expanding the scale and applying digitalization to enhance effectiveness of layered process audit lpa a case study of framas vietnam

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT EXPANDING THE SCALE AND APPLYING DIGITALIZATION TO E

Rationale

In today's fast-paced business world, companies are always looking for ways to streamline their operations to stay competitive and ensure steady growth One well- known method for achieving operational excellence is using Layered Process Audit (LPA) LPA is a systematic approach used by organizations to ensure quality, compliance, and continuous improvement across all levels of the organization

In the manufacturing of shoe soles and accessories, as seen at Framas Company, maintaining product quality is crucial Following the company's standards during production is essential for achieving high product quality That's why the company has adopted Layered Process Audits (LPA) to monitor and assess the production process LPA focuses on defining factors that affect product quality and ensuring adherence to set quality standards However, during the internship and involvement in the LPA project, the author has identified some challenges and shortcomings in Framas' current LPA process These include limited implementation throughout the company, which requires a significant amount of time for evaluating production processes and involves many manual steps Additionally, issues regarding data storage and presentation in the LPA process have been observed

Based on this understanding, the author has selected the topic: " Expanding the scale and applying digitalization to enhance the effectiveness of Layered Process Audit (LPA): A case study of Framas Vietnam" The aim is to assess the impact of these issues on the LPA process and suggest specific solutions related to expanding the scale of LPAs and adopting digitalization in th LPA process The author hopes that these solutions will improve the LPA process, subsequently boosting production efficiency and product quality, thereby bolstering Framas Company's sustainable growth.

Objective

Analyze current state of the Layered Process Audits (LPA) implementation on the factory shopfloor

Propose recommendations and solutions to enhance the application of the LPA process in the factory shopfloor.

Scope and object

Research Objectives: The study focuses on the implementation process of Layered Process Audits (LPA) at Framas Vietnam LTD

• Space: The focus is on the shopfloor areas of Framas Vietnam LTD

• Time: The research spans the evaluation of the LPA process from late 2022 to

Research methodology

During the internship at fVN, the author conducted observations and analyses related to the Layered Process Audits (LPA) process, identifying existing issues This report employs two main research methods:

• Qualitative research: The author conducted interviews with experts, particularly those from the Industrial Engineering (IE) and Quality Assurance (QA) departments These individuals offered invaluable insights due to their extensive experience with the project and deep understanding of the processes and current challenges These conversations facilitated the collection of information regarding the measures taken to enhance the LPA process and insights into current challenges

• Quantitative research: Descriptive statistical techniques were employed by the author, utilizing tools to gather data on the frequency and quantity of findings This data was synthesized by month and area, with a focus on identifying the causes of errors The analysis of this data served as the foundation for formulating recommendations and proposals to enhance the LPA process within the company.

Structure of thesis

The report is structured into four chapters outlined below:

• Chapter 1: Overview of Framas Vietnam Co., Ltd

• Chapter 3: Current status of the Layered Process Audit at Framas Vietnam

• Chapter 4: Proposed solutions to enhance the effectiveness of Layered Process Audit at Framas Vietnam Co., Ltd

OVERVIEW OF FRAMAS VIETNAM CO., LTD

Introduction about Framas Vietnam Co., Ltd

1.1.1 General introduction to the company

Framas, a prominent figure in plastic technology for the global sports industry, has effectively transitioned a shoe concept into the market, with a notable emphasis on material sustainability This journey entails intricate challenges for footwear brands, but Framas takes pride in its diverse team, well-versed in design, sustainability, manufacturing, cost optimization, branding, performance, and timely product launches Specializing in plastic component development and production, they cater to renowned brands such as Adidas, Nike, and Reebok Originating as a modest family enterprise in Pirmasens, Germany, Framas has evolved into a multinational corporation with over 3,200 employees, headquartered in Germany with manufacturing hubs across Asia Beyond pioneering footwear innovations, Framas remains at the forefront of the entire plastic injection molding industry

Framas Vietnam (abbreviated as fVN) focuses on manufacturing plastic products through Injection Molding technology Here, you can explore various facets of shoe innovation, production processes, materials, components, techniques, economics, digitization, sustainability, performance, and innovation, all in a pressure-free environment

1.1.2 History of formation and development of the Framas Vietnam

Figure 1.1: Image of Framas Vietnam Co., Ltd

Figure 1.2: Logo of Framas Vietnam Co., Ltd

- International Name: Framas Viet Nam Co., Ltd

- Factory Address: No 9, Street 12, Song Than II Industrial Park, Di An Town, Binh Duong Province

- Current Factory Area: Over 14,000 m 2 comprising: Main production, office area, Mold area, Employee dining area, Employee training area, Dedicated dormitory for specialists, Warehouse

- Current Investment Capital: $6 million USD

- Main Products: Plastic components and parts for sports shoes

• 2001: Commenced production with 200 employees and 30 plastic molding machines

• 2006: Expanded the factory and constructed additional mold workshops

• 2008: Grew to over 600 employees, 100 plastic molding machines, and attained ISO 9001 certification

• 2011: Expanded infrastructure and office space

• 2013: Invested in purchasing 7 CNC machines for the mold area

• 2017: Enhanced productivity with 700 employees working alongside 16 CNC machines, 121 plastic molding machines, and 7 molding machines equipped with automatic product retrieval robots

• 2021: Renovated production offices, invested in expanding production workshops by acquiring new machines, increasing the total number of machines to 164, with 33 machines featuring automatic robots (constituting 20% of the total)

• 2022: Expanded production with additional new plastic molding machines from abroad and upgraded existing machines, reaching a total of 164 machines, with 25% equipped with automatic robots

1.1.3 Vision and mission of the company

Embracing the motto "INNOVATION – TECHNOLOGY – TRADITION"

Framas Corporation proudly assumes its role as a reliable business partner, dedicated to supporting you every step of the way We continuously strive to break new ground, setting higher benchmarks in product quality and plastic injection molding technology, especially in the footwear sector

Framas Corporation, a global player in plastic manufacturing, leverages over 70 years of expertise and cutting-edge technology Guided by a commitment to innovation, we take pride in pioneering distinctive products for the footwear and injection molding sectors Upholding social responsibility and environmental stewardship, we relentlessly pursue sustainable business growth Our products not only boast exceptional quality but also deliver superior functionality, making a lasting impact in the industry and among consumers

With more than two decades of presence in Vietnam, Framas has established a strong position in the plastic and injection molding industry Through ongoing endeavors, we have expanded our market share, developed our business scale, and solidified our unique market position

1.1.4 Fields of operation fVN, a specialized unit in crafting shoe soles for renowned footwear brands globally, is dedicated to innovating the latest and most relevant sole designs for the market Setting itself apart from competitors, Framas prioritizes tailor-made manufacturing, ensuring precise fulfillment of each partner's distinct requirements Positioned as a brand that diligently adheres to partner specifications, Framas functions not just as a supplier but as a collaborative partner in product development Their

8 dedication to continuous improvement is evident in their tireless pursuit of breakthrough innovations This commitment reflects in the incorporation of specialized features like superior cushioning for running shoes, unique grip systems for racetracks, or inventive concepts for soccer cleats fVN not only emphasizes shoe soles but also crafts distinctive accessories to elevate the aesthetic and individuality of each shoe pair

Their products undergo evaluation not only by the standards of major footwear corporations and leading shoe manufacturing companies but also deliver comfort and confidence to users Framas transcends being merely a manufacturer; it serves as a wellspring of inspiration and innovation, fostering dynamic strides on every path

Experiencing substantial growth, the company is transitioning towards automation processes, intending to streamline the workforce to approximately 550 employees across three shifts Moreover, the company's office department comprises roughly 200 employees, distributed across various departments with diverse functions, aiming to maintain an efficient and seamlessly integrated operational system within the enterprise's global workflow

Figure 1.5: Organizational chart of Framas Vietnam Co., Ltd

The enterprise's primary functional departments comprise:

• Business Department: This division oversees crucial negotiations with customers, encompassing quoting, agreeing on payment terms, and ensuring timely delivery according to agreements Their responsibilities extend to production planning, necessitating meticulous calculations and diligence to uphold smooth processes and ensure customer satisfaction

• Human Resources and Administration Department: Tasked with managing human resources, this department handles staffing organization, labor management, occupational safety, and employee welfare Additionally, they oversee legal compliance inspections and execute other vital duties such as propaganda work and international relations

