MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION Major: Industrial Management Ho Chi Minh City, November 2023ASSESSMENT OF APPLICATION OF SUPPLIE
Overview of the study
Integration brings companies the chance to export their goods to the international market It is the opportunity to increase their production volume, market expansion as well as the reputation How can domestic companies achieve such goals? The key that helps companies achieving such goals is quality (Zhao & Gu, 2023) Quality brings opportunities for businesses but also enhances competitions between businesses (Adams & Richey, 2014) Businesses face many competitors and must make efforts to maintain or improve their business performance to compete internationally
In the manufacturing sector, companies need to improve the quality of their products to gain advantage with customers Manufacturers deal with significant challenges when it comes to ensuring the quality of their suppliers' products This challenge becomes even more pronounced as manufacturing outsourcing becomes more common, increasing their reliance on suppliers for maintaining product quality Managing supplier quality becomes increasingly complex as suppliers take on larger and more intricate production tasks It's not unusual to discover that incidents related to product quality can be traced back to issues with supplier quality For example, in 2007, Mattel encountered a quality scandal when lead paints were found in toys sourced from Chinese suppliers (Tang 2008) In another example, Boeing experienced significant delays in launching its new 787 Dreamliner, partly due to quality issues with components provided by its suppliers (Sanders 2009)
Bosch, a well-known corporation for manufacturing high-quality products, has promoted progress in the automotive industry through the Bosch Long Thanh - an important member of the Bosch group Bosch Long Thanh is specified in manufacturing transmission belts for gasoline vehicles, creating products with high reliability and performance Bosch Long Thanh only produces one type of product and provides it for customers in automotive industry It is a reason why the company needs to prioritize quality control of this product code, especially in controlling suppliers (because the company cannot control the quality of raw materials) For the urgent reasons mentioned above, the author chose the topic " Assesment of application of supplier quality management procedure at Bosch Vietnam Co., LTD " with the goal of ensuring that the
Page 2 company will continue getting high quality products Besides, it helps to optimize costs and enhance competition in the business environment in the future.
Purpose of the study
- To comprehend supplier quality management procedure at Bosch Long Thanh
- To analyze the supplier quality management (SQM) procedure and evaluate advantages and limitations based on reality implementation
- To recommend solutions for improving supplier quality management at Bosch corp.
Scope and object
- Scope: The study focuses on the SQM activities of Bosch Long Thanh from January 1 st 2023 – May 31 st 2023
- Research object: Supplier quality control activities at Bosch Long Thanh
Research methodology
- Qualitative research methods: The author has conducted research on theories and documents on supplier quality management Then, the author analyzed and discussed with internal employees and internal documents to understand how the company manages supplier quality
- Quantitative research methods The author collected the results of the solution through an online questionnaire survey to collect information from subjects participating in the improvement after one month.
Structure of report
The thesis is divided into 4 chapters, including:
Chapter 1: Introduction about Bosch Long Thanh
Chapter 3: Analysis of application supplier quality management procedure at Bosch Vietnam
Chapter 4: The solution to improve the supplier quality management procedure at Bosch Vietnam
INTRODUCTION TO THE COMPANY
Overview on Bosch group
Bosch is a technology and equipment provider specified in the automotive industry, and it has business relationships with nearly all global automotive companies Additionally, the group operates in various other sectors including handheld tools, household appliances, clean energy, security systems, smart homes, packaging solutions, construction solutions, mobility solutions, IoT and Industry 4.0
The company's headquarters locates in Gerlingen, near Stuttgart, Germany Stefan Hartung assumed the position of chairman in 2022 As of December 31, 2021, the Bosch Group has expanded its presence to 440 branches and subsidiaries in 60 countries worldwide, collaborating with 402,600 colleagues across the globe The group has also allocated a total of 6.1 billion Euros for research and product development, supported by 76,100 researchers and engineers worldwide
Bosch business areas includes mobility solutions, industrial technology, consumer goods, and energy and building technology Their contribution in the group revenue is
Figure 1.2 Proportion of sales by business fields
From the provided chart, it is evident that the mobile solutions sector commands the largest share of the group's overall sales Consequently, it is crucial to prioritize tailored strategies for the growth and development of this sector to effectively target and capture the pertinent market segments
Bosch brands in this field includes:
Figure 1.3 Bosch’s Brand in Mobility Solutions
- International name: Bosch Vietnam Co., LTD
PROPORTION OF SALES BY BUSINESS FIELDS
Industrial Technology Mobility Solutions Consumer Goods Energy and Building Technology
- Headquater: Ho Chi Minh City, Vietnam
Bosch established its first representative office in Ho Chi Minh City in 1994 Since
2007, the company has gone further with the establishment of Robert Bosch (Vietnam) Co., Ltd to represent its operations At the moment, Bosch Vietnam operates diversely in all differences from sales, production, research and development (R&D) to global service centers
Bosch Vietnam has two branches in Hanoi and Da Nang Together with the powertrain factory in Dong Nai province, Bosch produces continuously variable transmission (CVT) belts for cars The company also organizes R&D activities in Vietnam Robert Bosch Engineering & Business Solutions Vietnam Co., Ltd operates as a center for R&D of technology and industrial solutions In addition, the Automotive Technology R&D Center in Ho Chi Minh also contributed to Bosch's development in Vietnam Not only that, Bosch also supports technical and professional development through the Bosch Industrial Technical Vocational Training Center (Bosch TGA)
In 2021, Bosch recorded revenue in Vietnam of about 192 million Euro (accounting for 0.2% of the group's revenue of 78.7 billion Euro) As of December 31, 2021, the company employed more than 5,000 associates and had diverse business operations in Vietnam.
