MINISTRY OF EDUCATION AND TRAININGHO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS MAJOR: INDUSTRIAL MANAGEMENT INSTRUCTOR: TO TRAN LAM GIANG ASSESSING AND IMPRO
Rationale for choosing the topic
Vietnam's manufacturing sector has seen significant growth in recent years, becoming a vital component of the national economy and supporting the development of various other sectors The plastics industry stands out as a major contributor, representing approximately 6-7% of the country's GDP and positioning Vietnam as one of Southeast Asia's leading plastics producers and exporters The Vietnam Ministry of Industry and Trade's 2017-2022 Industrial Development Report indicates that the plastics export turnover reached $3.5 billion in 2022 This remarkable growth has sparked a heightened interest among production management professionals, who are eager to leverage their expertise to address real-world business challenges.
Production planning is essential for enhancing efficiency and competitiveness in manufacturing It enables companies to optimize resource utilization, fulfill customer demands promptly, and reduce costs while boosting profitability However, plastic manufacturing firms in Vietnam frequently encounter challenges in effective production planning, leading to issues such as product shortages or oversupply and ultimately resulting in resource wastage.
During the author's academic journey in Industrial Management, a valuable internship provided hands-on experience, revealing that Thinh Tan Plastic Limited Liability Company's production plant is currently encountering several limitations.
To boost competitiveness and achieve sustainable development, companies must urgently improve their production planning and management capabilities This research employs scientific methods, including surveys, data analysis, and modeling, to identify and tackle key issues The proposed solutions are specifically designed for the workshop's operational context, ensuring their practicality and effectiveness.
Research objectives
This article aims to assess the current manufacturing processes at Thinh Tan Plastic Limited Liability Company, identifying areas for improvement in production planning and management By analyzing the existing workflows, the study seeks to propose effective solutions that enhance operational efficiency and optimize production capabilities at the plant.
Provide an overview of the main production plant of Thinh Tan Plastic Limited Liability Company
To understand the company's manufacturing process, identify the remaining limitations in production planning and overall company management
To apply acquired knowledge to practice, analyze the causes and propose solutions to improve production planning, thereby enhancing management within the company.
Research Object and Scope
This report focuses on the production planning process at the main production plant of Thinh Tan Plastic Limited Liability Company
Spatial Scope: The research location is the main production workshop of Thinh Tan Plastic Limited Liability Company Address: 164C/2, 1B, An Phu, Thuan
An City, Binh Duong Province
Temporal Scope: The research data focuses on the period from March 2024 to June 2024.
Research methodology
The research employs a mixed-methods approach, combining qualitative and quantitative methods, to analyze, evaluate, and synthesize primary and secondary data Primary data:
Collected through direct observation of each production stage during the internship at the manufacturing workshop
Facilitated by the production team members working directly at the workshop Secondary data:
Consult internal records from the departments of quality management, warehouse management, and maintenance, which oversee the manufacturing area
Additional references from the library and the internet on improving production processes
Involves interviewing experts or department heads with extensive knowledge of the production process and years of experience working in the workshop
Conducting surveys, measurements, and collecting actual sample data at the production site at different time periods
Applying tools for data collection and processing.
Structure of the topic
In addition to the introduction and conclusion, the topic includes 4 chapters:
Chapter 1: General Introduction of Thinh Tan Plastic Limited Liability Company
Chapter 3: Current State of Production Planning at Thinh Tan Plastic Co., Ltd
Chapter 4: Proposals for Enhancing Production Planning and Improving Management Operations at Thinh Tan Plastic Co., Ltd
GENERAL INTRODUCTION OF THINH TAN PLASTIC CO.,
Overview of Thinh Tan Plastic Co., Ltd
Table 1.1 Overview of Thinh Tan Plastic Co., Ltd
Name Thinh Tan Plastic Limited Liability Company
Head Office Address and Production Plant
164C/2, 1B, An Phú, Thuan An City, Binh Duong Province
Legal Representative Huynh Buu Tan
Email address thinh.hh@thinhtanplastic.com
(Source: Author compiled from company website)
History of Formation and Development
2003: Thinh Tan Plastic Co., Ltd was established in Ho Chi Minh City
January 2008: Moved the Headquarters to Thuan An City to expand the production scale
2024: Thinh Tan Plastic Co., Ltd has expanded the factory scale to 1100 m 2 , operated with the modern machines and robots
Qualities - Humanities - Mind - Solution – Honest
Vision: “Becoming one of the pioneering businesses in Vietnam providing high quality, safe and environmentally friendly plastic products to global customers.”
To enhance core values for customers, we prioritize building a team of innovative and creative employees, while consistently investing in state-of-the-art factories and equipment By applying new technologies, we strive to produce a diverse range of high-quality and safe plastic products, accompanied by exceptional service.
“Building a company that develops on the basis of a sustainable environment, responsibility for life and responsibility to the community.”
Business Areas and Target Markets
Figure 1.1 Plastic products at Thinh Tan Company
TTP specializes in manufacturing and processing plastic components of products related to the car industry, electronics, fiber optic cables and some other fields Plastic
Thinh Tan Company offers six high-quality products made from advanced technical plastics, including thermoplastics, PA6, PA66, PC, PC ABS, ABS, GPPS, PP, LLDPE, and HDPE, enhanced with fireproof materials and fiberglass With modern production processes and a team of skilled workers, we are committed to delivering exceptional products and services to our customers.
1.3.2 Customers and Partners of the Company
Thinh Tan Plactis supplies products to the domestic market and exports to countries in Asia, Europe, and North America
Thinh Tan Plactis has many major customers in Vietnam and abroad, the main customers including:
Fujikura Fiber Optics Viet Nam Co., Ltd
Overview of the Manufacturing Plant
1.4.1 Introduction to the Manufacturing Plant
Thinh Tan Plactis owns a modern machinery system, along with a team of skilled technical engineers, capable of meeting all customer requirements for plastic products
Technology: Thinh Tan Plactis applies advanced technologies in production, including:
Certificates: Thinh Tan Plastic has achieved quality and management certifications in ISO 9001:2015
1.4.2 Structure of Departments in the Manufacturing Plant
Figure 1.3 Structure of Departments in the Manufacturing Plant
Source: HR Department 1.4.3 Functions of departments in TTP
Board of Directors: Comprehensive leadership and management of all aspects of the company's work and legal regulations, responsible before the law for all activities of the company
Directly direct the following tasks;
Search for customers and sign contracts;
Planning work; Manage and direct labor work, salaries, bonuses, medical care, and employee health care;
Direct and manage general issues of the company;
Directing construction activities at the project:
Manage construction activities according to plan;
Managing labor safety issues, materials
Ensure social security and order in the company's agencies and operating areas;
Receive incoming and outgoing dispatches, take full notes and draft documents, reports, print and copy documents for departments, and ensure security for the company;
Maintain the agency that implements the company's rules and regulations
Maintain an agency that implements policies according to the Enterprise Law for employees;
Implement emulation, reward and discipline regime in the company
The role involves advising the General Director on accounting policies and financial management in compliance with company regulations and legal provisions Responsibilities include managing income and expenditures, overseeing salary payments and debts, preparing financial reports, and supporting human resource recruitment Additionally, the position encompasses various accounting tasks and any other duties assigned by the General Director.
To effectively manage supplier and subcontractor relationships, it is essential to compile a comprehensive list of required materials for purchase and sale This includes evaluating potential suppliers and subcontractors, maintaining direct communication with the general director, and overseeing contracts with these entities Additionally, other tasks may be assigned by the general director to ensure smooth operations.
Receive and sign confirmation, and quote price to customer
The production management department is crucial to the company as it directly oversees the production line and raw material processing Its key functions include optimizing production efficiency, ensuring quality control, managing inventory levels, and coordinating with other departments to meet production goals.