• Finance Department: This department handles recording and accounting tasks, verifies document validity, and conducts financial procedures They manage customer debts, oversee debt collection, and ensure accurate and timely submission of financial reports as required

• Quality Management Department: Playing a pivotal role in supporting the board of directors, this department builds, manages, and enhances the quality management system Their responsibilities include ensuring product compliance with safety standards, conducting production evaluations for new products, representing the company in front of certification organizations and external assessments, and organizing initiatives to enhance the quality of the company's business operations

• Technical Department: Tasked with advising the board of directors, this department focuses on production planning, resource allocation, and the efficient operation of technological lines to uphold product quality in line with customer requirements while conserving resources

• Development Department: Engaged in business planning, cost management, revenue generation, and customer relations, this department is responsible for drafting economic contracts and conducting marketing activities as integral components of their duties

1.1.6 Company's main products and customers

Production Technology

The company has integrated plastic injection technology into its manufacturing process, resulting in a wide array of high-quality products Injection molding, a prevalent processing technique, allows us to create plastic components with exceptional precision and durability Achieving success in the injection molding process necessitates a cohesive blend of injection molding machines, materials, and molds

• In our factory, we utilize two main types of machines: vertical and horizontal Horizontal machines are adept at producing standard plastic components, particularly those with varying sizes and shapes On the other hand, vertical machines are employed for crafting specialized structural products, such as shoe sole parts containing nails or screws

• Every product is fashioned using distinct molds, ensuring unique shapes for each item This means the utilization of multiple molds to accommodate the specifications and preferences of each partner, enabling us to achieve the desired sizes and shapes of the product

• The production process primarily depends on the main material, which is plastic Upon its arrival, raw plastic undergoes meticulous quality inspection procedures to guarantee that only materials meeting the highest standards are employed in the production process

The plastic injection molding process unfolds in four sequential steps:

- Step 1: The material is heated to a molten state at the suitable temperature by the injection molding machine

- Step 2: The molten plastic is injected into the closed mold via the injection molding machine's screw shaft High pressure guarantees precise and efficient molding

- Step 3: The mold cooling process facilitates the transition of the molten plastic inside the mold into a solid state

- Step 4: The mold is opened to extract the finished product from the machine, thereby concluding the plastic injection molding process

Figure 1.13: Plastic injection molding machine model

LITERATURE REVIEW

Overview of Layered Process Audit (LPA)

2.1.1 Definition and concept of Layered Process Audit

Valtanen & Perala (2017) define Layered Process Audit as a verification process aimed at assessing whether processes operate within defined limits and adhere to predetermined instructions or standards This activity entails the participation of individuals from diverse levels and positions within a company or organization who inspect and examine a process or quality system to ensure adherence to requirements Layered Process Audits gauge the efficacy of instructions and the alignment of operations or methods with predetermined standards It represents a systematic method for monitoring and enhancing the quality and efficiency of manufacturing processes

Layered Process Audit (LPA) is a quality control approach that entails conducting periodic audits across various levels of an organization's processes to validate compliance with standards and pinpoint areas for enhancement LPAs aim to validate the efficiency of manufacturing processes and product quality through the utilization of a checklist of checkpoints that can be swiftly verified with a yes or no response By ensuring process control and adherence to instructions and methods, LPAs aid in mitigating quality issues Moreover, they play a role in cost reduction, bolstering productivity, and enhancing customer satisfaction (Amairani et al., 2020)

Lumban Raja et al in 2023 stated that Layered Process Audit (LPA) as a quality control method adopted by manufacturing companies to ensure the efficacy of internal manufacturing audits regarding quality control LPA entails conducting routine audits across different layers or levels of the manufacturing process to detect any deviations or non-conformities and implement corrective measures This systematic approach aims to prevent defects and enhance overall quality by verifying adherence to standard operating procedures and pinpointing areas for enhancement Typically, LPA is executed at various stages of the manufacturing process, including incoming inspection, outgoing inspection, and final inspection The efficacy of LPA in quality control can be assessed by calculating the percentage of "Pass" responses in the audit outcomes

Layered Process Audit (LPA) is a system wherein various levels within an organization audit each other to proactively prevent quality issues Integral to the lean management system, LPA seeks to ensure ongoing adherence to standardized processes and pinpoint opportunities for enhancement These audits are conducted across the organization, engaging managers and operators in their daily activities with the aim of disseminating and upholding the principles of lean management The implementation of LPAs is geared towards realizing key benefits, including quality improvement, defect reduction, and heightened customer satisfaction (Jọrnberg & Samuelsson, 2022)

According to the study conducted by Valtanen & Perala in 2017, Layered Process Audit (LPA) engages individuals from diverse levels and positions within a company or organization This audit procedure verifies that processes operate within specified limits and adhere to predetermined instructions or standards It evaluates the efficacy of instructions and gauges the alignment of operations or methods with predetermined standards LPAs are conducted on selected processes and work phases, replacing ISO

9001 audits They offer assurance that processes adhere to plans and instructions, ensuring compliance with approved standards and minimizing waste Furthermore, Layered Process Audit functions as a quality tool aimed at enhancing quality, reducing scrap, and minimizing customer rejections

In the study by Jọrnberg & Samuelsson in 2022, Layered Process Audits (LPA) serve as a system for reviewing and standardizing processes, ensuring the correct execution of operational standards within an organization's Quality System as well as those of its customers or suppliers LPA audits are structured around five key factors: the elements to be audited, audit levels/layers, audit frequency, response to nonconformities, and audit ownership These audits typically incorporate checkpoints or questions that can be swiftly verified with a YES/NO response, focusing on process control and adherence to instructions and methods The CQI-8 guide recommends establishing an inter-functional team within the organization to devise a list of process checkpoints for LPA audits The implementation of LPA audits yields various benefits for the company, including enhanced process compliance, product quality, and customer satisfaction Additionally, LPA audits assist the company in meeting the requirements of new customers who mandate the adoption of LPA audits

Lumban Raja et al (2023) underscore the manifold advantages offered by the LPA, encompassing the assurance of adherence to sanctioned standards and instructions, thereby curbing waste and rework Additionally, it serves to elevate quality by promptly identifying and rectifying process deviations and non-conformities Furthermore, the LPA catalyzes a cultural shift within organizations, nurturing a pervasive ethos of continual improvement and mutual accountability By furnishing a structured methodology for overseeing and amplifying the quality and efficiency of manufacturing processes, it amplifies customer satisfaction through the steadfast delivery of high- caliber and reliable products Moreover, it serves as a catalyst for pinpointing avenues for streamlining processes and bolstering efficacy Concurrently, it expedites the formulation of effective corrective strategies by pinpointing areas ripe for enhancement Lastly, by fostering seamless communication and collaboration across hierarchical tiers and functional roles, the LPA bolsters organizational cohesion and efficacy

2.1.3 Common challenges in implementing LPA

Implementing Layered Process Audit (LPA) may encounter several challenges, as highlighted by Lumban Raja et al (2023):

• Resistance to change: Employees accustomed to existing processes may resist adopting new auditing methods like LPA due to familiarity and comfort with the current approach

• Lack of awareness and training: Employees may lack awareness of LPA concepts or the necessary training to effectively conduct audits, hindering successful implementation

• Time and resource constraints: Allocating time and resources for LPA implementation, including training, conducting audits, and analyzing findings, can be challenging in organizations with limited resources or tight schedules

• Integration with existing systems: Integrating LPA into existing quality management systems requires adjustments and coordination, posing complexity in implementation

• Maintaining consistency: Ensuring consistent auditing practices across various levels and departments is crucial, but variations in methods may lead to inconsistent results

• Overcoming skepticism: Some employees may doubt the benefits of LPA, necessitating efforts to convince them of its value in enhancing quality and efficiency

• Continuous improvement: Sustaining LPA implementation as a continuous improvement tool requires ongoing commitment and monitoring to ensure its effectiveness over time

2.1.4 Importance of LPA in Quality Management

Layered Process Audit (LPA) plays a pivotal role in ensuring compliance with approved standards and instructions, thereby reducing process deviations and non- conformities It serves as a mechanism for identifying areas requiring improvement and facilitates the development of effective corrective action plans Through the monitoring and evaluation of processes, LPA enables the identification of opportunities for optimization and efficiency enhancements Moreover, it fosters a culture of continuous improvement and accountability, catalyzing cultural change across the organization LPA also promotes enhanced communication and collaboration among various levels

