(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd

(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd(Đồ án tốt nghiệp) Analyzing the kaizen event application in direct material management at intel products vietnam co., ltd

Reason for subject selection

Thanks to the rapid development of technology since the 1970s, industries worldwide have undergone profound changes across business, production, management, trade, and agriculture, driven by innovations like electronics, the Internet, and Industry 4.0 technologies Key advancements such as cloud computing, IoT, AI, AR/VR, Big Data, blockchain, and nanotechnology enhance user experiences and improve quality of life through interdisciplinary innovations The smart chip has played a significant role in this technological explosion, fueling fierce competition among tech giants to capitalize on data and technology's profit potential In today’s highly competitive technology market, factors like product quality, price, and innovation are crucial for organizational success According to Barbara B Flynn (1994), quality management, integral to World Class Manufacturing, supports sustainable growth by aligning with JIT, human resources, top management, technology, and strategic management, including material management, thereby ensuring continuous organizational development.

To achieve greater success, an enterprise's name and products must meet customer expectations for quality Ensuring high-quality output begins with sourcing quality materials and maintaining strict input quality control Continuous improvements in productivity, time management, and machinery efficiency are essential to eliminate waste from the early stages of production, thereby optimizing resource utilization and delivering superior products.

Leading companies like Intel, Qualcomm, Nvidia, Amazon, and Google are investing heavily in data mining through the development of advanced, smart chips These innovations aim to help these industry giants gradually increase their market share and secure a competitive advantage in the technology sector.

Leading technology companies are competing to develop cutting-edge artificial intelligence chips, making chip manufacturing more critical than ever The production process involves multiple stages—materials preparation, assembly, and packaging—each with strict quality assurance measures to ensure reliability and timely delivery, providing a competitive edge Intel Products Vietnam Co., Ltd emphasizes strict control of input materials to ensure smooth manufacturing operations Additionally, the company applies Kaizen events and Lean tools to enhance raw material management, increasing efficiency and reducing waste Recognizing the significant benefits of Kaizen in improving material management and product quality, I, as an intern at Intel Products Vietnam Co., Ltd., leverage my education from Ho Chi Minh City University of Technology and Education to analyze the impact of Kaizen on manufacturing processes.

Event Application in Direct Material Management at Intel Products Vietnam Co., Ltd " to deploy the graduation thesis.

Objectives of the research

- Researching in the current status of Material management at Intel Products Vietnam Co., Ltd

- Researching and analyzing the Kaizen Event application in the direct material management process

- Proposing a solution to improve the application of Kaizen Event in the direct material management process for substrate.

Subject and scope of research

- Research subject: The Kaizen event implementation to improve direct material management process

 About time: Research on Kaizen event direct material management process from March 2020 to October 2020

 About space: Researching within the workshop of Intel Products Vietnam Co., Ltd.

Research Methodology

During the internship and thesis research, I mainly use a combination of the following methods:

To effectively collect secondary data, open data sources from companies, written documents, diagrams, and relevant information on material management and Kaizen event portals are utilized This involves synthesizing the gathered information, analyzing the data thoroughly, and conducting an objective evaluation to support continuous improvement initiatives.

During my internship, I collected primary data by observing and actively participating in the management process, gaining firsthand insights into operational practices I documented important information and identified areas needing improvement, creating a valuable backlog of data to address Additionally, I gathered supplementary data through consultations with colleagues, interviews with CW staff, and collaboration with related departments, ensuring a comprehensive understanding of the management functions These efforts provided essential insights for optimizing processes and enhancing organizational efficiency.

The structure of the research

- Chapter 1: The Introduction of Intel Products Vietnam Co., Ltd

- Chapter 3: Analysis of The Kaizen Event Application in The Direct Material Management at Intel Products Vietnam

- Chapter 4: Proposing The Application of Kaizen Event in Substrate Process Control for Direct Material Management at Intel Products Vietnam

INTRODUCTION OF INTEL PRODUCTS VIETNAM CO., LTD

General introduction about Intel Corporation

Intel Corporation, founded on July 18, 1968, by pioneers Robert Noyce and Gordon Moore, has become a leading American multinational technology company specializing in semiconductor design Headquartered in Santa Clara, California, in the heart of Silicon Valley, Intel is renowned for its innovation in integrated circuit technology and semiconductor manufacturing The company's name, Intel, is derived from the combination of the words "Integrated" and "Electronics," reflecting its core focus on integrated electronic solutions and cutting-edge technological advancements.

Intel, founded in 1971, has a rich history of technological innovation, beginning with the creation of the first microprocessor, which sparked a revolution in computing and led to the development of groundbreaking chips and microprocessors that adhere to Moore's Law—doubling the number of transistors every two years while reducing costs (Wikipedia) The company emphasizes harnessing primary, unprocessed data, recognizing its enormous potential to drive breakthrough technologies In today's era of pervasive devices, data's true value emerges when transformed into actionable insights, which are crucial for technological advancements The growing importance of data is closely linked to three key inflections—artificial intelligence (AI), 5G network transformation, and the expansion of the intelligent edge—each offering opportunities for organizations to lead by leveraging these trends to shape the future.

 Products: Intel is well-known for advanced, high-performance processors for every usage, including enterprise-scale servers, IoT devices, laptops, desktops, workstations, and mobile devices

Intel® processor families, including Intel® Core™, Xeon®, Atom®, Pentium®, and Celeron®, are essential for managing 3D rendering, delivering cloud computing services, and gaining insights from data analytics These processors enhance data center performance and efficiency, supporting the digital infrastructure Moreover, a wide range of Intel processors power mobile devices, energy-efficient servers, and laptops, ensuring optimal performance and power efficiency across various applications.

The Intel® Xeon® Processor Family—including Xeon® Platinum, Gold, and Silver series—serves as the foundation for building robust Software Defined Infrastructure (SDI) solutions These processors enable a wide range of platforms, supporting software-defined compute, storage, and networking, thereby ensuring flexible and scalable infrastructure for modern enterprise needs.

Unlock the power of AI, IoT, and machine learning with Intel® Xeon® Platinum Processors, FPGA devices, and the Intel® Movidius™ Vision Processing Unit (VPU) Leverage your existing data to gain new insights, analyze customer behavior patterns, and identify market opportunities—all within a scalable framework designed to enhance your data-driven strategies and drive business growth.

 Gaming: Intel® CoreTM X-series Processor Family, Intel® CoreTM i7 Processors, Intel® CoreTM i5 Processors It's a great choice for intense gaming Play the most demanding games - while streaming or recording

 Intel’s purpose: “We create world-changing technology that enriches the lives of every person on earth.”

Intel is driven by clear and ambitious goals to deliver practical value and innovative technology that address the needs of modern life Their efforts aim to create safer, smarter, and more inspiring living environments, fostering healthy, energetic, and enthusiastic communities By pioneering advancements in technology, Intel enhances productivity and contributes to building a better, more connected world.

Their ambitions and opportunities have never been greater as they stand at the forefront of major technology inflections, including AI, 5G network transformation, and the rise of the intelligent frontier These advancements are shaping the future of technology, with silicon and software at the core of creating global impact Intel is positioned at the center of this technological revolution, driving innovation and progress worldwide.

 Intel’s vision: “to be the trusted performance leader that unleashes the potential of data.”

 Intel’s mission: “We engineer solutions for our customers’ greatest challenges with reliable, cloud to edge computing, inspired by Moore’s Law.”

Data is transforming the future of humanity by enabling more active and efficient networks and widespread AI integration across smart devices Intel is at the forefront of harnessing data’s potential to drive innovation and connectivity Inspired by Moore’s Law, which has historically fueled the digital revolution, Intel continually pushes technological boundaries to create smarter, faster, and more capable digital ecosystems.

