The global economic recession during last years became more and more impact in over the world By the affect of this context, Fujitsu group - that is the world’s third-largest ICT services provider - also hits many difficulties in their business
For this reason, in order to survive and develop, Fujitsu group decided to change for Business Policy by using Field Innovation to find new approaches and the inspiration to improve themselves, while delivering added value to the ‘customers Fujitsu Vietnam, which is a subsidiary of Fujitsu group with the product of PCB (printed circuit board), also applied the new Business Policy into their business Especially, Fujitsu Vietnam focused to the activities
to make the added value increase for the customer To achieve for this mission, Fujitsu
Vietnam has had many actions to implement Among these actions, the most important action is the improvement for productivity of company
Thus, this research is implemented in order to satisfy for the requirement of improvement the ‘productivity in Fujitsu Vietnam The research mainly has the objectives of (1) finding the root
reasons of low productivity and (2) finding the suitable solutions to improve the productivity In terms of structure, there are six chapters in this research Each chapter will describe the specific matter as mentioned as detail as in the content part of the research
Trang 3AOI FCV FJ ICT K.USD MCT MTBF MTTF MTTR NC PCB PC Qty
Automated Optical Inspection
Fujitsu Computer Products of Vietnam., Inc
Foreign Direct Investment Fujitsu group
Fiscal Year
Information and Communication Technologies
Thousand USD
Machine Circle Time
Trang 4
TABLE OF CONTENTS aoe
LIST OF TABLES sesseeesessnteseees xiii LIST OF FIGURES CHAPTER ONE: INTRODUCTION OF THE STUDY 1.1 INTRODUCTION 1,2 RESEARCH PURPOSE 1.3, RESEARCH BACKGROUND 1.3.1 Research questions 1.3.2 Research objectives 1.4 STRUCTURE OF THE RESEARCH -_1,5 CONCLUSIONS CHAPTER TWO: LITERATURE REVIEW 2.1.INTRODUCTION ae 2.2.1 History 2.2.2 Definition 2.2.4 Important and benefit 2.2.5 ACHVÏTGS QQ on eheeeeerrrreerke 2.2.6 Productivity and Production 2.2.7 Summary 2.3.PRODUCTIVITY IMPROVEMENT 2.3.1 Productivity measurement
2.3.2 Fundamental for productivity improvement way
2.4 PRODUCTIVITY IMPROVEMENT IN MANUFACTURING 2.4.1 Introduction for the Emerging theory of Manufacturing
Trang 52.5 PRODUCTIVITY IMPROVEMENT IN PCB INDUSTRY 2.6 CONCLUSION CHAPTER THREE: RESEARCH METHODOLOGY 3.1 INTRODUCTION 3.2 RESEARCH QUESTIONS KS\292/.3:40.09)°9(6)0 0 3.3.1 Classification for the research design 3.3.2 Select for the research design 3.4, RESEARCH TECHNIQUES 3.5 SECONDARY DATA STUDY 3.6 OBSERVATION 3.7 INTERVIEW 3.8 DATA ANALYSIS METHOD 3.9 CONCLUSION " CHAPTER FOUR: DATA ANALYSIS RESULT 4.1 INTRODUCTION
4.2 LINK BETWEEN DATA ANALYSIS & RESEARCH OBJECTIVE & QUESTIONS.40 4.3 DATA ANALYSIS RESULTS FROM SECONDARY DATA: 4.3.1 Data collection 4.3.2 Data Analysis 4.3.3 Counferme€aSuF€S - - -«< 2e ccsccsccserkrrrrrrrrerrerrkerkrrrrrrkrre 4.3.4 ConcÏusiOn «set gà in nrưưn
4.4 DATA ANALYSIS RESULTS FROM OBSERVA TION . - 5c 55sc sec 4.4.1 Observation for improving the waste of motion 4.4.2 Observation for improving the waste Of proCessing -s-cccccsccscceee 55 4.4.3 Conclusion
4.5.1, Background about waste of defect
Trang 64.5.6 Data analysis and Problem identification -cccccccevveeeeeccecce-.Õ |
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4.6 CONCLUSION cccccceerrree
CHAPTER FIVE: FINDINGS 5.1 INTRODUCTION
5.2 MAIN CONTRIBUTED ISSUES
5.2.1 Manpower is the key for improving the productivity in company 66
5.2.2 More flexible for the material management system
5.2.3 Rationalize the management methods in order to reduce seven wastes in production and enhance the advanced technology continuously
5.2.4 Increase the reliability and availability of machine to maximize productivity
and reduce defect
5.3 PROPOSAL FOR PRODUCTIVITY IMPROVEMENT METHODOLOGY -+.67 5.3.1 Plan 5.3.2 Do 5.3.3 Check =5 e6 ƠƠƠƠƯƯỐịƠịố 5.5 CONCLUSION CHAPTER SIX: CONCLUSIONS 6.1.INTRODUCTION
6.2 CONCLUSIONS RELATED TO THE RESEARCH QUESTIONS - - - - 74 6.2.1 Literature conclusions related to the research questions
6.2.2 Conclusions from data analysis results related to the research questions 74 6.2.3 Final conclusions related to the research questions
6.3 IMPLICATIONS OF THE RESEARCH
Trang 7Table
2.1 Productivity Dimensions ~- 5< sSSS se seee 2.2 Level ofProductivify Ă Si nnn kh eee 3.1 Research design classification -««cs se 3.2 Research Design Summary «<< << << << << + 3.3 Summary of advantages and disadvantages of the observation 3.4 Summary ofwaste in manufacturing prOC€SS - - - - 3.5 Summary of observation action item - << «<< << <c<+ 36 Summary of advantages and disadvantages of the most typical
interview
3.7 -Summary for applied analysis method
4.1 Summary for financial data from FY2003 to FY2010 4.2 Growth ratio for significant factors of cost structure
4.3 Root cause analysis for low productivity in FCV 4.4 Countermeasure for low productivity in FCV 4.5 _ Time table before improvement
4.6 Time table after improvement 4.7 Monthly average defect in FY200: 4.8 Interview data background 4.9 Interview results
4.10 Interview data analysis and Problem identification 4.11 Solution for waste of defect