18 and positions within the organization, ultimately resulting in improved quality outcomes (Valtanen & Perala, 2017)

In another study conducted by Lumban Raja et al (2023), Layered Process Audit (LPA) is recognized as a crucial tool in quality management, ensuring that work is executed in accordance with established standards LPA plays a vital role in verifying the conformity of work procedures and processes, thereby upholding the quality of products manufactured by a company Through regular audits conducted at various stages of the manufacturing process, LPA facilitates the early detection of deviations or non-conformities, enabling prompt corrective actions Emphasizing the significance of standards, LPA also provides opportunities for continuous improvement, ultimately contributing to the optimization of the manufacturing process The effectiveness of LPA in quality control has been evidenced in manufacturing companies where it has been successfully implemented

2.1.5 Benefit of expanding the scale of LPA

Expanding the scale of Layered Process Audits (LPAs) brings manifold advantages to organizations By encompassing more processes, departments, and locations, LPAs ensure a thorough audit coverage across the organization This broader scope also enhances comprehension of organizational processes and their interconnectedness Through comprehensive audits, LPAs can reveal systemic issues, identify emerging trends, and highlight areas for improvement that might not be apparent when focusing on a limited subset of operations Moreover, scaling up LPAs enables organizations to mitigate risks across a wider range of activities By systematically auditing various processes, potential risks can be identified early, allowing for proactive measures to prevent quality failures and ensure compliance with regulations (Stoop, E., 2017)

According to Sjửholm, M (2021), expanding the scale of auditing within an organization enhances accountability for quality performance at all levels With a wider reach, stakeholders are more likely to prioritize quality standards and assume responsibility for implementing corrective actions based on audit results Furthermore, an expanded scale allows organizations to enforce uniform audit practices and standards

19 across various departments and locations This standardization ensures consistent audit procedures, resulting in more dependable and comparable findings that support benchmarking and fuel continuous improvement efforts.

Literature review of digitalization

Digitalization entails integrating digital technologies and tools across different facets of an industry or organization, including production, management, and work design Through the utilization of digital technologies, processes are automated, efficiency is improved, and productivity is heightened within the production industry This trend has surged in recent years, notably following the inception of the Industry 4.0 vision in 2011 It represents a transformative journey that digital tools to boost productivity, refine management practices, and reshape work design within the production Consequently, digitalization is poised to exert an impact on productivity, management approaches, and the overall work environment (Jeske et al., 2021)

Galindo-Martín et al (2023) highlighted the various ways in which digitalization enhances production efficiency This includes automating manual processes and minimizing human error, as well as enabling real-time data collection and analysis for improved production planning and optimization Additionally, digital tools and platforms aid in enhancing communication and collaboration among production teams, thereby boosting coordination and efficiency Integration of digital technologies into production processes also allows for predictive maintenance, which reduces downtime and enhances overall equipment effectiveness Furthermore, the implementation of smart manufacturing systems, such as the Internet of Things (IoT) and data analytics, through digitalization optimizes production workflows and resource allocation (Parviainen, P., Tihinen, M., Kọọriọinen, J., & Teppola, S (2017)

2.2.2 Role of Digitalization in Quality Management

In Quality Management, digitalization is pivotal for boosting efficiency, accuracy, and transparency throughout different processes By automating routine tasks and procedures, digitalization minimizes the likelihood of human error and enhances the uniformity of quality management processes Automated workflows streamline

20 activities like inspection, testing, and compliance monitoring Moreover, digital tools facilitate the collection of extensive data from diverse sources, including production equipment, sensors, and customer feedback channels This data can be analyzed in real- time or retrospectively to pinpoint patterns, trends, and potential areas for enhancement (Elg et al., 2021)

Cherviakov et al (2020) emphasize the importance of leveraging digital technologies in quality management to address global objectives amidst a rapidly evolving landscape Digital tools play a critical role in enhancing the quality of decision- making processes at higher levels In the realm of building quality management, digitalization is indispensable for ensuring efficient service delivery and fostering transparent communication It facilitates the accurate delineation of requirements and testing protocols for quality control purposes Furthermore, digital approaches are essential for monitoring quality and assessing building performance

As highlighted by Mửkander (2023), digitalization serves as a cornerstone in quality management, revolutionizing the approach to continuous improvement within organizations It elevates efficiency and efficacy through process streamlining, task automation, and the promotion of data transparency within the quality management framework Optimizing workflows diminishes manual errors and delays, rendering quality management processes more nimble and adaptable Additionally, digitalization guarantees improved traceability of quality-related activities, fosters collaboration among quality practitioners, bolsters risk assessment and mitigation efforts, and maintains a focus on customer satisfaction by gathering and analyzing customer feedback

2.2.3 Impact of digitalization on LPA effectiveness

Digitalization greatly enhances the effectiveness of Layered Process Audits (LPAs) by automating audit scheduling, reminders, and notifications, ensuring timely and consistent adherence to audit plans This automation reduces the administrative burden on auditors, enhancing the overall efficiency of the audit program Additionally, digital tools facilitate the standardization of audit checklists and procedures across various departments and locations, promoting consistency in audit practices and

21 enabling easier comparison of results Real-time data collection through digital LPAs using mobile devices allows auditors to document findings and corrective actions instantly, providing more accurate insights into process performance and compliance These advancements streamline the audit process, enabling organizations to identify common trends and issues more effectively, ultimately driving continuous improvement initiatives (Wierzbic, 2020)

Lumban Raja et al., in 2023 stated that, how digitalization revolutionizes audit management through centralized data storage, simplifying access, analysis, and reporting of audit findings This centralized approach enhances visibility into audit results, fostering transparency across the organization and enabling stakeholders to monitor progress on corrective actions and improvement initiatives Additionally, digital LPAs provide advanced reporting and analysis features, allowing organizations to generate tailored reports, dashboards, and analytics These functionalities facilitate monitoring of audit performance, trend identification, and prioritization of improvement opportunities, ultimately bolstering the effectiveness of quality management processes.

Some other concepts

In Edition (1990), a flowchart is described as a visual and graphical representation of a series of interconnected activities or a process, covering from beginning to end It enables the organized portrayal of events within a process associated with a specific product or service The use of standardized symbols in flowcharts enhances straightforward understanding of the process

Figure 2.2: Symbols and shapes used in the flowchart

According to Charntaweekhun & Wangsiripitak (2006), the steps involved in creating a flowchart as follows:

Step 1: Identify the algorithm or process you wish to represent in the flowchart This could encompass a program, a procedure, or a sequence of steps

Step 2: Determine the symbols and shapes to be used in the flowchart Common symbols include start and end symbols, decision symbols, process symbols, and connector symbols

Step 3: Utilize a flowchart drawing tool or software to construct the flowchart This tool enables the placement of symbols onto the canvas and their connection with arrows to depict the process flow

Step 4: Begin by positioning the start symbol at the top of the flowchart and connecting it to the first symbol representing the initial step of the process

Step 5: Progressively add symbols and connect them according to the logical flow of the process Incorporate decision symbols to denote conditions or choices, process symbols to illustrate actions or calculations, and connector symbols to link different sections of the flowchart

Step 6: Thoroughly test and review the flowchart to ensure its accuracy in representing the algorithm or process Make any necessary revisions or adjustments to enhance clarity and precision

Geraldi, J., & Lechler, T (2012), the Gantt chart serves as a valuable tool in planning and visually representing the timeline of a research project It aids researchers in efficiently organizing tasks, allocating resources, and monitoring progress Typically, a Gantt chart illustrates tasks as horizontal bars along a timeline, indicating their start and end dates, dependencies between tasks, and significant milestones It popularly used in project management, is one of the most popular and useful ways of showing activities displayed against time

According to Maylor (2001), describes the Gantt chart as a foundational tool in project management, originating from the early twentieth century within the context of Scientific Management It serves as a visual representation of task schedules and their interdependencies in a project Each task is depicted by a horizontal bar, with its length indicating the task duration The Gantt chart enables project managers to monitor commitments, focus on overcoming obstacles, and anticipate delays in advance It fosters accountability by clearly assigning responsibilities for each task However, the conventional use of Gantt charts assumes that tasks can be predefined and their durations predetermined It's worth noting that while Gantt charts are valuable, they may not universally apply to all project types and may not explicitly address complexities, ambiguities, uncertainties, and changes inherent in some projects