Introduction to Bosch Long Thanh
- Name: Bosch Viet Nam Co., LTD
- Address: Road No 8, Long Thanh Industrial Park, Long Thanh District, Dong Nai
- Scale: The Ho Chi Minh city Plant (HcP) was established in April 2008 with a first phase investment of 30 million Euro and a second phase of 55 million Euro in 2015 Bosch Vietnam is invested in technologies and facilities, advanced infrastructure with an area of 16,000 m2
- Market: Globally, especially China and Japan
22/10/2007: Project the HcP factory construction
01/08/2008: Operate the first transmission belt assembly line at a rented factory in high-tech park
03/01/2011: Start operate the first Element production line
03/07/2012: Produce its own Loop for the first time
10/2013: Apply TGA technical vocational training program in Vietnam
06/2014: Produce 10 million continuously variable transmission belts
03/2017: Mark the milestone of 20 million products produced at HcP
2018: Celebrate 10 years of establishment and marking the milestone of 25 million products produced at HcP
* Vision and mission: Bosch builds its value on a series of core values that underpin the future such as responsibility and sustainability, openness and trust, fairness, innovation, legality, trust and diversity
HcP operates as a factory specified in the continuous production of continuously variable transmission belts (CVT) This is also where Bosch began producing the first transmission belts in Vietnam This is an important component that makes up the CVT gearbox because without the pushbelt, or if the pushbelt is broken, the vehicle will not run The pushbelt ensures that the car engine operates as efficiently as possible, the engine is always maintained at an ideal performance level, ensuring low fuel consumption and reducing CO2 emissions Each completed CVT belt is made up of 19 - 400 belt eyes arranged in series with each other and two sets of loops mounted on both shoulders of the belt eyes Loop sets are made up of about 6 - 12 individual loops nested together
In 2008, Bosch started CVT wire production activities in Dong Nai, Vietnam Since the first production, the factory has achieved an impressive number of 1.6 million CVT products In March 2018, its wire products reached more than 25 million products supplied
Page 7 to the market Currently, CVT are being produced at 3 Bosch factories around the world, including the Netherlands, Vietnam and Mexico Among these, the factory in Vietnam ranks first in terms of scale and financial revenue, far surpassing Bosch factories globally
This company is supplier of assembly automobile manufacturing companies such as Honda, Jatco, Huyndai
* Company organizational structure of HcP
The company's organizational structure is divided into two main groups: Commercial (HcP/PC) and Technical (HcP/PT) and specific affiliated departments responsible for functions according to that segment
Figure 1.5 Company organizational structure of HcP
Within the scope of the topic, the main mentioned parts will be QMM, MFG1 and LOG, TEF
- QMM (Quality Management): ensures quality throughout the company From managing the quality of inputs, production processes and product outputs to maintaining the factory-wide quality management system
- MFG1 (Manufacturing): responsible for element production
- LOG (Logistics): in charge of work related to purchasing raw materials, transportation, customs clearance for goods at the company and warehouse control activities
- TEF (Technical Function): in charge of the technical aspects in the factory from software to hardware, even usage documents
* Structure and functions of departments in the quality management department
At the HcP factory, the quality department is responsible for quality management and quality methods for the factory, maintaining and continuously improving the
Page 8 company's quality system with the aim of ensuring customer satisfaction Customers are always at the highest level
Figure 1.6 Structure of departments in the quality management department
The quality management and methods department (PS/QMM-HcP) is divided into
5 groups with different functions in controlling and managing factory-wide quality standards and the IATF 16949:2016 system Groups are divided according to specific functions and roles:
PS/QMM1-HcP: This group works directly with customers (Punch, Jatco, Hyundai,.) to record customer notifications about requests, products, complaints, etc
PS/QMM3-HcP: This group is responsible for ensuring quality processes, monitoring operations, resolving production stoppages and coordinating with production departments to resolve process issues that cause defected products in processes as well as identifying and tracing errors and incidents to prevent non-conforming products at the end of the line
PS/QMM6-HcP: This group measures and analyzes product-related chemical experiments, metallurgical process measurements, welding, belt testing, calibration, and measurement instructions that are being used to produce power transmission belts
PS/QMM7-HcP: QMM7's orientation for Bosch and HcP is determined based on 5 quality principles: Innovation, Customer Satisfaction, Collaboration, Responsibility, Consistency This team implements quality management system process management, implements internal audit processes and evaluates IATF 16949:2016 quality system and support quality management methods (FMEA, SPC, problem solving, etc.)
PQA/HcP: This team is responsible for purchasing quality control for suppliers and ensure supplier compliance with Bosch quality standards in the supply of materials used to produce drive belts at the factory
THEORETICAL BASIS
Quality
Crosby (2001) defined that “Quality is conformance to requirements” It means that the formulation of product quality should be based on the analysis of customer wants and requirements for the product Besides, from customer aspect, Juran (1950) also indicated requirements are identified by the customer demands as “Quality is fitness for use” It is a key force leading to delighted customers, firm profitability, and the economic growth of nations (Deming 1982; Kennedy 1987; Rust, Zahorik, and Keiningham 1995)
On the other hand, from manufacturer’s aspect, Ishikawa (1990) believed that company-wide quality control did not just mean the quality of the product being sold It also included the quality of the management, the company itself, after-sales service to the customer, and the human beings involved Golder and Mitra (2012) defined quality as a set of three distinct states of an offering’s attributes’ relative performance generated while producing, experiencing, and evaluating the offering Each state of quality is a comparative assessment of an offering’s attribute’s performance relative to a reference standard desired by either firms or customers With a focus on the firm, the quality production process has been the domain of engineering, operations, and management research Producing an offering is a function of attribute design, process design, resource inputs, and various methods of controlling the production process From Schematic production system of Kumar, S A., & Suresh, N (2006), products need to go through 3 stages before reaching customers: from materials – procedure and packaging
Quality management (QM) is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement According to Lagrosen (2005), there are four main components of Quality Management: quality planning, quality assurance, quality control and quality improvement The process of implementing all four components in an organization is referred to as Total Quality Management (TQM) Results of a study by Liu (2003) on quality implementation in public housing projects in Hong Kong showed increased customer satisfaction after ISO 9000 implementation Furthermore, the average number of defects in housing projects built by companies with ISO 9000 certification was
Page 11 significantly less than the number of defects in housing projects built by companies without ISO 9000 certification.