Our core values influence how Intel employees make decisions, collaborate with colleagues, and serve customers, ensuring alignment with company goals United by a shared purpose, Intel team members are motivated by our fundamental values to achieve ambitions and support customer success These principles foster a committed work culture that drives innovation, integrity, and excellence in everything we do.

 Fortune Change the World List

 Ethisphere World’s Most Ethical Companies

 Working Mother’s 100 Best Companies to Work For

 Business o Intel will reach total revenue of 72 billion USD in 2019 o The intellectual workforce has more than 110,000 employees across 46 countries o Capital investment in R&D reached 13.4 billion dollars

Manufacturing at Intel is a remarkable feat, with 10 billion transistors produced every second across their advanced factories and up to 100 million transistors packed into each square millimeter of their chips To support continuous innovation and expansion, Intel has invested over $16.2 billion to develop and upgrade their manufacturing facilities, equipment, workforce, and technological capabilities.

Intel is committed to promoting gender equality in its supply chain, having invested $279 million in women-owned businesses to support diversity To ensure high-quality products from the outset, the company conducts over 800 supplier audits every five years Additionally, Intel has been ranked first by the Responsible Sourcing Network in the Responsible Mineral Ranking for the past six years, demonstrating its leadership in responsible sourcing practices.

Page 8 o Prior to the 19 COVID pandemic, Intel contributed $ 60 million to the COVID-19 response o Intel has contributed to community building and cultural development and environmental protection through more than 17 thousand hours of volunteer service since 1995 up to now o Intel has over 30 years of positive impact through the Intel Foundation

Intel is committed to environmental sustainability, demonstrated by their efforts to recycle 93% of all non-hazardous waste and conserve 44 billion gallons of water over the past decade Additionally, 71% of Intel's global power consumption is sourced from renewable, green energy, underscoring their dedication to creating a more sustainable future.

General introduction about Intel Products Vietnam

Intel's Vietnam facility is a key part of its global network, serving as the seventh assembly and test site among over 600 facilities worldwide With a presence in 63 countries and more than 106,000 employees globally, Intel continues to expand its manufacturing footprint Located in Lot I2, Street D1, Saigon Hi-Tech Park, District 9, Ho Chi Minh City, Intel Products Vietnam plays a vital role in the company's regional operations and technological innovation efforts.

Intel Products Vietnam, launched in May 2007, has become the largest US high-tech investment in Vietnam, with over $1 billion invested The company continuously advances its technological capabilities to keep pace with global developments, demonstrating its commitment to innovation and growth in the region.

- The First multinational investment in Vietnam

- The First mega factory in ATM

- The First Modem factory in ATM

There are mainly two types of manufacturing processes in semiconductor manufacturing: wafer fabrication (front end) and assembly and test (back end)

Assembly and Test Manufacturing (ATM) is significantly influenced by market demand fluctuations, as its finished products are shipped directly to customers Currently, ATM is producing Intel’s latest technology chips, including those for 5G and AI applications, highlighting its crucial role in meeting emerging technological needs.

Desktop, Data Centre, Cloud-computing … currently, they shipped out 2 billion units and supporting Intel’s World-Wide Market

Intel Vietnam’s purpose: “Innovate our way to be the Manufacturer of Choice for the

- In February 1997, Intel established its first representative office in Ho Chi Minh City, following in footsteps, in May 1997, a representative office in Hanoi was also built

- With initial investment of $315M, Intel Vietnam constructs the first 100k Assembly Test facilities which were announced in February 2006

Intel Vietnam has demonstrated a strong commitment to environmental protection and regional economic and technological development From 2010 to 2019, the company's accumulated export value exceeded $36 billion, accounting for over 60% of SHTP’s total annual exports in 2019 Benefiting from excellent cooperation with the government, Intel Vietnam leverages numerous preferential policies to ensure sustainable growth and development.

 2006–2009: From a large green field, Intel Vietnam started to transform

 2010: Organizing Happy Grand opening, and the first product Ibex Peak also was produced

 2012: First 100Mu was shipped out

 2014: Expanded Prod Portfolio SOC + CPU DT

 Vision: Along with the common vision of Intel Corporation, Intel Vietnam also has a great vision "Create the future of Intel and Vietnam"

Intel’s dedication to corporate responsibility and sustainability is rooted in transparency, strong governance, and ethical practices, permeating every facet of their business operations Their integrated approach not only mitigates risks and reduces costs but also enhances brand value and uncovers new market opportunities By leveraging technology, Intel actively contributes to solving society’s most complex challenges, creating significant value for both the company and its stakeholders.

 Mission: Innovate our way to be the manufacturer of choice for the industry

Our company is dedicated to continuous product innovation, focusing on delivering speed, accuracy, and high quality in our manufacturing processes By working together, we aim to reimagine the potential of people and data to create a positive, transformative impact on the world.

1 Be the best in the industry

2 Be a world class workforce at peak performance

3 Be the leading mega factory for Intel Profitability

Figure 1.3: Intel Products Vietnam Organization

According to Intel Vice President Brian Krzanich, most of Intel's products worldwide will be assembled, tested, and packaged in Vietnam, making Intel Products Vietnam a model for future ATM factory development This strategic move is expected to enhance Intel's competitiveness in the global market while promoting manufacturing innovation in Vietnam.

Figure 1.4: CPU Haswell Core i5 was assembled and tested in Vietnam

Direct Material Room Overview

 What is Direct Material Room?

A direct material room serves as a storage area for substrates, while other direct materials such as flux, epoxy, and balls are managed by OS/Sups Instead of being stored in the DMR, these materials are sent directly to the workshop for immediate use, streamlining inventory management and production efficiency.

- Substrate is direct material which is assembled to attach in unit

- Substrate is displayed on system at 589 which is first operation for all products

- Flux, Epoxy, Ball, Capacitor is additionally attached in some different process to make finish product

- Traceable items: Material has lot created on WS (substrate, LID, interposer, etc.)

- Non-traceable items: Material does not have lot created on WS

Figure 1.6: The Process of Substrate

Mini store/Tool shop PM trolley (spare parts)

Substrate management is handled by the SAP system and stored at DMR, ensuring accurate tracking and control The WS system monitors the substrate as it enters the factory and during the production process, providing real-time observations that follow the flow of the assembly product This integrated approach guarantees efficient resource management and product quality throughout manufacturing.

Figure 1.7: Some components of a chip

The Direct Material Room (DMR) is managed by the DM MSE owner, who is responsible for overseeing substrate storage and related operations They collaborate with stakeholders on all material-related matters and continuously work to improve procedures to ensure the DMR operates efficiently.

Workers in the DMR are responsible for handling substrates, including organizing bundles from carts to shelves and performing daily 5S procedures They coordinate with MT on the production line and retrieve substrates from the warehouse as needed Team leads or supervisors manage these personnel, acting as the primary point of contact for OS, Sups, or MT to assign tasks and ensure smooth operations.

In-direct materials are material item to support product on transportation, packing and others They are not used to make finish goods directly, but they involve in the

Page 14 process of transferring or storing products At Intel, there are many IDM in the production floor such as:

Figure 1.8: Example of the indirect material

THEORETICAL BASIC

Quality Concept

Quality is a fundamental concept across manufacturing and service industries, encompassing consistency, dependability, and customer satisfaction W Edwards Deming defined quality as a predictable degree of uniformity and dependability aligned with customer standards, emphasizing that “quality is the degree to which performance meets expectations.” The American Society for Quality (ASQ) describes quality as excellence in goods and services, focusing on conformity to requirements and customer satisfaction According to Tirupathi R Chandrupatla, the core philosophy of all quality definitions revolves around consistent conformance and performance, always keeping the customer in mind.