Figure 2.3: Example of Gantt Chart

(Source: productplan.com) Benefit of the Gantt Chart

In a study by Maylor in 2001 highlights several advantages of using Gantt charts:

• Visual representation: Gantt charts offer a straightforward visual depiction of the project schedule, aiding stakeholders in grasping the timeline and associated tasks effortlessly

• Task sequencing: By illustrating task dependencies, Gantt charts facilitate comprehension of the sequential order of tasks, ensuring smooth and efficient project progression

• Resource allocation: Effective resource allocation is facilitated through Gantt charts, as they help identify overlapping tasks and potential resource clashes, thereby optimizing resource utilization and mitigating bottlenecks

• Progress tracking: Project progress can be easily monitored with Gantt charts, as completed tasks are marked and compared against the planned schedule, enabling prompt identification of delays or deviations from the original plan

• Communication and collaboration: Gantt charts function as communication tools, fostering a shared understanding of the project timeline and progress among project teams and stakeholders, thereby enhancing collaboration and coordination

CURRENT STATUS OF THE LAYERED PROCESS AUDIT AT

Implementation of Layered Process Audit

- Step 1: Update and create LPA checklist and Audit plan for departments

LPA PLANT Coordinator is responsible for creating and updating questionnaire using template called PROD-Layer process audit (LPA)-Checklist and the audit

Plant Coor Dept Coor Auditor Auditee HoD POM

26 schedule PROD-Layer process audit (LPA) plan-form each month A general plan will be sent to all departments by the end of Friday each month, and everyone will get a detailed schedule through email

The auditor and auditee will use the PROD-Layer process audit (PLA)-Checklist o conduct audits according to the agenda outlined in the PROD-Layer process audit (LPA) plan-Work instruction as following the specified frequency:

• Level 1 (Team leader, Shift leader): Audit daily by shift

• Level 2 (Engineer, Staff, Leader, HoD): Audit bi-weekly

- Step 3: Record LPA results on LPA checklist

The auditor will use the PROD-Layer process audit (LPA)-Checklist to record result & transfer LPA Plant Coordinator for verification and the next actions

At level 1, the auditor will update the status on the PROD-Layer process audit

(LPA) plan-form to confirm that the audit is finished

• No: Move to the step 8

- Step 5: Update LPA findings on Microsoft planner

Following the PROD-Layer process audit – Work instruction , LPA Plant

Coordinator will add any findings to both the PROD-Opening point list-Form & Microsoft planner

- Step 6: Implement actions based on findings

The auditee is in charge of carrying out actions according to the LPA findings They need to upload updates on these actions to relevant departments like the LPA Plant Coordinator and Head of Department via Microsoft Planner by the deadline

- Step 7: Track actions based on findings

The LPA Plant Coordinator's duty is to monitor the progress of implemented actions using the PROD-Opening point list-Form template

If the actions go beyond the deadline, the Coordinator will follow the escalation path outlined in the PROD-Layer process audit – Work instruction to ensure that all findings are addressed promptly and thoroughly

- Step 8: Summarize LPA results and prepare report power BI

The LPA Plant Coordinator is tasked with creating the LPA report and sending it to the appropriate parties by the end of each month

The LPA Plant Coordinator is in charge of creating and managing LPA improvement activities under the supervision of the Head of Department

3.1.2 Objectives and Scope of LPA implementation at Framas

Implementation timeframe: The LPA project was initiated at Framas Vietnam Co., Ltd in November 2022 and has been in operation for more than a year Throughout this period, LPA has played a crucial role in offering an comprehensive understanding of the production process, facilitating prompt issue detection and resolution Through the incorporation of corrective and preventive actions, LPA actively fosters continuous enhancement, thereby fostering production efficiency and consistency

Framas Vietnam (fVN) emphasizes the important of ensuring safety in the workplace for all employees:“Especially, fVN also highly pay attention to one more section: Safety besides quality scope As you known, the importance of safety in the workplace is that it increases employee satisfaction When an employee is aware that his workplace is safe and there are minimal chances of injuries and accidents, he will automatically relax in his environment His working efficiency increase as domino effect.”

The current scope of LPA focuses on the C&M area, which consists of three main sections: Crushing, Mixing, and Extruder Documentation scope: The documentation covers all standard operating procedures (SOPs) for these processes, ensuring compliance and proper application by all personnel

LPA implements a multi-layered inspection strategy to ensure both procedural compliance and quality enhancement At fVN, LPA is categorized into three levels:

Audit Level Audit Frequency Auditor Auditee

Level 1 Each shift Shift leader, Team leader Operator

Level 2 Bi - weekly Engineer, Leader,

Level 3 Quarterly HoD, BoD Operator or Shift leader

• Level 1: Team leaders conduct checks during their shifts, focusing on basic tasks to ensure procedures are followed and immediate issues are addressed

• Level 2: Supervisors or mid-level managers conduct biweekly or periodic inspections, delves deeper into procedural compliance more thoroughly and uncovering potential issues that frontline workers might miss

• Level 3: Departmental senior managers or plant directors oversee evaluations of the LPA program's overall effectiveness and identifies areas for enhancement fVN adopts the three-layer LPA structure for several significant reasons Firstly, Firstly, LPA is perceived more favorably compared to other audit processes because its frequency allows for more regular assessments This promotes adaptability and familiarity among employees, aiding in the retention of procedures and comprehension of job objectives This three-layer approach ensures that no aspect of the process is overlooked, minimizing the likelihood of overlooked aspects and the resulting potential consequences By conducting LPA checks across three layers, prompt feedback and solutions can be provided, thereby preventing the escalation of larger issues

Set of question and checklist LPA

At fVN, the checklist is made using a set of standard questions derived from the company's existing procedures for manufacturing products Framas' question set is designed to be specific, measurable, achievable, relevant, and time-bound (SMART) for

29 each control point The structure of the LPA checklist at Framas varies notably, especially in terms of the areas it covers LPA will focus on critical factors that impact both the process and product quality, such as:

LPA has devised practical questionnaires based on SOPs that are widely distributed and implemented across the factory For each area, LPA has crafted varied questionnaires that fully reflect all aspects of the production process The number of questions has been comprehensively summarized for each level and aspect of factors After summarization the table below provides a summary of the quantity of questions used in the LPA process evaluation:

Table 3.4: The total number of questions for each area

Q1 Man Checking the working manipulations/ awareness of operator base on the SOP

Q2 Machine Checking the condition of machine: parameter, sensor

Q3 Material Checking material place location, condition

Q4 Measurement/ Method Checking SOPs cover fulfillment versus current practice of operation

Q5 Safety Checking safety protection for operator during operation

The LPA Checklist at fVN

From the set of questions created from the SOPs, every time an audit is conducted, the LPA coordinator will create a set of questions based on the procedure and relevant contents within that procedure (Check the appendix for better images)

At three different levels, there will be different checklists However, each containing fundamental sections such as the Information section (Auditor, Auditee, Audit time, Audit area), Instructions for completing the checklist section, Questions section, and Findings section

The difference in these checklists lies in the number of questions and the way questions are posed: For level 1 checklist, there are a total of 5 questions, while for level

2 checklist, there are 10 questions (these questions are formulated by the LPA coordinator) Conversely, the level 3 checklist is an open-ended questionnaire designed for high-level managers In this checklist, they can ask any questions they want to delve deeper into the process in that area While these questionnaires may seem simple, the level 3 questionnaire is actually quite effective because high-level managers have a deep understanding of the process and are capable of asking detailed questions to identify weaknesses and improvement opportunities

3.1.4 Timeframes in LPA issue resolution

The timeline for addressing findings will depend on the specific type of finding, categorized into two main types: Major and Minor

Major: Findings belong to Q2 - Machine, Q5 - Safety due to high risk related to directly quality product and human or if the finding is repeat within 14 days (between 2 times audit of level 2) action must be initiated within 7 working days from the date of receiving the finding report However, in exceptional cases, the implementer may propose a timeline on a case-by-case basis

