Improve Internal Customer Satisfaction With Service Quality In Measurement Process Of The Qmm6 Department At Bosch Vietnam Co., Ltd.pdf

GRADUATION THESIS INDUSTRIAL MANAGEMENT Ho Chi Minh City, May 2024 IMPROVE INTERNAL CUSTOMER SATISFACTION WITH SERVICE QUALITY IN MEASUREMENT PROCESS OF THE QMM6 DEPARTMENT AT BOSCH VIE

Introduction

Quality is a characteristic concept representing the ability to satisfy customer needs Businesses divide the concept of customers into two distinct categories: internal and external Internal customers are the special guests, who may be individuals or departments directly under and working within the enterprises Internal customers understand the product, have direct contact with it, and are involved in its production

In fact, they are also the ones who contribute ideas to product development

As one of the primary responsibilities that businesses concentrate on, satisfying the requirements of internal customers is just as important as meeting the needs of external consumers As a result, units must remain accurately aware of and assess the significance of internal customers' roles This is because they are the ones who simultaneously add value to the company's external and internal customers

Department QMM6, responsible for managing and controlling product quality, also has a duty to satisfy its direct customers, the other departments within the same company This is one of the significant obstacles that Department QMM6 is currently struggling with

Therefore, in order to assist Department QMM6 in gaining internal customer satisfaction and then providing suitable solutions to boost productivity, enhance work effectiveness, and shorten measurement process times, the author selects the topic

“Improve Internal Customer Satisfaction with the Service Quality in Measurement Processes of the QMM6 Department at Bosch Viet Nam Co., Ltd.”.

Aims of the study

The topic pursues the following research objectives:

- Analysis of the service quality status in the measurement process at the QMM6 department

- Identify dissatisfactions of internal customers with service quality in the QMM6 department measurement process

- Propose some solutions to satisfy and improve internal customer satisfaction with the quality management service.

Objects and scopes of study

- Scope of space: QMM6 Department - Bosch Long Thanh Factory - Bosch Vietnam, Co., Ltd

- Scope of time: Analyze the current situation of operations at the QMM6 department from 2021 to 2023

- Object: The quality management process of the QMM6 department and the satisfaction of internal customers with the QMM6 department.

Research methods

The research is conducted by combining scientific research methods with statistical techniques, comparisons, and analyses The study aims to address and clarify the research objectives, from establishing theoretical foundations to practical applications Moreover, the research places particular emphasis on collecting input from various experts, managerial personnel, and individuals involved in relevant management and operational processes, enriching and enhancing the content of the study

Qualitative research method: Initially, the study provides an overview of internal customers' concerns about quality at the factory Through discussions and research, the methodology refines and adjusts to ensure effectiveness This process involves developing assessment criteria and modifying questions to better serve the quantitative research phase

Quantitative research method: The survey is conducted by utilizing a questionnaire and a series of direct interviews The goal of this process is to collect information from the labor force directly involved in the production line, as well as from various

3 management levels within the line The collected data have been processed and prepared for the next steps in the research process

The method of data collection, analysis, and synthesis involves gathering information from provided internal company documents This data is then analyzed and synthesized, and relevant information for the report is selected.

Structure of the study

Chapter 1: Bosch VietNam Company Limited Introduction

Chapter 3: Analysis of the status of the service quality in the measurement process at the QMM6 department

Chapter 4: Proposed solutions improve internal customer satisfaction with the service quality in measurement processes of the QMM6 department at Bosch Vietnam Co.,ltd

BOSCH VIET NAM COMPANY LIMITED INTRODUCTION 4 1.1 Introduction of Robert Bosch GmbH Corporation

History of formation and development of Bosch Global

Bosch Group, a global powerhouse in engineering and technology, has established itself as a prominent leader in various industries worldwide In 1886, Robert Bosch founded the “Workshop for Precision Mechanics and Electrical Engineering” in Stuttgart This was the birthplace of today’s globally operating company, with headquarters located in the city of Stuttgart in the south of Germany

In its early years, the Bosch Group achieved significant success As early as 1897, Bosch began producing and developing electronic devices, clocks, ignition systems, and other industrial products Robert Bosch always focused on quality and innovation, which helped the company surpass its competitors

By 1898, Bosch had conquered the international market by establishing its first business office on Store Street, London, and continued to expand operations to many different countries worldwide The company expanded its production lines and invested in research and technology development This helped the conglomerate maintain a leading position in the industrial and technological fields

The 1950s and 1960s marked a period of intense development for Bosch The conglomerate became one of the leading manufacturers of automotive technology and electronic systems, making significant contributions to the global automotive and electronic industries

The period from 1960 to 1980 saw significant transformations at Bosch as it became a diversified conglomerate Bosch led the automotive electronics market and began producing lambda sensors—devices measuring oxygen concentration at the exhaust source of a catalytic converter Data provided by this sensor enables electronic fuel injection systems to adjust the air-fuel mixture, optimizing combustion efficiency and allowing the catalytic converter to effectively clean exhaust gases