Directly manage and guide employees at the production line;
Organize and manage production activities, ensure quality and delivery schedule;
Set yearly goals, be responsible for plans and activities in the production line, including shift division, quantity, product quality, and product cost;
Plan production for the week and month;
Check the quality of input materials as well as finished products
The Maintenance Department is crucial for ensuring the reliability of the company's production infrastructure by managing repairs and maintenance Key responsibilities include developing a periodic maintenance schedule to guarantee optimal equipment operation, swiftly addressing unexpected issues to minimize downtime, and conducting performance evaluations to identify the need for repairs or replacements Additionally, maintaining an inventory of essential parts is vital for timely maintenance, while involvement in upgrade projects enhances performance and reduces costs The department also emphasizes training and skill development for maintenance staff to ensure effective job performance.
Responsible for delivering goods to the company and departments;
Support the company in finding raw materials for production
The Quality Control Department is responsible for establishing quality standards for the production line and monitoring product quality throughout each stage of production, including the final product This ensures the timely identification and correction of errors before products are delivered to customers Additionally, the department compiles daily and monthly quality reports to inform and recommend corrective actions to the company's leadership.
The R&D Department is responsible for advancing production techniques and driving product development within the company It focuses on gathering and integrating new scientific and technical insights from the global plastic industry to enhance the production line.
Research, decide, implement, monitor and evaluate development strategies, projects and processes;
Plan, ideate and monitor projects and production processes from beginning to production Improve quality to bring the best benefits to the Company and Customers;
Search and track costs, prices and performance of all tools and materials needed to create better products and ideas;
Advise the General Director and departments on technologies, tools, and improvements to make the Company better, create profits, and work effectively;
To achieve approved sales goals, establish and submit comprehensive sales plans to the General Director for periodic approval Organize and implement effective sales strategies for products and services, ensuring compliance with company regulations while proposing customer policies within your functional duties.
Search and develop new customers belonging to the Company's target customer group;
Find, maintain and develop relationships with customers Customer care according to Company policy
The Shift Leader is crucial for overseeing production operations within the company, ensuring a stable and efficient production process This role involves managing the production line, supervising all aspects of production, and effectively allocating resources Additionally, the Shift Leader is responsible for directly training new employees on machine operation, ensuring they are well-prepared to contribute to the team.
Production mechanics are the backbone of a company, as they play a crucial role in the product creation process These skilled individuals directly operate machinery, ensuring it functions correctly by performing initial checks and adjustments Additionally, they serve as the first line of quality control, conducting thorough inspections to guarantee that products meet the company's quality standards before they are passed on to official quality control for further evaluation.
1.5 Overview of the Production Process of TTP
Figure 1.4 Production process flow chart
1.5.2 Description of the Production Process
Table 2.1 Description of the production process
PROCEDURE PROCESS DESCRIPTION TO BE IN
Upon receiving customer orders and requests for production, it is essential to verify the inventory of finished products, as well as the availability of raw materials, including quantity and color codes, to create effective production plans.
- Check the drawing requirements and drawing numbers in accordance with the current version
Plan production - Directly plan production for product codes at the production stage
- Depending on the quantity and size of the product, arrange production machines
Receive material - Receiving raw materials: Receive raw materials from the raw material warehouse depending on the quantity and color specified in the plan
To ensure optimal results, begin by preparing the mold: verify the correct mold and product code, then clean and lubricate the mold Additionally, inspect the push plates, sliders, and guide bars for any cracks or deformation that could affect the product surface.
- Check the cooling water system - Check the day, month, and year clock to match the current production time
Ensure that the buttons remain intact for regular operation while the display screen clearly indicates all parameters Regular maintenance is essential, including lubricating sliders, inspecting machine components, and checking water and cooling pipes Additionally, remember to change and supply oil as well as apply grease It is crucial to clean the machine thoroughly before, during, and after use to maintain optimal performance.
+ The raw materials have the exact type of plastic, plastic color, weight, and whether the plastic has impurities
+ Check if the mold is accurate with the plan + Check if the machine is operating stably + Check if the robot arm is working stably
Notify the production department for processing
If raw materials, molds, machines the robot is broken
- Directly put plastic into the machine's raw material tank for production according to plan
- Drying and removing moisture from raw materials: set the temperature and drying time according to the data of each type of raw material
Melting materials: set the cylinder temperature to the correct melting temperature according to the data of each material
Injection molding of liquid plastic into the mold
Injection molding of liquid plastic into the mold: set the appropriate injection parameters to bring the molten material into the mold to achieve the best product
Cool the mold Mold cooling: set the appropriate cooling time for each product to give the product the best shape and quality
Plastic product Semi-finished products PROD
Check product quality and remove 2 - 5 shots
Check the quality of the first product to match the production plan in terms of color and size based on samples and drawings
Conduct sample test runs, compare the produced sample products with the standard samples signed by QA
Corresponding: proceed with mass production
Non-corresponding: conduct test run again and the NG product will be processed
After running the test sample, if the product is defective, the machine parameters will be adjusted
Mass production After producing the first product with quality according to the specifications of the plan, proceed to mass production
Check the product for: missing plastic, burrs, cracks, wrong colors, black dots, dents, deformation, impurities
Compare the produced product with the standard sample signed by QA to confirm the size and the color
Products will be packaged depending on size, quantity and packaged according to the requirements of the work instructions
Enter warehouse Proceed to warehouse finished products after the products are packed and arranged according to the prescribed location
OQC receives products from finished product warehouse and conducts re-inspection
After the product meets the final requirements of the inspection step, store the product
Store products and wait for delivery according to plan
Wait until the delivery deadline according to plan WH + PUR
Ex warehouse Receiving orders from the warehouse manager will release the goods from the warehouse
Scan the QR code to check before leaving the factory
This is the step to check the quality to see if the product in the box matches the product code and customer
Description of the Plastic Injection Molding
Plastic injection molding (PIM) is a widely used manufacturing technique for producing plastic products, and Thinh Tan Plastic Co., Ltd effectively employs needle gate technology in its operations The PIM process requires essential components such as raw materials, molds, machinery, and robotic arms to ensure efficient production.
Upon receiving an order, the R&D and purchasing departments work together to determine the necessary raw material quantities based on the order volume and evaluate the product's engineering drawings If the drawings comply with workshop standards, the production department formulates a production plan that outlines the product code, machine allocation, production schedule, and labor needs.
The raw materials department blends colors according to specified order requirements and predetermined color selections A small batch of sample products is created for inspection The quality control (QC) department then evaluates the color and dimensions of these samples If they pass inspection, mass production begins.
The production management department carefully selects the appropriate mold based on the product's dimensions, while the maintenance department performs regular mold replacement and cleaning, either daily or monthly This process can be time-consuming, taking several hours, and contributes to machine downtime and stoppages To minimize this downtime, effective coordination between the production and maintenance departments is essential for optimizing production schedules.
THEORETICAL BASIS
Overview of Production Planing
Planning is the foundational management function that involves setting specific goals and outlining actionable steps to achieve them Effective planning yields numerous benefits for both individuals and organizations, enhancing overall productivity and success.
There are many concepts of planning that we can easily find from various sources, and below are some concepts that the author has referred to and selected
Production planning is a crucial decision-making process that determines what to produce, how much to produce, the methods and resources required, the personnel involved, and the timing and location of production This process is essential for effectively and efficiently achieving an organization's objectives.
According to Koontz et al (1992), planning serves as a crucial framework for navigating uncertainties, acting as a "bridge across the gaps to reach the destination." It enables organizations to identify necessary actions, establish execution methods, set timelines, and assign responsibilities, all aimed at achieving their objectives effectively.
Planning, as defined by Bui Duc Tuan (2005), involves establishing objectives and proposing policies and solutions for implementation The outcome of this process is a comprehensive business plan, which outlines the directions, tasks, goals, and necessary material and financial resources required to achieve the specified business development objectives within a designated timeframe.
According to Drucker (1954), planning is an ongoing process that involves making informed decisions regarding the necessary actions, the individuals responsible for executing them, and the methods to be employed, all aimed at achieving specific objectives.
In summary, planning can be simply understood as the process of clearly defining objectives, making plans, and allocating resources to achieve those objectives effectively
Production is a crucial aspect of management in manufacturing companies, as it directly influences their operational success Effective production planning is essential for optimizing efficiency, minimizing risks, fulfilling market demand, and enhancing profitability This process entails deciding on the quantity of products to manufacture, identifying required raw materials, scheduling production timelines, and outlining the necessary steps to meet production objectives.