Different points between the proposal for producti
ity improvement 51 methodology and the literature TeVieW - «<< <<<< + s+ 5.2 Manpower Objective & Target
5.3 Materials Objective & Target
5.4 Production process Objective & Target 5.5 Machine maintenance Objective & Target
Trang 8Figures 11 1.2 21 22 2.3 3.1 4.1 4.2 43 44 4.5 4.6 4.7 4.8 49 4.10 4.11 4.12 4.13 4.14 4.15 4.16 5.1 6.1 6.2 6.3
Structure oƒ chapfer Ï -.- sò sec cà cà se se tế een eee ce sees Structure of the research ce css ses coe ses cee cee cee see cee coe tes sọ HH SH si h2 Structure of chapter 2 Flowchart of Input & Outpui
Relation between Input and Outpw Structure of chapter 3
Structure of chapter 4
The trend of productivity in FCV from FY2003 to FY2008 Productivity of FCV in FY2004 and FY2008
Cost structure for FY2004 Cost structure for FY2008
The growth ratio of the cost factor of F¥2004 and FY2008 Cause-Effect diagram for low productivity in FCV
Definition for waste Of MOON 1 10+ ses ese eee con soe oe
Process explanation for internal layer inspecti0 - - Flow chart for test PCB (beƒore imjprovemeH†) - - - Flow chart for test PCB (qƒier iinjproVermeH†) - cee eee Definition for Wdsi€ QƒDFOC€SSÏN -.- cà see sàn cọ cọ nh se se thê,
Flow chart for NC Drilling process 2 e+e 1+ c+e sve ves sve tes cee tes eee ene ten ene eee Drilling peck operation before and after improvement 2 010 00+ ++ Defect classification os se ces sve ses coe cee coe see ees cee cen coe cee coe see ees ee eee eee eee TrilerVieW r€SuÏH sò cà cà cà cee coe cee see see eee cue eee cue nee ene see ene ee ene Structure of chapter 5 0.00 ses csc css cse coe oes cee ses cee ees cae ce ee cee eee eae ane cee eee Structure of Chapter 6 se see coe ves coe see cee coe cen ene see ces cue ee ane cee ene cece een ene Graph of productivity achieverment 1 s+ 00+ 0s soe cos co cọc cà cen eee eee tee Final conclusions oƒ the researCh .ớ c«« cà sọc se ea HH nh se
Trang 9Chapter One: = TT YTD TT Ten UIT Le Ita SOL | rE 1.1 INTRODUCTION:
The general introduction to the research will be provided by this chapter It will establish the foundations for the following chapters by providing a general picture of the research This chapter is structured into five sections as presented by figure 1.1
The section 1.1 respectively provides a general introduction to the chapter and section 1.2 examines the purpose of the research Then, section 1.3 defines the research background, presents a statement of the research problem and expands the research problem in two subsections 1.3.1 and 1.3.2 Subsection 1.3.1 addresses the research questions that will be respectively answered in chapters of the research Subsection 1.3.2 presents research * objectives that the study covers in the process of solving the research problem defined Section 1.4 describes overall structure of the research, and finally section 1.5 summarizes conclusions drawn from the research
Trang 10Chapter One: Introduction of the research
1.2 RESEARCH PURPOSE:
The purpose of this research is for having the understanding for the nature of productivity problems in Fujitsu Vietnam - a PCB manufacturing factory and finding for the solutions to improve its productivity This research will investigate for the actual problems in both of company level and process level through theory analysis as well as through the approach of secondary data exploratory , observation and interview The results of this research will help to propose the Productivity Improvement method in the PCB manufacturing factory in common
1.3 RESEARCH BACKGROUND:
The background of the research will base on five following arguments:
1 The scope of this research will focus to all activities belong to Fujitsu Vietnam with the detail information as follow:
¢ Fujitsu Vietnam, the full name is Fujitsu Computer Products of Vietnam., Inc (FCV), was established from 1996 It is the leading FDI companies in Vietnam in export value in 9 consecutive years from 1997 to 2005 The main product of our factory is PCB (Printed Circuit Board) for PCs, laptop, server, mobile phone and camera, etc All of our products are exported 100% mainly to Japan, USA and Europe
e FCV is a subsidiary of Fujitsu group which is the world’s third-largest ICT (Information and Communication Technologies) services provider and Japan’s market leader The Fujitsu and its affiliates together are among the
world’s top five providers of servers and PCs Fujitsu customers include over
half the Fortune Global 500, mainly from Japan, USA and Europe
2 Since 2008, the global economic has had many changes Especially, in Fujitsu group, the yearly sales amount was decreased by three following events:
-The Global Economic Crisis in 2008 - The Financial Crisis in 2010
- Stronger and stronger competition by low price ICT products from China 3 Base on the above context and in order to survive and develop, Fujitsu group decided
to change for Business Policy as follow:
= Fujitsu use Field Innovation to find new approaches and the inspiration to improve ourselves, while delivering added value to our
Trang 11Fujitsu provides global environment solutions in all our business
areas :
= Fujitsu Group companies work together to accelerate our global business expansion
