(Đồ án tốt nghiệp) analyzing reality situation of supplier quality management at terumo bct vietnam limited company

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING FINAL THESIS INDUSTRIAL MANAGEMENT ANALYSING REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TERUMO BCT VIETNAM LIMITED COMPANY Instructor: NGUYEN THI ANH VAN Student : NGUYEN THI THUY VI Student ID : 15124062 SKL005532 Ho Chi Minh City, 01/2019 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING FINAL THESIS ANALYZING REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TERUMO BCT VIETNAM LIMITED COMPANY Student : NGUYEN THI THUY VI Student ID : 15124062 Class of 2015 Major : INDUSTRIAL MANAGEMENT Instructor: Master NGUYEN THI ANH VAN Ho Chi Minh city, January 2019 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING FINAL THESIS ANALYSING REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TERUMO BCT VIETNAM LIMITED COMPANY Student : NGUYEN THI THUY VI Student ID : 15124062 Class of 2015 Major : INDUSTRIAL MANAGEMENT Instructor: Master NGUYEN THI ANH VAN Ho Chi Minh city, January 2019 i CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc lập – Tự – Hạnh phúc Tp Hồ Chí Minh, ngày 15 tháng 01 năm 2019 NHIỆM VỤ KHÓA LUẬN TỐT NGHIỆP Họ tên sinh viên: Nguyễn Thị Thúy Vi Ngành: Quản lý công nghiệp Giảng viên hướng dẫn: Cô Nguyễn Thị Anh Vân Ng y nhận ề tài: MSSV: 15124062 Lớp: 15124CL2 ĐT: 0356480223 Ngày nộp ề tài: 15/01/2019 Tên ề tài: Phân tích thực trạng quản lý chất lượng nhà cung cấp công ty TNHH Terumo BCT Việt Nam Các số liệu, tài liệu ban ầu: Quy trình quản lý chất lượng nhà cung cấp, hồ sơ quản lý nhà cung cấp, tài liệu o tạo công ty,… Nội dung thực ề t i: Từ việc quan sát, thực tập, trực tiếp làm việc, tác giả ánh giá iểm mạnh, hạn chế việc thực quản lý chất lượng nhà cung cấp Từ ó ề xuất giải pháp ể cải tiến quy trình, thực trạng cơng ty Sản phẩm: Bài luận văn ―Phân tích thực trạng quản lý chất lượng nhà cung cấp công ty TNHH Terumo BCT Việt Nam‖ TRƯỞNG NGÀNH GIẢNG VIÊN HƯỚNG DẪN ii DEPARTMENT OF BUSINESS ADMINISTRATION – FACULTY OF ECONOMICS – HCMUTE RUBRICS for GRADUATION THESIS ASSESSMENT by SUPERVISOR Student′s name: Thesis′ title: Criteria Poor 0-3.0 Content There is no connection among chapters Research main points, purposes and content not match to the Analyses are too general and lack details All analyses and interpretation scientifically ideas are not coherent and inconsistent are 0-0.4 Citation and Reference Few references Include (concepts) in the thesis figures numbered and cited are non-referred are not iii 0-0.9 Development unclear, disorderly organized Numerous inexactness appropriate in the context) Sentences there mistakes Sentences and Vocabular y of inconsiste in wording lack of many are 0-0.4 Attitude Rarely have the report assessed contact supervisor Total score: Conclusion:  Allow the student to defense in front of committee iv KHOA ĐÀO TẠO CHẤT LƯỢNG CAO - ĐẠI HỌC SƯ PHẠM KỸ THUẬT TP.HCM BIÊN BẢN CHẤM KHÓA LUẬN TỐT NGHIỆP DÀNH CHO GVPB Sinh viên thực hiện: .MSSV: Tên KLTN: Tiêu chí đánh giá Cấu trúc Xác tiêu nghiên cứu ịnh khơng nghiên Khơng có liên kết chương Nội dung Những nghiên cứu, mục tiêu nghiên cứu, v nội dung không phù hợp với tên tích cịn lan tiết Tất phân tích nhận Nhiều ý phân tích thiếu mạch lạc, mâu thuẫn vấn Trích dẫn tài liệu tham khảo v bảng biểu chưa ược ặt tên, ánh số v ghi nguồn 0-0.9 Câu văn từ ngữ Kết luận:  Triển khai ý thiếu r ng, mâu thuẫn v xộn Rất nhiều lỗi sử dụng từ ngữ (chưa phù hợp với ho n cảnh) Câu văn thiếu mạch lạc, nhiều lỗi tả Cho SV bảo vệ trước hội ồng Nhận xét GV yêu cầu SV chỉnh sửa: Câu hỏi: (tối thiểu câu) Ngày ….tháng… năm …… Giảng viên chấm KLTN vi KHOA ĐÀO TẠO CHẤT LƯỢNG CAO - ĐẠI HỌC SƯ PHẠM KỸ THUẬT TP.HCM PHIẾU CHẤM KHÓA LUẬN TỐT NGHIỆP CỦA THÀNH VIÊN HỘI ĐỒNG Sinh viên thực hiện: Tiêu chí đánh giá Yếu 0-0.4 Slide Khơng chuyển tải khóa khơng thu hút luận, Giọng nói nhỏ, khơng 0-0.5 Thuyết trình khơng trình bày khơng logic, phong thái không tự tin Thời gian Trễ > phút so với thời gian quy ịnh 0.6-1.5 Nội dung Trả lời câu hỏi Nội dung chương khơng có liên kết Các phân tích cịn lan man, chưa chi tiết, chưa giải ược vấn phân tích nhận sở 0-1.0 Trả lời không xác không trả lời • The defect part will stick quarantined label and send back to quarantined area for waiting next step (scrap or return to vendor) + Return to vendor • Assigned SQA staff will send the SCA form to supplier and prove to supplier that problem come from supplier • If the problem was confirmed by supplier, Assigned SQA staff will inform to SCM to return the part to vendor + Scrap • Assigned SQA staff will stick the scrap label on the box, then inform to warehouse to move out of quarantine area Owing to the handling quarantined material procedure, materials are manage strictly Evaluation implementation SOP for Handling Quarantined Material - Good points: The SQM team decreases effect from difficulties about warehouse area, forklift truck availability