Supplier Quality Management
A supplier is defined in ISO 9000: 2015 as an organization that provides products
A supplier can be a manufacturer, a distributor, a retailer, a contractor, a subcontractor, or a supplier of products For example, an organization chooses to purchase a product or service from a supplier because they don’t have the capacity to manufacture it on their own, lack the necessary skills, or the business needs to focus on what it does best According to Karana & Kandachar (2008), the competitive market rising from the increase in product consumption makes product designers consider more about materials than before That makes more and more companies in the manufacturing sector need to manage the quality of materials or quality of suppliers
SQM is the process of monitoring a supplier’s ability to meet the customer’s needs
It is the process of monitoring a supplier’s ability to meet the customer’s needs SQM is defined as a collection of management activities which are necessary ingredients for enhancing the quality performance of an organization through the blending of supplier activities with the buyer activities and simultaneous engagement and communication between the two partiers (Chakravarty, 2014, 103-4) SQM is regarded as a key ingredient that is imperative for improving internal quality performance (Zsidisin et al., 2016; Lee and Li 2018) In the supply chain literature, SQM has been operationalized through three dimensions: supplier selection, supplier development, and supplier integration (Lo and Yeung, 2006)
The business environment is highly competitive, and companies are dealing with supply chains that have become more unpredictable In this evolving landscape, both buyers and suppliers are realizing the benefits of fostering collaborative partnerships
- With suppliers: Granting preferential buyer benefits is a key weapon in the arsenal of relationship marketing activity (Palmatier, et al 2007b) Supplier benefits was measured by three items covering profit, market position, and customer acquisition (Geyskens & Steenkamp 2000), to reflect the direct benefits of doing business with the buyer
- With buyers: Buyer benefits measured the extent to which the supplier granted preferential treatment to the buyer, in the form of value-added services, direct investments,
Page 12 process adaptations, or special treatment (Palmatier, et al 2007b) Buyer benefits entail the preferential treatment a supplier gives to a specific buyer in exchange for its past actions or future loyalty For example, because Toyota is a top customer for most of its suppliers, the firm receives far more attention and innovative offerings from suppliers than its competitors (Marksberry 2012)
Suppliers must be classified according to several specific requirements that meet the particular needs of a company (2019) Standards may include lead times, methods of delivery, quantity, quality, packaging, storage and other requirements Categorizing suppliers helps figure out which ones are important and what needs to be taken into account This makes it easier to keep track of suppliers and make re-evaluating them more efficient
The ISO 9001 standard classifies suppliers in three ways:
- Supply of raw materials, materials and equipment
Classify suppliers by risk level and accordingly prioritize performance quality assessments
Figure 2.1 Classify suppliers by risk level
(Source: complianceonline.com) Highest risk suppliers - Suppliers with the biggest supply and/or quality risk will be evaluated every year This includes things like supplier's corrective action, return rate, on-
Page 13 time delivery, and customer complaints related to the supplier These are the ones that have a big impact on how good or available the product is
Heavy Risk suppliers - This is the second level of risk when it comes to supply and/or quality It'll be reviewed every two years based on the supplier's corrective action and delivery on time It has a direct effect on the product, but it also affects the availability of other options
Moderate Risk suppliers - Suppliers only affect the product indirectly They'll be evaluated every 3 years, based on how quickly they deliver and how much they charge
Low-risk suppliers - The lowest level of supply and or quality risk Suppliers don't have a big effect on the final product c Supplier Quality Management activites
Figure 2.2 Select a new supplier process
(Adapted from A.J Van Weele, Purchasing Management 1994.) Once the specifications have been developed, a buying team led by the supply manager will prequalify suppliers, generate requests for proposals, evaluate the proposals, and select a supplier based on established selection criteria
Define the elements to create the required product (materials, components, properties, etc.)
Quality has always been one of the most important performance criteria even with a conventional purchasing strategy (Dickson, 1966) He states that three factors (1) the ability to meet quality standards; (2) the ability to deliver products on time; (3) the performance history, are the most critical determinants in choosing suppliers
Sagar and Singh (2012) suggested that supplier selection criteria can change over time depending on the politics, economy, social and environmental factors of a business They suggested 21 key criteria to consider, including price, quality and standards,
Page 14 reputation, industry position, delivery, finances, quality system, technical ability, production facilities, production capacity, long term relationship, trustworthiness, compliance, speed, impact, communication, warrantees, and claim policies (ISO 9001/ISO
14000 certified), attitude, anorexia and obesity, packaging capacity, and past performance
Developing an approved suppliers list: the potential suppliers are defined Manufacture companies utilize an approved supplier list to assess the performance of each supplier in terms of cost, quality and delivery By categorizing the company's suppliers, it will be easier to select the most appropriate supplier
After defining a potential supplier, the buyer will negotiate with suppliers They will discuss requirements for materials (technical drawings, structural components, aesthetic requirements, etc.) and sign a contract In the contract, there will be an agreement between both parties on operating strategies and supplier development activities (if necessary)
Supplier development is any activity or resource investment initiated by a buying organization to improve the performance of its supplier (Krause, et al 1998) The cooperative effort between a buying firm and its suppliers aims to upgrade suppliers’ technical, quality, delivery, and cost management capabilities and foster ongoing improvements (Handfield, et al 2000; Krause 1999) Capability development refers to the buying firm’s investments and efforts to increase a supplier’s capabilities, so that it can meet the buyer’s short- or long-term needs (Krause, et al 1998; Mahapatra, et al 2012), capability development investments might include (onsite) training to suppliers, offering technical and quality expertise and advice, site visits or personnel exchanges between the supplier’s and the buyer’s facilities, involvement in the buyer’s new product design and development, and information sharing (Krause 1999; Krause, et al 1998) Carr and Kaynak (2007) also find that supplier investments are likely to increase provided product quality, which should result in better sales for the supplier In this sense, capability development is a relational investment that can improve the buyer–seller relationship (Li, et al 2012)
To ensure suppliers always maintain the quality of raw materials, buyers need to take assessment measures This step in the process is critical for assuring that an effective supplier base is in place, a key contributor to the firm’s competitive position
Tools to improve supplier quality management
Managing quality suppliers is essential for ensuring the quality of products and services in your supply chain Various methodologies and approaches can be employed to achieve this goal Two common approaches are the 8D (Eight Disciplines) and PDCA (Plan-Do-Check-Act) cycles All these approaches have in common, that they follow a scientific and methodical way to solve the problem PDCA is used for problems that have low complexity and involve many employees while 8D is used in many organizations only to solve problems created by claims - quickly and efficiently
The automotive industry is one of the leading sectors that direct the economy and technology, especially in most developed and developing countries In this study, the automotive sector choosing because this sector is where many quality management tools are first tried and applied 8D methodology is applied to complaints one by one in the automotive industry as customer complaints come (Divanoğlu,2022) The core content of the 8D method is the identification of the fundamental problem, identifying and understanding of the root causes as well as sustainably eliminating these root causes A comprehensible explanation is necessary for all steps (Kaplík, Prístavka, 2013)
According to Ford Global 8D system, 8 steps:
D1: Establishing Problem Solving Team / Project
According to Krajnc (2012), the purpose of this step is to establish a team with adequate knowledge about the product or process, where the problem occurred, and experience in technical disciplines needed to solve the problem and remedial action enough to cover all the necessary knowledge and experience and small enough to work effectively It is recommended to assemble a team composed of 4–10 members