Quality is a multifaceted concept that varies depending on the perspective of customers and businesses, as well as the specific goods or services involved Understanding what constitutes quality from both consumer and company viewpoints is essential for effective product development and customer satisfaction By exploring these differing perspectives, companies can better align their offerings with customer expectations while maintaining high standards of excellence Ultimately, delivering perceived quality enhances brand loyalty and competitive advantage in the marketplace.

 Quality from customer point of view

W Edwards Deming (1900-1993), author and consultant on quality, says that “The consumer is the most important part of the production line Quality should be aimed at the needs of the consumer, present and future.” Customers have different expectations for the product that they need and are willing to pay for The definition of quality here is fitness for use

Producers develop product specifications based on customer needs and budget constraints, ensuring the design aligns with market demands According to operations management principles, quality is defined by how well the production process conforms to the predetermined design specifications, known as the quality of conformance Achieving this quality requires critical factors such as optimal design, high-quality materials and equipment, effective training, diligent supervision, and strict process control.

Quality is ultimately defined from both manufacturer and customer perspectives, emphasizing the importance of collaboration and incorporating desirable ideas throughout product design and production processes According to operations management principles, "the final determination of quality is fitness for use, which is the customer’s view of quality," highlighting that consumers make the final judgment on quality, and therefore, their perspective must take precedence.

Effective quality management is essential for enhancing manufacturing competence and boosting competitiveness in today’s market Modern companies increasingly recognize the importance of shifting their mindset toward quality as a key driver of business performance Total Quality Management (TQM) has been instrumental in organizational growth, drawing significant attention from managers focused on implementing strategies to ensure quality throughout the entire organization By fostering a culture of continuous improvement, TQM helps companies meet their design specifications and deliver superior products.

Prominent figures in the quality management field include W Edwards Deming, renowned for his work in statistical quality control, and Walter Shewhart, who developed control charts and advanced the concepts of statistical control and quality assurance Kaoru Ishikawa, a professor at Tokyo University, played a pivotal role in promoting quality circles and created the influential "fishbone" (cause and effect) diagram, essential tools in root cause analysis Additionally, quality gurus such as Joseph M Juran and Armand further contributed to the development of comprehensive quality management principles and methodologies that continue to influence the industry today.

V Feigenbaum, Philip Crosby All of them have contributed and dedicated themselves to the development of the quality area by eliminating common causes of quality problems, emphasizing the use of statistical quality control techniques to reduce variability in the production process

Quality improvement (QI) is a systematic and formal approach to analyzing practice performance and implementing efforts to enhance it Focused on refining systems rather than individual perfection, QI emphasizes identifying the root causes of errors through data analysis Recognizing fallibility as an opportunity for learning, it promotes a culture where errors are used to drive continuous improvement Successful quality improvement relies on teamwork and peer review, fostering a collaborative environment that values shared insights and collective progress.

W E Deming defined primary responsibility when increasing the efficiency of the work done and reducing product defects, he said, was employer’s and management’s The employee was promoted extensively involved in a quality improvement program and was provided a training section for workers in quality-control techniques and methods Deming is also known for development of the Deming Wheel, or Plan-Do-Check-Act (PDCA) cycle Deming’s overall philosophy for achieving improvement is embodied in his 14 points (Total Quality Management)

4 Improve the quality of incoming supplies

6 Train and educate all employees

10 Eliminate the use of slogan

12 Let people be proud of their work

14 Commit to ever improving quality

Deming’s 14 points and PDCA cycle shows the way of his approach and it created the foundation for today’s quality management systems conducted by many successful companies

1 Clarify the problem: the problems should be pointed out, and identify where the problem/situation lies, any abnormalities must be recorded and documented

2 Break down the problem: if the problem is serious and complex, the owner will conduct a small partition to know the impact of that issue, scope, priority order and resolution

3 Set the target we will achieve: Every job needs a goal, clearly defining goals from the beginning enable to perform Kaizen more smoothly, more effectively and there is a basis for comparison before not improving

4 Analyzing the root cause: It is necessary to go to where problems occur and observe how they work for collecting evidence and data to report, 5W analysis is used to find the root cause, for proceeding key improvement

5 Develop countermeasures: After analyzing and study the current process and collecting data, should develop a plan for improvement then decided how to measure it

To effectively implement your plan, start with a small-scale rollout to ensure close monitoring and control Measure the performance during execution to identify areas for improvement and optimize results This strategic approach minimizes risks and enhances the overall success of the process.

Do is to accumulate the data for further use

Monitor and measure processes and products against established policies, objectives, and requirements to ensure quality and compliance Gather and analyze measurement data during the observation phase, then report the results to decision-makers for informed action Evaluate the collected data to determine if the desired improvements have been achieved, supporting continuous process enhancement.

To enhance process performance, it is essential to design changes that aim for continuous improvement Determining whether these new processes should be permanent or require further refinement is key to ongoing success The consolidation phase allows the organization to review and summarize the changes implemented, ensuring they effectively support the achievement of quality standards and organizational goals.

The 5S Kaizen

5S is a proven productivity methodology originating from Japan, designed to improve workplace organization and efficiency The term 5S stands for five key principles: Sort, Shine, Set in Order, Standardize, and Sustain By implementing these principles—Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain)—businesses can create a cleaner, more organized, and more productive work environment that promotes continuous improvement.

The 5S method is a fundamental starting point for any improvement program, helping analyze and organize workstations effectively It promotes a well-organized, clean, and high-quality workplace that enhances productivity and reduces waste Implementing 5S creates a safer environment, eliminates failures and breaks, and improves overall quality and safety of work processes.

1 Seiri (Sorting): In this step, every unnecessary thing needs to be disposed and just keep essential items to avoid unneeded items take up all the working space Everything else is stored or erased This leads to fewer hazards and less clutter to interfere with productive work

2 Seiton (Set in order): Pay attention to the need for the workplace in order Tools, equipment, and materials must be systematically arranged to ease for assessment There must be a place for everything, and everything must be in its place

3 Seiso (Shine): Dirty source need to be cleaning, removing of wastes, keeping tools and equipment clean etc, make the workplace as clear as possible Shining need to be maintain as a daily activity to create an effectiveness work area

4 Seiketsu (Standardize): Work practices must be standardized which allows for control and consistency Basic housekeeping standards apply everywhere

Page 22 in the firm All employees aware their responsibilities Housekeeping duties are part of regular work routines

5 Shitsuke (Sustain): After the above 4S is formed, all 5S jobs must be maintained to ensure a clean workplace, quick work done, quality output, this requires personal discipline and the awareness

Implementing 5S is the essential first step in eliminating waste (Muda) from manufacturing processes, leading to higher quality and operational excellence As the foundation of kaizen, 5S promotes continuous improvement through disciplined organization, cleanliness, and standardization By adopting 5S principles, manufacturers can streamline workflows, reduce waste, and foster a culture of ongoing enhancement aligned with kaizen practices.

- Good processes bring good results

- See for yourself to grasp the current situation

- Speak with data, manage with facts

- Take action to contain and correct root causes of problems

- Big results come from many small changes accumulated over time

The Kaizen concept

In the mid-1980s, renowned quality expert Masaaki Imai popularized the term "Kaizen," emphasizing its role as a crucial factor in the competitiveness of Japanese companies Kaizen significantly impacts employees' mindsets and enhances their work performance by fostering continuous improvement, safety, and productivity It encourages the search for innovative ideas that optimize workplace efficiency, leading to the development of new procedures that produce higher-quality products more effectively.

Kaizen, as originally defined by Imai in 1986, is a business strategy that emphasizes collective effort within an organization to achieve continuous improvements According to Imai, it involves everyone working together to make incremental enhancements without requiring significant capital investments This collaborative approach fosters a culture of ongoing development and efficiency.