after applying handling quarantined material procedure because only quarantined materials exists in the warehouse area of SQM Moreover, materials always are arranged in the right places in the stock and similar to information on SAP so that material management becomes easy - Limitations: The plan of SQM team sometimes is badly affected due to warehouse area limit, forklift truck availability and warehouse human resource supporting 47 CHAPTER EVALUATION AND SOLUTION 4.1 Evaluation The SQM team apply strictly platform of supplier quality management knowledge and technology They wrote SQM procedure and implemented it with reference procedure of other sites of Terumo group to have the best practical and detailed procedure Summary about strong points and weak point of implementation of SQM procedure Strong points: - SQM procedure is appropriated by smock FDA auditors and strict conformance of the team - Identifying risk and manage suppliers with different ways in accordance with risk level - Discussions and selections new suppliers are conducted carefully and formally through effective meeting - The team are well-prepared for audit suppliers - Supplier data management was exactly and effectively implemented through SAP - Supplier‘s performance monitoring implementation becomes easy and effective owing to specific and clear criteria parallel to appropriate actions need to take - The team had proper plan to re-evaluate suppliers and implemented it right Some members made great efforts to complete this task fast and meet all requirements about re-evaluation supplier document - The SQM team decreases effect from difficulties about warehouse area, forklift truck availability after applying handling quarantined material procedure because only quarantined materials exists in the warehouse area of SQM Moreover, materials always are arranged in the right places in the stock and similar to information on SAP so that material management becomes easy Weak-points: - Specification is not still defined specifically, totally and consistently for each material Therefore, some issues occurred but they are not mentioned in the specification of contracts with suppliers - Sometimes SQM team deal with troubles due to working effectiveness of CFT members - Documentation of re-evaluated supplier is not still stored on system and ticked label and check-list to find easily - Some suppliers TBV has not had plan to business still exist in approval supplier list - Risk level may be defined wrong by end-users - Audit skill of the team is not still excellent - Collecting required document, scanning all listed document and archiving in specify folder take the time long time - SQM team and company quite depend on some suppliers so that the actions taken are not effective - Requirements suppliers to provide necessary information takes long time even though the team does not receive their feedback If the team blocks these suppliers, manufacturing and delivery plan will be seriously affected - The team still manage some suppliers that the company have does not plan to business with them no longer because they are not notified about those plan - There are wasting of time and affecting progress in some cases due to attendance of CFT members in their working area and their already full workload because of manual method - The SQM team still manage some suppliers that the company have plan to business with them no longer - The SQM team not know some new products or services are bought from existing supplier That leads to risk level and controls change - The plan of SQM team sometimes is badly affected due to warehouse area limit, forklift truck availability and warehouse human resource supporting 4.2 Solutions 4.2.1 First solution is specification modification + Objective: To overcome limitation about specification is not still defined specifically, totally and consistently for each materials, some issues occurred but they are not mentioned in contracts with suppliers To limit issues happen, improve supplier quality, save time and other resources to solve issues + Person in charge: Quality manager, SQM team, process engineer, quality engineer, legal department in all sites of Terumo group + Place: working place at all sites + Department: Quality, process control, legal, research and development + Possible time: as soon as possible 49 + How The CFT team in this project should work with research and development team in Lakewood to suggest criteria in specification SQE team work with process engineer, quality engineer to modify specification then send to research and development team in Japan and Lakewood to receive approval The CFT team should hold meeting between all site to discuss and have consistence and supporting together + Cost: high cost because this job is very hard and complex and takes a long time to related person discuss, make consistence and renew specification covering all issues may occur + Acceptance level: 99%, Mr Tuan, supplier quality and process inspection manager, said that ―I am also implementing some projects with Lakewood team to modify specification.