Overview the current status of LPA at fVN

3.2.1 Impact areas of LPA implementation

Framas Co., Ltd., with its tightly organized departments and areas, has made a strategic decision to implement LPA in shopfloor areas, which will include the following zones: C&M Area, Heel Counter Area, Mold Setter Area, Mold Shop Area, DTC Area,

Production Area, Warehouse Area Initially, to uphold production process quality and efficiency, the company directs LPA evaluations towards key areas initially, particularly the Crushing room, Mixing room, and Extruder room within the C&M Area

The C&M Area, comprising the Crushing room, Mixing room, and Extruder room, plays a vital role in Framas Co., Ltd.'s manufacturing operations Each room fulfills distinct stages, contributing to the overall production chain

Mixing room: is responsible for mixing and combining raw plastic materials, including recycled plastic from the Crushing room, are blended to form a complete mixture for outsole production This process involves meticulous attention to proportions and mixing procedures, often executed using specialized equipment and advanced mixing machines

Crushing room: serves as the site for crushing plastic runners and post-production waste Specialized machinery ensures precise sizing and quality control Each batch of material after crushing undergoes thorough inspection to ensure uniformity and optimal quality Additionally, the room accommodates Punching machines used for punching metal studs, aiding in sorting or retention for subsequent production processes

Extruder room: the mixture from the Mixing room is fed into material Extruder machines to produce plastic beads for the production process, including beads for Heel counter and Masterbatch This process demands precise control over temperature and pressure to ensure consistent size and shape Advanced technology is employed for optimal extrusion results

The implementation of LPA began just a year ago, in November 2022, marking the establishment of a comprehensive quality and performance assessment system The initial focus of LPA assessments was the C&M area, which includes the Crushing room, Mixing room, and Extruder room LPA has been implemented across all three levels – Level 1, Level 2, and Level 3 – within the C&M area The future of LPA within the company is not only as an effective evaluation tool but also as a crucial component of our development strategy There are plans to extend LPA to other areas and bolster the

33 quality of the entire production process system With robust support from senior management, LPA is increasingly integrated into fVN's quality management strategy

3.2.2 By the Numbers: Understanding LPA Findings

Since the LPA assessment process was implemented in November 2022, the C&M area (Crushing room, Mixing room, and Extruder room) at fVN has reached notable milestones This progress is not just a statistic, it reflects the dedicated effort and commitment of the implementation team

Table 3.5: Total findings by month

Month Nov.22 Dec.22 Jan.23 Feb.23 Mar.23 Apr.23 May.23 Jun.23

Jul.23 Aug.23 Sep.23 Oct.23 Nov.23 Dec.23 Jan.24 /

Figure 3.2: General LPA Report in 2023

With a total of 187 findings identified up to the present time, resolving 180 of them (accounting for a completion rate of 96.25%) is a clear indication of dedication and investment in the quality improvement process This not only demonstrates the effectiveness of the LPA assessment process but also reflects the outcome of a fundamental strategy that the company proudly upholds

The audit time count stands at 589, indicating the number of audits conducted across all three levels during the given period This figure suggests that LPA evaluations have been carried out comprehensively and consistently, facilitating the detection of numerous issues that may not have been readily apparent

Furthermore, the finding rate of 29.73% informs us that in 1 audit time the average detection is 0.3 finding, calculated as the Number of findings divided by The total audit time

Analyzing the chart, we can quickly spot which findings need immediate fixing and where we need to concentrate our efforts more The ups and downs in findings throughout the year provide a clear overview of our processes At the beginning of 2023, we had relatively few findings, which could mean things were going smoothly or that we weren't looking hard enough for problems However, by December, there was a significant increase in findings, marked by a red flag with 45 identified findings

Addressing these findings promptly is crucial to prevent them from accumulating and leading to more substantial issues in the future

Below are detailed figures for each area, highlighting our focus on each objective:

❖ Total findings detected by each area:

Table 3.6: The summary table of the number of findings for each area

Area Total findings Number of findings resolved

• In the Mixing area, there were 47 findings recorded, and the resolution of

45 of them (with a completion rate of 95.74%) showcases the team's focus and quick adaptability

• Moving on to the Extruder section, out of a total of 67 findings, 65 have been addressed (representing a closure rate of 97.01%)

• Finally, in the Crushing zone, where 73 findings were identified, the handling of 70 of them (resulting in a closure rate of 95.89%) demonstrates proactive and dedicated problem-solving endeavors

The improvement in the number of Findings occurring in the C&M area signifies not only effective issue resolution but also the potential for positive impacts on quality and overall performance metrics For instance, reducing the number of Findings in the Mixing area could result in a more consistent mixing process and reduced variability in the final product, thus enhancing accuracy and quality Another potential impact could be the reduction of incidents and disruptions in the production process If the Findings are related to safety, environmental aspects, or operational procedures, addressing them could result in a safer work environment and improved production process sustainability without interruptions

Throughout the implementation of LPA in the C&M area, we focused on detecting and recording a variety of errors and issues within the defined scope This helped us identify every issue at its source, providing the foundation for targeted decision-making and action

Table 3.7: The number of findings according to the Q scope

The table above shows the total number of findings categorized by area and Q scope, with findings evenly distributed across departments and individual criteria The highest concentration is in Q4 – Method/Measurement, with a total of 48 findings, followed by safety issues, accounting for 42 findings in total LPA has helped identify this total number of findings over the course of more than a year of project implementation, marking the usefulness of LPA across various aspects of the process

It aids in identifying errors, thereby enabling swift resolution and preventing their recurrence, which could adversely affect safety and product quality

Figure 3.4: Chart illustrates the number of findings based on Q Scope

When analyzing the chart, it's clear which evaluation criteria currently experiencing a high number of errors, enabling us to prioritize and address them accordingly In each area, different issues are causing significant impacts on the process For instance, in the Crushing area, the number of errors related to the "Safety" criterion is predominant In the Mixing area, it's "Machine," and in the Extruder area, it's

"Method." This information helps us understand which criteria are most critical in each area and prioritize improvement efforts accordingly

Assess the current status of LPA Effectiveness

The LPA process has proven to be highly effective at fVN, yielding numerous significant benefits One notable strength of LPA is its capability to detect lingering issues and shortcomings in the process that might have been overlooked previously, addressing these concerns from the lowest evaluation levels

LPA helps assess workers' understanding of the SOP process: thereby ensuring product quality as workers will follow the SOP to execute their work processes Throughout the LPA evaluation period for the "Man" criterion, although the frequency of workers' findings is not particularly high, but there are still some workers who do not correctly present the procedures at the company Below is the data table detailing these findings:

Figure 3.10: Findings related to ‘Man’ factors

Overall, the number of findings related to "Man" not presenting to or understanding the company's SOP is 23 findings, a relatively small figure compared to the total number of audits conducted However, the LPA process has revealed that some workers lack a full understanding of their work procedures Therefore, management will implement corrective actions such as worker retraining, procedural reminders, or other measures as determined by the assessment department

Early detect issues or uncover potential issues with machinery and equipment: enabling us to promptly repair and monitor them to avoid disrupting the ongoing process and the final product Following the LPA assessment on "Machine", we noted a relatively high number of machine-related errors (42 findings) LPA helps categorize machine findings into key issues such as: Incorrect machine setup, Emissions affecting workers, Malfunctioning machine, Damaged components during operation, etc This categorization enables departments to devise timely and effective solutions for each type of error, thereby minimizing disruptions to the process

Table 3.8: Category for ‘Machine’ findings

LPA also assists in ensuring the implementation of safety and cleanliness 5S practices in the factory: With the frequent audits conducted by LPA, the execution of 5S in the workshop has progressively improved, leading to a significant reduction in issues when 5S inspections are carried out Through LPA implementation, we have been able to remind and record 5S-related errors, prompting workers to improve and maintain these practices as habits There have been quite a few errors related to "Material," often focusing on issues such as tools and equipment being left in disarray by workers, or lacking labels for specific locations LPA data has documented 32 findings related to this 5S issue, enabling the department to promptly rectify and retrain, making the monthly 5S evaluations at the company cleaner When customers conduct inspections or evaluations, it will be a positive point for the company