In 1978, Bosch introduced the Anti-Lock Braking System (ABS), a technology that became standard and allowed drivers to maintain control of their vehicles during emergency braking In 1987, Bosch continued to innovate with the introduction of the Electronic Stability Program (ESP), which prevents wheel slip on slippery roads during acceleration and braking With the Electronic Stability Program (ESP), Bosch reached a technological milestone in 1995 Since its introduction, ESP has sold millions of ESP brake systems, preventing wheel slip

Another famous Bosch product is the IXO electric screwdriver, which quickly became the best-selling power tool globally In 2003, Bosch expanded its business into compact, lightweight devices using lithium-ion batteries

With over a century of history of development and innovation, the Bosch Group remains committed to delivering breakthrough products and solutions for the future, supporting the construction of a more innovative and convenient world for humanity

One of the key factors that sets Bosch Group apart is its unwavering focus on quality The company's dedication to precision and craftsmanship has earned it an unparalleled reputation for reliability and durability Bosch's culture deeply instills this commitment, permeating every aspect of its operations, from research and development to manufacturing and customer service Furthermore, Bosch Group recognizes the

6 importance of sustainability and corporate social responsibility Environmental protection, resource efficiency, and ethical business practices are integral to its approach The company actively pursues initiatives to reduce carbon emissions, optimize energy usage, and promote sustainable manufacturing processes Bosch's commitment to sustainability extends beyond its operations, as it collaborates with partners, customers, and stakeholders to drive positive change in society and the environment Bosch's relentless pursuit of innovation underpins its success

Figure 1.2: Robert Bosch GmbH Headquarters in Stuttgart, Germany

Currently, Bosch has approximately 421,300 associates worldwide, with around 468 subsidiaries and companies in over 60 countries and 150 research centers globally In

2023 (up to the present time), Bosch achieved revenue of up to 88.2 billion euros, with 3.8 billion in pre-tax and pre-interest profits

Products and services of Bosch

Figure 1.4: Products and services of Bosch

Bosch Group has four areas of business, such as:

Mobility Solution: Bosch offers solutions related to hardware, software, and service Hardware products include a wide range of spare parts from automotive aftermarket and repair shops Specially to accommodate the green lifestyle, Bosch also offers silicon carbide chips in the pre-integrated eAxle module for electric vehicles With software products, the corporation develops the Mobility Solutions web portal that supports connected mobility, automated mobility, powertrain systems, and electrified mobility With services, there are 17.000 Bosch-certified car service garages globally It provides customers with a comprehensive experience during the automotive repair process, utilizing highly qualified spare parts and offering first-class services and expertise Moreover, Bosch builds training courses and partner programs for repair shops with automobile competence and knowledge for technicians worldwide Additionally, Bosch created the eBike system, a multifunctional system that records journeys and speeds, assesses cyclists' health, and connects to a mobile app Bosch also invented the Anti- Lock Braking System (ABS) Over time, Bosch has led in specialized areas such as the Traction Control System (TCS), Electronic Stability Program (EPS), vehicle electronics, oxygen sensors, fuel injectors, and fuel pumps

Industrial Technology: Bosch's subsidiary, Bosch Rexroth, is an industrial equipment provider Through this division, Bosch offers technology for drives, controls, and machinery operations Bosch Professional is another branch of Bosch, specializing in handheld power tools and specialized industrial equipment Automation is also one of Bosch's business areas, making it a reputable industrial machinery contractor, as well as participating in other fields such as the Internet of Things and artificial intelligence Industry and trades: The corporation has designed and developed drive and control technology support for factory automation and process plant engineering under the name Bosch Manufacturing Solutions Besides Bosch Connected Industry, the Bosch IoT software solutions offer tailored software and comprehensive services for manufacturing plants and machines

Figure 1.5: Bosch IoT software solutions

Consumer Goods: Bosch offers two main product categories; these are household electrical appliances and power tools Household electrical appliances comprise dishwashers, washers and dryers, fridges, vacuum cleaners, etc Power tools include drills, screwdrivers, angle grinders, sanders, and measuring tools Besides, Bosch also offers garden tools, heating, cooling, and well-being products

Figure 1.6: Products of Bosch’s home appliances solutions

Energy and Building Technology: Bosch not only offers safety and security systems, energy systems, and some mobility services such as intermodal transportation and environmental monitoring, but it also develops building services such as connected home appliances, connecting building solutions, and the most impressive control system for houses, which is preferred by modern citizens.