‖ 4.2.2 Second suggestion is building wide supplier network + Objective: To make good weak points about dependence on suppliers, implementation necessary actions, taking long time to receive even though not get supplier‘s feedback If the team blocks these suppliers, manufacturing and delivery plan will be seriously affected To limit bad issues may occur, to improve supplier materials and products quality to help TBV decrease cost, increase satisfaction of customers and yearly profit + Person in charge: SCM team, SQM team + Place: TBV, suppliers in Vietnam and other countries + Department: quality, manufacturing, supply chain + How: Try to find as many as possible suppliers meeting demands and requirements for each material to select the best quality supplier and be proactive in business Build strategy partnership relationship with some supplier for primary materials to ensure quality of materials + Cost: medium cost including finding suppliers, providing initial attractive policy + Acceptance level: 80% 50 4.2.3 The third solution is the company should add a KPI section about understanding and implementation related procedures right + Objective: To improve shortcoming of bad working effectiveness of CFT members and supporting of warehouse staff To stop lacking awareness of new procedures, change of new process and ensure that all members of CFT are responsible for their tasks in some procedures to have the best results in work + Person in charge: all employees + Place: at TBV + Department: human resource and team leader + How: Human resource department supplements this section in KPI employee evaluation board and team leaders and members of CFT evaluate members + Cost: low cost, human resource department and employee spend time to carry out this solution + Acceptance level: 90%, According to Mr Huynh Anh Tuan, a supplier quality and process inspection manager adding a KPI criteria about understanding and implementation related procedures right" to CFT can follow and work as procedures, this KPI criteria will be evaluated by direct manager and CFT members evaluate for each other is a good solution 4.2.4 The fourth solution is the company should use electronic signature and new approval process replace by manual method used at the present + Objective: To surmount limit about wasting of time and affecting progress in some cases due to attendance of CFT members in their working area and their already full workload To save time for employees especially top managers It means that the company can save a lot of budget about employee salary + Person in charge: Members of quality management system team, person who has responsibilities for approving, completing, signing and so on in forms, procedures, report will follow up + Place: at TBV + Department: Most of department especially SQM, SCM, Finance + How: 51 Firstly, the supply chain team should make a proper plan to find, select and business with supplier providing TBV with E-signature service After that, members of quality management system team have responsibilities for creating, release the new procedure about using electronic signature and releasing strict tasks with detailed task, due time, person in charge in approval task in document A first person in charge of a document completes their section then he or she sends it via mail or Skype to the next person The next person scans and approves it then sends to the next person This procedure will belong to Triple crown program as the picture below: Figure 4.1 Triple crown of quality management system (Collected picture) + Possible time to apply: after the company find, select and sign contract with Esignature supplier and quality management system release procedure + Cost: depends on using level, low cost + Acceptance level: 95% According to Mr Huynh Anh Tuan, a supplier quality and process inspection manager ―It is good and feasible to use E-signature and that will bring to the company great benefits more than cost if we apply it effectively.‖ 4.2.5 The fifth solution is training about identification of risk level and their importance, completion new supplier request, planning form and supplier master change form, supplier audit skill + Objective: To limit weakness about: Risk level may be defined wrong by end-users Audit skill of the team is not still excellent leading to many difficulties in audit The SQM team not know some new products or services are bought from existing supplier That leads to risk level and controls change Some CFT members did not their required tasks well to support the team reach their target + Person in charge: members of SQM team, procedure authors, person have good experience in supplier audit, requestors for products, services, team leader who know plan to buy products, services + Place: at meeting rooms + Department: all departments + Possible time: this solution can be applied immediately at the present as soon as possible + How: hold training and inviting related person and then encouraging them to training members of their team after that Identification of risk level and their importance training: the trainer should give the way to define risk level based on the instruction, SQM procedure and specific example to help trainee clearly understand this task and apply them well in their working in the future Besides, the trainers also should analyze serious consequences if they not follow the procedure Completion new supplier request, planning form and supplier master change form training: the trainers should clearly explain all section in these forms with good example Supplier audit skill training: the trainers share reality experience which they implement and have their own lessons in the part for trainee to have them have strong platform to apply them in audit job well + Cost: working time of employees + Acceptance level: 85% 4.2.6 The sixth solution is TBV should add term about providing information for reevaluation in agreement with suppliers and have some rules and actions if they don’t follow up + Objective: to solve context that requirements suppliers to provide necessary information takes long time even though the team does not receive their feedback If the team blocks these suppliers, manufacturing and delivery plan will be seriously affected + Person in charge: agreement writers 53 + Place: at the whole company + Department: Regulation department and the team having demands for purchase materials, tools, services and so on and SQM team + Possible time: this solution can be applied immediately at the present as soon as possible + How: At beginning, SQM team suggest adding new rule in supplier contract Next, related person formally implement with supplier Then, the team take proper actions in accordance with the rule in each real context + Cost: low cost, it is just attempt and working time spending of TBV employees to conform rules and improve working quality + Benefits: managing supplier well and it will not take the SQM team so much time and workload to remind, wait for information, co-operation Hence, that indirectly impact on supplier quality and efficiency of TBV employees + Acceptance level: 70% Ms Le Nguyen Ai Nhi, a supplier quality assurance staff said that ―We did not have rule and condition for suppliers to support and take responsibilities for re-evaluation, we should add this rule in contracts‖ 4.2.7 The seventh solution is SQM team should ask the end-users who request products, services to describe products, services in more detail and notify SQM team about purchasing plan with suppliers + Objective: to prevent from wrong risk level identification and solve limitations about SQM team still manage some suppliers that the company have plan to business with them no longer and the SQM team don‘t know some new products or services are bought from existing supplier That leads to risk level and controls change + Person in charge: requestors or end-users of products, services with supporting of SQM team members + Department: all departments need to buy products, services, quality especially raw material, material used in cleanroom + Possible time: this solution can be applied immediately at the present as soon as possible + How: Firstly, the SQM team need to ask manager for approval of creating this new rule 54 After that, the SQM team notify this rule to related department to help them follow rule Next, the end-users request products, service in more detail For example, they describe cleaning room service in clean room or manufacturing replace by cleaning room service Besides, departments need to notify the SQM team new products or services bought from an existing supplier to help SQM team re-evaluate the risk level + Cost: low, it is just attempt of TBV employees to conform rules and improve working quality + Benefits: That helps the SQM team accurately evaluate risk level Therefore, they can take the appropriate next step such as quality evaluation, document requirements, audit, supplier performance monitoring and so on + Acceptance level: 90% because Mr Tran Van An, supply chain management, said SQM team should send requestors for purchasing products, services email to notify request about clear and specific description and prompt purchase plan to help the team manage suppliers well Besides, the team should immediately store documentation of re-evaluated supplier on system and ticked label and make check-list That helps the team can find it easily and fast within about working days of a team member 55 CONCLUSION In this final thesis, author showed own knowledge and experience about good quality system of Terumo BCT Vietnam limited company especially working method of supplier quality management team Author also analyzed phases of supplier quality management procedure After