The problem description is the detailed description of the situation, facts collection, structuring and analysis of the problem It limits the problem and separates it from not affected areas The description must be unambiguous, understandable and generally comprehensible Documented evidence (e.g flow diagrams) are to be provided if necessary to the description and simplification of the problem analysis The problem description must contain information which permits to reproduce the nonconformity Within the problem description the target state is also explained and the interaction in the superior system is described
When a problem is detected, preventive measures should be immediately implemented to reduce the impact and ensure the product or service is not affected This includes suspending production or supply, sorting products, inspecting incoming products, and recalling delivered products Information about the problem and preventive measures must be recorded, and all this needs to be thoroughly evaluated to avoid unwanted side effects
Examples for containment actions are putting lots on hold and sorting manufactured products, initiation of incoming inspection for delivered products, etc Furthermore, products which are already on the transport to the customer, in intermediate stores or already at the customer’s side are to be taken into consideration In addition, it must be ensured that information about the non-conformity is forwarded within the affected area (e.g next shift) as well as to potential affected areas (e.g other lines/plants) Containment actions must be documented together with the associated results Before containment actions are implemented possible unrequested side effects should be assessed
The cause-and-effect analysis determines why the problem could occur and why it has not been detected (non-detection) The root cause is determined if the reason for the deviation can clearly be identified, reproduced and proved Failure Modes from FMEA must be taken into account In the process of root cause identification, problem-solving technics such as five whys analysis and Ishikawa diagram can be used
D5: Define Corrective Actions and Proving Effectiveness
The essence of this step is to select the best permanent corrective action to eliminate the root cause and the best permanent corrective action for the location of leakage The place of leakage in the process is seen as the earliest point in the process that is closest to the root cause where the problem should be revealed but was not For both of these measures, there should be verified their effectiveness and whether their implementation would not have any adverse effect
D6: Implementing Corrective Actions and Tracking Effectiveness
The purpose of this step is to plan, implement and validate selected permanent corrective actions Temporary protective measures should be taken before permanent corrective action is taken If necessary, it can be adjusted to meet customer requirements f, however, the customer does not request a limit associated with the process capability,
Page 20 the 8D team verifies whether the capability complies with internal requirements The results must be documented
In this step, the team analyses whether the corrective action implemented would prevent or improve the quality of similar products and processes Any omission requires an explanation It has to be assured that the defined measures will be implemented
The problem solving has to be assessed in a meeting with the participation of possibly all involved people Prerequisite for the completion of the problem solving is the completion of the steps D1 to D7 Analysis is performed to identify the strengths of the team's effort in the problem-solving process, and the problems encountered For a complaint which refers to former or running problem solving with known root cause, the step D8 does not have to be executed again
Result: Discussion/Debriefing and evaluation of the steps D1 to D7, conclusion of the problem solving with agreement of the involved persons and if necessary, the customer, acknowledgment of the teamwork by the sponsor have taken place
In this method, failures are solved using simple problem-solving techniques such as: Failure Mode Effect Analysis (FMEA), five whys analysis, Ishikawa, flowchart FMEA is used quite a lot in 8D, but because of the scope of the topic, the author does not mention it in this thesis If a problem has many root causes such as the Fishbone diagram, 5xwhys and Pareto can help to unearth them While Fishbone enables grouping them into different categories, 5xwhy helps to dig deeper into each root cause The 5xwhys method is especially useful when there is no evident root cause, while Pareto helps to grade the known causes and prioritize the response to each
The fishbone diagram, also known as the Ishikawa diagram or cause-and-effect diagram (Coccia, 2018; Ilie & Ciocoiu 2010; Septiawan & Bekti, 2016) It is a powerful analytical tool used to identify and understand the root causes of a specific issue The name
"Ishikawa diagram" is derived from Kaoru Ishikawa, a leading expert in quality control in Japan, who first introduced this tool in the 1960s (Coccia, 2018) The fishbone diagram helps us analyze and categorize in detail the factors that contribute to the poor quality of a product or service Typically, the main causes stem from the inadequacy of factors such as
Page 21 management, technical processes, labor, equipment, materials, and the working environment (Loredana, 2017)
According to Ilie & Ciocoiu (2010), constructing a complete fishbone diagram involves seven steps:
- Identify the Problem: Clearly define the issue you want to address
- Describe the Problem: Provide a detailed description of the problem, including its effects and relevant information
- Identify Main and Potential Causes: Determine both the primary root causes and any potential underlying causes contributing to the problem
- Prioritize Criteria: Establish criteria to prioritize the identified causes
Support tools
5S was introduced by Osada before 1980, which is the abbreviation of 5 Japanese words: Seiri (Sort), Seiton (Set in order) , Seiso (Shine), Seiketsu (Standardize), Shitsuke (Sustain)
According to Ta Thi Kieu An and colleagues (2010), 5S is defined as:
- Seiri (Sort): eliminate unnecessary things in the workplace Determine the “right amount” of what is needed
- Seiton (Straighten): Arrange remaining items appropriately to increase efficiency and convenience
- Seiso (Shine): Clean and limit sources of dirt
- Seikesu (Standardize): Take care and maintain workplace hygiene by continuously implementing Seiri, Seiton, Seiso with 3 "no" principles: no useless objects, no clutter and no dirty things
- Shitsuke (Sustain): Create the habit of working voluntarily in the right way
According to Nguyen Dinh Phan and Dang Ngoc Su (2012), 5S makes the workplace more comfortable for employees: When implementing 5S, you must first discuss and agree with everyone on what is necessary and how unnecessary Then, discuss and agree on which items to put where are most convenient for everyone to use and work together to clean the workplace
The Japanese word “kanban”, meaning “visual board” or a “sign”, has been used in the sense of a process definition since the 1950s It was first developed and applied by Toyota as a scheduling system for just-in-time manufacturing
Its core purpose is minimizing waste activities without sacrificing productivity The main goal is to create more value for the customer without generating more costs
Kanban cards are vital component of Kanban System It signals the need to move material within a manufacturing or production facility or move materials from an outside supplier to the production facility The card indicates the signal that there is a depletion of product, parts etc When received the Kanban will faster the replenishment of product More consumption and this demand for more products are signalled by the Kanban card
Example of simple Kanban System implementation might be 3 bin systems for the supplied parts, where there is no inhouse manufacturing
- One bin is on factory floor
- One bin is the factory store
- One bin is at the supplier
REALITY OF APPLICATION SUPPLIERS QUALITY
Overview of product at Bosch
HcP Factory - Bosch Vietnam Co., Ltd., this is the world's largest Bosch factory specified in producing drive belts The company only produces CVT belts which include many different product codes and serves customers mainly Jatco, Honda, and Punch
For products in the company in particular and product code 082 in general, they all have the same supplier and are classified as follows:
Highest risk suppliers – (Direct suppliers): Suppliers have direct influence on the product and difficult to find alternative suppliers: company ABC (supplying coils to produce elements), company XXX (supplying coils to produce loops)
Heavy Risk suppliers – (Indirect suppliers) Suppliers of products used directly in the product manufacturing process: grinding wheels, gloves, chemicals (oil, soap, etc.), loopset containers, testing equipment, tools used for stamping and cutting (worn out with repeated use), VCI bag,
Low-risk suppliers – (Support suppliers) Suppliers that are in this classification have no significant impact on the final product: Products supporting the production process (masks, earplugs, etc,.)