Overview of Bosch VietNam Company Limited

 Name: Bosch Vietnam Co., Ltd

 Address: Road No 8, Long Thanh Industrial Park, Long Thanh District, Dong Nai

 Company website: bosch.com.vn

 Market: Global, especially China, Japan

 Primary Industry: Manufacturing components and auxiliary parts for vehicles with engines and vehicle engines

Figure 1.7: Logo of Bosch Vietnam Co., Ltd

Stating that “Bosch may not make cars, but it is hard to find a car without a Bosch product” is not an exaggeration This statement draws attention to Bosch Vietnam's large consumer market in the Asia-Pacific area, especially when it comes to exclusive products like drive belts that are supplied to different car manufacturers, independent of their size or importance

At present, all four business sectors of Bosch, including Mobility, Industrial equipment, Home appliances, and Smart Building Solutions, are operational in this country

Figure 1.9: Some of Bosch's brands in Viet Nam

The pushbelt is a critical component of continuously variable transmissions (CVTs), enabling smooth and efficient power delivery As an integral part of the CVT system, the push belt serves as a vital link between the driving pulleys responsible for transmitting torque The drive belt ensures that the engine is running as efficiently as possible, that the engine is always maintained at an ideal level of performance, that fuel consumption is low, and that CO2 emissions are reduced By utilizing advanced materials and engineering expertise, Bosch has created pushbelts that can effectively handle high torque loads while maintaining optimal performance

Figure 1.10: Continuously variable transmissions (CVT)

The belt consists of multiple steel components mounted along two high-alloy steel rings With this construction, the belt can be flexible with the required power density by converting the number of turns and the width of the drive belts

To ensure efficient coordination and management, Bosch bases the company's management on a highly structured organizational architecture consisting of managerial positions and departments The plant director manages and coordinates the office and production blocks, the two main blocks of this organizational structure

The Plant Director plays a crucial role in managing the company's overall operations The Commercial Director also plays a vital role in managing the company's business activities

The departments and divisions within the company include:

 HcP/CTG (Control Room): manages the company's budget and finances

 HcP/ICO (Department, which stands for the Information Coordination and Organization Department): handles issues related to information security and supports software installation on the company's system

 HcP/LOG (Logistics Management Department): manages inventory, input and output materials, and the number of products delivered to customers

 HcP/TGA (The Technical Training Center) is a technical training program providing a young, dynamic, and innovative internal workforce

 HcP/HRL: responsible for training, recruitment, salaries, and employee benefits

 HcP/FCM (Facilities Management Department): Manages equipment and facilities to ensure they are always in good condition to serve the needs of employees and that the equipment is appropriately maintained to cater to the workforce's requirements

 HcP/HSE (Health et al is responsible for safety at the plant and organizes safety training before employees enter production lines

 HcP/MSE3 (Production Department): in charge of putting together finished goods by assembling components and loopsets

 PS/QMM (Department of Quality and Methodology): Maintains customer satisfaction through internal assessments and IATF certification and ensures product quality by providing training on techniques such as SPC and FMEA

 PS CT/ETC (Engineering Technology Center): development partner for testing techniques, supports existing products in Bosch Vietnam Global South and Bosch

15 communication technology Responsible for planning and implementing test plans and analyzing results Tests include factors, product support rings, document control, risk assessment, technical changes, and 8D on existing products

 HcP/MSE1 (Production Department): responsible for producing elements

 HcP/MSE2 (Production Department): in charge of the production of loopsets

 HcP/TEF department is responsible for maintaining document systems and equipment Additionally, this department handles difficulties that arise when a failure in the manufacturing line affects the output of the line

 HcP/PRS (Security Department): oversees the factory's general security, provides guidelines and registration papers to outside partners that come to the plant to film or take images, and provides support for relevant documentation

Bosch's company organization builds a clear management structure and divides straightforward tasks between departments and divisions to ensure the smooth and efficient operation of the entire company

1.2.4 Quality departments' structure and functions

Presently, the HcP factory has structured the Quality and Methods Department (PS/QMM-HcP) division into five primary sections, each tasked with varied functions aimed at overseeing and administering quality standards across the entirety of the factory premises and the IATF 16949:2016 system These departments are characterized by designated job titles, each of which assumes specific roles within the framework

PS/QMM1-HcP: Responsible for quality control in collaboration with clients such as Punch, Jatco, Hyundai, and others This group maintains constant communication with customers to record all feedback and complaints regarding products It diligently addresses customer complaints, inquiries, and concerns related to the products and services provided by the company

PS/QMM3-HcP: This team is accountable for ensuring the quality of the process

It oversees performance and addresses issues during the production and distribution process, coordinating with the production department to resolve procedural issues leading to product defects at various stages of work

PS/QMM6-HcP: This group conducts measurements and analyzes chemical experiments related to products It measures metal and welding processes, inspects belts, calibrates them, and measures guides used in belt production

PS/QMM7-HcP: Comprising seven members with one team leader and six high- quality system specialists, this team manages the quality management system process They provide guidance on internal inspection procedures and audit the IATF 16949:2016 quality system They also support quality management methods (FMEA, SPC, problem-solving, etc.)