Kaizen, derived from the Japanese words "Kai" (change) and "Zen" (better), fundamentally means "change for better." Widely recognized by Toyota as "continuous improvement," Kaizen emphasizes small, incremental enhancements that lead to significant long-term progress This philosophy encourages organizations to foster ongoing development by making consistent, manageable improvements in processes, quality, and efficiency Implementing Kaizen can drive a culture of innovation and excellence, contributing to sustained success and competitiveness.

Page 23 happens in all areas of not only within workplace but also in all aspects of life The key aspect of Kaizen is that it is an on-going, never-ending, constant improvement process Kaizen is originally used as a key fraction of the Toyota Production System that means

"Making things the way they should be" according to fundamental industrial engineering principles involves fostering continuous improvement through a shift in mindset and methods The core Kaizen system promotes incremental innovation by actively encouraging employee involvement to make ongoing adjustments in their work areas Over time, the cumulative impact of these small, consistent changes can be significant, especially when supported by committed leadership Notably, these improvements are typically achieved with minimal or no expense, using simple techniques and readily available materials.

The motivation behind implementing Kaizen is driven by dissatisfaction with the current status quo and the desire to eliminate all forms of waste It aims to establish high standards and continually improve them, regardless of current performance, to prevent the company from falling behind competitors Kaizen transforms employee mindset, encouraging creativity rather than merely following outdated processes It not only provides guidance but also inspires employees to strive for greater improvements As a result, Kaizen has been widely integrated across various parts of an organization, fostering a culture of continuous growth and innovation.

The Kaizen Event

A Kaizen event is a well-structured, multi-day problem-solving session that involves a cross-functional team According to Montabon, these events empower team members to utilize experimentation freely to identify and implement effective solutions Kaizen events are an essential part of continuous improvement strategies, fostering collaboration and innovative thinking across departments.

A Kaizen event is a focused, structured improvement project led by a dedicated cross-functional team to enhance a specific work area within an accelerated timeframe It involves setting clear goals and implementing targeted improvements quickly to drive continuous process optimization From Vanetal’s perspective, these events are key to achieving rapid and effective operational enhancements through collaborative efforts.

A Kaizen event, also known as a "rapid improvement event," is a focused, three- to five-day accelerated process designed to implement targeted improvements These events aim to make integrated changes in high-priority areas that require enhancement, fostering continuous improvement and operational efficiency.

A Kaizen Event is a focused, structured improvement activity that utilizes Lean and Six Sigma tools to analyze and enhance processes This intensive, multi-day workshop consolidates what would typically take several weeks of work into a single, efficient session, driving continuous improvement and operational excellence.

Kaizen focuses on implementing gradual small changes to achieve significant long-term improvements, while a Kaizen event aims to rapidly improve processes within a short timeframe to maximize productivity Both strategies share the common goal of eliminating waste, enhancing efficiency, and sustaining improvements through standardized practices.

Kaizen promotes a mindset of continuous improvement, encouraging individuals to develop creative and efficient ways to enhance their work processes By fostering this positive behavior, organizations can unlock their employees' potential for innovation and productivity Kaizen events serve as valuable tools to support the successful implementation of Kaizen principles, helping companies drive sustainable growth and operational excellence.

The Event increases employee engagement because the employees are invited to an intense focus of the business activity that they work on each day

2.4.2 Purpose of the Kaizen Event

A Kaizen event helps businesses reduce the seven types of waste, enhance processes, and create additional value for customers It aims to develop new processes that enable tasks to be completed more smoothly, ultimately increasing productivity and product quality According to Karen Martin and Mike Osterling (2007), the final outputs of a Kaizen event include implemented improvements and detailed action plans with minimal remaining steps to optimize existing processes.

2.4.3 Four phases of the Kaizen Event

Four key characteristics—goal clarity, goal difficulty, team functional heterogeneity, and management support—were identified and measured as critical factors influencing the sustainability of Kaizen event outcomes These elements, defined and operationalized during the initial phase of the broader Kaizen event research initiative (Farris et al., 2009), play a vital role in determining the long-term success of continuous improvement efforts Ensuring clear goals, appropriate goal difficulty, diverse team composition, and strong management support can significantly enhance the effectiveness and lasting impact of Kaizen initiatives.

Typically, a Kaizen Event starts when a problem appeared, or with a process, product, or area that may need improvement already recognized Areas targeted by Kaizen Events might be:

- Products or processes with substantial work-in-progress

- Areas where there is a significant bottleneck or delay

- Areas where “everything is a mess.”

- Products or services for which quality or performance does not meet customer expectations

- Tools or techniques need to improve

Four phases of Kaizen Event

According to Ortiz, C A (2009), a Kaizen Event is a focused improvement activity lasting two to five days, where a dedicated, cross-functional team collaboratively designs and fully implements enhancements to a specific process or work area This concentrated approach ensures rapid process improvements and promotes teamwork across different departments.

The first step in the framework is to plan the Kaizen event, which is essential for setting clear objectives and establishing an effective project schedule During this phase, it is crucial to define specific and attainable goals, create a focused scope, and develop a detailed timeline to guide the event towards successful improvement The planning process involves three key areas that must be addressed beforehand: strategic goal setting, detailed project scheduling, and scope definition, ensuring a well-organized and goal-oriented Kaizen event.

The facilitator is responsible for leading the Kaizen Event to ensure its smooth flow, including organizing meetings, collecting initial data, and reporting results During the event, they will facilitate decision-making without their preconceived opinions influencing the proposed changes, ensuring an unbiased and effective improvement process.

During a Kaizen Event, the process owner plays a crucial role by selecting team members, securing supplies and equipment, and coordinating all stakeholders to ensure smooth execution They are responsible for defining the framework and providing essential information to guide the improvement process Additionally, the process owner secures commitment and sponsorship from upper management, which is vital for the success of the Kaizen initiative.

During Kaizen Events, team members may not attend all sessions but are essential for addressing relevant questions as they arise Their involvement is crucial for resolving complex technical or process issues, providing comprehensive support from upstream to downstream functions to ensure effective problem-solving.

frontline employees are essential for successful Kaizen Events, as they work with the existing processes daily and possess deep insight into operational challenges Their firsthand knowledge enables them to identify areas needing improvement and suggest practical solutions By engaging these team members in training sessions, organizations can leverage their understanding to develop effective ideas that enhance workflow efficiency and drive continuous improvement.

During the feasibility evaluation phase, we assess whether the project can effectively address an existing problem and understand its impact on the current process This assessment provides a comprehensive overview of the problem's significance and determines if the proposed plan is genuinely beneficial Conducting a thorough feasibility analysis ensures the project's viability and helps prioritize solutions that will have a meaningful positive effect.

When the Kaizen event is taking place, it usually lasts from 3 to 5 days According to the implementation phase consists of four areas upfront, while executing and after the

Kaizen Event These four areas include: Prepare for event, execute event, follow-up after event and deploy full-scale change

Kanban System

Kanban is a material replenishment system that incorporates signals, pull instructions, visual cues, bins, carts, containers, etc., to help coordinate material and parts transactions throughout the factory and with suppliers

Barbara B Flynn states that implementing a Kanban system can significantly reduce inventory levels and enhance material flow forecasting By streamlining scheduling processes, the company can improve overall productivity and operational efficiency.

Material Management

Material management is a crucial process that integrates distribution planning, control, and logistics management to ensure efficient material flows within an organization It encompasses the control of raw materials, procurement of equipment and machinery, and maintenance spare parts, playing a vital role in the input and preparation stages of production As a fundamental function, material management serves as a preliminary step to the transformation process, supporting smooth operational workflows According to expert literature, its primary objectives include optimizing resource utilization, ensuring timely procurement, and maintaining adequate inventory levels to facilitate uninterrupted production.