4 Base on the new Business policy of FUJITSU group, FCV enhanced for the new company policy which focus to three items:
= Cost control = High quality = Delivery on time
5 In order to achieve the Cost Control action item of the new company policy in the new context, FCV has already conducted the’ planning and implementation for productivity improvement in FCV So, this research will help to the nature of problems for low productivity in company and from these problems identification, it will develop for the solutions to improve the productivity in FCV
Based on the five above arguments, the questions & objectives of the research are set up as ~ follow:
Trang 12Chapter One: Introduction of the research
1.4 STRUCTURE OF THE RESEARCH:
The structure of this research includes by six chapters
Chapter 1 introduces the research purpose, research background, research questions, and research objectives Chapter 2 provides for the literature review of productivity, productivity improvement, and productivity improvement in Manufacturing and in PCB manufacturing factory in generally Chapter 3 will discuss the methodology utilizing in the research Chapter 4 analyzes the collected data and presents for the analysis results Chapter 4 describes for the findings of the research and the last chapter- chapter 5 points out conclusions and implications of the research The following figure 1.2 will illustrates the structure of the research as the following detail: eal 1 Introduction 2 Literature Review - 3 Methodology 2 3 re | 4 Data Analysis Results 4.3 Secondary 4.4 Observation || 4.5.Interview Data Exploratory aa
Trang 131.5 CONCLUSION:
This research examines for the reasons making low productivity and the ways to improve productivity in Fujitsu Vietnam — a PCB manufacturing factory To date, there is no significant research related to the productivity improvement of PCB factory conducted in Vietnam context
So, this research which is designed as a combination of secondary data exploratory,
observation and interview approaches will be useful for the productivity improvement for the similar factory in Vietnam
Trang 14Chapter Two: Literature Review Chapter Two: TPITIRTm REVIEW FU RI, Iku YIU lũ yy 2.1 INTRODUCTION:
Nowadays, the competitiveness in business is more and more strictly Especially in the current moment, the global economic crisis almost affected to every companies So, in order to get profitability and survive, they must implement the improvement for their performance One of their most significant improvements is the productivity improvement which is fundamental to profitability and survives
Because of the important level of productivity improvement as above description, many
authors have researched about it So, in this chapter, we will consider about the basic
knowledge of the productivity knowledge as well as some improvement methods for it The chapter will be soon started with the description the history of productivity research After that, from the productivity definition; we will try to understand more about the method how to improve the productivity in business, especially for the productivity improvement in manufacturing companies which is the central point in the research Then, a general overview for the productivity improvement in PCB industry will be done and comment Chapter two already reviewed relevant literature on productivity, productivity improvement and productivity improvement in Manufacturing At the end of chapter II, some productivity improvements in PCB industry were described but they are insufficient and mainly related to technical matter only
The objectives of this chapter are to review previous research related to the areas of the productivity, the productivity improvement in common as well as in the manufacturing company and specific for the PCB manufacturing company
This chapter’s structure includes nine sections as follow:
Trang 15e Section 2.3 focuses to the improvement knowledge for the productivity
© Section 2.4 expands the exploring to the productivity improvement knowledge which specific for the manufacturing company
¢ Section 2.5 continues more expanding and specializing the exploration for the productivity improvement in PCB industry
« Finally, section 2.6 provides the conclusions that are drawn from the literature
review
Figure 2.1 provides a visual picture of the chapter outline and the links among sections as indicated earlier
| 2.5 Productivity Improvement in PCB
Trang 16Chapter Two: Literature Review
2.2 PRODUCTIVITY:
2.2.1 History:
The productivity is a companion of the industry when it appeared from 18th century According the research of Shabrawy and Gomaa (2006), the word of productivity has been taken shape as the following history:
© Quesnay, 1766, the word “productivity” appears for the first time ¢ Littre, 1883, “faculty to produce”
e Early 1900s, “Relationship between output and the means employed to produce this output”
se OEEC, 1950, the Organization for European Economic Cooperation: “Quotient obtained by dividing output by one of the factors of production” e Davis, 1955, “Change in product obtained for the resources expended” e Fabricant, 1962, “Always a ratio of output to input”
¢ Kendrick & Creamer, 1965, Functional definitions for partial, total-factor