Production planning is a critical process that begins with setting objectives and formulating strategies to achieve them (Koontz et al., 1992) It involves creating a projected production plan over successive time periods, known as the planning horizon (Thomas et al., 1993) Tran Thanh Huong (2007) defines production planning as the development of specific tasks and their implementation processes based on available resources to meet manufacturing goals This systematic approach anticipates all necessary tasks to enhance productivity, product quality, delivery time, profitability, and business reputation, making it an essential action plan for every company.
Production planning involves identifying and allocating resources to efficiently produce goods or deliver services within a specified timeframe, aiming to meet the enterprise's goals and requirements effectively.
Depending on the different factors, production planning is also divided into several types to fit each production process Below is the common classification method
According to Truong Doan The (2007), production planning is divided into 3 types based on time: short-term, medium-term, and long-term
A short-term production plan spans from 1 day to 1 year, primarily aimed at addressing immediate market demand and adjusting production in response to market fluctuations while optimizing resource utilization Typically, middle and lower-level managers are tasked with creating this plan In contrast, a medium-term production plan lasts from 1 to 3 years, concentrating on the development of new products, market expansion, and increasing the enterprise's production capacity.
A long-term plan spans three years or more, emphasizing investments in machinery, equipment, and technological innovation for sustainable enterprise development Typically, this strategic initiative is proposed and executed by top-level management.
Production plans can be categorized into overall production plans, departmental production plans, and detailed production plans, allowing enterprises to select the most appropriate strategy based on their objectives and circumstances This classification enables businesses to create effective production plans, optimize resource allocation, and successfully meet their production goals.
2.1.4 The Role of Production Planning
Production planning plays a critical role in helping businesses achieve effective production goals, specifically:
Production planning helps the business accurately forecast market demand based on reliable data and information
This allows the business to determine the appropriate production volume, avoiding product shortages that lead to lost potential customers or excess inventory that causes cost waste
Production planning helps the business effectively utilize its limited production resources, including raw materials, labor, machinery, etc
Rational allocation of these resources helps minimize waste, reduce costs, and improve labor productivity
Production planning helps the business anticipate potential risks in the production process, such as supply chain disruptions, equipment failures, and market fluctuations
This allows the business to proactively implement preventive measures, minimize losses, and ensure smooth production operations
Production planning helps the business coordinate seamlessly between various departments and functions during the production process, thereby enhancing overall operational efficiency
Effective implementation of the production plan can contribute to reduced production time, lower costs, and improved product quality
The benefits mentioned above enable production planning to contribute to the business's profitability and enhance the overall efficiency of its production and business operations
The increased profits can be used for reinvestment, production expansion, market development, and strengthening the competitive position
2.1.5 The Objectives of Production Planning
Production planning plays a critical role in helping businesses achieve effective production goals The key objectives of production planning are as follows:
The main goal of production planning is to guarantee that a business manufactures the correct quantity of products to meet market demand, delivered on time, and with the desired quality standards.
The business needs to accurately forecast market demand based on reliable data and information, and then develop a production plan to meet customer requirements
Production planning helps the business utilize its limited production resources, including raw materials, labor, and equipment, effectively
The goal is to minimize waste, reduce costs, and increase labor productivity, thereby optimizing profitability for the business
Production operations always carry various risks, such as supply chain disruptions, equipment breakdowns, and market fluctuations
Production planning enables the business to anticipate these risks and implement appropriate preventive measures, reducing potential losses and ensuring smooth production operations
Product quality is a critical factor for a business to remain competitive in the market
Production planning helps the business closely monitor the production process, ensuring consistent product quality that meets customer requirements
By achieving the above objectives, production planning can help the enterprise increase profitability and improve the efficiency of production and business operations
Enterprises can use the profits to reinvest, expand production, develop the market, and enhance their competitive position
In addition, production planning also has several other important objectives:
Ensuring occupational safety: Production planning must comply with occupational safety regulations and ensure a safe working environment for employees
Environmental protection: Production planning needs to focus on the efficient use of natural resources and minimizing negative impacts on the environment
Enhancing competitiveness: Production planning helps the enterprise improve its operational efficiency, thereby enhancing its competitiveness in the market
Customer Needs
Customer needs are the requirements, desires, and expectations of customers for a specific product or service It includes the critical criteria that customers use to evaluate and select products, including:
Product Functions and Features: How the product can meet customers' needs and solve their problems
Quality: The level of reliability, durability, aesthetics, and other quality standards that customers expect
Pricing: The price range that customers are willing to pay and consider reasonable
Utility and User Experience: The level of convenience, ease of use, and usefulness that customers perceive when using the product
Customer Service: Requirements for support, warranty, delivery, and other supplementary services
Understanding customer needs is crucial for businesses to design, produce, and deliver products/services that effectively meet customer expectations
2.2.2 Characteristics of Customer Needs in MTO Manufacturing
In Make-to-Order (MTO) manufacturing, the characteristics of customer needs typically include:
Customers often have needs for diverse products that can be customized to their specific requirements
They desire products that are tailored to their individual needs and preferences
Customers have a need to receive products quickly, often within a timeframe of a few days to a few weeks
They do not want to wait for extended periods when placing an order
Customers expect high-quality products that meet technical standards and requirements
They want products that fulfill their intended usage needs
Customers desire product prices that fit their budgets and provide good value
They will compare prices across different suppliers
2.2.3 Methods for Identifying and Analyzing Customer Needs
There are several methods used to identify and analyze customer needs in Make-to- Order (MTO) manufacturing, including:
Conduct surveys and interviews with current and potential customers to understand their needs, desires, and buying behavior
Analyze trends and changes in product and service demand
Utilize historical data on orders, product types, quantities, delivery times, etc to gain a better understanding of customer needs
Analyze customer behavior and transaction history to predict future demand
Organize discussions and conferences with industry expert groups, including sales, technical, and marketing personnel, to gather insights and experiences
Listen to the expert group's perspectives and recommendations on customer needs
Establish mechanisms for customers to provide feedback and suggestions on products, services, and their needs
Listen to and analyze customer feedback and inputs to better understand their actual needs
Research and compare the products and services of competitors to better understand market needs
Identify gaps and opportunities to address different customer needs compared to competitors
The combination of these methods will help plastic manufacturing companies comprehensively identify and analyze customer needs, enabling them to design and provide more suitable products and services
2.2.4 The Role of Customer Demand in Production Planning
Customer demand is a crucial factor in production planning, especially for made-to-order (MTO) manufacturing companies Accurately identifying customer requirements—such as quantity, product variety, delivery time, and quality standards—is essential for creating an effective production plan By gathering this vital information, companies can develop a production schedule that aligns with customer expectations and successfully meets demand.
Here are some key points about the role of customer demand:
Determining Production Volume and Product Mix:
Customer demand directly determines the production volume and product mix that the company needs to manufacture This is crucial for developing an appropriate production plan
MTO companies need to have a flexible production plan to accommodate uneven customer orders Studying customer demand helps to forecast demand and develop a suitable production plan
MTO production allows companies to minimize inventory levels by aligning production closely with customer demand, ensuring timely fulfillment without excess waste By analyzing customer needs, businesses can effectively determine optimal inventory levels to meet demand efficiently.
Understanding customer demand helps the company improve production processes, such as reducing delivery times and improving product quality
By basing production planning on customer demand, the company can better meet customer expectations, thereby increasing customer satisfaction and loyalty
In summary, researching and thoroughly understanding customer demand plays a critical role in developing an effective production plan for a made-to-order manufacturing company.
The Production Planning Process
2.3.1 Definition of the Production Planning Process
The production planning process involves a systematic approach to identifying production needs, creating detailed plans, and continuously monitoring and adjusting these plans to ensure efficient operations, fulfill market demand, and meet specific production targets.
Figure 2.1 The Production Planning Process
Step 1: Determine the basis for production planning
The initial step in production planning involves defining production objectives, understanding customer demand, and assessing the company's production capacity These critical factors lay the groundwork for creating, executing, and validating an effective production plan.