 Maximize the use of the firm’s resources

 Provide the required level of customer service

If a manufacturer manages material well, it can help them not only manage the cost well but also bring many benefits to that firm, improve the revenue in the outcome

ANALYSIS OF THE KAIZEN EVENT APPLICATION IN THE

The real state of Kaizen application at Intel Products Vietnam

Kaizen is a continuous improvement philosophy that enhances factory efficiency by minimizing waste and reducing variation At Intel factories, employees embrace this mindset to drive innovation, boost productivity, and maintain high-quality output By fostering a culture of ongoing improvement, companies can create better working conditions and achieve operational excellence.

3.1.1 Four phases of a Kaizen event at Intel

- Evaluation: This phase usually lasts 6-8 weeks, the topic will be identified and assessed for its feasibility and urgency and whether it will essentially bring results for implementation

During the Planning and Preparation phase, which runs concurrently with the evaluation stage, the project owner identifies sponsors and stakeholders based on the specific enterprise issues and clearly defined project scope and boundaries This phase also involves assembling the relevant team leaders, members, and participants, with roles and responsibilities clearly assigned Additionally, the team gathers and discusses current state data, collects all necessary documents, and prepares for the upcoming Kaizen event, ensuring a comprehensive foundation for successful implementation.

The event typically lasts 3-5 days, depending on the effort from facilitators and business unit leaders During this stage, activities such as lean tool training and value stream mapping are implemented to analyze production cost issues and identify areas for improvement The process begins with current state analysis through value stream mapping, followed by process walks to observe workflow on the production floor Teams then collaborate to develop future state plans, generate improvement ideas, and establish an implementation plan The findings are documented in a report sent to management, culminating in a comprehensive event documentation.

The follow-up stage is an ongoing improvement process where the team leader reviews implementation results by analyzing data, conducts regular progress assessments, and evaluates process efficiency to identify opportunities for further enhancement.

3.1.2 Basic Kaizen Event flow at Intel:

In the introduction, the process owner will present the reason why this event is holding and the participants taking part in this

S.P.A.C.E.R stands for: Safety, Purpose, Agenda, Code of conduct, Expectations, Roles and responsibilities

- Safety: it includes all the ways that ensure the participants in the event be safe and comfortable such as emergency exits, Restroom…

- Purpose: the objective of this event is to learn some basic lean tools and make improvements in a focused area

- Agenda: it shows a clear time for everyone to acknowledge what detailed time each event will take place

Attendees are expected to commit to full participation throughout the event, maintaining professionalism and respectful behavior at all times Politeness and open-mindedness are essential, fostering a supportive environment free of criticism Participants should keep their cell phones and laptops on vibrate to minimize disruptions, ensuring a focused and respectful atmosphere for all.

- Expectation: get everyone’s expectations during the introduction

2 Management Kick-off/ Charter review

The owner begins the process with a presentation to all stakeholders, using an A3 paper to illustrate the overall situation clearly They then review the SIPOC flow and relevant data, which they have prepared in advance, to ensure a comprehensive understanding before the event takes place.

In this step, some tools used to perform Kaizen are mentioned as Lean, Six Sigma, 7 wastes, value stream mapping, VA/NVA analysis, Takt time, 5 WHY, 5S, standardization of work

A key aspect of Kaizen involves engaging the entire team in observing and analyzing processes, starting with a virtual review followed by an on-site physical walk During the waste walk, team members identify and document waste by taking photographs, noting the process name, location, significance, and impact The primary goal of this activity is to align the team’s understanding, foster a mindset focused on waste elimination, and uncover continuous improvement opportunities.

5 Value stream mapping and current state analysis

After familiarizing the team with the current state value map validation process through a process walk, the team reconvenes in the lean room to conduct value analysis and develop the current state map They begin by mapping out the process steps, then discuss and decide on value-added (VA) and non-value-added (NVA) activities, incorporating data to analyze which actions add value from the customer's perspective Finally, the team creates a timeline and reviews the data to ensure the analysis makes sense, facilitating a comprehensive understanding of process efficiency.

6 Brainstorm and prioritize opportunities and improvement

During the brainstorming process, tools like flipcharts or round robin techniques are used to clarify and organize ideas effectively The core brainstorming rules emphasize that all ideas are respectful and valid, encouraging participants to share even the wildest thoughts, as the more ideas generated, the better The process owner is responsible for combining, modifying, grouping, and prioritizing ideas with input from all participants to focus on the most valuable opportunities After generating ideas to eliminate waste, the team proceeds to rank and prioritize opportunities for improvement, ensuring a focused approach to enhancing the event.

7 Develop future state value stream and actions

Effective facilitation is essential at this stage to deeply understand the problem and develop an efficient solution Creating a detailed electronic document and forecasting benefits are critical components of this process, ensuring clarity and strategic planning Additionally, involving all key leads in future state mapping helps align team efforts and drives successful implementation.

Now is the time to take action, as the team leader divides the group into smaller teams to execute improvements and specific plans Clear communication of assigned tasks is essential, ensuring each sub-team understands their responsibilities Regular progress updates from sub-teams promote accountability and keep the project on track for successful implementation.

9 Create an action item list of improvements not complete

At the end of the event, develop list of improvements/ actions that couldn’t be met during the week

Throughout the Kaizen implementation, every action is required to be documented if possible, for considering the progress of Kaizen Event

Effective planning involves creating detailed project plans with clear milestones and developing follow-up strategies that specify actions, responsible individuals, due dates, and progress updates It is essential to agree on regular interval schedules, schedule follow-up meetings, and organize presentations at the end of events to ensure clear communication Daily out briefs are crucial for tracking Kaizen progress, assessing accomplishments, and identifying whether other teams require assistance or additional training.

In this final step, the owner presents a comprehensive report to management, highlighting the progress made during the Kaizen event, summarizing its accomplishments and key benefits, and outlining the next steps for continued improvement The presentation also includes lessons learned from the process and shares experimental insights, ensuring stakeholders are informed and engaged in ongoing improvement initiatives.

Intel's Kaizen Event implementation is highly valued for its seamless connection between preparation, execution, and follow-up stages, enabling owners to track progress and swiftly address any issues This integrated process not only drives operational improvements but also enhances employee job satisfaction, reflecting Intel’s commitment to fostering a positive and efficient work environment.

3.1.3 Encouraging the employee to do Kaizen Event together

Kaizen training courses are regularly conducted to promote kaizen knowledge and spirit among employees, emphasizing the practical benefits it offers to both the factory and individual growth These programs help workers understand how continuous improvement can enhance efficiency and work quality A machine operator shared that "thanks to the kaizen implementation, my work became smoother," highlighting the positive impact of kaizen practices on daily operations.

Page 33 and smartly time-saver, small changes like changing toolboxes from top of side shelves

Analysis of Kaizen Event application in Direct Material Management at Intel

Intel actively promotes Kaizen by encouraging employees to implement continuous improvement ideas that enhance workplace efficiency and reduce costs The company regularly hosts contests like Cost Hero, Ideas Shark, and Kaizen events to recognize and reward individuals and teams who contribute innovative ideas, fostering motivation and a culture of improvement These initiatives create a dynamic environment where outstanding achievements are celebrated, inspiring employees to embrace the values of Kaizen and drive ongoing organizational excellence.

3.2 Analysis of Kaizen Event application in Direct Material Management at Intel Products Vietnam

3.2.1 Apply Kaizen Event model through the RIL event in VNAT

A Kaizen event is a focused effort rooted in the principles of continuous improvement, aiming to enhance employees' mindsets and optimize the working environment It encourages individuals to identify problems and waste at their workstations and address them using specific tools and methodologies At Intel, the RIL (Rapid Improvement Lifecycle) event is a well-known program designed to swiftly resolve issues, boost efficiency, and positively influence employees' mindsets The RIL process follows a structured flow to ensure effective problem-solving and sustainable improvements.