and total productivity
e Siegel, 1976, A family of ratios of output to input
e Sumanth, 1979, Total productivity: the ratio of tangible output to tangible input
2.2.2 Definition:
Base on this history, the definition of productivity has a wide range and different depending on the applied area
Following John W Kendrick (1984), the productivity is “the ratio of output to inputs of labor and other resources, in real term Productivity increases as output grows faster than the inputs used in the production process” This definition regulates for two factors of input and output in generally
Trang 17The process of input, output and productivity can be illustrated by the following flowchart:
Waste œ@
Figure 2.2: Flowchart of Input & Output
The relation between productivity and input & output is expressed by Seppo Saari (2006) in the following graph: OUTPUT VOLUME 2 -K~ T2 -~ Productivity up by output increasing 1 To E-— -—-==e=eee=s==r=s=IEc=sei —y Ie Ti ~- 1 INPUT VOLUME
Figure 2.3: Relation between Input and Output
In the graph, we can see the P\, P›, are the input volume of all resources; T, T>, are the
output volume and the 1, 2, is the productivity So, base on this graph, it clearly describes that, the productivity is only increased when the output developing more than the input From the input P;, output T); the value of productivity (1) is established When the input increases to P; if the output only increases at Tạ, we still have the productivity (1) But if the output increases to Tạ; the productivity will increase the
Trang 18Chapter Two: Literature Review
According the research of Shabrawy and Gomaa (2006), the productivity is a combination of both effectiveness & efficiency
Productivity = Output obtained / Input expended
= Performance achieved / Resources consumed = f (Effectiveness) / f (Efficiency) In there, the Effectiveness and Efficiency are defined as follow: Table 2.1: Productivity Dimensions Quantity Qualit Efficiency 1- Technical Efficiency Effectiveness = Actual output / Planned output 2- Operating Efficiency Production Efficiency Economic Efficiency It is the degree ; utilization,
‘| -How well the reso
utilized to achieve the result
Source: Developed for this.thesis
2.2.3 Classification and level:
The classification for productivity is implemented by some ways depending the purpose or usage of each author
Trang 19According the research of Shabrawy and Gomaa (2006), based on outputs and inputs, productivity concepts may be classified to two main categories as:
i Total productivity,
ii Specific (partial) productivity
For the detail as follow: i Total productivity:
¢ Total productivity is the ratio of total output to the sum of all inputs factors e It is a relationship between production volume and all production elements
consumed to achieve it
The concept relies on the fact that production of an enterprise depends on factors as
capital, machinery, materials etc, as well as labor Hence, it becomes necessary to correlate different levels of productivity with performance and utilization of such other elements
¢ Total productivity = Total output / Total input
¢ Total input = Labor + Material + Services + Depreciation + etc
¢ Total productivity reflects integrality of factors involved in production and avoids measuring high performance of one factor on the account of low performance for another
However, this concept has been criticized It assigns an equal weight to both the human
element and other human-innovated elements as machinery;- and-material.A-human
individual has a more crucial role in production as its development, organization, planning, control, and processing Other elements are looked at as technical tool that are managed by individuals to induce high productivity Another criticism is that total productivity is usually measured in monetary units, and this basis of measurement is sensitive to price and market changes which would lead to false productivity indicators
ii Specific (partial) productivit
¢ Partial productivity is the ratio of output to one class of input
Trang 20Chapter Two: Literature Review
Partial productivity = Total output / One of the inputs Such as:
o Material productivity = Total output / Material cost o Labor productivity = Total output / Labor cost © Machinery productivity = Total output / Depreciation o Energy productivity = Total output / Energy cost o Capital productivity = Total output / Capital
Also following the research of Shabrawy and Gomaa (2006), the level of productivity can be described as follow: Table 2.2: Level of Productivity “Level © : ee S ~* Productivity indicators it sc "Top management Monetary indicators’ | - management — Technical indicators Source: Developed for this thesis
So, as you can see in the table; the productivity indicators will lean toward the monetary if the level is belong to the Middle or Top management On the contrary, the
productivity- indicators will lean toward the technical in case of it-is-belong-to-the
Operational management
2.2.4 Importance and benefit:
The importance and benefit of the productivity is realized by each company or organization
Trang 21plant and company rather than solely the activities of the factory workers,, where the traditional attention has been concentrated.”