According to the analysis above, we need to focus on suppliers that directly affect the quality of the product And according to the data the author collected at the input quality management department, the common errors of direct suppliers are coils to produce elements or loops Combined with the above information, we need to focus on analyzing
Page 30 and improving the efficiency of supplier ABC's input quality to minimize costs as well as improve product quality.
Overview of supplier quality management at Bosch
Table 3.1 Flowchart control quality input process
Step Responsible Flow chart Description Standards/Tool
4 LOG Storage material SAP, and 5S
5 Operators Unboxing coils and check quality
Store and inform QMM3 & PQA
7 Operator Put coils to production
At the end of the year, the production department compiles statistics on the current situation of the factory to make a forecast for the following year to place orders The order volume is about 5,000 tons/year and is divided into monthly deliveries to the company depending on demand
While waiting for production, the coils will be stored at the inbound warehouse for a maximum of 6 months The best guaranteed temperature is 24-40 degrees with humidity below 60% This preservation must be in accordance with the provisions of IATF 16949 standard
At the stage of discharging the steel coil to put it into the stamping machine, the operator will request to receive the raw material roll from the MSE1 team leader Within
Page 31 no more than 2 hours after receiving the order from the team leader, the logistics department (LOG) will transfer the steel coils to the pipe production line and place them on the preparation racks
Next, operators will check the appearance of the steel coil according to regulations After completing the inspection, they will put a signature on the inspection form and record the delivery process of the steel coil These steel coils will then be carefully sorted into separate pallets, specially designed for storage purposes
To ensure that the steel coil is not scratched during lifting and use, the coil lining foam will be preserved and then used to line the containers A periodic inspection procedure will be applied every time the roll is changed and replaced immediately when damaged liner is detected to avoid quality problems during the production process
During the management process, operators will use colored paper to print important information such as steel roll type, serial number, import date and expiration date on the surface of the steel roll This information will be accurately posted on steel coil containers, helping to optimize storage time management effectively Using colored paper also has the advantage of avoiding confusion between steel rolls of different materials, ensuring accuracy and uniformity during operation
At the end of the process, ensure that the raw materials used in production are always of good quality Those involved in this process need to ensure the entire process is stored on the SAP system
* Reaction plan when detecting defects on coils:
Table 2.2 Flowchart reaction plan when detecting defects on coils
Step Responsible Flow chart Description
2 Process engineer Describe the problem
3 Process engineer and quality technician
Record and document the problem
Production quality control and PQA
Identify the affected part numbers, specify the location of the affected parts
Customer quality champion, Quality manager
Plan and implement the immediate measures
Production quality control, Customer quality champion
7 PQA, Quality manager and Manufacturing
Decide about the further course of action
(Soure: Internal document) Step 1: Start the procedure
Relevant departments must follow this procedure when detecting a defect on coil or on element (s) which was define root cause by material
Figure 3.1 Defect on coil (corrosion)
(Soure: Internal document) Step 2: Describe the problem
- Process engineer must list down first information about suspected deviation or non – conformity by answering questions: What was suspected deviation? When did it happen? How was the deviation detected? Who detected the problem? Are some other products affected?
- Then the Quality Technician confirms the deviation
- After it was verified and confirmed, put blocking card on suspect part /abnormal material
Process engineers with cooperation of Quality Technician consider to delivering a quality alert as following criteria: o Failure can cause a customer complain o Critical failure with sampling inspection in shipments or from other plants o Failure of supplier parts o Failure can damage or destroy production or test – equipment o Re – occurrence of failure after clean date o Abnormal waste/ scrap in the line with unknown root cause
Step 3: Record and document the problem
- The problem is recorded and documented by an IT system Some information should be included: What is the defect? Which is the affected production time frame? From when? Which production asset/line? Which production step? Where are the parts? In which system? How to detect?
- Depend on each problem, the useage of defined data collection template is required by reaction plan or quality technician
Step 4: Identify the Affected Part Numbers, Specify the Location of the Affected Parts
- Traceability must be carried out to ensure all related parts / products are identified and blocked accordingly
- List of affected parts / products is prepared in advance for decision (at appendix)
Step 5: Plan and Implement the Immediate Measures
- Manufacturing Manager determines the immediate measures and start the defined escalation models (ensure customer supply, compliance, etc.)