Step 2: Establish the overall production plan
Creating a comprehensive production plan allows managers to obtain a holistic understanding of the company's operational status, facilitating the quick identification of essential elements like product composition, production volume, and quality.
Step 3: Develop the production execution plan
The production execution plan serves as a crucial link between the overall production plan and the production requirements plan It is developed by managers as a transitional framework to effectively implement detailed plans after determining the production volume and product classification.
Step 4: Develop a plan for raw material requirements
After finalizing the production management plan, managers must identify the necessary quantity and composition of raw material blanks to purchase, ensuring they meet production demands and sustain the input factors essential for the factory's production process.
Step 5: Determine machine parameters according to the production plan
Machine capacity plays a crucial role in executing production plans effectively Before establishing a production plan, it's essential to define the technical specifications of the factory's machinery and equipment These parameters can be adjusted to align with the production requirements, ensuring optimal performance and efficiency.
Step 6: Determine the feasibility of the plan
Before implementing production plans, it is essential to test and evaluate their feasibility Ensuring that operational capacity aligns with production requirements is crucial, and adjustments to the production plan may be necessary to match the actual production capacity of the enterprise.
Step 7: Implement the production capacity plan
The production capacity plan is executed only after completing the necessary preliminary steps It is crucial to closely monitor the implementation process to adhere to the schedule and swiftly address any arising issues.
Step 8: Implement the production plan
Total Productive Maintenance
2.4.1 Definition of Total Productive Maintenance
Investing in advanced machinery and equipment is crucial for enhancing production capabilities and increasing profitability in enterprises However, equipment malfunctions and breakdowns are inevitable during operation To mitigate these issues, maintenance methods like Total Productive Maintenance (TPM) have emerged as effective solutions Originating in Japan in the 1970s, TPM is a comprehensive management approach that optimizes the efficiency and stability of manufacturing processes, making it one of the most important strategies for factories and production plants globally.
Founded in 1961 by the Japanese company Nippon Denso, Total Productive Maintenance (TPM) was designed to improve production systems and quality in the automotive industry As the focus on waste reduction grew in the late 20th century, TPM evolved to become an essential component of Lean Manufacturing principles, enhancing operational efficiency and effectiveness.
2.4.2 The Core Principles of TPM
William C Carter (1993) defines Total Productive Maintenance (TPM) as a holistic management system focused on enhancing the efficiency and lifespan of machinery and equipment This approach involves the active participation of all employees within the organization and is built upon seven core principles that guide its implementation.
Total Employee Involvement is crucial for the success of Total Productive Maintenance (TPM), as it requires participation from all employees, from management to the shop floor This collective engagement not only enhances the implementation process but also fosters a strong TPM culture throughout the organization.
Strive for "Zero Breakdowns, Zero Defects, Zero Failures" by optimizing equipment efficiency and safety through thorough maintenance and upkeep This approach not only prevents breakdowns and malfunctions but also enhances production processes to eliminate defects and ensure high product quality Additionally, Total Productive Maintenance (TPM) emphasizes employee education on occupational safety and provides training to help them identify and mitigate risks that could result in accidents.
At the same time, TPM promotes the active participation of all employees in maintaining a safe and efficient work environment
To boost efficiency, Total Productive Maintenance (TPM) employs advanced tools and techniques aimed at enhancing productivity, optimizing operations, and extending equipment lifespan Key methodologies such as 5S, Kaizen, and Poka-yoke play a crucial role in TPM, and when applied effectively and timely, they significantly support organizations in their equipment maintenance initiatives.
Empowering employees, particularly machine operators, in autonomous maintenance is essential for fostering a sense of value and responsibility By encouraging operators to carry out basic maintenance tasks—such as inspection, lubrication, and cleaning after their shifts—companies can enhance operational efficiency Providing training to equip these operators with troubleshooting skills allows them to address simple issues on the spot, significantly reducing production disruptions.
Preventive Maintenance: Enterprises should anticipate the common breakdowns and failures that their equipment may experience, and develop a preventive maintenance plan to minimize downtime and repair costs
To maximize productivity and efficiency, continuous improvement of Total Productive Maintenance (TPM) is essential Enterprises should regularly assess equipment performance and the outcomes of TPM initiatives to identify and implement necessary enhancements.
Effective TPM management is crucial for organizational success, requiring rigorous oversight of every step, tool, and department To optimize TPM, enterprises should implement a structured approach that includes planning, training, evaluation, and continuous improvement.
According to James C Glenn (1999), the core components of Total Productive Maintenance (TPM) include "Safety, Health, and Environment." Success in enterprises hinges on fostering a healthy work environment, equipping employees with essential safety knowledge, providing suitable personal protective equipment, and enforcing policies that prioritize workforce well-being, enabling employees to fully commit to their roles.
When Total Productive Maintenance (TPM) is successfully implemented, businesses can reap many significant benefits:
Reduced downtime due to equipment failures and maintenance
Increased operating speeds of equipment
Improved product quality and reduced waste
Decreased repair and maintenance costs for equipment
Reduced production costs due to increased productivity and quality
Prolonged equipment lifespan, leading to lower replacement costs
Reduced number of accidents and incidents related to equipment
Improved work environment and reduced pollution
Enhanced safety awareness and responsibility among employees
Improved maintenance and repair skills of employees
Increased teamwork spirit and broader employee participation
Encouraged employee-driven continuous improvement initiatives
Enhanced product quality and reliability
Improved competitive capabilities of the business
Strengthened customer trust and reputation
TPM offers numerous advantages for businesses, such as boosting productivity, lowering costs, enhancing safety and environmental standards, developing employee skills, and strengthening brand reputation These enhancements significantly improve the organization's competitiveness and operational efficiency.
Overview of ERP
Enterprise resource planning (ERP) is a software system used by organizations to manage their daily business activities such as accounting, procurement, project management, risk management, and supply chain operations
An integrated solution, ERP consolidates all business processes into a unified system, enabling efficient resource planning Comprehensive ERP software encompasses essential management functions, including business performance management, planning support, budgeting, forecasting, and financial reporting.
ERP business management software offers a wide range of essential features for accounting and finance, such as general ledger management, accounts payable and receivable, financial statement generation, cash management, and budgeting tools.
This function enables businesses to efficiently manage cash flow, streamline data entry, and fulfill essential accounting and finance tasks Additionally, it enhances the management of receipts and payments, leading to improved operational efficiency.
Procurement Management: The ERP system streamlines the entire procurement process, facilitating the creation of purchase requisitions, the solicitation of quotes, supplier selection, contract signing, and the efficient handling of goods receipt and payment processing.
This function provides the company with an overview of suppliers, order management, control of the receiving process, and generates comprehensive procurement reports
Sales Management: ERP provides comprehensive support for the sales process, from receiving customer orders, warehouse picking and delivery, to invoicing and accounts receivable management until final payment
This function helps manage customer relationship information, sales activity reports, and control information on the company's discounts and promotions
Effective inventory management is essential for companies to oversee the levels of raw materials, consumables, and finished products in stock This function not only tracks actual inventory levels against reports but also monitors daily inbound and outbound quantities to ensure optimal stock control.
Production management is a core component of ERP systems, designed to streamline the production process and align it with organizational needs ERP's production features include essential tools like product structure, material requirements planning (MRP), production planning, execution, and quality management, among others, to address the varied production demands of the company.
Customer Relationship: Supports the company in managing employee records, marketing management, information on the activities and revenue of each employee, and tracking information on each customer group
R&D and Engineering: Provides tools for product design and development, product lifecycle management (PLM), product compliance, etc Helps the company create new innovations quickly and cost-effectively
Enterprise Asset Management: includes predictive maintenance, scheduling, planning, and operation of assets, environment, health, and safety (EHS)
Enterprise Resource Planning (ERP) enhances accuracy and boosts operational productivity by integrating and automating business processes, thereby reducing waste By connecting and synchronizing tasks across various departments within a unified system, ERP facilitates greater efficiency in workflows.
Enhanced Reporting: Delivering precise and detailed insights into the company's operational status, encompassing finance, accounting, and overall business performance This facilitates effective planning and forecasting while enabling real-time updates on operational metrics to boost performance.