And following the Fortune magazine, in a survey of the 500 largest corporations (April 1985), found that 78 percent of responding chief executive officers cited productivity improvement and cost control as the most important elements of their corporate strategy for the 1980s
Regarding the benefit of higher productivity, Shabrawy and Gomaa (2006) have listed as follow: ,
i Higher productivities in a company with respect to human and physical resources will mean higher profits, because
ii Profits = revenue - cost of goods and services produced by the utilization of human and material resources
iii Higher company productivity is generally translated into higher real earnings for its employees
iv The public realizes more social benefits because of increased public
revenues
v The consumer has to pay relatively low prices because the cost of manufacture is reduced through higher productivity
2.2.5 Activities:
The productivity has some part which relating to their activities
Trang 22Chapter Two: Literature Review
John W.Kendrick (1984): for a firm, the quantity of goods and services produced is a function of the quantity of labor and other resource inputs used in production and on the efficiency with their productivity
2.2.6 Productivity and Production:
By the research of Shabrawy and Gomaa (2006); “the term “Productivity” is often confused with the term “Production” Many people think that the greater the production, the greater the productivity That is not necessary true
* Production is concerned with the activity of producing goods and/or services Production > Quantity
+ Productivity is concerned with the efficient utilization of resources (inputs) in producing goods and/or services (output)
Productivity > Resource utilization
If viewed in quantitative terms, production is the quantity of output produced, while productivity is the ratio of the output produced to the input(s) used
In short, higher productivity means that more is produced with the same expenditure of
resources, i.e at the same cost in terms of land, materials, machine time or labor; or alternatively that the same amount is produced at less cost in terms of land, materials,
machine time or labor used up, thus releasing some of these resources for the production of other things
2.2.7 Summary:
In this subsection, the productivity is explored by many views: history, definition, classification, level, importance, importance and benefit Consequently, the understanding for productivity becomes better and deeper
The next subsection will focus to the improvement knowledge for the productivity
2.3 PRODUCTIVITY IMPROVEMENT: 2.3.1 Productivity measurement:
Before to implement the action to achieve the target about product, it needs to know which level of our productivity is standing This matter will be solved by measuring our present productivity
Trang 23Following the research of Shabrawy and Gomaa (2006); the measurement will apply for the following items: System performance System efficiency System effectiveness Resource utilization Profitability
Following the research of William F Christopher and Carl G Thor (1993), the very first step for any plant productivity measurement are to verify the following conditions: i ii iii iv Functional integration:
The product design, product engineering, and production supervisory officials are in full current cooperation regarding each item being produced
Customer driven:
The firm’s current production and its future plans are based on the results of advance evaluation and feedback of customer requirement and/ or desires for both domestic and overseas market
Participation:
The company’s management-employee relations and work patterns have been fully shaped — or are presently being shaped — in the direction of full employee participation in all aspect of work This most certainly involves the assurance that employees have knowledge of the company goal’s and of management’s current operation focus in all phases of the plant’s operations, products, work stations, and department — not just the department in which they now work
Motivation:
Review with appropriate factory management representatives the system and procedures that assure that employees, managers, supervisors,
engineers, and indirect workers are effectively motivated and will benefit
Trang 24v vi By the Chapter Two: Literature Review Flexibility:
Assure that the firm’s top management personnel are effectively world class-oriented on the product quality and sales/ distribution follow up and service capability Top management is full willing, even at some initial sacrifice, to break up if necessary existing long, single-product assembly lines, introducing in their stead flexible, multipurpose lines and substations if a varied product pattern is indicated as the best route to go Stockless production:
The firm has already, or can readily, set up its parts and components suppliers’ patterns to provide consistent stockless production delivery and plant functioning; inventories of high cost materials and/ or components are not overstocked and lying idle.”
performance of productivity measurement, according the research of Shabrawy and Gomaa (2006); there are some benefits as follows:
a The organization can assess the efficiency of conversion of its
resources so that more goods or services are produced for a given
amount of expended resources
Resource planning can be facilitated through productivity
measurement; both on a short-and long-term basis
The economic and non economic objectives of the organization can be re-organized by priority in the light of a productivity measurement effort
Planned productivity-level targets for the future can be modified realistically based on the measured levels now
Strategies for improving productivity can be determined based on the extent of the gap between the planned level and the measured level of productivity
Productivity measurement can help in comparing the productivity levels between organizations within a particular category, either at the industry or at the national level
Trang 25h Measurement creates competitive action
i Collective bargaining can be accomplished more rationally once productivity estimates are available
2.3.2 Fundamental for productivity improvement way:
Following the research of Shabrawy and Gomaa (2006); Productivity can improve through:
¢ Technological development e Improved operational efficiency
¢ Allocation of the resources to produce the right outputs by the right inputs, utilizing the optimal scale and the scope
In a comprehensive survey of the literature, more than 50 different techniques of productivity improvement were cataloged These techniques can classify into seven basic groups:
1- Technology based techniques 2- Material based techniques 3- Product based techniques 4- Employee based techniques 5- Task based techniques
6- Management based techniques 7- Investment based techniques
In there, the detail of each group is described as follow:
2.3.2.1 Technology based techniques: - Computer Applications
- Computer Graphics (Auto-Cad) - Computer Aided Design (CAD)
- Computer Aided Process Planning (CAPP) - Computer Aided Manufacturing (CAM) - Group Technology
- New Production lines / Machines - Rebuilding old machines
