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
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.
- 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 aspects: overall quality control processes, quality control of raw materials,cutting, skiving, sole finishing, and shoe lasting The research aims to analyze and propose solutions to enhance the quality control operations at the factory.
Research methods
Collecting documents about the quality control process, product quality situation, and quality reports from the Quality Management Department.
Consulting the opinions of production and QA/QC departments in finding solutions to deal with quality incidents and improving product quality.
Observing and participating in quality control at each stage of the production process from input to output.
Synthesizing and analyzing the collected data to propose solutions to improve product quality.
OVERVIEW OF MY PHONG COMPANY A SUBSIDIARY OF THAI
Overview of My Phong Factory under Thai Binh Investment Corporation
1.1.1 An overview introduction of My Phong Leather Shoes Limited Liability Company
Company Name: My Phong Leather Shoes Limited Liability Company
International Name: May Phong Enterprise Company LTD
Representatives: Vu Van Hai, Hsu Kuang Tien
Address: Tan Dai Hamlet, Hieu Tu Commune, Tieu Can District, Tra Vinh Province Business Type: Limited Liability Company with 2 or more members
Figure 1 1 My Phong Leather Shoes Limited Liability Company
1.1.2 History of formation and development
From the 1990s, the Vietnamese government identified that "Every country needs a strategy to build an independent and self-reliant economy, effectively utilizing international resources." Based on this perspective, the government recognized that opening up and integrating with the international community was the right direction attraction policies were proposed, including the leather shoe industry Recognizing the potential for development in Vietnam, many countries around the world, including Taiwan, decided to invest in this market in Vietnam.
The leather shoe production industry in Taiwan has a long history of development. However, due to the shortage of resources such as labor and materials in their country, their production still faces many obstacles Recognizing the policies and potential of Vietnam, the founder of My Phong Leather Shoes Co Ltd decided to change their investment and production model to Vietnam.
In 2005, My Phong Leather Shoes Co Ltd was established, specializing in the production of leather shoes, especially for women The company's products are exported to many countries in Europe and the Americas.
Currently, the company has 3 factories, all located in Tra Vinh province (1 large factory located in Tieu Can district and 2 smaller factories located in Tra Cu district), with a total area of over 50 hectares and managing nearly 30,000 workers in the area The development stages:
Period 2005-2007: The company gradually implemented the construction of a factory, initially in Tieu Can district with an area of about 14 hectares, in the beginning of the second quarter of 2007 My Phong Leather Shoes Co.Ltd officially launched the operation of the Vietnamese leather shoe industry with an initial workforce of over 2,000 workers mainly processing shoe uppers for partners.
Period 2007-2009: The company developed an additional 16-hectare project for phase
2 in Tieu Can district The total area increased to 30 hectares Along with that, the workforce also increased to 4,000 workers.
Period 2009-2013: In order to meet the production and storage needs, the company invested in a finished goods warehouse with an area of over 3 hectares in Tieu Can district.
Since 2020, in the context of the uncontrolled COVID-19 pandemic, the supply of raw materials as well as the consumption market have not been guaranteed, My PhongLeather Shoes Co.Ltd has faced many difficulties To solve this problem, the company's leadership conducted a merger with TBS Group After completing all procedures, in early 2021, My Phong Leather Shoes Co.Ltd officially became a part of the TBS Group system.
TBS Group is a large corporation in Vietnam that specializes in investing and developing 5 main pillars including: Leather shoe production, handbag production, real estate and industrial low-voltage, logistics, and trade and services In any industry, the corporation has achieved great success, contributing greatly to its sustainable development.
The joining of My Phong into TBS Group is a breakthrough and a remarkable effort by the TBS Group leadership team in expanding the scale of shoe production to the southwestern provinces of Vietnam (Kien Giang, An Giang, Tra Vinh), while maintaining a large source of employment for local workers.
Figure 1 2 Organizational structure at My Phong Co.Ltd
The CEO is the person with the highest power in the company, overseeing all business activities, personnel as well as cooperative activities of the company, and making decisions on the development direction of the company.
The CEO is accountable to the Board of Directors and is responsible to the Board of
Board of Directors of TBS Group corporation and responsible for directly overseeing two main blocks of the company (the organizational block and the production block).
The organizational block has the function of assisting the CEO in organizing and performing tasks in areas such as labor organization and management, human resource management and allocation, security protection, and salary distribution.
It checks and urges the departments in the company to comply with regulations, transmit information related to work to the CEO as well as convey information from the CEO to other departments.