Detect and evaluate the quality of the current SOPs to determine if they are still relevant and up-to-date: Evaluating SOPs not only benefits the C&M department by promptly correcting and updating the complete version of SOPs and retraining workers accordingly but also allows the QA department to quickly update the system with new versions of SOPs LPA has conducted audits on almost all total SOPs in the C&M area, specifically 42 out of 62 SOPs This continues to help evaluate all SOPs and ensure that they are posted at the workplace Auditing all SOPs ensures timely detection of hard-to- spot errors, allowing for quick adjustments to ensure that issues do not escalate and become difficult to rectify Below is a summary table of the total number of SOPs in the C&M area and the number of SOPs audited:

Table 3.9: Total number of SOPs audited

Quantity of SOPs Number of SOPs audited

Addresses the issue of ensuring - preventing safety findings, ensuring that workers operate in a safe and comfortable environment: Safety issues often revolve around the absence of safety signs in work areas, lack of warning labels in excessively hot areas such as machinery, safety lapses when workers fail to wear protective gear, malfunctioning machine alert sensors, and more During LPA evaluations, these issues are identified and assigned to departments to implement preventive measures and safety improvements Additionally, it helps identify which SOPs are lacking safety standards mentioned in the SOP LPA has identified 14 out of 47 SOPs that need safety-related references but are currently lacking This enables the QA and HSE departments to review and promptly request the necessary updates and additions:

Table 3.10: The number of SOPs not mentioning safety

SOPs safety mention SOPs without safety mentions

LPA has created a large database of information, serving as a foundation for continuous improvement decision-making: By collecting data from each assessment level, we gain a comprehensive understanding of the performance and quality across the production process This enables us to easily identify weaknesses and leverage opportunities for development and improvement In essence, LPA guarantees the company's adherence to quality standards while also bolstering competitiveness and addressing challenges in the manufacturing sector It's not just about improving quality; it's also about prioritizing safety and sustainability

Although the Layered Process Audits (LPA) project has brought many significant benefits to the company, it also presents challenges and drawbacks that need to be effectively addressed Identifying and addressing these challenges is essential not only

45 to maintain the effectiveness of the project but also to ensure its comprehensiveness and sustainability in the future

Firstly, LPA has not covered the entire shopfloor area:

One notable drawback is the initial scope of deployment of the project, which was only focused on the C&M area (Crushing, Mixing, and Extruder) This has led to a significant portion of the shop floor remaining uncovered, limiting the comprehensiveness and understanding of production quality While the areas where LPA has been implemented may benefit from detailed assessment and continuous improvement, the parts not included still harbor risks and issues that the project may not detect To address this drawback, one approach could be to expand the scope of deployment of the LPA project to encompass the entire shop floor area This requires close coordination and a flexible expansion plan to ensure that every process and department is thoroughly examined and evaluated

Secondly, LPA relies on the use of paperwork and manual data entry - storage:

Another significant challenge, perhaps the most pressing one that the company is facing in the implementation of the LPA project, is the current audit execution process

Figure 3.12: The current LPA system

Relying on paperwork and manual data entry not only increases workload but also generates paper waste, particularly when these documents must be scanned and discarded after each monthly audit cycle Moreover, handling and organizing large amounts of data from LPA checklists can prove challenging because manual data entry from paper to digital files may introduce inaccuracies due to various subjective factors Without an effective information management system, this can result in confusion and undermine the integrity of the gathered data (Appendix 4)

Thirdly, shortage of manpower and a lack of regular LPA training:

One of the challenges faced by the Layered Process Audits (LPA) project stems from its complex scale, posing significant challenges in terms of manpower and audit frequency A major issue is the shortage of manpower, leading to difficulties in maintaining consistency and quality across the entire shopfloor The number of auditors at level 2 is very limited, with only 3 individuals rotating to conduct audits in the C&M area

• Prepare and analyze audit report

This creates pressure on the audit frequency for each auditor and may result in not detecting all issues, as each person may have a different perspective on the production process Additionally, workers may feel imposed upon and negatively observed, affecting morale and causing fatigue when participating in audits too frequently They may not see the clear benefits of the LPA process, raising questions about the meaningfulness and actual value of conducting these checks Addressing these challenges necessitates the implementation of an intelligent and innovative human resource management strategy

To sum up, enhancing the LPA project at fVN requires proactive engagement with these particular challenges, while applying flexible and effective solutions to ensure that all efforts yield worthwhile results Facing these limitations is not just a challenge but also an opportunity for the company to develop and enhance the LPA process

Nguyen Ngoc Hoang Quang Extruder Leader

Le Van Dao Crushing Leader

Nguyen Cong Lam Mixing Leader

CHAPTER 4: PROPOSED SOLUTIONS TO ENHANCE THE

EFFECTIVENESS OF LAYERED PROCESS AUDIT AT FRAMAS VIETNAM

Broadening Horizons: Expanding LPA to the Mold Setter area

Currently, the LPA project at Framas has achieved some notable successes in enhancing product quality and bolstering process control within critical areas of the shop floor, specifically the C&M area including Crushing, Mixing, and Extruder However, to ensure comprehensiveness and full understanding of production quality, the company needs to expand the scope of LPA application to cover the entire shop floor Firstly, by expanding LPAs across diverse departments and processes, enables proactive identification and mitigation of risks before they escalate into larger problems, this can include risks related to safety, compliance, and operational efficiency Secondly, LPAs promote standardization of processes by ensuring that they are being followed consistently across different areas of the organization

After researching and analyzing both the scope and issues in various areas, author have decided to propose expanding to another area, which is the Mold Setter area The reason author want to choose this area first is because, the Mold Setter area plays a

49 critical role in determining the quality of molded products Expanding LPAs to the Mold Setter area helps to reinforce the importance of precision and meticulous attention to detail in mold setup Secondly, errors in mold setup can result in defects, scrap, and production delays, posing significant risks to product quality, customer satisfaction, and operational efficiency By conducting LPAs in the Mold Setter area, organizations can proactively identify and mitigate risks associated with improper setup, thereby reducing the likelihood of quality issues and associated costs Thirdly, mold setting involves working with heavy equipment and potentially hazardous materials, heightening risks to personnel safety Conducting LPAs in the mold setter area allows organizations to ensure that proper safety protocols during setup, such as equipment lockout/tagout procedures and and the use of personal protective equipment (PPE) This proactive approach helps mitigate the risk of accidents and injuries, ensuring compliance with safety regulations and fostering a secure working environment

The main purpose of expanding LPA into the Mold Setter area is to address the drawback of LPA has not covered the entire shopfloor area Expanding LPA into the Mold Setter area gradually extends its coverage to encompass the entire shop floor area This project serves several crucial purposes aimed at enhancing product quality, operational efficiency, and overall organizational performance Initially, it aims to uphold precision in production by validating the precise and consistent setup of molds, which is essential for maintaining quality standards and fulfilling customer expectations Furthermore, LPA implementation in the Mold Setter area plays a vital role in proactively managing risks associated with setup operations, safeguarding operational continuity and employee safety Lastly, a primary goal is to ensure adherence to relevant standards and regulations governing mold setup procedures, emphasizing the organization's dedication to quality management and regulatory compliance

The project adheres to the PDCA continuous improvement cycle, which includes the phases of project planning (Plan), implementation (Do), checking (Check), and

50 concluding with the action phase (Act) for implementing enhancements The project was executed over a duration of 5 months

Here is the team formation for expanding LPA to the Mold Setter area:

Table 4.1: Team forming for project

No Name Department Supportive function

1 Huynh Dac Anh Minh IE Sponsor

2 Phan Thi Hong Ngoc QA Project Leader

3 Le Kim Hoang PROD Proxy Project Leader

4 Trinh Duy Khiem IE Project member

5 Nguyen Thi Thuy Thao QA Project member

6 Pham Phuong Quynh QA Project member

7 Nguyen Phuc Hiep PROD Project member

8 Dang Xuan Thanh PROD Supporter

And here is the timeline for this project:

Table 4.2: Timeline for the project

Define project objective, scope and criteria

Mon 8/21/23 Wed 8/23/23 Sponsor, Project Leader

Establish project team and designate roles and responsibities

Conduct initial assessment of current

LPA process and Mold Setter operations

Thu 8/24/23 Tue 8/29/23 Project Leader, Proxy

Project Leader and Project members

Kick off meeting with BoD Wed 8/30/23 Thu 8/31/23 Sponsor and Project

Training and Preparation Fri 9/1/23 Sat 9/30/23

List out document (SOP, checklist, form)