Trang 26Chapter Two: Literature Review 2.3.2.2 Material based techniques: - Inventory control - Material Requirements Planning (MRP) - Quality control
- Material handling improvement
- Material reuse & recycling
- New materials
2.3.2.3 Product based techniques: ~ Research & Development (R&D) - Product design
- Product standardization
- Product reliability improvement ~ Value engineering
2.3.2.4 Employee based techniques: - Individual financial incentives - Group financial incentives - Training & education ~ Quality circles - Brain storming - Working conditions improvement ~ Communication improvement - Job rotation 2.3.2.5 Task based techniques: - Work study - Job evaluation - Job safety
~ Human factors engineering (Ergonomics) - Computer aided data processing
- Scheduling
Trang 272.3.2.6 Management based techniques: ~ Marketing Management - Production Management - Quality Management - Cost Management ~ Maintenance Management - Material Management - Resource Management
2.3.2.7 Investment based techniques: ~ Reducing the administration cost - Increasing value added
- Increasing contribution - Increasing profit
According to Jeery Hamlin (1978) of the American Productivity Center in Houston, the average company has many tools for improving the productivity These tools include the following:
i Improved layout-workflow- and material handling ii Supervisory training
iii Work simplification
iv Job enlargement and redesign
v System analysis
vi Attitude-survey vii Incentive plans viii Suggestion program ix Cost reduction program
2.3.3 Summary:
From the basic of productivity in the last subsection, this section focused the
Trang 28Chapter Two: Literature Review
The next subsection will expand the exploration for the productivity improvement in Manufacturing company
2.4, PRODUCTIVITY IMPROVEMENT IN MANUFACTURING: 2.4.1 Introduction for the Emerging theory of Manufacturing:
Following Peter Drucker (1990), the emerging theory of manufacturing has four concepts as the name and their impacts as following:
a Statistical Quality Control (SQC):
SQC is changing the social organization of the factory
The new manufacturing accounting:
The new manufacturing accounting lets us make production decisions as business decisions
Module organization:
The “flotilla”, or module, organization of the manufacturing process promises to combine the advantages of standardization and flexibility System design:
The systems approach embeds the physical process of making things that
is, manufacturing, in the economic process of business, that is, the
business of creating value
There are important differences among four concepts Consider, for instance, what each means by “the factory”
e In SQC, the factory is a place where people work
® In Management accounting and the flotilla concept of flexible manufacturing, it is a place where work is being done — it makes no differences whether by people, by white mice, or by robots e In system concept, the factory is not a place at all; it is a stage in a
process that adds economic value to materials In theory, at least, the factory cannot and certainly should not be designed, let alone built, until the entire process of “making” — all the way to the final customer — is understood
Trang 292.4.2 Improvement methods in Manufacturing:
Following the research of Shabrawy and Gomaa (2006); in order to improve the productivity in manufacturing, it is possible to apply the process management of four formal phases as follow:
Phase I: Measurement Phase II: Evaluation
Phase III: Planning & Implementation Phase IV: Control & Updating
Once the productivity level of an organization is measured in the current time period (for example, the current month, quarter, or year), it must be compared with the target level set up in the preceding period Based on this evaluation, a new productivity level must then be planned for the-next coming period Finally, depending on the nature and level of the planned target of productivity, improvement must take place in the next period
To determine if the planned level has in fact been achieved, productivity must be measured again in the next period The entire cyclic process repeats for as long as an organization formally manages its productivity level and growth rate
Phase I: Measurement
e Data collection & analysis e Productivity indicators
e Determination of problems types e - Determination of problems ‘priorities e Information collection & analysis e System analysis
e _ Proposal solutions
Phase II: Evaluation
e Feasibility study
e Determination of functional requirements e Choose the best solution
Phase III: Planning & Implementation
e Preparation of implementation specification
Trang 30Chapter Two: Literature Review e Programming e Implementation Phase IV: Control & Updating e Review e Follow-up e Performance evaluation e Productivity analysis e Corrective actions e Plans update e Report preparation
According to the research of Lawrence'S Aft (1992), the productivity improvement method in manufacturing is the process whereby a task is analyzed and possible changes ate identified that will either increase the productivity of the worker, make the work easier to perform, or both Analysis is usually performed by identifying the current method, questioning the need for each step in the process, and devising an improved way to perform portions of the task that are really necessary The final portion requires the analyst to convince the worker and the worker’s supervisor that the improved method is really better
Following the research of Alan G.Robinson (1993), the better method to improve
the productivity in manufacturing is the Simultaneous Improvements in Cost, Quality, Delivery, and Flexibility The production managers are able to lower the cost, raise the quality, and improve the delivery of their products all the-same time, even while increasing the flexibility of their production processes The reason this is so is that these firms understand that high cost, low quality, poor delivery and limited flexibility are really a single problem, not four separate ones They are all manifestations of waste The process of these methods includes:
¢ Highlighting the waste
© Source inspection and poka-yoke system ¢ Single minute exchange of die:
Stage 1: separating the internal and external set up operation Stage 2: converting the internal to external setup
Stage 3: streamlines both kinds of operation © Non-stock production
Trang 31The productivity improvement method, following Allan H Mogensen (1981), is the work simplification Although this method started for a long time ago — from the late 1920s but it still have critical effect for productivity improvement in manufacturing In there, many industrial tools are applied such as:
đ Flow Process chart  Workspace Layout © Plant Layout © Multiple Activity Chart © Procedure chart ¢ Work Distribution Chart ¢ Operator Chart
¢ Statistical Working Sampling
In Work Simplification, all employees are trained in industrial engineering methods
useful in their kind of work and in their kind of work processes Then, the
intelligence, experience, and skills of all our people are used in their work areas to improve the way work is done — to improve output and to reduce cost The goal is constant and continuing improvement in quality and productivity.”