- Inform the directly/indirectly affected divisions as well as the external and internal customers
+ Logistic support for internal and external customers on logistic matters
+ Customer Quality champion supports for external customers (sorting / blocking) + Quality Manager approval for external customer documents / voluntary disclosure
- Blocking of the affected parts in the system throughout the entire process and visualize the blocking with blocking cards Blocking parts are consolidated and visualized by Bosch Management System
- Stock (bin, location) must be blocked separately for each cause of failures
- The blocking of parts can be performed by different functions, the detail responsible as following:
+ PQA: parts in goods receipt & parts in warehouse from trading goods (except CKD)
+ Customer quality champion: parts in external Bosch warehouse or at external service provider; parts in transit to or at other Bosch plants; parts in transit to or at customer,
+ Logistics: parts in warehouse with observed non-conforming products and/or packaging (Special case)
- The responsible person brings the nonconformity part from the production area to a physically separated area (blocked stock area or space) as soon as possible and marks the parts as blocked parts
- For blocked parts in external warehouse, the labeling of the blocked parts has to be carried out by external service providers (ESP) contracted with RB in the same block template as in RB plants The responsible coordinating agencies in RB instruct ESP in implementation of the blocking card
- Parts blocked for longer duration (e.g., reference belt, samples ) are stored in a separate access-controlled area (blocked stock area, high-bay stock area)
- Use SAP system / IT system to control blocking
- QMM3 technicians block suspected product by SAP and put the blocking card onto the deviated part Reasonable and possible blocking should be physically visualized by the use of blocking cards on the respective lots Different failure causes must be blocked individually For this purpose, use the multiple block function Different reasons for blocking need to be defined separately
Step 7: Decide about the further course of action
❖ Products not affected (OK products)
The unblocking has to be approved by one of the following functions: manufacturing, quality management, purchasing quality assurance or logistic depending on reasons and relevant risks
Quality engineer informs QMM3 technician for releasing blocking part; and then QMM3 technician will remove all blocking card accordingly, SAP Handling
The release reasons have to be documented
- Requirement for Sorting inspections as following:
+ Risk assessment regarding the method and product (e.g., FMEA method…) or follow template
+ Suitability of the workplace ensures environment condition is similar to normal production
+ Layout of the workplace ensures part not inspected is separated to OK/not OK goods
+ Work and inspection instruction (work steps, work equipment and inspection criteria)
+ The implementation happens by observing the FIFO principle and the change status
+ The sorting inspection is approved by the production responsible and quality responsible by taking into consideration the principle of dual control with signature on an approval form
+ The approval form and associated files are controlled documents
+ Depends on the location of the sorting: Plant (manufacturing responsible); External stock area (Logistics / PQA responsible); Customer (Customer quality champion)
+ Quality technicians check sorting/ rework check sheet adequately and properly before releasing/ transfering blocked parts
Manufacturing Department or Quality Technician (according to their responsibility) retain documented information on the disposition of sorting/ reworked products including associated files, relevant training records, sorting/ rework checksheet
❖ Return shipment to plant or manufacturer:
- Check whether return shipment to plant is possible and reasonable Some factors should evaluate:
+ Additional risk due to handling and transport
+ Permissible storage time for the products
- If the root cause lies in a supply, a complaint process has to be started
❖ Define the Process for Rework or Repair
- Rework and repair processes carry additional quality risks, for example, by following means:
+ Confusion with products and/or parts (incl mixing up of variants)
+ Damages to parts during dismantling, repair, handling
+ Cause further failure types such as flashing with wrong software
+ Logistic mistakes (deviation in quantity, wrong packaging, etc.)
+ Violation of the "First In, First Out" (FIFO) principle
❖ Define and implement the Scrap process:
- Products defined as rejected must not be reused and marketed
- The responsible person ensures this by suitable processes and documents the outcome These processes are, for example, mechanical destruction of the parts, rendering them useless or similar actions.
Current status of ABC supplier quality management at Bosch
Supplier ABC provides input materials to complete this process and output are elements
Raw materials are inspected from the input stage as well as throughout the production process to eliminate defects that are passed to the next stage
According to defects detected on raw materials, the company divides defects into the following types:
Table 3.3 Type of defect and measure
Inspec peeling off Take internal action
Outspec corrosion Return to supplier
The author took data from January 2023 to May 2023 in the element manufacturing department, then consulted experts to filter data related to supplier ABC, emphasizing errors Elements in the processing process will be sampled at each stage to check quality with a sampling rate of 5 elements per box (about 10,000 elements per box)
Table 3.4 Defected elements from January to May 2023
Table 3.5 The number of coils used and reject rate from January to May 2023
Reject rate Reject rate target
Figure 3.3 Reject rate of quantity coil from Jan to May 2023
From the statistical data table, we can see that the reject rate is within the company's allowable reject rate target This reject rate target is researched and calculated by the factory's Technical Director so that the appropriate reject rate does not affect the company's revenue The reject rate in elements is very small, approximately 0 However, the reject rate on coils is larger and tends to gradually increase from March to May
With coils, quality control goes from the supplier to the production floor To control this well, we must ask the supplier to perform good quality control before delivering goods to the company
Because of detected on coils (which the company cannot control), the company requires the supplier to make an 8D report to find out the problems the supplier encounters, define the defect root cause and fix it to avoid repetition
Problem solving method for supplier deviation regarding quality complaint:
- If deviation occur 1st time for single incident: inform to supplier for awareness, take action for improvement
- If deviation repeat 2nd time: ask supplier for 3D
- If deviation repeat >= 3rd time: ask supplier for 8D
In some cases, if the deviation cause serious consequence at Bosch (ex: material damaged seriously, stop production line…), 8D will be applied immediately
Table 3.6 Require information in 8D report
Relevant information Complaint date, 8D title, Supplier name,
D1: Problem Solving Team name, email, phone and department
D2: Problem Description - Date and location of detection, quatity complain, batch no
- Failure affect at Bosch/ OEM machine/ final customer
What exactly is the problem?
Where exactly is the problem observed? When exactly did the problem occur?
How often does the problem occur?
What is the problem history?
Date end of D2 D3: Contaiment action - fill the table (Appendix)
- Are all affected area and department informed?