that, author illustrates good points and limitations about implementation of this procedure Hence, author suggests seven solutions to improve all weak-points of each significant process Some solutions help the team and the company not depend on the suppliers and increase effectiveness of supplier management However, there are still limitations author could not find out because of short intern period and little experience Author wants to have chance to work with supplier quality management team to learn enormous useful lessons from them and make procedure more perfect 56 BIBLIOGRAPHY America Champer of Commerce Vietnam (2017) ―Terumo BCT launches $100 million FDI facility near HCM City‖ BusinessDictionary (n.d.) Retrieved October 25th, 2018, from http://www.businessdictionary.com/definition/quality.html BusinessDictionary (n.d.) 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Juality assurance of chemical measurements, D.C QD51.T38 1987542'3— dc20 86-27335 Bcxia Raton London N ew York Washington: LEWIS, , A CRC Press Company APPENDIX 1) Conservation between author and Mr Huynh Anh Tuan, Supplier quality and process inspection manager Sunday December 23th 2018 Author: Can you help me review my overall evaluation about implementation of SQM procedure? I am not certain about my evaluation about limitations - Good points: identifying risk and manage suppliers with different ways in accordance with risk level, audit plan and implementation by skilled and experienced team, supplier performance monitoring with specific criteria and appropriate actions need to be taken, re-evaluation: complete well supplier documentation re-evaluated, inspection and receiving materials, used SAP effectively, supplier change management, improvement: CAPA, SCA, handling quarantined material - Limitations: specification is not still defined specifically, totally and consistently for each materials so that some issues occurred but they are not mentioned in the specification of contracts with suppliers, sometimes SQM team deal with troubles due to working effectiveness of CFT members, documentation of re-evaluated supplier is not still stored on system and ticked label and check-list to find easily, some suppliers TBV has not had plan to business still exist in approval supplier list Mr Huynh Anh Tuan: That has already been right about strengths and weaknesses Author: Hence, I am suggesting some solutions to solve limitations After that, could you review if those solutions are feasible? Thank you so much Mr Tuan: Okay Author: Has TBV used E- signature? Mr Tuan: Not yet Author: In your perspective, whether E-signature application bring to the company great benefits more than cost? Mr Tuan: Yes Author: What you think about suggestion "We should add a KPI criteria about understanding and implementation related procedures right" to SCM and CFT can conform related procedures right, this KPI criteria is evaluated by direct managers and members of CFT evaluate each other Mr Tuan: This is a good idea Author: Thank you so much As I concern the most important problem is specification The SQM team can solve this problem but certainly we will deal with numerous difficulties and it take the team a long time with supporting of relating team such as process engineer, quality engineer Is that right? Mr Tuan: Yes I am also implementing some projects with Lakewood team to modify specification 2) Conversation between author and Mr Nguyen Van Thu, a supplier quality engineer December 12th, 2018 Author: Which difficulties have you had in your work recently? Mr Thu: A lot of issue left day by day Author: Which trouble have you deal with when you try to solve them? Mr Thu: So much Some suppliers‘ faults occurred but we can not complaint or take some action in accordance with procedures because if TBV not buy material from these supplier, we will have problem about lack of materials to manufacture Author: Can we have evidence that material out of specification? Mr Thu: These issues are not mentioned in specification Author: Can SQE research and modify specification? Mr Thu: The research and development team in Japan take this responsibilities However, their specification can not cover most of issues may occur I and Mr Tran Dinh Minh can it but it so hard and complex Next, we must send to them to approve Afterthat, we must approval of Legal department in Lakewood, America Author: Try your best ... CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING FINAL THESIS ANALYZING REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TERUMO BCT VIETNAM LIMITED COMPANY Student... ANALYSING REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TERUMO BCT VIETNAM LIMITED COMPANY Student : NGUYEN THI THUY VI Student ID : 15124062 Class of 2015 Major : INDUSTRIAL MANAGEMENT. .. in Supplier Quality Management 17 2.10 Key Performance Indicator 19 CHAPTER REALITY SITUATION OF SUPPLIER QUALITY MANAGEMENT AT TBV 22 3.1 Supplier quality management