Figure 3.1: The RIL event flow

3.2.2 VNAT RIL for Phase 2 10K CNLUSFF syringes material saving

Epoxy is a transparent liquid used to bond die to substrates during the manufacturing process It must be stored at low temperatures (~ -20°C), typically in a freezer placed on the floor, to preserve its properties During production, semi-finished units, where the die is combined with the substrate, are coated with an epoxy layer that enhances bonding strength and electrical conductivity This epoxy layer contains special components that improve adhesion and facilitate a strong, effective connection between the main components Since the epoxy layer is initially soft plastic, it requires baking at high temperatures to harden and securely bond the die to the substrate, ensuring product durability and performance.

Epoxy products are categorized under various SLI codes to facilitate efficient management across different product lines Each Epoxy SLI batch contains 200 syringes, which are packaged in sets of four syringes per batch for streamlined distribution and inventory control.

According to the Phase 2 10K EPXs process, it is essential to operate three EPX tubes simultaneously per cycle This requirement often results in the fourth tube being left unused or delayed, impacting overall efficiency Optimizing the process to ensure all four EPX tubes are utilized effectively can enhance productivity and streamline operations.

- There is currently no process and no owner for Epoxy material consumption

- Intel only allows 1 SLI for the same production, but the freezer can contain more than 4 different SLI, and we cannot mix them together to use due to quality concerns

- Currently, no system monitors scrap epoxy material, so POX process is scrap without tracking

Currently, Intel's epoxy usage analysis reveals that one tube of epoxy costs approximately $84, with a total of around 632 tubes ordered between August and November 2019 based on data from EPX Sup/OS The setup process is notably time-consuming, requiring approximately 179 instances, which indicates significant tool consumption and potential opportunities for process optimization.

537 tubes and remainder 95 tubes (7980$ wasted), in case of full loading at EPXs, Intel can waste 122,304 USD per year

A problem of Epoxy usage has raised a concern about waste on the material, money, and working efficiency if we continue to ignore it

A dedicated team initiated this project to reduce costs for the factory while simultaneously enhancing the epoxy process through kaizen principles By fostering a culture of continuous improvement, they aimed to optimize workplace efficiency and encourage innovative thinking among employees This initiative not only achieved cost savings but also promoted a mindset of ongoing development and operational excellence.

Successful Kaizen events rely on collaboration among a diverse team, including content experts, process owners, facilitators, and managers The core team, such as MT, Supervisors, and OS2 Operation Specialists in Epoxy Phase 2, provides essential expertise, while process owners and sponsors support decision-making and project sponsorship Initiated in April 2020, these events focus on observing and standardizing specific roles within the RIL Manager’s control to ensure continuous improvement and operational efficiency Regular Kaizen activities emphasize the importance of cross-functional teamwork and targeted process optimization.

Page 36 value stream executes shifty This scope of kaizen event contains 3 main activities within EPX module (Order, Consumption, Scrap)

3.3.2.3 The Epoxy syringe control process execution for Phase 2-10k

After the process owner conducts the Kaizen preparation meeting with team members and their managers, the Kaizen event begins During the kickoff, they review the Kaizen project scope, study the relevant tools, and reference key theoretical concepts to ensure a clear understanding.

Figure 3.2: High level flow of EPX

The ordering process begins with Sup/OS2 reviewing the system to determine the number of EPX types needed for chip manufacturing They place orders based on these quantities, and OS2 then checks the Kanban status in the system and the remaining material on the shop floor; if the Kanban is still full, no order is necessary via SAP However, if the stock is low, they order through SAP according to the required quantity Material is typically delivered within four hours from the warehouse to CW, who then receives and stocks it in the EPX freezer.

The consumption map highlights the importance of SC communicating the need to prepare fresh materials When MT retrieves items from the fridge, they must verify key information such as SLI, EPX expiration date, and the condition of the bag’s exterior MT typically places the fourth item from the left inside the freezer and brings three new tubes to update material information in the system Following this, they wait approximately two hours for epoxy to thaw before setting up and operating the tool, ensuring proper preparation and efficiency in the process.

Thirdly, every week, PM team will have a line walk and check Kanban which is in status

"on hold", if there is material in Kanban then send email to inform MFG, AE to scrap, if there is no concern then go ahead to scrap

 Desired result: After analyzing a lot of problems with the use of Epoxy at

CNLUSFF, the desired results are addressed:

- Create a standardized process (Order - Consumption) across 4 shifts to control Epoxy syringes to save material at Phase 2 and proliferate to phase 1 after Phase 2's progress achieve effective results

- Zero left-over syringe being scrapped in Phase 2, 10K

Table 3.1: Ideal state Customer Supplier Stakeholder MW? Ideal state description

MFG IW N/A Zero waste EPX syringes in P2-

3.3.2.4 Implement direct observation and mapping

During the line walk process, team members observe the workstation and transportation route of EPX, simulating processes as needed, focusing on identifying major sources of variation such as differences between individuals, shifts, or products They note potential waste areas and improvement opportunities without delving into detailed analysis, capturing photos for documentation The primary goal is to align the team’s understanding, encourage them to recognize waste and improvement opportunities, and familiarize everyone with the current state process map Following the observations, a brainstorming session is conducted to generate ideas for waste elimination and process optimization.

Transportation Warehouse does not close to MFG site, shipping material must wait for long time

Inventory There is no process to control this

Motion Review loading to order EPX

Waiting Waiting for material shipping, review loading to order EPX, wait 2 hours for thaw time Over-processing Check Kanban status at BOS

Over Production Leaving 4 th tube in the freezer

Teams compile and review photos of waste categories, documenting their locations within the area They then develop the current state value stream map by detailing process steps, conducting VA/NVA analysis, and incorporating relevant data Together with the team, they decide on essential data points, establish a project timeline, and thoroughly assess the gathered information to identify areas for process improvement.

After outlining and organizing each step of the process, they display it on a whiteboard to analyze efficiency They differentiate between value-added and non-value-added steps using color coding, enabling clear visualization of process improvements This approach helps identify areas where waste can be minimized and productivity maximized, ensuring a streamlined and efficient workflow.

A Green Dot signifies Value Added (VA) activities, which are processes that customers are willing to pay for because they physically transform the product or service These activities are essential as they enhance the value of the offering and can be performed correctly the first time, ensuring efficiency and customer satisfaction.

The Limitations in the Kaizen Event implementation process

In my assessment of the Kaizen Event process, I observed that the follow-up phase was insufficiently executed, as there was a lack of consistent evaluation to verify the effectiveness of the implemented solutions Over time, the weekend audits conducted by the PM became less rigorous, resulting in "Remnant Kanban" being left unattended and MT failing to adhere to the SWI instructions This negligence caused the original improvement targets to be unmet, leading to the EPX refrigerator losing its organized state established during deployment.

Figure 3.11: EPX freezer after a long time not auditing

PROPOSING THE APPLICATION OF KAIZEN EVENT IN

Substrate Control Process Improvement

4.1.1 Material ordering and receiving process in VNAT

The material ordering process begins when the Sup / OS reviews the MMS system to determine the day's required production quantities They then check the Kanban system to ensure sufficient materials are available, adhering to the FIFO principle to prevent missing, expired, or phantom lots If the Kanban stock is depleted, they promptly initiate a material order through the DMRA/SAP system In cases of system downtime, alternative procedures are followed to ensure continuous material supply.

OS will order directly by email to IW

Upon receiving an order request from Sup/OS via SAP or DMRA reservation, IW assesses whether the materials are traceable If the materials are traceable, they are transferred to the floor through the material dock, where the IW operator extracts the substrate or LID bundles from cartons, arranges LID tubes in carts, and places substrates on the table For non-traceable items, the IW operator delivers them directly to the designated area, ensuring efficient handling based on traceability status.

Page 48 to dedicated Kanban/freezer, but they must have a signature from Sup/OS/MT on pack slip

DMR MT is responsible for moving empty carts to the material dock for receiving substrates and LID They conduct visual inspections to identify any quantity mismatches or damages and proceed with normal processing if no abnormalities are found The MT then updates the receiving status in the DMRA system for both substrates and LID When receiving orders are sent by MT, OS, or Supervisor, the MT checks the IPN, quantity, location, and SLI if applicable After preparing the substrates or LID, the DMR MT prints the ATPO and packages the items in color-coded thin packages to categorize product families Once the process is complete, the DMR MT delivers the packages to Kanban for use, ensuring smooth and accurate material handling.

Order material on SAP/DMRA MFG

Prepare material at WH based on

IW Delivery TPT: 4hours for all material; 5 hours for LID.

Deliver non-traceable items directly to dedicated drop point

IW Get signature from receivers (MFG

Sup/OS/MT) on pack slip

(LID/Substrate/Memory) to floor dock

De-trash carton boxes and arrange those traceable items at floor dock

IW Arrange substrates on table at dock and arrange LID tube into LID carts

Receiver traceable items at floor dock DM CW MT

Print ATPO and deliver to dedicated Kanban/rack DM CW MT Get information from

MFG Sup/OS/MT on which material, which product, quantity, SLI if any

Return good material to WH OS/MT Submit form

Functionality of DMRA: DMRA system is a portal used in VNAT to order direct materials Direct ordering from SAP is not allowed except DMRA down/ part number is not available

- Physical material received from the warehouse and material delivered to the production floor can be tracked

- In the future, DMRA are expected to be used for both traceable and non-traceable material

DMRA - Inventories quantity updated process:

1 Material order: in this first step, reservation and SLI information pushed to DMRA, contains the two most necessary information: quantity and SLI

2 CW Receiving: Receive reservation to confirm all orders arrived, received SLI to confirm all SLI received

3 Storage update: done the same time with receiving then identify storage location updated before moving in the material

4 Picklist: it is created by OS / ES upon taking the material from storage, after the material is drawn, inventory will be deducted based on the quantity on the

Page 50 picklist, inventory to be taken by expiration date, and expired material not be allowed for picking system, picklist need to be done religiously to avoid physical mismatch

5 Scrap / Hold: The problematic lots could be locked on the system and not count towards the stock, and it could be unlocked if after physical testing the material still meets the standards, expired lot can be scrapped to clean up quantity

According to DMR statistics over the years with the current substrate management process, the control of substrate lots has the following problems

A phantom lot occurs in WS when a lot exists as PROD or ENG but has no physical units, often resulting from users failing to kill substrate during operations from 589 to 2000 or forgetting to do so at operation 589 when units are present or were rejected The system monitors these instances and triggers an alarm if a lot remains at operation 589 for over one day (for substrate) or 14 days (for LID), helping to prevent discrepancies between the physical inventory and WS records.

Loss of DM locations occurs when substrate or LID is shipped to the MTs for operation, but due to a loading change or other reasons, the MTs do not return the IW This results in the delivery of DM to the factory without proper usage by MTs or engineers, leading to missing lots and potential inventory discrepancies Proper tracking and communication during shipment and loading processes are essential to prevent such losses and ensure accurate inventory management.

An expired lot occurs when a lot remains unused for an extended period, often due to its small size or MT's decision not to operate it Additionally, physical damage or other issues with the lot can lead to its expiration, indicating it is no longer suitable for use or sale.

In addition, we list down some problem statement to understand the huge impact to the floor and the damage it causes for company:

Between August 2019 and May 2020, a total of 165 lots (512Ku) were identified as missing, while 78 lots with expired shelf life (133Ku) were successfully cleaned up These lots had been in operation for periods ranging from 60 to 700 days In addition, historical data shows that in 2018, 13 expired lots were scrapped without any phantom lots being submitted for scrap, and in 2017, 7 phantom lots were scrapped This highlights ongoing efforts to manage and rectify lot expiration and inventory discrepancies, emphasizing a proactive approach to quality control and inventory management.

9 lots expired shelf life scrapped

- As of work week 30, there are 204 lots (691Ku) in 589 >10 days at operation

Our analysis reveals a significantly high number of problematic lots, with missing lots totaling approximately 165 lots, equivalent to around 512,000 units This substantial volume of missing and problematic lots can lead to major operational disruptions, delays in delivery, and increased costs Addressing these issues is crucial to improve inventory accuracy, optimize supply chain efficiency, and prevent financial losses Implementing effective tracking and quality control measures can help minimize the occurrence of missing lots and enhance overall business performance.

Inventory counts in the DMRA system may inaccurately reflect actual substrate quantities, leading to discrepancies between system data and real-world stock levels As highlighted in the DMRA system section, this can result in the system's recorded data being incorrect compared to actual substrate availability.

Page 52 retains the original number because no one updates the exact data lead to physical substrate mismatch

- Operator execution can be difficult because MT/Sup/OS does not know exactly the location of the lot or lot have physical on the floor or not

DMR has limited storage capacity, leading to an accumulation of unused goods delivered by IW These items are left on the floor, contributing to an increase in work-in-progress (WIP) when not promptly picked up by MT, resulting in ongoing inventory buildup over time Effective inventory management is essential to prevent storage overflow and optimize workflow efficiency.

DM room is designed with the limited area so some lots cannot be reserved in good condition

Manual cycle counting consumes significant time, with 1 hour per 168-hour week, due to discrepancies between system data and physical inventory at the factory This labor-intensive process is necessary to verify inventory accuracy but diverts CW personnel from more valuable tasks, highlighting the need for more efficient inventory management solutions.

Frequent transfers of lots between DMR and Kanban at the floor can lead to quality issues, as external factors like holds outside the process, damaged trays, or shipping mishaps can compromise the integrity of the bundles These issues often render the affected lots unusable, forcing them to be scrapped and resulting in significant waste for the company.

Figure 4.4: A hole in MBB of substrate bundle

Figure 4.5: small lot and expired day

Despite implementing strict management protocols from the ordering process through to factory delivery, observational data and statistics reveal that issues persist, highlighting ongoing challenges within the current supply chain operations.

- Currently, there is no process to monitor and control substrate static lot

- Substrate lot location is not defined

- Substrate cycle count is executed yearly so detecting the mismatch is too late

- DM room is too small to contain all substrate lots

- Production prioritize to run full lot

This is all what we know from the current situation, otherwise, what we do not know:

- Substrate static lot monitoring is not existing

- MT might ignore small substrate lots Normally, MT gives priority to running large lots, because they think running small lots will consume capacity

- WS/SC is not able to trigger MT if wrong bundle scanned by MT

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In the fishbone chart, the causes in turn are given and presented very clearly the categories that can affect quality such as:

Some solutions to decrease limitations of the Kaizen Event at VNAT

Below are some suggestions for dealing with the limitation outlined in Chapter 3:

1 The owner should plan the schedule to audit the Kanban regularly

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2 Create an automatic letter sent from owner to remind Supervisors of communicating SWI content to MT and CW about disposing of EPX tubes left in the refrigerator in accordance with SWI's instructions, send letters to encourage the staff in the EPX department to be more accountable in their roles

3 Print the process of arranging EPX tubes in the freezer, laminate plastic and stick them on the surface outside of the freezer and should have an illustration of "Remnant Kanban" stuck on the outside surface of the refrigerator This will prompt MT directly when they proceed to take the EPX and arrange inside the refrigerator neatly and in the right place

Intel Products Vietnam CO., LTD is a large company with a long period of development Their commitment to positive global impact is embedded in their purpose to create

Page 64 technology that enriches the lives of every person on earth So, to meet the needs of Intel customers in particular and the world in general, and pursuit their commitment, ensure its position in the technology market, in accordance with output, quality is considered as the most priority factor in manufacturing Chipset Especially, quality not only possesses in the finished product but also in the input like material With awesome material management, Intel will effectively control inventory, minimize unnecessary waste, thereby saving costs in inventory, transportation, and storage space In addition, when there are improvements in the process, people can do the job smoothly, optimizing the work done

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Research by Anh Chi Phan, Ayman Bahjat Abdallah, and Yoshiki Matsui (2011) demonstrates that effective quality management practices significantly enhance the competitive performance of Japanese manufacturing companies, highlighting the importance of continuous improvement efforts Flynn, Schroeder, and Sakakibara (2002) developed a comprehensive framework for quality management research, along with a measurement instrument that facilitates accurate assessment of quality practices within organizations Additionally, Bernard W Taylor and Roberta S Russell's (2001) work on operations management emphasizes the critical role that quality strategies play in improving operational efficiency and overall organizational effectiveness.