Increased Effectiveness: ERP allows the company to quickly update necessary information for customers, suppliers, or business partners This helps improve customer
32 trust, enhance the ability to respond quickly with higher accuracy, and reduce related costs
Implementing ERP enhances collaboration across departments by facilitating faster information sharing, which in turn boosts workforce productivity It clarifies each employee's functional role in supporting the company's mission and vision, while also simplifying workflows through the use of information technology and reducing the burden of tedious manual tasks.
Data Analysis Support Tools
The Ishikawa Diagram, also known as the Fishbone Diagram or Cause-and-Effect
Diagram, was developed by a Japanese engineer named Kaoru Ishikawa The Fishbone
Diagram is one of the visual tools used to identify the causes of issues in production specifically, and in many other fields in general
The Ishikawa Diagram í bebeficial for problem-solving across various industries
Specifically, in the manufacturing industry, the categories of the Fishbone Diagram, according to the Toyota Production System, are know as the 6Ms However,
Management (money power) and Maintenance have been added later, expanding it to the 8Ms It’s important to note that this expansion is not globally recognized
Machine: the equipment, tools and technology used in manufacturing processes
Method: Process or procedure followed to manufacture the product
Material: Raw materials, comsumables and information
Manpower: human resources (including their skills, traing and experience)
Measurement: metrics and standards used to evaluate the manufacturing processes
Milieu/mother nature (Environment): External factors that can impact the manufacturing process
CURRENT STATE OF PRODUCTION PLANNING AT THINH
Factors Influencing Production Planning at Thinh tan Plastic Co., Ltd
Production operations play a crucial role in the success of manufacturing companies, with effective production planning being the first step towards achieving organizational goals At Thinh Tan Plastic, the production manager is tasked with this responsibility and must have a thorough understanding of the company's resources, including labor, equipment, and raw materials Additionally, various other factors significantly influence TTP's production planning efforts, highlighting the complexity of the planning process.
To effectively align with the company's overall development direction, the production plan must be meticulously crafted This involves the manager establishing specific production targets by integrating market trend projections from the sales department with the business performance data from previous quarters.
Each department in a company has unique production objectives that align with the overall business direction The production planning department is essential in formulating the comprehensive production strategy The production manager must address key questions, including the quantity of items to produce and store, the required raw materials for manufacturing, and the supporting activities involved in the production process All these considerations must be adjusted to align with the management's overarching business goals.
Customer demand plays a vital role in production planning, particularly in the Make-to-Order (MTO) model, as exemplified by TTP, a business that relies on this approach By understanding specific client orders, production managers can effectively gather and document essential details such as product types, confirmed order quantities, and delivery dates This information forms the foundation for creating and adjusting the manufacturing plan within a set timeline, ensuring that production aligns with customer requirements.
No Product Code Production Plan
In May, BVN ordered eight product codes, achieving a production success rate of 25%, with two out of eight codes meeting the production plan This demonstrates the company's capability to fulfill a significant portion of customer demand However, 75% of the product codes fell short of the production targets, potentially due to machine breakdowns, raw material shortages, or planning errors Addressing these issues is crucial for improving the company's effectiveness in meeting customer needs.
In addition to customer demand, the company's capabilities also play a crucial role This is a factor that determines the ability to meet production and customer demands
A production manager must align production plans with the organization's actual capabilities, collaborating closely with relevant departments to assess the plant's operational status This includes evaluating worker productivity, machinery capacity, maintenance schedules, and raw material availability By gathering this critical data, the production manager can develop a production schedule that meets client demands while maximizing the company's operational efficiency.
The workforce is a crucial element in a company's operations, as machinery cannot function effectively without skilled manpower, impacting both product quality and operational control At TTP, the current workforce comprises not only office staff and management but also a limited number of experienced technicians and skilled permanent production workers A significant portion of the labor force consists of "green labor" hired from third-party sources, resulting in a constantly changing production team This dynamic necessitates ongoing coordination between the production and HR departments to regularly update workers' operational statuses and effectively manage production shifts and machinery operations.
Type of Labor Quality (person) Percentage (%)
Figure 3.1 TTP labor structure chart
Effective production planning must take into account the labor force capacity, as it significantly influences the manufacturing process Currently, the workforce consists of 68 employees, with direct labor comprising 19% permanent workers, 13% technicians, and 47% non-permanent workers Indirect labor, which includes managers and office staff, represents 21% of the workforce Notably, the number of direct laborers is four times greater than that of indirect laborers.
Thinh Tan Company faces challenges in production planning due to insufficient raw materials, which are sourced from both domestic suppliers in Vietnam and international sources like Thailand, South Korea, and China Key factors in their raw material procurement plan include the order amount on the purchase order (PO), current inventory levels, and the storage capacity of their warehouses Additionally, the procurement department must account for transportation times and the ongoing fluctuations in raw material prices to ensure efficient production.
38 that, the data is given to the production manager at TTP to assist them in comprehending the real circumstances and creating the most efficient production plan
Machinery and equipment play a crucial role in production planning, as their operational capacity directly impacts factory output Production managers must schedule output based on the actual capabilities of machinery, which at TTP ranges from 50 to 350 tons, tailored to specific products and molds Additionally, the maintenance and repair status of machines, robots, and molds significantly influence production readiness Downtime due to breakdowns can disrupt manufacturing processes and must be incorporated into production plans At TTP, molds receive maintenance aligned with manufacturing schedules, alongside monthly upkeep; however, many molds are often neglected, leading to irregularities and complicating urgent orders for the manufacturing crew.
The urgency of an order greatly influences production planning, as urgent requests typically require faster manufacturing and delivery times compared to standard orders Consequently, production scheduling must be flexible and responsive to meet these heightened demands efficiently.
3.1.5 Consultation of past plan execution results
Analyzing historical data from past production plans enables production managers to assess their effectiveness, identifying strengths and weaknesses This evaluation aids in determining the compatibility of product codes with machinery, helping to prevent overproduction and shortages while enhancing the precision and efficiency of production planning By reviewing previous outcomes, production managers can ensure that molds and machinery work harmoniously, leading to more informed decision-making in future production plans.
A skilled manager can create an effective production plan by incorporating precise strategies, suggesting improvements to mitigate past hazards and bottlenecks, and making essential adjustments for future implementations.
The current state of production planning at Thinh Tan Plastic
3.2.1 Production planning methods and tools
The production planning method at TTP is semi-automatic Production planning is managed entirely using Google Sheets (Drive), a Google tool, for data input and monitoring
Figure 3.2 The production planning method at TTP
Evaluation of the advantages and disadvantages of using Google Sheets for production planning
Google Sheets is a cost-effective and user-friendly tool ideal for small businesses, offering essential management capabilities without significant expenses.
Utilizing Google Sheets (Drive) suggests that the business has moved away from using paper documents only for management and production planning, and has instead integrated technology into these activities
The production plan utilizes formula functions on the sheet to automate some calculation tasks, helping to reduce data entry time and potential errors from manual input
There are still a lot of human data entry activities even with the usage of certain automated formula functions, suggesting that the process's level of automation is still rather low
When compared to specialist management tools, Google Sheets' data analysis capabilities are restricted Not all features are supported, such as anticipating urgent orders or generating reports
3.2.2 Sources of data for production planning
The sales department will receive orders from customers and then create a purchase order (PO) and transfer it to the production department
Figure 3.3 Koken customer production plan for May
Figure 3.3 illustrates a purchase order (PO) received by the production department from the sales team, detailing the production plan for KOKEN customer orders placed in May This PO provides the production manager with essential information, including product code specifications, order quantities, required raw materials, and delivery timelines.
After receiving the purchase order (PO) from the sales department, the production manager will review the data in the PO and combine it with previously known historical
To determine accurate production requirements, the production manager analyzes data from the purchase order (PO), which includes essential details such as product code, order quantity, delivery schedule, and technical specifications Additionally, historical production data enables the manager to monitor past production volumes, identify weaknesses in the production process, and evaluate the company's capacity to meet future production demands effectively.