PQA-HcP: Responsible for inspecting the quality of purchased goods from suppliers This team ensures that suppliers adhere to Bosch's quality standards when providing materials used for belt production at the factory

LITERATURE REVIEW

Internal Customer Satisfaction

Customer satisfaction refers to both internal and external customers Tennant (2001) and Kendall (2007) define external customers as individuals who are not directly associated with the organization, while internal customers are those who are directly associated with the organization, such as employees

External customers work or operate outside the company or organization, whereas internal customers work in the same company as the service provider When external customers reach out to the company's employees or departments, other departments typically provide support (Grửnroos 2015) When an external supplier delivers the materials, the receiver is an external customer; when the recipient hands over the materials for further processing, the handler of the following process step is an internal customer

When designing and creating services, it is common to overlook internal customer care Many companies implement internal service, where other employees or departments support the end-customer contWithout internal service providers, personnel must possess a comprehensive understanding of the company's products ucts In many companies, that kind of knowledge is impossible to acquire Other colleagues use internal customer service to assist in serving external customers (Schneider, 2004)

The definition of internal customer satisfaction refers to the extent to which employees or departments within an organization feel content, fulfilled, and pleased with the services, support, or products they receive from other departments or colleagues within the same organization It encompasses the perception of meeting or exceeding their needs, expectations, and requirements in a timely, effective, and efficient manner

In TQM, the primary focus is on both types of customers Internal customers' satisfaction is critical in terms of motivation and the execution of healthy work

18 processes An organization can meet customer demands without considering the expectations of its internal customers

Internal customer satisfaction is determined by a variety of factors, including communication quality, responsiveness, reliability, professionalism, and the overall experience of receiving services or support from internal suppliers It is not merely about delivering a service or product but also about building positive relationships, fostering trust, and promoting collaboration among different parts of the organization

According to Matzler & Renzl (2006), employee (internal customer) satisfaction is considered to be one of the most critical drivers of both quality and productivity

Measuring internal customer satisfaction is crucial for identifying improvement areas, enhancing employee morale, and fostering a positive work environment Understanding “why measuring internal customer satisfaction is important” allows organizations to adapt, cultivate a customer-centric culture, and improve overall performance.

Service Quality

Service quality can have many different meanings in different contexts Several scholars have defined service quality based on different theoretical assumptions Service quality is an association of two words: “service” and "quality." "Service" means "any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything." People now recognize quality as a strategic tool to achieve operational efficiency and improve business performance

Service quality refers to a service provider's ability to satisfy customers in an efficient manner, which can improve the business's performance In the service sector, quality is also an essential element for a business's success This is due to the recognition that quality positively correlates with profits, increases market share, and enhances customer satisfaction Several earlier studies and authors pointed out that the concept of quality in service differs from the concept prevalent in the goods sector The reasons for such a treatment are inherent features of services, such as intangibility, inseparability

19 from the provider, heterogeneity, and so on Hence, there is a distinct framework for quality explanation and measurement

From a technical standpoint, we can evaluate service quality by considering factors such as fitness for use, zero defects and variability reduction (Juran, 1964), or requirement conformity (Crosby, 1979) Operations management research primarily employs these approaches to service quality evaluation in manufacturing organizations to assess the quality of standardized products However, because services are intangible and heterogeneous, we cannot perform evaluations of technical dimensions of service quality in isolation; we also need to assess perceptual dimensions, and to fully capture the holistic nature of services, we must integrate the assessment of technical dimensions (Harvey, 1998)

Although operationalization and measurement of service quality have been dominated by the SERVQUAL tool and its confirmation pattern, no final evidence exists about SERVQUAL reliability in service quality evaluation (Brady et al., 2002)

According to the research literature, a requirement for addressing context-specific service quality measures does exist; indeed, the necessity to provide individualized, niche, and innovative services to meet specific customer needs makes the design of new flexible tools for assessing service quality a priority for both academicians and practitioners (Macdonald et al., 2011; Nam & Lee, 2011; van der Wiele et al., 2011)

Figure 2.1: Dimensions of Service Quality

Source: Author The concept of "service quality" is not an independent term; its formation depends upon several factors related to service and service firms These factors are:

 Reliability is the ability to perform the promised service dependably and accurately In a broad sense, reliability refers to service firms' promises about delivery, service provision, problem resolution, and pricing Customers like to do business with firms that keep their promises Therefore, this is a crucial factor in determining the customer's perception of service quality and loyalty Hence, service firms need to be aware of customers' reliability expectations The reliability dimension in banking services includes regularity, attitude towards complaints, keeping customers informed, consistency, procedures, etc

 Responsiveness is the willingness to assist customers and provide prompt service This dimension focuses on attitude and promptness when dealing with customer requests, questions, complaints, and problems It also focuses on the punctuality, presence, professional commitment, etc., of the employees or staff It can be calculated based on when customers wait for assistance, answers to questions, etc By continuously observing the service delivery process and employees' attitudes towards customers' requests, we can improve the conditions of responsiveness

 The assurance dimension is the third dimension of service quality It can be defined as an employee's knowledge, courtesy, and the ability of the firm and its employees to inspire trust and confidence in their customers This dimension is critical in banking and insurance services because customers require greater certainty about their ability to evaluate outcomes In some situations, such as insurance, stock broking services firms try to build trust and loyalty between key contact persons like insurance agents, brokers, and individual customers A “personal banker” is a key contact person in banking services This dimension focuses on employees' job knowledge and skill, accuracy, courtesy, etc., and security ensured by the firm