At My Phong company, the organizational block is divided into 5 main departments. Respectively: Administration, Laborer, Production Management, Quality Control and Audit, Security and Sanitation.
The function of the production block is to transform raw materials (such as leather and fabric) into finished leather shoes to meet market demands both domestically and internationally They establish technological processes and optimize them to minimize production costs, improve the efficiency of the production line to meet market trends and ensure the highest value and quality of the final product At My Phong company, the production block is divided into three parts corresponding to the three stages of the complete leather shoe production process in the order of sewing, sole and finishing To ensure smooth production without wasting time, each part has a designated person responsible for a specific task In the sewing stage, tasks include planning and allocating appropriate raw materials, managing two machine workshops (Sewing 1 and Sewing 2), and cutting and punching materials to transfer to the finishing stage In the sole stage, tasks include coordinating production plans, controlling the completion of the sole stage, and coordinating with the Sewing stage to ensure synchronization in transferring products to the finishing stage Finally, the finishing stage includes a planning coordinator, process supervisor, and strict monitoring of each of the three stages of the finishing process.
My Phong Company, which belongs to the TBS Group, has many years of experience and customers in the market, a diverse range of suppliers, and can meet the input and output of raw materials for continuous production of products The company has a factory located in Tra Vinh, forming a chain of links with other factories in the Mekong Delta provinces (An Giang, Kien Giang) The favorable geographical location in terms of both road and waterway transportation facilitates the transportation of goods and raw materials.
The management board of My Phong includes both officers who have previously worked for the company and new officers from the TBS group with extensive experience The convergence of different management styles helps the company have many directions for market development.
The labor force in the Mekong Delta region is mostly young and has a high ability to absorb knowledge Moreover, the labor and production costs are lower than in larger cities such as Ho Chi Minh City and Binh Duong province This helps to optimize production costs for the company.
Due to being acquired by TBS Group in 2020, My Phong Company needs more time to integrate into the overall flow of TBS.
The factory facilities have been deteriorating to some extent since 2005, so they need to be re-evaluated and a reasonable maintenance plan needs to be established.
THEORETICAL BASIS
The concept about quality
There is no specific definition for the field of quality Depending on the perspective of an organization or individual, definitions of quality may differ The concept of quality may be suitable in one field but not applicable in another, or it may be widely used in this era but less used in the future Generally, concepts of quality are extremely diverse Below are some widely recognized and popular concepts of quality:
According to Japanese professor and quality expert Ishikawa, "Quality is satisfying the market's needs with the lowest cost possible."
According to American researcher Deming, "Quality is a prediction of uniformity, reliability, with low cost and suited to the market."
The European Organization for Quality Control defines "The quality of a product is the degree to which the product meets the needs of the consumer."
The International Organization for Standardization (ISO) defines quality in ISO 9000 as "The degree to which a set of inherent characteristics of a product fulfill requirements and satisfy customer needs by improving the product and making it free of any deficiencies or defects."
In Vietnam, according to TCVN ISO 9000:2000, "Quality is the degree to which a set of inherent characteristics of a product, system, or process meets the requirements of customers and other interested parties." (Ta Thi Kieu An and partners., 2010).
Although there are various definitions of quality, in general, the concepts of quality have indicated that quality has the following characteristics: Quality is measured by satisfying the needs of consumers If a product is not accepted by demand for any reason, it must be considered as having poor quality This is a key conclusion and the basis for quality experts to develop policies and business strategies Since quality depends largely on market demand and market demand is always fluctuating, the quality requirements are also constantly changing Quality is not just an attribute of a product Quality can be applied to a system or a process.
Role of quality
Following Ta Thi Kieu An (2010):
Quality is an important factor that plays a central role in creating a competitive advantage in the market, an important foundation for organizations to gain a competitive edge, and a key requirement in international trade activities Quality is a very broad and complex concept that characterizes the effectiveness of all organizational activities, reflecting the synthesis of technical, economic, and social contents.
And when quality assurance is ensured, it creates some advantages for businesses such as:
Raising awareness of employees: Quality assurance is not only the responsibility of quality control personnel but also the responsibility of all employees in the company, from the leadership to the workers in the production line The cooperation and cohesion of each individual will promote the effectiveness of quality management in all operations within the organization.
Ensuring product quality: By identifying quality standards for each product, businesses will understand what criteria their products or services need to meet From there, units can easily create processes to handle product defects and come up with specific solutions for each error situation.