At TTP, production planning relies heavily on two essential data sources: purchase orders (PO) and historical data The production manager analyzes and integrates information from these sources to effectively execute production planning.
Figure 3.4 Production Planning Process of TPP
At Thinh Tan Plastic Company, the production planning manager is responsible for production planning The following describes the steps in the standard production planning process
Step 1: The sales department serves as the customer's point of contact for the receipt, processing, and creation of purchase orders Purchase orders are then forwarded to the production manager, who then starts the production planning process
Step 2: The production manager will collaborate with the warehouse department to determine the current inventory levels Checking the available inventory is critical to assess the production requirements and develop an appropriate production plan
Step 3: An internal evaluation is carried out, covering aspects related to raw materials, molds, machinery, and human resources In order to guarantee an adequate supply for production, the production manager will confirm the kind of plastic needed for product manufacturing and assess the availability of raw materials They will also evaluate the equipment's manufacturing capability to ascertain whether they can complete the order Finally, the production manager will work with the HR department to evaluate the current workforce and make appropriate staffing arrangements
Step 4: The production manager will create a thorough production plan based on the evaluations of raw materials, equipment capability, and human resources The manufacturing timeline, quantity, and finishing timeframes will all be outlined in this plan
Step 5: The production manager must verify the completion schedule with the sales department after creating the production plan By doing this, the company may be certain that it can precisely commit to and inform its clients of the delivery schedule
Step 6: To closely monitor the real progress, the production manager will work in tandem with the technical personnel They will take corrective action, like adding more staff or working extra, if the progress does not match the plan in order to hasten it Provided that the order is finished on schedule, they will continue to preserve the production's stability
The production process at Thinh Tan Plastic involves essential steps, including order receipt, production planning, and ongoing management of production progress This standard procedure is designed to ensure efficient manufacturing and meet customer commitments effectively.
Evaluation of the current state of production planning at Thinh Tan Co., Ltd
The production planning process is systematic and synchronized, involving detailed operations and specific planning forms It is organized into clear steps, with defined responsibilities assigned to each department.
Implementing the Make to Order (MTO) manufacturing process allows the company to lower production and storage costs by minimizing raw material inventories.
The production planner at TTP possesses a strong understanding of the production environment, thanks to specialized training received by the production manager This expertise enables the manager to effectively address unexpected challenges that arise during operations, ensuring efficient workflow management.
Close departmental cooperation makes it possible for this process to optimize the use of data resources like personnel, raw materials, machine and equipment
Improved risk management: Thorough analysis of the influencing factors and bottlenecks that have occurred in previous plans helps the company more proactive response to risks and changes
Despite the advantages highlighted earlier, Thinh Tan Plastic's production planning process faces several challenges Through a thorough analysis of the current planning situation, along with insights gained from interviews with experienced personnel, key factors negatively affecting the production planning process have been identified, as illustrated in the accompanying fishbone diagram.
Figure 3.5 Fishbone diagram of production planning shortcomings
The remaining limitations in the production planning work for all product codes at
The human factor is crucial in executing production plans, but labor shortages and inadequate training can hinder planning effectiveness and overall production activities.
The company's limited labor force is unable to meet production demands, despite the reliance on machinery and robots This shortage complicates work arrangement for planners, impacting overall operations Additionally, the inexperience of newly recruited workers, who have not received sufficient training, exacerbates production challenges Lastly, issues with the production planner further hinder efficiency at Thinh.
At Tan Plastic, the production manager is solely responsible for production planning and a range of other tasks, which can lead to an overwhelming workload This situation often results in delays in communicating updated production plans to the production units, leaving them unprepared for increased workloads and potentially harming organizational efficiency.
Fluctuations in order quantity and production volume compel firms to adjust their workforce, often requiring overtime to meet urgent demands, which significantly escalates production and labor costs Conversely, receiving smaller orders may necessitate workforce reductions and the idling of machinery, leading to inefficiencies in the manufacturing process.
Thinh Tan Plastic manufacturing faces potential issues and risks due to the unique characteristics and technical specifications of each product code The facility primarily operates machines with capacities below 150 tons, with limited availability of larger machines, necessitating careful planning by the production manager to meet complex production requirements without disrupting other operations Unforeseen problems, such as equipment breakdowns, can lead to significant downtime and production disruptions Unfortunately, there is a lack of focus on forecasting these potential issues, as evidenced by the author's internship observations, which revealed several machine failures that adversely affected production Notably, one incident resulted in a critical material shortage and a high error rate in production, yet the shift leader failed to address the situation adequately.
The raw material team faced a significant shortage despite having received the required plastic quantity from the warehouse for the production plan Consequently, they needed to produce an additional 40kg of virgin plastic However, due to a high failure rate during manufacturing, 25kg of plastic were ultimately wasted, leading to substantial losses.
The production schedule of the business was significantly affected, leading to substantial time losses Consequently, the order's productivity was inefficient, causing delays in the production plans for subsequent orders This ultimately resulted in issues and delays in delivering products to consumers.
Thinh Tan Plastic faces limitations in data analysis and reporting due to its small scale, relying heavily on Microsoft tools like Excel and Google applications for management and production planning This reliance results in significant data input and collaboration challenges, as only management has access to critical information Technicians must wait for updates from the production manager via the Zalo group, leading to poor interdepartmental communication and increasing the risk of incomplete or erroneous data.
The organization relies on manual tracking sheets and reports, which can lead to computation mistakes, particularly in the production report completed by the shift leader This report serves as a critical tool for the production manager to monitor the actual progress of orders, assess the ratio of non-conforming goods, and identify discrepancies between actual and standard production volumes, as well as any errors that occurred during the shift However, the reliance on manual data entry often results in deviations between the production plan and actual outcomes, highlighting the need for improved tracking methods.
48 the company has not yet found solutions to address this issue, which often results in over-production or under-production
Figure 3.6 Daily Production Report June 2024
This production report outlines significant calculation errors identified during an internship, noting that on June 7, 2024, the remaining production plan was 13,450 pieces After producing 1,250 pieces the following day, the shift manager recorded the remaining plan as 11,200 pieces, revealing a discrepancy of 1,000 pieces; the accurate count should have been 12,200 pieces These errors continued to affect recorded results in subsequent days, with production management occasionally detecting and correcting them, but often failing to do so This oversight resulted in insufficient actual production before machines were halted and preparations for new plans began, ultimately increasing production costs, wasting time, and disrupting future production schedules.
The author identified key limitations during the internship, noting that the company's production planning primarily relies on customer order data This dependence leads to a lack of proactiveness in production planning, as it is heavily influenced by purchase orders and market fluctuations Furthermore, the quality of input data plays a crucial role in production scheduling, with accurate and comprehensive data being essential for effective planning Any unreliability in the data can significantly impact the planning process.
TPM Solution
Customer demand significantly influences production planning in the company's Make-to-Order production model To mitigate the reactive response to client needs, forecasting is prioritized; however, accurately predicting demand is challenging due to its variability and lack of consistent trends.
Production managers often struggle to identify the appropriate items and equipment combinations needed to fulfill urgent orders, primarily due to the company's lack of a comprehensive preventative maintenance schedule This oversight leads to suboptimal equipment performance and malfunctions during production To mitigate these challenges, the author suggests implementing a Total Productive Maintenance (TPM) solution By adopting a proactive approach, the company can ensure that all necessary resources are readily available to meet customer demands promptly, rather than reacting to orders as they arise.
To maximize the effectiveness of implementing TPM, the company needs to undertake several critical preparations, as follows:
Leader is the one who holds power Top management commitment and support are critical to the effective implementation of TPM For the purpose of allocating resources
51 for TPM deployment, leaders need to have a comprehensive awareness of the goals, advantages, and methods of implementation
To successfully adopt Total Productive Maintenance (TPM), the company should form a dedicated implementation team comprising production managers, technicians, and maintenance staff, all of whom should have extensive training in production management and equipment repair This team must have clear objectives, strong communication skills, and the ability to foster consensus and commitment among its members, enabling them to effectively lead, guide, and support the organization throughout the TPM adoption process.