Value Along The Supply Chain United States of America: Jonh Wiley & Sons,

Casey, T (2019) Substrate management process at VNAT Ho Chi Minh: Intel

Eileen M Van Aken and Jennifer A Farris (2010) present a comprehensive framework for designing, managing, and enhancing Kaizen event programs to drive continuous improvement within organizations Their research emphasizes the importance of structured planning and effective management to maximize the benefits of Kaizen events, fostering a culture of incremental innovation The study highlights key strategies for successful implementation, including clear goal setting, stakeholder engagement, and precise process analysis, which are vital for sustainable operational excellence Implementing these best practices can significantly improve organizational performance by promoting a culture of continuous improvement and waste reduction This framework serves as a valuable guide for organizations seeking to optimize their Kaizen initiatives and achieve long-term operational success.

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Japan's Competitive Success (p 132) Japan: McGraw-Hill Education

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Improvement in Office, Service and Technical Environments USA: Clearance

Manos, A (2007, February ) The Benefits of Kaizen and Kaizen Events Retrieved from proquest.com: https://search.proquest.com/openview/9d2fe051fa4889fcd7cfd18f6cae1d2b/1?p q-origsite=gscholar&cbl4671

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York: Springer Dordrecht Heidelberg London New York

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Trung, N Q (2020) VNAT RIL for phase 2 10k CNLUSFF EPXs syringes material saving Hochiminh: Intel Vietnam

Vietnam, I (2020, 12 4) Ho Chi Minh City Campus Retrieved from Explore Intel: https://www.exploreintel.com/vietnam?v~0f5dd

Wiljeana J Glover, Jennifer A Farris, Eileen M Van Aken, Toni L Doolen (2011,

April 20) Critical success factors for the sustainability of Kaizen event human resourceoutcomes: An empirical study Retrieved from academia.edu.com: https://www.academia.edu/17669668/Critical_success_factors_for_the_sustaina bility_of_Kaizen_event_human_resource_outcomes_An_empirical_study

Appendix 1: EPX freezer before applying control process

Source: VNAT RIL for phase 2 10k CNLUSFF EPXs syringes material saving

Appendix 2: Pace scope (Role & Responsibilities) for EPXs Improvement

Appendix 3: High level flow of Substrate flow

BIÊN BẢN CHẤM KHÓA LUẬN TỐT NGHIỆP DÀNH CHO GVHD

Yếu Trung Bình Khá Giỏi Điểm

Nội dung giữa các chương chưa có sự liên kết chặt chẽ, gây khó hiểu cho người đọc Các vấn đề chính cần tập trung nghiên cứu và mục tiêu nghiên cứu chưa rõ ràng, phù hợp với đề tài đề ra Nội dung phân tích còn lan man, thiếu các chi tiết cần thiết để làm sáng tỏ vấn đề Các nhận định và phân tích không dựa trên dữ liệu rõ ràng, thiếu cơ sở vững chắc Đồng thời, nhiều ý kiến phân tích còn thiếu mạch lạc, dẫn đến mâu thuẫn và giảm tính thuyết phục của bài viết.

Nội dung các chương trong bài viết còn thiếu sự liên kết chặt chẽ, gây khó khăn trong việc theo dõi và hiểu rõ nội dung Các vấn đề chính cần được xác định rõ ràng để phục vụ mục tiêu nghiên cứu, đồng thời các phân tích cần tập trung, chi tiết hơn để nâng cao tính logic và thuyết phục Ngoài ra, nội dung chưa hoàn toàn phù hợp với tên đề tài, gây mất tập trung và ảnh hưởng đến chất lượng tổng thể của bài viết Một số phân tích và nhận định còn mang tính lan man, chưa có nền tảng rõ ràng, cần được hỗ trợ bởi các số liệu hoặc bằng chứng cụ thể để tăng tính thuyết phục.

Nội dung giữa các chương có sự liên kết

Các vấn đề chính cần nghiên cứu đã được xác định rõ, nhằm thúc đẩy mục tiêu nghiên cứu phù hợp với tên đề tài Tuy nhiên, các phân tích còn sơ sài, thiếu chi tiết và chưa thể giải quyết toàn diện các vấn đề nghiên cứu đề ra Một số nhận định và đánh giá còn thiếu căn cứ vững chắc, gây ảnh hưởng đến độ tin cậy của nội dung nghiên cứu.

Nội dung giữa các chương có sự liên kết

Những vấn đề chính cần nghiên cứu, mục tiêu nghiên cứu, và nội dung phù hợp với tên đề tài

Phân tích chi tiết, và tập trung giải quyết được các vấn đề nghiên cứu

Các phân tích nhận định có cơ sở

Trích dẫn và tài liệu tham khảo

Trong bài viết hiện tại, thiếu các tài liệu tham khảo đáng tin cậy và rõ ràng, gây khó khăn trong việc xác minh thông tin Các lý thuyết và khái niệm được đề cập chưa được trích dẫn hoặc phân tích kỹ lưỡng, làm giảm độ tin cậy của nội dung Ngoài ra, nhiều bảng biểu trong bài chưa có tên, số thứ tự và nguồn gốc rõ ràng, ảnh hưởng đến tính minh bạch và tính xác thực của dữ liệu trình bày.

Tài liệu tham khảo không phong phú

Không có trích dẫn các lý thuyết (khái niệm) được nêu ra trong đề tài Có nhiều bảng biểu chưa được đặt tên, đánh số và ghi nguồn

Tài liệu tham khảo phong phú, góp phần nâng cao độ tin cậy của bài viết Tuy nhiên, còn một số lý thuyết và khái niệm chưa được trích dẫn đầy đủ, ảnh hưởng đến tính chính xác của nội dung Ngoài ra, một số bảng biểu chưa được đặt tên, đánh số rõ ràng hoặc ghi nguồn đầy đủ, gây khó khăn trong việc tra cứu và xác minh thông tin Việc chú trọng cập nhật và hoàn thiện các yếu tố này sẽ giúp nâng cao chất lượng nội dung và tối ưu hóa SEO cho bài viết.

Tài liệu tham khảo phong phú, bao gồm đầy đủ các lý thuyết và khái niệm liên quan đến đề tài, giúp nâng cao độ tin cậy của nghiên cứu Các bảng biểu được đặt tên rõ ràng, đánh số đầy đủ và ghi nguồn chính xác, trừ những bảng tự phân tích, tính toán của tác giả Việc trích dẫn đầy đủ các lý thuyết và nguồn tài liệu đảm bảo tính minh bạch, hỗ trợ cho việc xác thực thông tin trong bài viết.

Câu văn và từ ngữ