Fri 9/1/23 Wed 9/6/23 Project member Create set of questions based on SOP Thu 9/7/23 Mon 9/25/23 Proxy Project Leader and

Maintaining LPA activities at C&M area

Fri 9/1/23 Sat 9/30/23 Proxy Project Leader and

Project Member Kick off meetings with Production team Tue 9/26/23 Sat 9/30/23 Project Leader và Proxy

Conduct a small-scale pilot implementation of LPA at level 2 in the

Mon 10/2/23 Sun 10/15/23 Project Leader and Proxy

Monitor and evaluate the effectiveness of LPA procedure, checklist on pilot result

Mon 10/16/23 Sat 10/21/23 Proxy Project Leader and

Review feedback form Mold Setter and stakeholders

Full-scale roll out Mon 10/30/23 Mon

Finalize LPA procedure and checklist Mon 10/30/23 Mon 11/6/23 Project Leader and Proxy

Project Leader Communicate the roll out plan to all relevant stakeholders

Tue 11/7/23 Wed 11/8/23 Proxy Project Leader and

Supporter Conduct training session and workshop Thu 11/9/23 Mon

Project Leader and Project member

Implementation and Monitoring Mon 11/13/23 Sat 12/30/23

Implement LPA in the Mold Setter area on a full-scale basis

Tue 11/14/23 Sat 12/30/23 Project Leader, Proxy

Project Leader and Project member

Monitor and track LPA activities Mon 11/20/23 Sat 12/23/23 Project member

Review LPA results with project team Mon 12/25/23 Sat 12/30/23 All member

Begin colleting data on audit outcome and performance metrics for future analysis and improvement

Author’s role in the project:

During the 6-month internship at fVN, the author engaged in numerous projects, with the LPA Project being the main project The author was granted the authority to execute this project as a Proxy Project Leader

Maintaining the LPA project in the C&M area: Throughout the implementation of the LPA project in the C&M area, the author supported the main project leader in undertaking key tasks such as maintaining the LPA project in the C&M area to ensure its smooth operation This included acting as the primary coordinator for LPA, establishing audit schedules, conducted question formulation, conducted audits with various departments, documented findings, and prepared monthly reports for LPA They also reminded everyone to take corrective actions when issues occurred in that area

Create question based on SOP and software: The author also took on the responsibility of reading and analyzing SOP documents for the Mold Setter area, thereby creating questions based on SOP including the 5M criteria Additionally, I prepared weekly update reports for the team, monitored the project's progress to ensure timely completion of tasks

Conducting the first trial audit in the Mold Setter area: after completing the question formulation process and holding a kick-off meeting with the relevant department, I was tasked with conducting the trial audit alongside the HoD of the Mold Setter area This allowed for the assessment of the audit process, observing the attitude and work methods of workers, and subsequently, the identification of areas for improving current procedures within the LPA project for the Mold Setter area

Here is a breakdown of the specific tasks executed for expanding the LPA project into the Mold Setter area:

Once the Project Initiation process was completed and the kick-off meeting with the BoD received approval, the team moved forward by compiling a list of SOP, Checklist, Form, and Software documents utilized in the Mold Setter area to proceed with the next step of the LPA process, which is creating questions based on those documents Presented below is a summarized table indicating the quantity of documents:

Table 4.3: Total document of Mold Setter area

Document No Document type Total

❖ Create set of questions based on SOP:

The author analyzed the SOPs and create questions based on those SOPs, with questions revolving around issues related to Man, Machine, Material, Method, and Safety Below are some of the questions generated by the author and a summary table of the number of approved questions at the Mold Setter area at level 2:

Figure 4.3: Some of the questions for Mold Setter area

Table 4.4: Total questions at level 2 – Mold Setter

❖ Conduct a small-scale pilot implementation of LPA at level 2:

In the October 2023 phase, LPA initiated testing at level 2 within the Mold Setter area, gathering findings during the process It was observed that applying LPA in the Mold Setter area was appropriate because there were also many underlying issues Furthermore, feedback received from the department following the LPA testing phase contributed to enhancing the efficiency and effectiveness of future audits

Figure 4.4: Some findings at Mold Setter area in October

LPA helped the Mold Setter area identify numerous underlying issues and uncovered many errors: this enabled Mold Setter to promptly implement solutions aimed at preventing and mitigating safety concerns Notably, these solutions included minimizing downtime associated with mold cleaning and preventing the production of defective products caused by inadequate cleaning, which often resulted in stains and black spots on the product Furthermore, ensuring that workers always wear full protective footwear and helmets, particularly crucial when handling molds weighing up to 1 ton, thus ensuring the safety of crane operators Below is a summary table of the number of findings in the Mold Setter area up to January 30, 2024:

Table 4.5: Total findings by month up to January 2024

Month Oct.23 Nov.23 Dec.23 Jan.24

Discovering time-saving improvements: through LPA analysis, it helps identify necessary improvements aimed at saving time and enhancing efficiency in maintaining clean molds Specifically, during the LPA assessment, auditors discovered that manual mold cleaning consumed a significant amount of time, yet the cleanliness effectiveness was still not ensured, as the molds remained dirty when checked with cotton swabs Consequently, LPA updated this issue and later discovered a dry ice mold cleaning device, which only takes 5 minutes to clean the molds, reducing the time by 6 times compared to the previous 30 minutes timeframe

Figure 4.5: Dry Ice Blasting machine

(Source: Author) LPA helps identify SOPs that do not meet practical at the Mold Setter: Some

SOPs in the Mold Setter area are deficient at various steps, differing from reality, and there are other updates to procedures Additionally, having too many similar SOPs within the same scope should be consolidated for easier readability and implementation, avoiding confusion LPA has updated and reported these findings to the department, and

Scope Man Machine Material Method Safety

57 as a member of the Mold Setter department, the author took responsibility to research and reconstruct the SOP process Subsequently, the revised SOP was presented to the BoD for approval and has since been successfully integrated into operations within the Mold Setter area Presented below are some of the SOPs that underwent revision and approval for application in the Mold Setter department:

Figure 4.6: Some SOPs in Mold Setter area

Digital Transformation: Building the LPA Web App

The author had the opportunity to take on the role of coordinator for the LPA project, and after going through the process, I identified some issues that needed improvement in the workflow Below, I outline my workflow as the coordinator for the LPA project at fVN:

Firstly, there's paper waste and time consumption in the disposal process: In the

"Conduct an audit by paper" stage, audits are conducted using paper, and at the end of each month, they have to be scanned and stored as PDF files, while the paper copies are discarded However, due to varying audit frequencies across different levels (averaging around 60 sheets/month), a considerable volume of paper accumulates, resulting in material waste and significant time spent on disposal

Secondly, there's a time-consuming data entry process easy to errors: In the

"Capture findings" stage, after conducting audits on paper, the LPA coordinator first records these findings in an Excel file before inputting them into the Microsoft Planner system to track subsequent corrective actions from departments Performing these tasks

59 consumes a significant amount of time and effort Additionally, data entry into Excel or Microsoft Planner is easily to errors

Thirdly, storing documents as scanned PDFs can lead to loss and difficulties in retrieval or tracking: After scanning PDFs, they are directly sent to the creator's folder

Storing documents as scanned PDFs can make it challenging to search for and track specific findings, as it's unclear which folder or page contains the relevant information Consequently, this approach may result in document loss or oversight

Furthermore, level 1 auditors fail to rigorously conduct audits: During the evaluation and monitoring of audits across levels, the author identified an issue concerning the laxity of level 1 auditors (Team Leaders) in performing audits diligently Despite the requirement for level 1 auditors to conduct daily audits, yet the author observed instances where they only recorded findings on Monday and filled out sheets for all days accordingly This lack of thoroughness significantly undermines the effectiveness of the LPA audit process

Based on the reasons above, the author proposes the creation of a digital application that can integrate essential functions for the audit process, thereby reducing time and eliminating wasteful steps These functions include conducting audits through the application, with the app randomly generating questions upon auditor login Moreover, the findings will automatically update in the OPL function within the app and send emails notifying responsible individuals in respective departments Additionally, this application can visually represent the current state of the LPA and existing errors, aiding everyone in tracking and generating monthly reports to ensure timely information updates