One more research for productivity improvement is the “standard work”, Following Zenjiro Sawada (1991), from the beginning of the twentieth century, F.W.Taylor implemented the time studies and F.B Gilbreth implements the studies of movement Such studies have been used as tools by those goal it is to eliminate all waste from the manufacturing-process, and'to -establish-the most economic system possible (work standards) They have established this system from standard times, or the amount of time that is required to perform a task with a normal amount of
effort, and have used these times as controls for the overall system
Another type of study that has been conducted is that concerning interpersonal relations and workplace morale These stem from the Hawthorne experiments performed in 1920s by G.E Mayo and others at Western Electric company, and have asked the question, “ Under what conditions will human beings enjoy their jobs and work hard?” The answer for this question is the method of standard work
Trang 32Chapter Two: Literature Review
The process includes the following items:
¢ Creation the standards: in order to answer for questions Who,
What, Where, When, How
e Implementation of Standard
¢ Use, Maintenance and Storage of Standard
For category, there are three kind of standard: e Traditional Work Standards â Standard Work
 Standard Work of the Future 2.4.3 Summary:
In this subsection, some methods and theory relating to the productivity improvement in Manufacturing were described With this content, the expanded understanding about productivity improvement in Manufacturing was conducted This item is the basic for exploring more detail in the next subsection with the productivity improvement in PCB Manufacturing company
2.5 PRODUCTIVITY IMPROVEMENT IN PCB INDUSTRY:
In basically, the factory of PCB industry is belong to Manufacturing It has the same characteristic of Manufacturing For this reason, it is possible to apply all the productivity improvement methods of Manufacturing into PCB factory
Beside that; PCB industry also has some specific characteristics Therefore, there are:some specific productivity improvement methods for this industry only These methods are usually focused deeply to the technical matter or some specific matter of PCB
Following Henry Jurgens (2005); in order to increase the productivity of PCB industry; it needs to prevent for the following items:
1 Parts chaos:
a Parts already committed to other set-ups b Available parts cannot be found
c Parts in quarantine d Inaccurate stock control e The point machine problem
Trang 332 Inefficient line set up: a, b ©, đ e f
Set-up instructions do not match machine programs
Parts-data on the machines is missing or incorrect
Full off-line set up is not achieved Set-up is incorrect at first-off stage Failure to exploit existing machine setups
Failure to anticipate parts replenishment requirements
3 Slower than optimal beat rates:
a Simulation, BOM splitting/ balancing, and machine programming are not performed at the full line level
Machine programming is not based on full kinematics simulation
Machine-level parts data is not programmed for optimum handling performance 4 Low machine peak performance: a, b c d
Nozzle vacuum pressure abnormal
Sticky nozzle vacuum switching abnormal Worn feeders
Poor maintenance instructions
5 Sub-optimal PCB/ process combination:
a b € đ
The PCB is snot machine- or line friendly
Solder stencil design leads to sub-optimal solder joints PCB design layout encourages bow and twist
Pad/track patterns encourage tomb stoning during reflow
For another method to increase productivity; Michigami (2009) described about some new technologies for high performance PCB production equipment The new technologies focus to the following:
Hole machine technology using drills and lasers able to produce PCBs with higher densities
High precision exposure technology using direct exposure machine
Trang 34Chapter Two: Literature Review
In summary, the PCB industry has two ways for improvement the productivity The first way includes the same improvement method of Manufacturing
The second way includes the specific methods which focus to the technical matter improvement to increase the productivity in PCB production
2.6 CONCLUSION:
As indicated in the introduction, the objectives of this chapter were to review the literature by exploring to the history and definition of the productivity in the subsection 2.2 Then, the subsection 2.3 and 2.4 described the current methods for improving the productivity in common and in Manufacturing company After that, the current situation for productivity improvement in PCB Manufacturing factory is described in the subsection 2.5
With the above literature, the research about productivity and productivity improvement in general and in Manufacturing were implemented very spread and sufficient However, the research about these fields in PCB Manufacturing was not sufficient as well as was not applied fully It just focuses in the technical matter only, not so perfectly apply in the management matter For this reason, the next chapter will focus to the research for the way of productivity improvement in the Fujitsu Vietnam — one of PCB manufacturing company in Vietnam
Trang 35Chapter Three: M8 3.1.INTRODUCTION:
Chapter two already reviewed relevant literature on productivity, productivity improvement and productivity improvement in Manufacturing At the end of chapter two, some productivity improvements in PCB industry were described but they are insufficient and mainly related to technical matter only
In the chapter three, the discussion will focus the research methodology for the productivity improvement in the FCV The aspects in this section include research design, research techniques for data collection and data analysis methods
The objectives of this chapter are:
(1) to make clear for the research methodology,
(2) to explain the research methodology which apply in this research