 Empathy: Empathy is another dimension of service quality It is defined as the caring, individualized attention provided to customers by their banks or service firms This dimension tried to convey the meaning through personalized or individualized services that customers are unique and special to the firm This dimension focuses on a variety of services that satisfy customers' different needs, such as individualized or personalized services In this case, service providers need to know customers' needs, wants, and preferences

 Tangibility is the fifth dimension of service quality, defined as the appearance of physical facilities, equipment, communication materials, and technology All these provide enough hints to customers about the firm's quality of service This dimension also enhances the firm's image Hence, the tangibility dimension is significant to firms, and they need to invest heavily in arranging physical facilities

The gap analysis model of service quality was developed by Parasuraman, A., in

1985 The model indicated that a series of five distinct gaps influenced customer perceptions of quality They are mentioned below:

 Gap 1: The gap between customer expectations and management perceptions of those expectations This gap is caused by a need for more adequate market research and upward communication Adopting adequate research programs to understand customer

22 needs and improve the communication system can narrow this gap It can be measured by using the SERVQUAL scale and comparing the scores obtained from the management and customers

 Gap 2: The discrepancy between management's perception and service quality specification This gap exists in service firms because of the need for wholehearted commitment by management to service quality, inadequate service leadership, etc Standardizing the service delivery process and setting proper organizational goals can close this gap

 Gap 3: The disparity between the service quality specification and the actual service delivery The third gap originates from discrepancies in the actual service delivery; the service providers or employees do not perform at the level the management expects It is due to ineffective recruitment, a lack of appropriate incentives and motivations, and so on By providing the employees with an adequate support system and a better human resource management system, we can eliminate this gap

 Gap 4: The discrepancy between service delivery and communication with external parties The gap between service delivery and external communication occurs due to exaggerated promises or ineffective communication with the customer, which raises customer expectations An efficient and effective communication system can narrow this gap

 Gap 5: The difference between the expected and perceived quality of a service This gap exists because of the disparity between the customer's service expectations and his service perception This can be overcome by identifying, quantifying, and monitoring customer expectations and perceptions through effective marketing and marketing research tools.

The concept of Internal service quality survey form

Internal service quality (IQS) is a sense of satisfaction the internal customer feels from internal service providers or organizations (Hallowell, 1996) Different organizational units or employees provide waiters to another unit or employee within an

23 organization (Stauss, 1995), where the provider is responsible for meeting the needs of their internal customers with professionalism (Randheer, 2015)

In business service, the service personnel reflect the organizational realities Through the interaction with the staff, the customers form an opinion of the organization According to Ghorbani & Mostafavi (2013), a service organization possesses all the necessary equipment and technical facilities, which also contributes to the development of customer opinions Jones & Silvestro (2010) define internal service quality as the perceived quality of services offered by various organizational units or individuals within this unit to other members of the organization The organization provides excellent service to its employees, demonstrating their capacity to serve customers

Khan (2011) believes that internal customers can perceive that the service provider impacts employee satisfaction, which will improve the ability to serve external customers The principle of ISQ distinguishes between the quality of real (tangible) internal services, which include training, incentive programs, and employee welfare, and the quality of intangible (intangible), which is access to internal communication and level of autonomy for employees in power at work (Gao Li Wang, 2011) Kumar (2013) further defines internal service quality as the sense of collaboration that employees have with their colleagues and theMeeting internal consumer needs first will ensure excellent service to external customers et first Ganesh & Haslinda (2014) highlight the significance of internal service quality, emphasizing the need for companies to effectively train and motivate their employees, including those in other divisions, to provide team support and achieve customer satisfaction Reynoso & Moores (1995) proposed that it is crucial for employees to receive high-quality service from their colleagues within the organization, which in turn enables them to provide exceptional services to external customers Bouranta&Chirtis (2008) consider the importance of internal service quality, which includes employees or departments within an organization acting as an internal supplier to respond to both internal and external customers

Internal service quality, as defined by Jeng & Kuo (2012), refers to the services offered by various organizational units or employees within an institution, with the responsibility of meeting the needs of internal customers The human element is the most essential element The process reflects reality through interactions between employees and customers, taking into account the organization's perspective This interaction takes place between employees and customers Internal service delivery aims to enhance the quality of external services and prioritize customer satisfaction Institutions may have all the facilities and technical equipment but may need help to provide satisfactory service to customers Therefore, it becomes crucial for marketers to motivate their employees to provide superior customer service The main requirement to motivate employees to provide quality service is to provide high service quality to internal and external customers

A quality management tool, the internal service quality survey evaluates employee satisfaction with internal services like the working environment, remuneration, and promotion opportunities, among others This survey is usually designed as a questionnaire so that employees can evaluate and provide their opinions on various aspects of the job and working environment Internal service quality surveys can help organizations measure and improve internal service quality, enhance employee satisfaction, reduce turnover, and gather employee feedback to improve the organization's policies and procedures It can also create a positive work environment and support employee development