The application of digitization to develop the "LPA" web application aims to overcome the drawbacks of LPA relies on the use of paperwork and manual data entry

- storage Moreover, building a Layered Process Audit (LPA) web app as part of a digital transformation initiative serves multiple purposes: The purpose is streamlines the LPA process by digitizing manual tasks such as form filling, data entry, and report generation This digitization significantly reduces the time and effort required to conduct audits,

60 allowing resources to be allocated more efficiently Furthermore, offers real-time visibility into audit activities and results, empowering managers and stakeholders to access up-to-date informatio Additionally, the purpose of building the web app ensures the long-term and precise storage of audit data, eliminating errors in data entry and facilitating easy retrieval and tracking Most importantly, fosters a culture of accountability by ensuring that auditors conduct audits diligently, adhering to scheduled timelines, appropriate locations, and maintaining honesty throughout the auditing process

The web application designed to digitize the LPA process is named "LPA" The reason for this name is because almost everyone is familiar with the LPA process, but many people don't know its full name is "Layered Process Audit" Therefore, using the abbreviation "LPA" helps users easily understand the purpose and functionality of the app

The digital application solution for the LPA process in fVN was developed by the author using coding languages such as JavaScript and ReactJS In addition to the author's efforts in development, I also received considerable assistance and support from my friend to complete this web application Below is a code snippet written by the author to shape the web application for LPA:

Figure 4.8: The part of code in the LPA web app

Below is the application format used for LPA, its main interface will predominantly feature white, black The reason for these colors is because they match the two main colors of the company's logo The font chosen by the author is Montserrat, which is also the standard font used and presented at fVN

Content of ‘LPA’ web application formart:

Login Interface: This is the login interface of the LPA web application, where users with pre-created accounts can log in The login process will be recorded and the user's name will be used to carry out actions within the application

Main Interface: After logging into the web application, it will display a main interface as follows:

In the top right corner of the application will be the name of the logged-in user, or in other words, the name of the auditor The left navigation bar features four text icons: A - O - R – Q

• "A" stands for Audit Once logged in, it will display an interface to select

Department, Process, and Level This allows the auditor to accurately choose the area and level they need to audit Subsequently, it will present the audit questionnaire interface for the auditor to conduct the audit No longer does it require much time for printing paper, thus avoiding waste Instead, the application allows us to carry out this process quickly

• "O" stands for Opening Point List In this section, it will display the findings recorded immediately after the audit process is completed, allowing for quick and accurate display It saves time by eliminating the need for lengthy waiting periods to perform multiple manual tasks as before Users can access it to monitor and observe the progress of the report implementation

Setting the Bar: Training and Bonus

The issue of manpower is always a challenging issue for any operational process Currently, in the LPA project, there is a shortage of manpower in the LPA evaluation process at level 2 due to the high frequency of audits and limited manpower (currently, there are only 3 auditors in the level 2 audit area), which have not been fully utilized This leads to a heavier workload for the 3 auditors and there won't be additional perspectives on other issues during the work process

Figure 4.22: Audit plan before adding auditors

Moreover, there may be a lack of full comprehension among operators and auditors regarding the benefits of the LPA process following evaluation, leading to discomfort and resistance In light of this, the author aims to propose a solution to address this issue

The LPA team has initiated communication and sought permission from departments to add additional auditors for conducting audits in various areas Additionally, we are developing content and a regular training plan on LPA for both operators and auditors across departments to address the limitations regarding Shortage of manpower and a lack of regular LPA training The objective is to reduce the heavy inspection burden on auditors, allowing them to operate more effectively while

73 maintaining inspection quality This involves optimizing auditors' schedules and workload distribution to make the most of their working hours

Additionally, promoting operators' voluntary involvement and ensuring their comfort during evaluations is important, with rewards offered following the auditing process to encourage participation without causing fatigue or discomfort

Firstly, the author proposes the idea of recommending departments to appoint individuals as Project Leaders (currently, the LPA process mainly relies on leaders from different areas and positions) These Project Leaders understand the processes of the areas they manage and are aware of the issues occurring in those areas It is proposed that 2-3 Project Leaders be designated as Auditors in each area to enhance the process efficiency and ease the workload for auditors who are tasked with conducting numerous audits each month

• Currently, in the C&M area, there are only 3 main auditors in three leader positions, including the Mixing Leader, Crushing Leader, and Extruder Leader Therefore, the author proposes adding three Project Leaders to the LPA process to rotate and conduct audits in various areas, thus providing different perspectives on issues in their respective areas Additionally, this helps avoid schedule conflicts and ensures audits can be conducted as planned

Figure 4.23: Email proposing to add more auditors

To maintain inspection quality, we will enhance training for auditors, with a focus on level 2 proficiency Simultaneously, we will develop a continuous training program to keep up with technological advancements and ensure that auditors are always updated with changes in the production process Additionally, all operational staff will receive training sessions on the LPA process to foster comprehension and address any related queries This ensures that everyone understands the LPA process and its benefits for the company and individuals With this training process, we can conduct training sessions every 6 months to train newcomers and update everyone on new developments in the LPA project The training content may encompass:

Finally, to encourage voluntary participation in evaluations by workers, the company can organize a biannual competition applied to all areas Every six months, evaluations will be conducted for the entire area, and prizes will be distributed to both auditees and auditors based on the areas This not only boosts the morale and motivation of workers but also fosters a sense of unity among them, which is essential for the LPA process Additionally, it builds trust and a sense of loyalty among workers towards the company Here's a suggested rewards table for both workers and auditors during the LPA implementation:

Achieveme nt of LPA Award

Table 4.7: LPA process award proposal

- Prize 3rd: 1.000.000VND (Certificate included)

Criteria - Achieves the standard for the number of audits (over 90%)

- High rate of findings corrected on time

- Achieves the standard for the number of audits (over 85%)

- High number of findings detected

By January 2024, after implementing the solution to increase the number of Auditors, the ratio of Auditors has risen from 3 to 6 in the C&M (Crushing, Mixing, and Extruder) area This adjustment has reduced the workload pressure on each Auditor, enhancing their ability to focus on detecting and resolving issues in-depth Moreover, a larger team of Auditors also facilitates diversity in viewpoints and approaches, thereby improving problem-solving capabilities and enhancing overall company performance

Figure 4.25: Audit plan after adding auditors

As of the first training session in December 2023, , more than 90% of C&M area employees have engaged in the LPA training initiative The result of this is an enhancement in understanding and awareness of LPA, which improves the application and effectiveness of the process in quality improvement efforts Such progress not only enhances the efficiency of the Auditor team but also fosters knowledge and experience sharing among members within the organization

In 2024, the implementation of a KPI reward system for both workers and auditors will commence By measuring and evaluating performance based on predetermined criteria, , we can recognize and evaluate individual accomplishments and contributions This reward system not only motivates individuals to perform their tasks to the best of their abilities but also fosters a sense of healthy competition and enhances team spirit

Throughout the research on “ Expanding the scale and applying digitalization to enhance the effectiveness of Layered Process Audit (LPA): A case study of Framas Vietnam ” significant progress and positive impacts on production processes and quality control have been observed The LPA project serves not only an assessment tool but also an innovative means that has brought positive changes to the company's work culture and quality management

We have observed the necessity of expanding the LPA project to cover the entire shopfloor, enabling detailed inspections and assessments of every aspect of the production process This expansion has fostered transparency and coordination among departments, thereby bolstering the company's quality management capabilities and providing a comprehensive overview of production performance Moreover, the integration of digitalization by creating web-app “Layered Process Audit” has significantly reduced workload and increased data accuracy, the LPA web app streamlines these tasks by automating data capture, centralizing information storage, and facilitating real-time analysis As a result, auditors can conduct assessments more efficiently, while managers gain access to timely insights for decision-making, leading to faster identification of areas for improvement and more proactive quality management

In summary, the project has demonstrated that LPA is not just an assessment tool but also a crucial innovation to facilitate continuous improvement and maintain product quality The expansion and digitalization are important steps to elevate LPA to a new height, simultaneously not only changing how Framas Vietnam manages quality and embraces technological innovation in today's manufacturing environment, but also drive sustainable growth, competitive advantage, and customer satisfaction in today's rapidly evolving business landscape

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