(3) to demonstrate how to implement the data collection and analysis can be used to answer the research questions
This chapter’s structure includes nine sections as follow:
e Section 3.1 generally introduces the chapter including the main contents, objectives and structure of the chapter
e Section 3.2 repeat for the research questions
e Section 3.3 explores for the research design classification and selects the suitable research design in the study to answer for the research questions
e Section 3.4 discusses and explains how the research techniques can be appropriately utilized in this study
© Section 3.5, 3.6, 3.7 and 3.8 respectively present methods of data collection and data analysis, which will be conducted detail in chapter four of the study
Trang 36Chapter Three: Research Methodology
e Finally, section 3.9 summarizes the conclusions drawn from the chapter and
provides a visual picture of the chapter outline and the links among sections as indicated earlier Figure 3.1 provides a visual picture of the chapter outline and the links among sections as indicated earlier 3.1 Introduction 3.2 Research questions 3.3 Research design 3.4 Research techniques Ee ie
3.5 Secondary Data Study 3.6 Observation - 3.7 Interview
Trang 373.3 RESEARCH DESIGN:
3.3.1 Classification for the research design:
Following the research of Zikmund (1997), if based on the purpose or function, the research can be classified for three types:
e Exploratory research is conducted with the expectation that subsequent research will be required to provide conclusive evidence Exploratory research could be used for clarifying ambiguous problems
¢ Descriptive research seeks to determine the answers to who, what, when, where
and how questions Its major purpose, as designed, is to describe characteristics of a population or a phenomenon
¢ Causal research is conducted to identify cause-and-effect relationships among variables where the research problem has already been defined Its major objective is to identify the cause-and-effect relationships between variables In other research, Emory (1985) implemented the classification
in the following table:
Trang 38Chapter Three: Research Methodology
- emphasi son ma ere -and
interested the ST of cert haracteri:
Tesearch' Thìn! study’ y
environment Laboratory study,
Source: Adapted from Emory (1985)
Based on the classification summary as above, the next subsection 3.3.2 will explain what is the most appropriate research design will be selected in this study
3.3.2 Select for the research design:
The above subsection reviewed the classification of the research design In this section,
it will explain which research design is appropriately selected and utilized in this study As described in the chapter 1, the research questions are as follow:
1 What is the root cause which made the low productivity in Fujitsu Vietnam? 2 How to improve the productivity in Fujitsu Vietnam?
In order to answer for these questions, it needs investigating and describing the nature of the problem making the low productivity in FCV
As such, the exploratory research is more appropriate than the others because the descriptive research is usually designed to describe characteristics of a population or phenomenon whereas exploratory research is conducted to clarify and define of nature of a problem
This study is also for seeking to explain why the productivity in FCV is low So, it also
requires to apply the causal design to identify the cause and effect relationships of
company activities and productivity of company Thus, the exploratory research is implemented in combination with causal research in this study
Moreover, also based on the research questions; the ontology of this research depends on the objective reality because it’s aim for finding the root reason of low productivity in FCV and how to improve it At the same situation for the epistemology, the positivist paradigm is the most suitable selection because the research data has the quantitative
data
Trang 39For the methodology, the inductive approach is selected because the research questions relates to the operation of the manufacturing company So, the operation data is available and it is suitable for starting from data analysis and getting understanding of a phenomenon later
Base on the selected methodology; the consideration is implemented to select three research techniques as follow: secondary data study, observation and interview
Trang 40Chapter Three: Research Methodology From the above techniques, three techniques are selected and used in this research They are including: ° secondary data study, ° observation, ° interview
These three techniques are applied to answer for the research questions: what is the root cause which made the low productivity in Fujitsu Vietnam and how to improve it
3.5 SECONDARY DATA STUDY:
Following Zikmund (1997), the secondary data is the data gathered and recorded by someone else prior to the current needs of the researchers Secondary data are usually historical, already assembled, and do not require access to respondents or subjects
In this research, the secondary data were mainly come from as following detail: ° Yearly Financial report of FCV
° FCV Innovation project
These data will show the company level overview for the operating status of FCV activities
By the inductive method, all these data will be studied to find out the root cause which made
the output increased less than the input of FCV
3.6 OBSERVATION:
Following the research of Emory (1985), observation-allows the researcher to monitor and record information about subjects without questioning them
There is some kind of observation In this research, the suitable one is the structured
observation with the usage as follow:
© Specify in detail what is to be observed
e Specify in detail how the measurement is to be recorded
e Analyze for result recorded data (may be by simple manual analysis only) In the scope of this research, the observation technique has the advantages and disadvantages as follow: