Trang 1 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION PROJECTMAJOR: INDUSTRIAL MANAGEMENTIMPROVING CONTAINER LOADING EFFICIENCY TH
MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION PROJECT MAJOR: INDUSTRIAL MANAGEMENT IMPROVING CONTAINER LOADING EFFICIENCY THROUGH GREEDY ALGORITHM IN EXCEL VBA: A CASE OF CONSTANTIA FLEXIBLES VIETNAM INSTRUCTOR: TO TRAN LAM GIANG STUDENT: NGUYEN THIEN TIN SKL011634 Ho Chi Minh City, August 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS GRADUATION THESIS TOPIC: IMPROVING CONTAINER LOADING EFFICIENCY THROUGH GREEDY ALGORITHM IN EXCEL VBA: A CASE OF CONSTANTIA FLEXIBLES VIETNAM Student : Nguyen Thien Tin Student ID : 19124330 Course : 2019 Major : Industrial Management Instructor : To Tran Lam Giang Ho Chi Minh City, August, 2023 ACKNOWLEDGEMENT First and foremost, I would like to express my deepest gratitude to my advisor, To Tran Lam Giang, for her invaluable guidance, feedback, and support throughout this thesis project Her insights and direction were instrumental in helping me bring this work to fruition I sincerely appreciate the time she invested in overseeing my research and writing I would also sincerely thank my colleagues at Constantia Vietnam who provided the opportunity for me to deeply understand the intricacies of the manufacturing and loading processes In particular, I am grateful to Production Manager Nguyen Anh Huy for taking the time to explain the details of current packing operations and constraints This field knowledge gave me the foundation to assess limitations and propose solutions Their unwavering belief inspired me during challenging times I could not have completed this milestone without such an uplifting community I look forward to receiving feedback and comments from readers and teachers so that I can complete my research and serve as a basis for further research in the near future iii LIST OF ABBREVIATION CSCMP Council of Supply Chain Management Professionals CVN Constantia Flexibles Vietnam ERP Enterprise Resource Planning ETL Extract, Transform, Load GSM Grams per Square Meter IT Information Technology OD Outer Diameter PE Polyethylene PVC Polyvinyl Chloride QA Quality Assurance SCM Supply Chain Management SKU Stock Keeping Unit VBA Visual Basic for Applications iv LIST OF FIGURES Figure 1.1 Headquarters of Constantia Flexibles group in Austria Figure 1.2 Constantia Flexibles branches around the world Figure 1.3 Organization structure of Constantia Flexibles Vietnam .12 Figure 2.1 Key elements of supply chain management .14 Figure 2.2 A visual example of the greedy algorithm 23 Figure 2.3 Wall Building method illustration in container by layer .25 Figure 2.4 A simple Genetic algorithm workflow 26 Figure 3.1 Information flow of a common new order 31 Figure 3.2 Column chart comparing export and domestic sales by year 32 Figure 3.3 Product proportion by quantity 34 Figure 3.4 Blister products from PVC seal with Blister Foil 34 Figure 3.5 Blister products from Coldform seal with Blister Foil 35 Figure 3.6 Heatmap of product distribution by width and OD .36 Figure 3.7 Column chart of sales ratio by product width 37 Figure 3.8 Column chart of sales ratio by product OD 37 Figure 3.9 Packing process for layer packing method 39 Figure 3.10 Pyramid packing for product rolls on pallets .39 Figure 3.11 Packing process for carton packing method 40 Figure 3.12 Standard container size model 41 Figure 3.13 Figure 3.12 Standard HT pallet size model at CVN 42 Figure 3.14 Model of how pallets stack boxes on top of each other .42 Figure 3.15 Interface of bioforce erp system 45 Figure 3.16 Line chart of delivered orders with insufficient tolerance since 2022 .46 v Figure 4.1 Describe maximum pallet number in a container 52 Figure 4.2 Comparison between horizontal and vertical pallet stacking of pyramid packing method 54 Figure 4.3 Model of packing layer packing and carton packing 55 Figure 4.4 ETL process in Power Query 56 Figure 4.5 Rawdata export from BFO ERP system 57 Figure 4.6 Perform data transformation in Power Query 57 Figure 4.9 Flowchart steps of the calculation tool implementation 59 Figure 4.7 Interface of input sheet in Excel 60 Figure 4.8 Interface of container sheet in Excel 61 Figure 4.10 Optimal pallet estimation calculation results through new VBA tool 64 vi LIST OF TABLES Table 2.1 Algorithm assessment 29 Table 3.1 Summary of packaging standards by product group .38 Table 3.2 Description of information to be calculated from the order 48 Table 3.3 Assessment of the current order calculation method 50 Table 4.1 Implementation plan of new Excel VBA calculation tool 63 Table 4.2 Information about an order in January 2023 63 Table 4.3 Data information has been manually calculated by the inventory department for the order 64 Table 4.4 Line chart of delivered orders with insufficient tolerance after improvement plan 66 vii LIST OF METRIC CONVERTIONS inch = 0.0254 meter (m) feet (ft) = 0.3048 meter (m) viii TABLE OF CONTENTS COMMENTS OF ADVISOR i COMMENTS OF THE COMMITTEE MEMBER ii ACKNOWLEDGEMENT iii LIST OF ABBREVIATION iv LIST OF FIGURES .v List Of Tables vii TABLE OF CONTENTS viii INTRODUCTION 1 Overview of the study Purpose of the study Objectives of the study .2 Research methods Structure of the study CHAPTER 1: CONSTANTIA FLEXIBLES VIETNAM MANUFACTURING LIMITED LIABILITY COMPANY BACKGROUND .4 1.1 Overview of Constantia Flexibles group .4 Introduction to the Group Introduction to Constantia Flexibles Vietnam .5 1.2 Constantia Flexibles' overall history .6 Constantia Flexibles group history Constantia Flexibles Vietnam history .6 1.3 Constantia Flexibles business areas and main product Constantia Flexibles group markets and products ix Constantia Flexibles Vietnam markets and products 1.4 Mission, Vision and core values of Constantia Flexibles group 11 1.5 Company Organizational Structure OF Constantia Flexibles Vietnam 12 CHAPTER 2: LITERATURE REVIEW 14 2.1 Key factors of Supply Chain Management 14 2.1.1 Overview of Supply Chain key elements: 14 2.1.2 Importance of logistics in supply chain management 16 2.1.3 Impacts of Container Optimization on Supply Chains: 17 2.2 Current challenges of container optimization 18 2.2.1 SKU challenges for container loading optimization 18 2.2.2 Packing Strategy Selection to Optimize Container Capacity Usage 19 2.2.3 The effect of product fragility on Loading Optimization 20 2.3 Review of Algorithms for Container Loading Optimization 21 2.3.1 Knapsack method 21 2.3.2 Greedy algorithms 22 2.3.3 Wall building 24 2.3.4 Genetic Algorithm 25 2.4 Container Space Optimization using Excel VBA 27 2.5 Assessing Loading method Suitability for VBA Implementation 28 CHAPTER 3: ANALYSIS AND EVALUATION OF THE CURRENT PACKING PROCESS 30 3.1 Overview of general information flow of an order 30 3.2 Describe main products and packing method in CVN 34 3.2.1 Choose the main products 34 3.2.2 Describe the variation in product dimension 36 x