Date end of D3, responsible person
D4: Root cause analysis - Define root cause, fill 5xwhy form
- Reproduction of the defect possible (if no, why)
- Responsible person and complete date D5: Corrective actions and proof of effectiveness :
- Define actions against root causes and
- Responsible person and complete date
D6: Introduction of corrective actions and tracking of effectiveness
- Action against and date plan introduce
- Responsible person and complete date D7: Prevention of recurrence of the non-conformity
- Responsible person, due date and complete date
- Lesson learn D8: Final Meeting - Participants agree and signature to close
To ensure that supplier ABC is always in a state of providing quality raw materials, the company has activities to evaluate supplier quality From there, appropriate measures will be taken to meet the company's needs
* Supplier Scorecard: yearly supplier evaluation (at the end of the year)
Scoring will be calculated to provide a short-term supplier performance indicator (Overall Score) and a long-term performance indicator (Four Quarter Average) Each score will generate a recommended action, which will be used to manage supplier performance
- Quality Score: Evaluated by the proportion of raw materials accepted into the production process
- Delivery Score: Evaluated by the number of deliveries that are not late compared to the agreement in the contract
- Resolve the problem: evaluated by the times when material problems are resolved satisfactorily
Table 3.9 Resolve the problem score
Overall score = total actual assessment score/number of score
Table 3.10 Action for overall score
Table 3.11 Score of Supplier ABC in 2022
Supplier ABC Score Quality Score A Delivery Score A Resovle the problem A
Based on the evaluation results of supplier ABC in 2023 and the company's regulations, supplier ABC still maintains the highest level of evaluation (no action is required) Action taken to improve supplier performance is valid for one year unless recommended action increases in severity PQA is ultimately responsible for evaluating the results of the Supplier Performance Scorecard and determining the appropriate means to effectively manage the supplier
Bosch conducts Supplier Evaluation to verify the manufacturer's ability to meet the contract's requirements to ensure that the supplier's process and visual conditions are always in a stable state and commit that the product meets requirements
Frequency: 3 years (if have a problem with the supplier, once a year)
PQA is responsible for developing the supplier audit schedule and execution Supplier is responsible for implementing the required corrective actions from the audit findings
Table 3.11 Flowchart of audit process
Step Responsible Flow chart Description
1 The audit coordinators, audited supplier
3 QMM – HcP Release and publish audit program
4 PQA Implement, monitor and update audit program
MSE1 – HcP, purchasing – HcP, audited supplier
8 Managers of the audited, PQA
10 PQA Create and Distribute Audit
11 PQA Report Major Non-Conformity
12 PQA Report Score 0 Points or Major
14 Audited supplier Determine Root Cause and
15 Audited supplier Implement Actions and
+ The audit program shall include a schedule and description on: audit type: supplier regular audit; internal and external regulations to be applied; audit scope (processes and organizational units); audit frequency and dynamization
+ The duration of the audits (auditor man days) must be determined depending on the processes and the number of employees of the audited unit
+ The lead auditor coordinates the schedule with the audit contact person of the audited unit and the audit team The lead auditor distributes the audit agenda
+ The lead auditor evaluates the evidence and makes the findings using the following VDA6.3 criteria
+ The audit report should be distributed within 5 working days after ending the on- site audit In case of major deviations, this period is extended by another 5 working days
- Result of audit supplier ABC in 2022:
According to the results gathered by the company, the audit results for 2022 were excellent There were no major non-conformities, and the supplier performed exceptionally well in managing the company's processes and operations to deliver the highest quality products
SOLUTIONS TO IMPROVE THE SUPPLIER QUALITY
Assessing the advantages and limits of quality management on supplier ABC45
- About input quality control process: The tasks in the input quality management process are divided into specific and clear tasks, each department has its own responsibilities Besides, the company also uses Kanban, a supporting tool to ensure that raw materials always follow the correct process Meanwhile, FIFO method helps to reduce the expired materials in the warehouse Furthermore, the implication of 5S also helps create a clean and safe working environment, shortens search time and eliminates subjective human errors
- Reaction plan when detecting defects on coils: The process is clearly defined It sets the actions and procedures that relevant employees or departments must take to rectify errors and ensure that the coil meets quality standards This helps ensure that everyone has specific understanding and responsibility when defects occur and helps increase efficiency in resolving problems and maintaining product quality
- Request 8D report from supplier: 8D report helps suppliers identify and resolve defects effectively, thereby improving product or service quality This also creates transparency in handling problems or errors, building trust between the company and the supplier 8D report drives improvement in supplier relationships by demonstrating commitment to quality and continuous improvement
- Evaluating Supplier: The company, in collaboration with the supplier quality control department, can directly assess supplier quality through the VDA6.3 evaluation process
- Reject rate: The company is effectively managing supplier quality, as the reject rate consistently remains much lower than the target reject rate This demonstrates the effectiveness of the company's quality management process and the supplier's consistent delivery of high-quality products or services, always staying below 1%, even though the maximum allowable rate is set at 2% This not only reflects efficient quality management
Page 46 but also signifies a positive relationship with the supplier It implies that the supplier has made substantial investments in producing high-quality goods and consistently ensures reliable product or service delivery
- Dependence on one supplier: Dependence on a single supplier for raw materials to produce code 082 puts the company in a high-risk situation In this case, the company becomes constrained and dependent on the capabilities and reliability of that supplier Any disruption in the supply chain, whether due to weather, production problems, or financial issues, can cause difficult and unwanted situations This can include supply delays, material shortages, or even sudden price increases, all of which can impact production and delivery schedules
- No work instruction (WI): The detection of coil quality errors typically occurs during the "unboxing" phase However, in the current company system, there are no specific work instructions for the input coil quality inspection process This means that the quality inspection process for incoming coils is not adequately defined or guided This lack of instructions can lead to the oversight of critical quality issues in the production process
This can lead to inconsistencies in testing and error identification, as employees may perform the process in an individual or unclear manner This not only affects the ability to detect errors, but also affects troubleshooting and future improvements.
The solutions to improve the supplier quality management procedure at Bosch
a Build a work instruction for operator at control quality input stage before putting it into production
Goal: create a work instruction document for workers to open coils, to avoid having the goods produced before discovering errors, increasing costs
This project is implemented according to the PDCA continuous improvement cycle and is implemented within 2 months, the results will then be applied into practice
Project group: QMM3, PQA, MSE1 (include direct and indirect)
No Action Start End PIC
The plan is to create a new work instruction for operator at the control quality input according to the gantt chart as shown below
Organize a meeting including departments: PQA, QMM3, MFO-TT, TEF6 with the content "Creating work instructions for unboxing operators (OP)” The meeting lasted 1 hour with the following agenda:
1 Describe problem, provide solutions 10 minutes
2 Identify tasks and person in charge 40 minutes
Agenda of meeting for creating new WI
Describe problem: Use 5xwhy to describe the problem and define action to improve
Table 4.3 Use 5xwhy to define root cause
Why defects by supplier were detected on process?
Because it was not detected at previous processes
Why it was not detected at previous processes?
Because it was not checked carefully
Why it was not checked carefully? Because operators didn’t know about this defect Why operators didn’t know about this defect?