Therefore, the internal quality of services plays a vital role in employee satisfaction, productivity, and loyalty of final consumers (Akroush et al., 2013; Prakash & Srivastava, 2019) because the internal quality of services is related to the services provided within the organization and aims to provide quality services to final consumers (Brandon-Jones & Silvestro, 2010)

Some other concepts

2.3.1 The concept of PDCA cycle

A US quality management expert, Dr Huh Hart, first proposed the PDCA cycle The ideological basis and methodological basis for total quality management is the PDCA cycle The PDCA cycle divides quality management into four phases, namely, plan, execute (do), check (check), and process (act) In quality management activities, it is required to follow the plan, plan implementation, check the implementation effect, incorporate the success into the standard, and leave it unsuccessful to the next cycle This working method is the primary method of quality management and the general law of all aspects of enterprise management

Source: Author The application of the PDCA cycle is more effective than adopting "the first" approach Using the PDCA cycle means continuously looking for better methods of improvement The PDCA cycle effectively does a job and manages a programme The PDCA cycle enables two types of corrective action – temporary and permanent The temporary action is aimed at results by practically tackling and fixing the problem

On the other hand, the permanent corrective action consists of investigating and eliminating the root causes and thus targets the sustainability of the improved process The PDCA cycle is more than just a tool; it is a concept of continuous improvement

26 processes embedded in the organization's culture The most critical aspect of PDCA lies in the "act" stage after the completion of a project when the cycle starts again for further improvement

Figure 2.3: PDAC cycle in the continuous improvement process

Stages of the PDCA cycle

Step 1: Plan: Use tools like drill-down analysis and cause-and-effect diagrams to meticulously identify the problem and delve into its root causes Once we pinpoint the essence of the problem, we may deem it necessary to measure the process As a result, gathering more pertinent information becomes imperative in order to begin the formulation of potential solutions

Step 2: This stage involves carrying out several tasks, such as effect analysis and brainstorming, to generate potential process solutions The next step entails carefully considering and selecting the most feasible options, followed by the implementation of a small-scale pilot project This may involve using a small batch, focusing on a specific region, or utilizing an alternative trial design that is appropriate for the issue, sound, or project

Step 3: Check: In this stage, we monitor the effectiveness of the pilot solution and apply any learned lessons to enhance it further We decide whether to repeat the "Do" and "Check" phases with the new improvements integrated, considering the observations from the pilot, the areas identified for improvement, and the program's

27 overall scope Once we establish that repeating the Do-Check sub-cycle will yield more benefits than expenses, we can implement the final stage

Step 4: Act: After implementing the solution, the PDCA cycle is still a crucial part of an ongoing improvement program It is, therefore, essential to go back and revisit the plan phase (Step 1) of the cycle in order to pinpoint any more areas that require improvement This iterative process fosters the organization's culture of continuous improvement by ensuring the integration of continuous advances

2.3.2 The concept of digitalization in business

Digitalization in business refers to the process of incorporating digital technologies and tools into business operations, processes and operations to improve efficiency, productivity and customer experience It integrates digital technologies such as automation, data analytics, artificial intelligence, cloud computing and other digital tools to streamline business operations and provide a better customer experience

Digitalization significantly improved enterprises' information processing capabilities by transforming information into a digital representation To fully harness those benefits, organizations relied on the use of IT and the implementation of IT strategies, for example, by increasing the agility and consistency of business processes through the use of information systems

Digitalization in business is the profound and rapid transformation of operations, processes, capabilities and business models to take full advantage of the changes and opportunities of digital technology and their impact on society in a prioritized and strategic way (Rikard Lindgren & Jan Ljungberg, 2015) Digitalization in business refers to using digital technologies to fundamentally change an organization's business model, create new revenue streams, and enhance customer value (Drechsler, 2018)

Overall, digitalization is becoming increasingly crucial for businesses of all sizes and industries, as it allows them to stay competitive and meet the ever-changing needs of their customers in the digital age

The benefits of digitalization in business application

The benefits of digitalization in business include increased efficiency, enhanced competitiveness, enhanced analytical and predictive capabilities, increased flexibility and enhanced customer engagement Adopting digitalization in business can play an essential role in enhancing the competitiveness of enterprises and, at the same time, improving production efficiency and productivity (Marco et al., 2019)

Increase efficiency and productivity: Using digital technology helps businesses improve efficiency and productivity in production and management activities, reduce time and optimize workflow

Enhance competitiveness: Digitalization helps businesses improve their products and services, increase their competitiveness in the market, and reduce production costs

Enhanced analytics and prediction: Digitization provides predictive and data analytics tools, helping businesses make more accurate business decisions

Enhance customer interaction: Using digital technology helps businesses create better customer experiences, increase customer engagement, and improve customer satisfaction

Digitization also helps these businesses reduce errors and improve data accuracy, leading to better forecasting, more efficient planning, and better inventory control (T Garengo)

