPANY A SUBSIDIARY OF THAI BINH INVESTMENT CORPORATION 1.1 Overview of My Phong Factory under Thai Binh Investment Corporation 1.1.1 An overview introduction of My Phong Leather Shoes Limited Liability Company 1.1.2 History of formation and development 1.1.3 Organizational structure 1.2 Introducing about Thai Binh investment joint stock company 1.2.1 Introducing about Thai Binh invesment joint stock company 1.2.2 Areas of activities 1.2.3 Bussiness operation situation 11 1.2.4 Vision and mission 11 CHAPTER 2: THEORETICAL BASIS 13 2.1 The concept about quality 13 2.2 Role of quality 13 2.3 Quality control 15 2.3.1 Incoming Quality Control (IQC) 15 2.4 Tools assisting quality control 16 2.4.1 Pareto chart 16 2.4.2 Ishikawa chart (Fishbone chart) 17 2.4.3 Flow chart 20 2.4.4 Control chart 21 2.5 Delphi Analytical method 23 v CHAPTER 3: THE CURRENT STATUS OF QUALITY CONTROL WORK AT MY PHONG FACTORY 25 3.1 The process of leather shoe quality control at My Phong 25 3.1.1 The process of sample control 25 3.1.2 Quality control process in mass production 27 3.2 The leather shoe production process at My Phong 29 3.2.1 Quality control process for leather shoes at My Phong factory 29 3.2.2 Importing and inspecting incoming raw materials 31 3.2.3 The process control of cutting, skiving, and printing 34 3.2.4 Quality control of the sewing process 36 3.2.5 Controlling and completing sole 38 3.2.6 Controlling process of finishing shoes 39 3.3 The status of the operation of the workshop and equipment at My Phong factory 40 CHAPTER 4: SOME SOLUTIONS TO IMPROVE PRODUCTION QUALITY AT MY PHONG LEATHER SHOES FACTORY 42 4.1 Assessing the production quality management situation at My Phong Leather Shoes Co.Ltd 42 4.1.1 Achievements 42 4.1.2 Restrictions 42 4.2 Some solutions to improve the quality control process at My Phong factory 43 4.2.1 Applying programmable sewing technology 43 4.2.2 Adjustment in term of personnel 48 4.2.3 Improving factory quality at My Phong 53 APPENDIX 62 vi INTRODUCTION The reason for choosing the topic The leather shoe industry is currently one of the sectors with a high proportion in Vietnam's export turnover Specifically, in the World Leather and Footwear Yearbook 2021 of the Portuguese Footwear Association, Vietnam ranks second in the world (after China) in terms of leather shoe exports, with about 1.2 billion pairs According to experts' forecasts, the leather shoe industry is still a priority for development during the industrialization process, with a focus on exports due to its outstanding advantages such as low cost, high competitiveness, creating many job opportunities, and especially having many large markets such as the EU, the US, Japan… Despite having many advantages in terms of exports, overall, Vietnam's leather shoe industry still struggles to compete with well-established major brands in the world According to Mr Nguyen Van Khanh, Vice Chairman cum General Secretary of the Ho Chi Minh City Leather and Footwear Association, "The export value of leather footwear in the past year reached USD 14.7 billion, an increase of 10% compared to last year However, the weakness of Vietnam's leather shoe industry is its poor performance in shoe production, in parallel with the development of other supporting industries." Ensuring the quality control of input materials as well as output products is also a crucial part that cannot be ignored if businesses want their products to be highly competitive in the market When quality control is ensured, risks that may arise during the production process such as product recalls, non-compliant raw materials, factories not meeting standards, etc will be addressed, thereby minimizing unnecessary costs Additionally, when output products are ensured in terms of quality, they will contribute to increasing customer satisfaction and trust in the product, helping to build the company's reputation in the market It can be said that quality is the "Golden Key" that helps leather shoe export companies assert their position in the market Understanding the importance of quality control in the production process, Thai Binh Investment JSC has long viewed quality control and management as a vital factor for the company's survival This can be seen through the slogan of the TBS Group factory: "Do it right from the beginning - quality above all." With this slogan, Thai Binh Investment Corporation is a company with superior production capabilities compared to other companies in the same field It is estimated that the total revenue of TBS Group's specialized shoe production companies has reached from 5000-6000 billion VND each year Despite achieving such successes, however, for a large-scale production company like TBS Group, quality inspection issues are inevitable, and product defects still occur, affecting the factory's revenue As a subsidiary of TBS Group, My Phong Ltd is also influenced by the quality management policies of the parent company, and obviously, the weaknesses of the parent company also significantly affect the production activities at the My Phong factory Recognizing these current issues, the author has chosen the topic "The solutions to complete the quality control work at My Phong shoe leather factory." Through this topic, the author hopes that this will be a reliable theoretical basis to help the factory continuously improve quality control in the present and future Research objectives To understand the quality control process of products at My Phong factory To determine the current status of product quality management at My Phong factory To propose solutions to improve the effectiveness of product quality control at My Phong factory Research subjects and scopes  Research subjects The product quality control process at My Phong factory Factors directly and indirectly related to the quality control process, such as: human resources, machinery, methods, raw materials, measurement, and environment  Research scope - Time scope: The research topic examines the current status of quality control at Mỹ Phong factory in 2022, and proposes solutions and recommendations until 2025 - Space scope: My Phong factory at Tieu Can district of Tra Vinh province - Content scope of the research: The research topic focuses on the quality control activities at My Phong Leather Shoes Company specifically addressing the following