Reducing costs arising from damages: When orders are not guaranteed in terms of quality, businesses will have to completely re-produce if errors occur Once defective products reach customers, the company's reputation will also be seriously affected. This causes the cost of occurrence to increase significantly Quality management will allow units to efficiently produce and reduce costs by minimizing the number of product recalls and re-production due to faulty goods.
Increasing customer loyalty: Improving quality will help businesses meet customer needs better When a company's products satisfy customers, they will be willing to come back for more purchases when the need arises.
Helping businesses grow stronger and assert their position in the market: By reducing the risk of quality issues, businesses will achieve an increase in production, customers,revenue, market share, profit, and investment in development and expansion of production and business scale.
Quality control
Like a definition about quality, the concept of quality control is also extremely diverse. According to the ISO 9000 International Quality Standard, "Quality control is a part of quality management focused on activities that fulfill quality requirements."
Quality control involves controlling many factors related to production, such as raw materials, machinery, and personnel However, this process can be divided into two categories: Incoming Quality Control (IQC) and Outgoing Quality Control (OQC).
Incoming Quality Control (IQC) is an important prerequisite before a business embarks on the production process When the incoming quality control process is performed well, it helps the business avoid facing quality risk issues and ensures a competitive advantage for the company The incoming quality control process includes the following steps:
Inspection of incoming materials: Before materials are allowed to enter the warehouse, they must be thoroughly inspected All recorded results will be reported in detail to the management department of the business The report evaluates the quality of incoming materials, serves as a means of storing information, and allows management to promptly detect batches of materials and supplies that do not meet quality requirements, thereby providing timely solutions.
Monitoring the quality of materials throughout the storage process: During storage, goods may be damaged Regular inspections of materials and supplies are necessary to ensure that they always meet the required quality.
Working with suppliers: Based on quality reports, QC department staff will work with suppliers to receive, exchange information, and handle any issues that arise If products consistently fail to meet quality standards, the QC department needs to make changes in search of a new supplier.
Outgoing Quality Control (OQC) is the final stage before products reach the hands of consumers It is also the last step in determining whether the company's products meet quality standards This provides customers with the highest quality goods The output quality control process includes the following steps:
Developing standards for product evaluation: When developing product evaluation standards, companies need to clearly define what criteria their products need to meet. These standards must also meet the objectives that the company is striving for.
Inspecting the quality of finished products: Based on the existing standards, the OQC department needs to evaluate the quality of finished products throughout the production line For products with technical defects or errors, it is necessary to collect and determine the causes of the defects.
Handling customer complaints about product quality and related issues: The OQC department is responsible for resolving customer requests and complaints about product quality after they have left the factory From there, the OQC will identify the causes that affect product quality in order to promptly propose solutions for customer complaints and requests in an efficient manner.
Tools assisting quality control
The Pareto chart is built on the Pareto principle discovered by economist Vilfredo Pareto and popularized in business management by Juran This principle states that 80% of problems in a task arise from 20% of the main causes.
Richard Kock, the founder of Bain & Co and BCG Consultant, once stated that "20% of what we do generates 80% of the results, but the remaining 80% of our work only generates 20% of the final results We are wasting 80% of our time on low-value activities." (PACE Business School Magazine).
In the field of quality management, it is also recognized that about 80% of quality issues are caused by 20% of the root causes.
Following Ta Thi Kieu An and partners (2010) “Experience shows that solving a problem, no matter how big or small, requires nearly the same amount of effort. Therefore, to solve a problem with minimum cost, we need to identify the few important things The tool to address this issue is the Pareto chart”.
According to Nicolae and colleagues (2015) “The Pareto chart highlights the most common causes and frequently occurring errors, prioritizing their resolution to contribute to error control and product quality improvement”.
Figure 2 1 Example about Pareto chart
The steps to perform a Pareto chart:
Step 1: Identify and classify the causes leading to products that do not meet the quality requirements.
Step 2: Set the time frame to summarize the Pareto chart.
Step 3: Collect information from the causes classified in step 1.
Step 4: Label the ratio used to create the chart.
Step 5: Create the chart in the determined order.
Step 6: Mark cumulative points and connect them to show changes.
Step 7: Record information and data sources used to create the chart and its title.
Step 8: Label the corresponding issues with each column in the chart.
The Ishikawa diagram (also known as the Fishbone diagram) was developed by Professor Kaoru Ishikawa of Tokyo University in 1943 It is an effective tool to list the causes of quality variation, and a technique for openly sharing opinions and analyzing processes that can be used in many different situations.