The benefits of digitization in business include improved efficiency, enhanced customer experience, increased flexibility and responsiveness, better decision-making, improved risk management and greater competitiveness Digitization can also create new revenue streams and business models, allowing companies to enter new markets and serve new customer segments (N Venkatraman et al., 2019)

To sum up, applying digitization in enterprises will enhance their competitiveness, improve efficiency and production productivity, bring better experiences to customers, reduce downtime, and optimize workflow

ANALYSIS OF THE STATUS OF THE SERVICE QUALITY IN

Introduction of the QMM6 department

Bosch, one of the leading technology companies in the world, has a reputation for the quality and reliability of its goods and services Because of this, the company's quality management division is an essential component of the production process, ensuring the delivery of high-quality goods that satisfy client demands

Bosch's internal customers trust PS/QMM6-HcP to be a reliable partner This means that requirements are met on time, accurate and reliable data is digitally reported (for the first time), and collected from calibrated and capable devices

The department is divided into several teams, each with its distinct responsibilities but interconnected, working together to satisfy customer needs QMM6 is organized into three teams as follows:

Figure 3.1: Organization chart of the QMM6 department

 QMM6.1 (Metallurgical, Chemical Analysis, QZ inspection and Field Failure Analysis): Manage methods of analyzing chemical composition in raw materials to ensure that input materials meet standards and analyze samples of errors detected during production to make recommendations to provide suitable solutions

 QMM6.2 (Geometrical measurement): Management of measurement methods to control the value, tolerance, and size of output products in each production stage before semi-finished products to the next production stage through modern types of equipment measuring equipment and based on the standard document that the factory has committed to the customer to evaluate Moreover, this is the group that the author is working with

 QMM6.4 (Calibration, Measurement Methods, Project and BQMS) Quality project management the function of this group is to find modern measuring machines and equipment suitable for new measurement methods and 13 analysis methods Periodically check the measuring equipment and replace or fix it on time to maintain the stable condition of the measuring equipment in order to ensure the most accurate test results

Ensuring input material and output product quality meet or exceed client criteria: In order to produce high-quality and dependable goods, the department makes sure that raw materials, components, and production procedures all match quality standards and client needs

Measuring and delivering measurement results according to department and customer requirements: The department conducts measurement activities per internal and external customer requirements to ensure that products meet quality standards Measurement results must be accurately reported and compliant with the requirements

Resolving quality-related issues and measurements: The department addresses any issues or discrepancies related to product quality and measurements reported by customers or internally Subsequently, the department identifies the root cause of the problem and proposes corrective or improvement measures

Ensuring machinery and equipment operate stably and accurately throughout production and measurement processes: The department performs regular maintenance

32 and equipment checks to ensure that manufacturing machinery and equipment operate stably and accurately

Enhancing the company's quality management work and production efficiency: The department participates in improving production processes and quality management to optimize production efficiency and ensure the company continually delivers high- quality products and services

Improving product quality and production processes: The quality management department is crucial in proposing and implementing improvements to enhance product quality and optimize production processes.

Overview status of QMM6

The measurement method is the manner, technique, or operation to determine the quantity or unit to be measured Depending on the measurement method or the relationship between the measuring instrument and the measured unit, measurements can be classified as follows:

 Based on the relationship between the measuring head and the measured detail: contact and non-contact measurement

 Based on the relationship in measurement value: absolute measurement and comparative measurement

 Based on the relationship between the quantity to be measured and the measured quantity: direct measurement and indirect measurement

 In addition, product evaluation and testing can divide products into two categories: partial measurement and mixed measurement

Currently, measurement samples are classified based on the following three factors:

 Direct Material Samples Creating the Product: High measurement frequency (5-

6 times/day) The person conducting the measurement places the sample on the measuring device and selects the pre-existing automatic measurement program After

33 completing the measurement, the machine automatically returns a pass or fail result The person conducting the measurement only needs to record and report the results to the requesting department

- Advantages: Easy machine operation and handling, fast and accurate measurement results

- Disadvantages: The person conducting the measurement follows a mold-based approach

 Indirect component material samples creating the product: Moderate measurement frequency (1 time/month) Measurement samples are diverse and not fixed; these samples are usually production support tools that are improved annually, hence varying in size and individual sample factors If the sample already has a pre- existing measurement program, the measurement process proceeds accordingly If it is a new tool without a measurement program, the person conducting the measurement checks is based on blueprints, knowledge, and experience passed down from previous experts

- Advantages: Updated measurement methods suitable for new samples

- Disadvantages: Time-consuming research and blueprint reading before measurement requires high expertise and experience

 Indirect component material samples are not participating in the product Creation process: low measurement frequency (only replacing equipment in case of breakdown, once a year) These samples are primarily tools, components not directly involved in production, serving as components for machinery and equipment, and are replaced when damaged or faulty

- Advantages: Updated measurement methods suitable for new samples, enhancing employees' measurement skills