Implement comprehensive TPM training programs for employees at all levels, focusing on essential skills such as inspection, cleaning, and lubrication for effective machine maintenance Enhance awareness of TPM's significance among production workers, motivating them to self-monitor equipment and promptly communicate any concerns to technicians or relevant staff.
To ensure optimal performance of all machinery, the TPM team must establish a comprehensive maintenance schedule that outlines specific maintenance activities, their frequency, methods, and designated personnel responsible for each task Additionally, a structured maintenance program should be developed to monitor progress and effectiveness over time.
Regular listing, inspection, and maintenance of all machinery and equipment are essential for any business Additionally, ensuring that necessary replacement parts and supplies are readily available can prevent delays caused by searching for missing items.
The TPM team must collaborate to identify the root causes of failures and breakdowns, ensuring a thorough understanding of the issues at hand Following this analysis, they should develop targeted solutions to address specific problems and implement innovative improvements to prevent similar incidents from occurring in the future.
Total Productive Maintenance (TPM) is crucial for enhancing the efficiency and longevity of production equipment, particularly for plastic injection molding companies like Thinh Tan Plastic, where machinery significantly influences productivity and product quality TPM is scalable, requiring minimal initial investment while offering substantial returns, making it an attractive option for businesses Employee training facilitates moderate productivity increases, allowing for seamless TPM implementation at Thinh Tan Plastic The company already employs a strict 5S system, and the focus on audits will aid in monitoring TPM progress The proposal was presented to the production manager and was positively received as highly feasible.
When Total Productive Maintenance is effectively implemented, businesses can reach the following benefits:
Improved Equipment Reliability: Successful TPM implementation reduces equipment breakdowns and failures This significantly improves production planning, ensuring that production plans are executed smoothly and on schedule
Enhanced production forecasting and scheduling are achieved when machines are maintained according to Total Productive Maintenance (TPM) standards, leading to fewer breakdowns This reliability enables more accurate production forecasts and allows for the establishment of precise production plans, significantly reducing disruptions from equipment failures.
Increased Flexibility and Proactiveness: With more stable equipment operation, production planners can easily adjust and schedule production in response to customer changes or market demand fluctuations
Improved Management: Data on equipment condition from TPM enables managers to make more transparent and informed production planning and management decisions
To sum up, TPM enhances the reliability, predictability, and flexibility of production planning, thereby improving overall production efficiency
ERP Odoo Solution
Thinh Tan Plastic's production planning is currently manual and heavily reliant on Google Drive, leading to time-consuming updates by the production manager To enhance efficiency and streamline plan adjustments, the company should consider adopting production planning and management software Implementing such software would facilitate quicker updates and allow all departments to access production plans proactively As a small to medium-sized manufacturing firm, Thinh Tan Plastic needs a budget-friendly solution, and Odoo, an Enterprise Resource Planning (ERP) system, is proposed to meet these requirements effectively.
Odoo is an efficient ERP system that consolidates data to improve business management It features a suite of integrated functional modules, streamlining operations through advanced information technology By reducing reliance on manual processes and disparate software, Odoo enhances overall management efficiency.
Thinh Tan Plastic is in the early stages of exploring Odoo for business management but has not yet implemented the system As a result, the company's management processes remain heavily reliant on manual tasks, resulting in inefficiencies and less-than-optimal outcomes.
Odoo, developed by the Belgian company Odoo S.A., stands out as an innovative open-source software that transcends traditional ERP vendors by offering a comprehensive suite of ERP features and functionalities without relying on pre-packaged solutions.
Odoo offers a user-friendly interface that consolidates all business management functions into one system, allowing for centralized data reporting and performance monitoring This integration facilitates easy analysis of business data, empowering companies to make informed decisions Furthermore, Odoo automates numerous manual processes, which helps save time, reduce costs, and minimize errors As an open-source solution, Odoo provides the flexibility for businesses to customize and expand its features to suit their unique requirements.
Key features of Odoo applicable to a plastic manufacturing company like Thinh Tan
Order creation and tracking: Odoo enables the creation, tracking, and management of orders from placement to delivery This significantly supports production planning at Thinh Tan Plastic
Customer Relationship Management (CRM): Odoo allows businesses to manage customer information, track and interact with potential customers, record purchase history, and effectively support customer care, fostering long-term relationships
Accurate tracking of raw materials, finished goods, and accessories: Odoo provides precise tracking of inventory levels
The system provides comprehensive inventory reports and automates the generation of purchase orders when stock levels fall below a certain threshold This functionality enhances warehouse efficiency and minimizes storage costs, ultimately leading to improved production planning.
Odoo enables production planning based on purchase orders, demand forecasts, and production capacity
The system allows tracking production progress at each stage, ensuring products are completed on time and meet quality standards
Odoo also provides detailed reports on production efficiency, helping to identify bottlenecks and improve production processes
Odoo facilitates product quality control throughout the manufacturing process
The system allows for recording and tracking quality issues, implementing corrective actions, and preventing defects
Odoo also provides reports on quality control effectiveness, helping to improve product quality and reduce costs associated with product defects
Odoo helps manage a company's finances, including accounting, revenue and expenses, banking, and asset management
The system generates detailed financial reports, allowing businesses to monitor their financial status and make informed financial decisions
Odoo also provides cost management features, helping to track and control production costs
Odoo automates many manual maintenance processes, such as creating maintenance requests, scheduling maintenance, and tracking maintenance progress
Odoo reduces maintenance costs by allowing users to track the maintenance history of all equipment, materials, and ensuring that equipment is maintained on schedule, preventing breakdowns
The system also provides reports on equipment downtime, helping businesses identify the root causes of downtime and implement corrective actions
Odoo provides a range of features beneficial for businesses, including human resources management, project management, and maintenance management However, for a company like Thinh Tan Plastic, the most impactful functionalities are production management, quality management, maintenance management, and inventory management, which can significantly enhance production planning and overall business management.
Odoo Service Plans and Pricing Details:
Currently, Odoo offers two main service plans: Community Edition and
The Community Edition is a fully free and open-source software version that enables users to download, install, modify, and redistribute it without any cost While it offers limited support, users can access assistance through online forums and comprehensive documentation.
The Enterprise Edition is a paid version of Odoo that offers multiple pricing tiers depending on the number of users and applications It includes all features available in the Community Edition, plus advanced functionalities and improved security Additionally, users benefit from direct technical support provided by Odoo S.A or authorized Odoo partners.
Thinh Tan Plastic, a small-sized company, seeks essential management services and is considering the Odoo management system The estimated cost for implementing this system, with a user limit of fewer than 20 individuals, spans one year.
Cost of deploying and installing the Odoo system: 1,500 USD = 37,987,500 VND This cost includes the following utilities:
+ Survey and analyze business requirements
+ Install and configure the Odoo system
+ Integrate with existing systems/applications
+ Set up access rights, user authorization
+ Instructions and training for employees
Cost of using Odoo Enterprise: 7,200 USD/year/15 users = 182,250,000 VND/year/15 users
Training and support costs: estimated at 1,000 USD = 25,325,000 VND for initial training and support in the first year
Total estimated cost Thinh Tan Plastic must pay in the first year:
Target performers: Office staff, with a primary focus on management, production, and quality control departments
Working Hours: Monday to Saturday
Standard Working Hours: 8 hours (7:30 AM to 3:30 PM, with a 30-minute lunch break)
Conduct a survey and analyze specific business requirements
Develop a detailed implementation plan, including task assignments, timelines, and budgets
Install and configure the Odoo system
Integrate Odoo with existing systems/applications
Set up user access and permissions
Import initial data into the system
Test and ensure system quality
Provide training and guidance to employees
Officially launch the Odoo system
Provide support and monitor system operation during the initial phase
Continue supporting, maintaining, and updating the Odoo system
Evaluate and improve Odoo usage processes
Expand or upgrade the Odoo system as needed
This plan assumes the company has the necessary resources, personnel, and equipment to implement a complete ERP system The project timeline depends on the organization's current state and its key stakeholders Adapting to the new management system will take time, necessitating changes in procedures and operating styles during the Odoo integration To ensure effective adoption of this technology, a robust change management strategy is essential for staff engagement and utilization.