This is a graphical technique that resembles a fishbone, based on statistical theory,used to collect data for a specific purpose, analyze the data to solve or improve the problem According to Dam Van Tai (2016) “It is called fundamental because even people with little statistical training can use it, and it can be used to solve most quality- related issues”.
According to Trout (2019) “The fishbone diagram technique combines brainstorming and mind mapping to discover the cause and effect relationship of an underlying problem.
According to Srivastav (2019) “A fishbone diagram helps in root cause analysis to identify the causes behind the emergence of difficulty and problems Once the causes are identified, the classification is done based on which category-wise ideas come up as solutions to those problems”.
The Ishikawa diagram creates a separation between causes and effects On the right side of the Ishikawa diagram, issues are described, and on the left side, underlying causes are identified These root causes, or primary causes, are classified into four types Then, each type is branched into secondary causes The four main categories of causes are:
This group is related to all causes resulting from human actions, such as whether communication is effective, whether people understand their tasks, whether employees have adequate participation, experience, and training, etc.
This group includes causes related to the operation of machinery, tools, installation equipment, and computers Whether the machines have been used correctly, whether they are safe, whether they meet requirements, and whether they are reliable are all factors to be considered.
There may be issues with materials, raw materials, consumer goods, and finished products, such as their quality, quantity needed, resistance to external factors, and durability.
This group investigates whether causes may stem from work methods, such as whether the work process is reasonable, how the coordination processes are organized, and how employees and departments communicate with each other.
Figure 2 2 Example about Ishikawa chart
The steps to perform a Ishikawa chart:
First, accurately record the problem and its root cause At this step, apply the 5W method (What, Who, When, Where, How) Next, write down the problem in the top left or right corner of the page, while drawing a long arrow pointing towards the problem This is the backbone of the fishbone diagram Finally, frame the "problem" section, which is the head of the fish.
Step 2: Identify the primary influencing factors
Identify the primary groups of causes that may lead to the problem Draw branch arrows towards the backbone, with each arrow corresponding to a major cause This is the "fishbone branches" section of the diagram.
Step 3: Identify the secondary causes
For each group of causes, draw smaller arrows pointing towards them These are the secondary causes that may lead to the problem If there are still smaller causes, continue to draw smaller bones pointing towards the secondary causes.
At this point, the fishbone diagram is complete and contains all the possible causes From there, the management team and employees can begin analyzing each group of causes and implementing timely corrective measures The groups of causes should be numbered in order to prioritize them.
A flowchart is a type of diagram that represents the sequence of steps involved in a process using various shapes of boxes connected by arrows This diagram can illustrate a solution to a problem by breaking it down into individual steps The steps of the process are displayed as boxes connected to each other by arrows to indicate the flow of control.
Delphi Analytical method
Delphi is a technique developed by Dalkey and Helmer (1963) at the Rand Corporation, widely used to collect data from a group of operating experts This technique supports the group communication process to converge opinions on a specific practical issue that the group works on together, such as planning, problem evaluation, determining operational plans, making decisions Delphi provides an objective evaluation result for a specific issue The distinctive feature of this method is that experts are surveyed independently and without knowing how others respond. The Delphi method involves a repetitive process of collecting and refining expert evaluations through a series of questionnaires interspersed with feedback The purpose of this method is to build consensus forecasts from a group of experts in a structured, iterative manner.
Step 2: Select a group of experts related to the Delphi process.
Step 3: Build an index set, questionnaires.
Step 4: Apply Delphi method in round 1.
Step 5: Analyze round 1 answers After receiving answers from experts, the Delphi team will synthesize and analyze results based on the KAMET principle The KAMET principle evaluates the importance of each index (qi) at different stages based on the evaluation of the combination of statistical values, including Median (Mdqi), Quartile Deviation (Qqi), Mean (Mqi), and Variance (Vqi).
Step 6: Apply Delphi method in round 2 Questionnaires that do not meet the KAMET principle from the previous round are distributed to each expert to consult for consensus and evaluate the stability of members' responses.
Step 7: Analyze round 2 answers Similar to round 1, after receiving answers from experts, the Delphi team will analyze based on the KAMET principle.
Table 2 1 Using the KAMET rule to analyze Delphi interview questions
Conditions T-round for Delphi questions T+1 round for Delphi questions
If Mqi ≥ 3.5 and Qqi ≤ 0.5 and Vqi 15%, then If Mqi ≥ 3.5 and Qqi ≤ 0.5 and Vqi