- Disadvantages: There is no pre-existing measurement program; the person conducting the measurement must perform it manually using measurement support tools and perform checks as requested by the department or customer

Experienced personnel carry out most of these tasks, which require significant time to complete

Bosch places a strong emphasis on internal operations to constantly maintain the best operational status, in addition to continuously setting quality goals to improve reputation and sustain consumer faith in the product QMM6, one of Bosch's quality departments, ensures the accuracy of measurement results and optimizes the time to satisfy internal customer needs It receives inputs from related departments' measurement requirements and outputs as measurement results In order to do this, QMM6 and the leadership group have been working to consistently improve the quality management process by switching from manual to complex methods

Every day, besides the measurements required to release machines or check the quality of the production line, QMM6 also receives measurement requests from departments such as MSE1, MSE2, MSE3, PQA, and project teams Additionally, the QMM6 troubleshooting team manages requests to inspect and troubleshoot machines under production management Therefore, one can count the number of internal customer requests daily in the tens After conducting measurements, QMM6 staff compare the results with the factory standards, perform evaluations (if required), and report the results to the relevant parties

Figure 3.2: Lab orders from internal customers

The requesting client brings the remaining measurement requests, except for troubleshooting requests for machine repairs, to the QMM6 department for QMM6 staff to perform Upon receiving the samples, QMM6 staff promptly enters the information into the daily measurement request list Additionally, they input the information about these requests into a shared page that facilitates communication between the QMM6 department and relevant parties about the requests' progress Depending on each request, the number and complexity of the measurements vary Consequently, the time required to complete different requests varies After completing the requests and evaluating the results, QMM6 staff update the status of the completed requests on the shared information page Upon completing their request, the requesting party accesses the QMM6 department's results drive to retrieve the report and review the results Finally, the requesting party retrieves their sample from the department to continue with other measurements or discard it

Figure 3.3: Flowchart of measurement process

3.2.3 Internal customer feedback on the process

As part of its quality assurance measures, HcP conducts internal surveys and evaluations among its departments annually to assess their quality standards QMM6 actively participates in this process, receiving and analyzing feedback from customer departments regarding operational efficiency, adherence to quality protocols, and overall satisfaction Following the distribution of survey samples, QMM6 collates and reviews the results, identifying areas for improvement and trends The HoD oversees this process and prepares detailed reports with recommendations for enhancement, which are shared with relevant stakeholders Subsequently, QMM6 engages in dialogue with customer departments to discuss findings and implement corrective actions as necessary, thereby fostering continuous improvement and alignment with organizational objectives across HcP departments

Figure 3.4: Internal Service Quality Survey

Figure 3.5: Results of the internal service quality survey in 2021

Do you think the attitude of QMM6 staffs are friendly/open during doing service ?

Do you think the attitude of QMM6 staffs are willing to help during doing service ?

Do you think our service has a quick response after getting your request?

Do you think the procedure of excuting testing/ measuring/ calibration request is simple and…

Do you think the testing/measuring/ calibration result is delivered on time?

Do you think the lead time testing/measuring/ calibration is reasonable?

Do you think the testing/measuring/ calibration skills of specialists/technicians in QMM6…

Do you think the equipment is capable for testing/measuriing/calibration?

Do you think the range of testing/measuring/ calibration methods in QMM6 adapt to your…

Do you think the trouble shooting activities in

Do you believe on the testing/ measuring/ calibration result of QMM6?

Do you think the testing/ measuring/ calibration report is mentioned enough information as…

Do you think the testing/ measuring/ calibration report is help in problem solving?

Result of the internal service quality in 2021

Very dissatisfied Dissatisfied Neutral Satisfied Very satisfied

Comment: After receiving feedback from 70 employees representing customer departments of QMM6 who participated in the service quality survey, looking at the chart of service quality survey results in 2021, it is evident that the majority of internal customers are satisfied with QMM6's services However, there are notably high rates of dissatisfaction, particularly with questions such as: Do you think the testing/measuring/ calibration result is delivered on time? (78% Very dissatisfied and 22% dissatisfied), Do you think our service has a quick response after getting your request? (16% Very dissatisfied and 84% dissatisfied), Do you think the procedure of excuting testing/ measuring/ calibration request is simple and clear? (37% Very dissatisfied and 56% dissatisfied), Do you think the lead time testing/measuring/ calibration is reasonable? (83% Very dissatisfied and 17% dissatisfied)

The internal customers' high ratings of “Dissatisfied” and “Very Dissatisfied” for four questions indicate their dissatisfaction with four factors: the lead time for measuring, the timely delivery of results, the simplicity and clarity of the procedure, and the prompt response to requests The QMM6 department directly links all four factors to its measurement process, starting from the customer's request and ending when they retrieve the sample and conclude the process Although the actual lead time for testing/measuring/calibration does not take much time, it is still included in the overall measurement process and was not separated during the survey execution Consequently, the internal customers gave this factor a high rating of “Dissatisfied”

Figure 3.6: Results of the internal service quality survey in 2022