Why they weren’t trained? Because there is no work instruction for this
Identify tasks and person in charge (PIC) and deadline:
Table 4.4 Identify tasks and person in charge (PIC) and deadline
No Task PIC Support Deadline
1 Create WI MSE PQA, TEF 8/6/2023
4 Collect feedback from OP improve MSE PQA 25/7/2023
5 Improve and apply further MSE PQA, TEF 3/8/2023
The PQA and QMM3 departments provide defectations that are often detected in unboxing coils and suggest actions to detect them MSE1 combine to provide plans and instructions appropriate to the operators' activities
Table 4.4 Defect and how to detect
Corrosion Check every coil ring to see if there is any corrosion (different color area) on surface and edges
Gap Check if there is any gap between rolling rings of coils
Tape Use one hand to hold the coil while the other hand remove tape in order to prevent coil from unwrapping suddenly
Figure 4.2 Check coil before production
After determining reasonable instructions, meet with TEF6 to write work instructions that match the document's requirements
After having the work instructions, MFO1 - TT group (direct associates in MSE1) will conduct training unboxing operators to follow the instructions At MFO1 – TT there are 2 unboxing operators per shift, 3 shifts per day, a total of 6 people With inflexible time and few trainees, the MFO1 - TT will record it into a video for the unboxing operator to watch and do the test
The video lasts 20 minutes, including the following content:
Table 4.5 Timeline of training video
Introduction to the importance of input quality inspection: 2 mins
Process of opening coil and checking quality 15 mins
Put the coil into the holder to prepare for production 3 mins
The test has 10 questions, OP must have 9/10 correct answers to pass If not pass, watch video training and do the test again
Table 4.6 Type of question on the test
1 Coil opening process Watch 10s video and choose the correct answer
1 Put the coil into the holder to prepare for production
Watch 10s video and choose the correct answer
4 Distinguish types of detects Choose the correct answer
1 Arranged in order of test procedure
3 Check quality Watch 10s video and choose the correct answer
- PQA and QMM3 departments will compile data on defects due to materials and compare with previous months
Table 4.7 Data before and after apply WI
Based on the table above, we can see that the number of errors detected on finished products (elements) decreased significantly, instead the number of errors detected on coils increased From there, we can see that the operators have followed the work instructions very well
MFO – TT and MSE1 will collect feedback from operators to see if the application is appropriate and whether there are any errors
Table 4.8 Feedback from operators about WI and training
Time in video is reasonable 5/5
Page 52 visual video, easy to understand 5/5
Based on the results obtained after implementing the WI, the MSE department proceeds to officially release the WI into the company's document management system in accordance with the quality management system regulations b Search for potential suppliers
In reality, for the raw materials used to create elements for product code 082, there is only one supplier ABC Although the supplier's reject rate is much smaller than the company's target reject rate, we cannot assure that the supplier always maintains such quality Therefore, we need to find another potential supplier so that when a problem occurs, we can still maintain a stable supply of raw materials
Step 1: Define requirements for material
The author focuses on gathering important information regarding materials (coils) and specific technical specifications
- Regarding materials: determine the type of coil to use, including physical properties such as thickness, hardness, and heat resistance
- Detailed technical specifications: the width of the final product we need to produce from the coil, as well as the specific components of the product, including technical factors and chemistry, requirements for using oil on the coil
The author has developed some specific requirements for choosing a supplier based on the company's requirements Purchasing staff can search for information and evaluate potential suppliers based on these requirements:
- ISO 9001 quality certificate: Purchasing needs to check whether potential suppliers have achieved and maintained ISO 9001 quality certificate for at least the past 3 years They can request documents proving maintenance of this certificate and check with the certification authority to confirm validity
- Reputation and international delivery ability: Purchasing needs to consider the reputation of suppliers through information related to international projects or cooperation
Page 53 with other large companies This will demonstrate their overseas delivery capabilities and reputation in the industry
- Delivery time: Purchasing needs to ensure that the new supplier can meet delivery time under requirements of company, which is up to 4 weeks after the order is placed They can ask the suppliers about the production process and preparation time to ensure feasibility
- Supply ability: Purchasing needs to ensure that the supplier has the ability to supply large quantities of goods and meet the company's needs Supply capacity is at least
Purchasing can also use previous lists of potential suppliers and check to see if they meet the new requirements They can contact suppliers with good reputations or previous relationships with the company to learn about their possible cooperation In addition, Purchasing can also listen to suggestions from customers or industry relationships to find suppliers that can meet the company's special requirements
List of potential suppliers collected by the author:
Table 4.9 List of potential suppliers
CDW Yes 6.8 USD 9 – 14 days Over 1000 tons tons/month
Aperam Yes 6.8 USD 9 – 15 days Over 1000 tons tons/month
Nippon Yes 6.9 USD 7-10 days Over 1000 tons tons/month
Based on the above list of suppliers, the author conducts a weighted scoring evaluation to select the most suitable supplier
Delivery times: The total quantity of goods ordered by year, the delivery time here is calculated by the time required for the quantity of goods by month
Score More than 5 years experiences/ Export more than 40 countries
Less than 3 years experiences/ Export less than 10 countries
Table 4.14 Score Suppliers Supplier Price Delivery times Reputation Supply ability
According to the scoreboard above, we can see that the suppliers have similar scores However, Nippon is superior when it comes to shorter delivery times (10 days after receiving an order) because this company has a bonded warehouse locates in Bien Hoa (about 20km from the factory)
Based on the points calculated according to the criteria with potential suppliers, here the author chooses supplier Nippon to sign a cooperation contract After finding a suitable supplier, PQA conducts an audit to check that the supplier's processes and products meet the company's quality requirements
After defining a potential supplier, the company will negotiate with suppliers They will discuss requirements for materials (technical drawings, structural components, aesthetic requirements, etc.) and sign a contract In the contract, there will be an agreement between both parties on operating strategies and supplier development activities (if necessary)
To ensure suppliers always maintain the quality of raw materials, PQA needs to take assessment measures This step in the process is critical for assuring that an effective supplier base is in place, a key contributor to the firm’s competitive position
In this graduation thesis, the author has shown her own knowledge as well as collected research on supplier quality management to learn about Bosch Vietnam's supplier management methods in general
After analyzing the company's current situation in managing the quality of supplier especially supplier ABC for product code 082, it has achieved an impressive level with the rate of detected errors always lower than the reject limit This is a clear manifestation of the company's significant focus and efforts in optimizing the supplier management process and ensuring product quality