Odoo is an all-in-one ERP software ideal for small to medium-sized businesses, offering extensive customization options to adapt to specific needs Its user-friendly interface allows for gradual implementation with minimal training time and costs, making it feasible for companies like Thinh Tan Plastic to adopt By leveraging Odoo, organizations can improve management efficiency, boost productivity, and streamline business processes without a significant resource commitment.
Businesses that successfully integrate the Odoo system into their management operations stand to gain the following advantages:
Enhanced business processes: Reduce monotonous work, boost output, and boost effectiveness
Enhance oversight and decision-making with Odoo's data aggregation and visualization tools Its specialized modules for production, inventory, and supply chain management offer a comprehensive view of your business operations.
Automated business processes: Odoo offers advanced production planning tools, enabling businesses to create production plans aligned with actual conditions and quickly adapt to market changes
Keep comprehensive records of product codes, manufacturing procedures, information about machinery and equipment That helps company easy to access to the product’s technical characteristics and place of origin
Enhanced production procedures: Odoo's analysis of production performance metrics enables companies to spot inefficiencies and make necessary improvements, leading to continuous process improvement and optimization
To achieve effective results for the business, close collaboration among various departments is essential, along with the implementation of contingency plans to mitigate potential risks Furthermore, employees must receive training on the relevant Odoo modules for production planning, enabling them to operate the system confidently and effectively This comprehensive approach will ensure that the organization fully capitalizes on the benefits Odoo offers.
Other Proposals
During the internship at Thinh Tan Plastic, in addition to the problems and solutions already discussed, the author also discovered another issue: the human resource difficulty
Thinh Tan Plastic relies on automated production processes, yet certain tasks, like mold setup and post-production, still require human involvement The company struggles with employee retention after specialized training, resulting in wasted time and resources This challenge is viewed as a significant disadvantage, prompting the author to propose solutions aimed at stabilizing the workforce A consistent and loyal workforce is essential for alleviating pressure on the production planning process.
To foster employee dedication and professional growth, businesses should establish a formal hiring policy and provide comprehensive training opportunities It's essential to consider factors influencing employee commitment, such as competitive compensation, rewards, benefits, and favorable working conditions Aligning employee interests with their responsibilities, implementing clear reward and punishment policies, and enhancing the work environment by ensuring safety and hygiene are crucial for maintaining a motivated workforce.
To boost employee morale and commitment, organizations should prioritize human development and foster a cohesive corporate culture Regular evaluations and contracts with high-performing employees can ignite passion for their work and encourage long-term dedication Additionally, offering specialized courses and management training will enhance the skills of staff involved in production planning, enabling them to manage their time and responsibilities more effectively.
The increasing regional and global economic integration is intensifying competition in the plastic injection molding industry To attract clients and enhance their reputation, businesses must ensure their products meet the highest quality standards, adhere to ISO regulations, and are delivered punctually.
This article explores the production planning process at Thinh Tan Plastic Co., Ltd, focusing on assessing and improving current activities through observation, data collection, expert interviews, and literature review The author identifies limitations such as inadequate planning tools and a reactive approach to client demand To enhance production planning capabilities and adopt a proactive stance in responding to consumer demand, the author proposes comprehensive organizational, technical, and technological solutions, including Total Productive Maintenance (TPM) and Enterprise Resource Planning (ERP) systems.
This study has notable limitations due to the company's high level of secrecy, along with constraints related to time and experience The proposed solutions are primarily recommendations The author welcomes feedback from instructors and readers to enhance the quality of this graduation thesis.
1 Vietnam Plastic Association (VPIA) (2022) Overview report of the Vietnamese Plastic Industry in 2022
2 General Department of Vietnam Customs (2022) Statistical report on Vietnam's Merchandise Exports and Imports in 2022
3 Ministry of Industry and Trade of Vietnam (2022) Report on the Development of the Vietnamese Industrial Sector from 2017 to 2022
4 Bui Duc Tuan (2005) Business Planning Textbook Published by Social Sciences Publishing House
5 Harold Koontz, Cyril Odonnell, Hienz Weihrich (1992) Essentials of Management Published by McGraw-Hill
6 Drucker, P F (1954) The Practice of Management Harper & Row
7 Tran Thi Thanh Huong (2007) Textile Manufacturing Planning Textbook Published by HCMC University of Technology and Education
8 Steiner (1979) Strategic Planning Publised by Howard Book
9 Truong Doan The (2007), Production and Operations Management Published by National Economics University
10 Thomas, J B., Joshi, A., & McDaniel, R R (1993) IEEE Transactions on Engineering Management
11 Philip Kotler and Kevin Lane Keller (2016) Marketing Management Published by Pearson Education
12 Nguyen Quan Liem Production and Service Management
13 Ociepa-Kubicka, A (2017) Advantages of using enterprise resource planning systems (ERP) in the management process World Scientific News
14 Thinh Tan Plastic Limited Liability Company Access at: https://thinhtanplastic.com/
15 ERP Odoo Access at: https://www.odoo.com/vi_VN
APPENDIX Statistics of Machines at Thinh Tan Company
1 Plastic Injection Molding Machine MC01 50 TẤN
2 Plastic Injection Molding Machine MC02 80 TẤN
3 Plastic Injection Molding Machine MC03 80 TẤN
4 Plastic Injection Molding Machine MC3A 80 TẤN
5 Plastic Injection Molding Machine MC05 120 TẤN
6 Plastic Injection Molding Machine MC5A 120 TẤN
7 Plastic Injection Molding Machine MC06 220 TẤN
8 Plastic Injection Molding Machine MC07 125 TẤN
9 Plastic Injection Molding Machine MC08 120 TẤN
10 Plastic Injection Molding Machine MC09 120 TẤN
11 Plastic Injection Molding Machine MC10 160 TẤN
12 Plastic Injection Molding Machine MC11 200 TẤN
13 Plastic Injection Molding Machine MC13 350 TẤN
A case that the author observed during the internship at the company:
MINUTES OF GRADUATION COURSE GRADING FOR GRADUATES
Weak Medium Rather Good Point
The chapters lack cohesion, with a disconnection between the main research issues, objectives, and the topic title The analysis presented is fragmented and lacks depth, resulting in unfounded conclusions Additionally, many analytical ideas are inconsistent and contradictory, undermining the overall coherence of the content.
The chapters of the article exhibit a lack of coherence, with significant disconnection between the main issues, research objectives, and content in relation to the topic title The analysis presented is fragmented and lacks depth, containing numerous unfounded analyses and comments that undermine the overall quality of the research.
The chapters of the article are interconnected, with research objectives and content aligned with the topic title However, the analysis presented is superficial and fails to comprehensively address all research issues Additionally, some analyses and conclusions are not well-supported.
The chapters of the article are interconnected, addressing key research issues and objectives that align with the main topic Each section provides a detailed analysis aimed at effectively resolving the identified research problems, ensuring that the arguments presented are well-supported and coherent.
There are very few references There are no citations of theories (concepts) mentioned in the topic There are many tables that have
References are not abundant There are no citations of theories (concepts) mentioned in the topic There are many tables that have
References are quite rich There are some uncited theories (concepts) There are a number of tables that have not been fully
The article features comprehensive references with complete citations for the theories and concepts discussed All tables are properly named, numbered, and sourced, except for those that have been analyzed and calculated by the author.
Implement ideas that are unclear, contradictory, and messy Many errors in using words (not appropriate to the situation) Sentences are incoherent, with many spelling errors
Deploy ideas unclearly and haphazardly
Many errors in using words (not appropriate to the situation)
Sentences are incoherent and contain many spelling errors
Implementing unclear ideas There are some errors in using words (not appropriate to the situation) The sentence is incoherent and has some spelling errors
Deploy ideas clearly and seamlessly Use words appropriate to the situation Sentences are coherent, with no spelling errors
Rarely contact teachers to review assignments
Occasionally contact the teacher to review the lesson
Regularly contact teachers to review assignments
Very often contact the teacher to review lessons
Bonus points for students writing reports in English range from 0.1-1.0 points