Inefficiency in engineering change management in kimberly clark vietnam co , ltd

List of Acronym BD03: Production line 3- BD is abbreviated of Binh Duong province, where plant located BD04: Production line 4- BD is abbreviated of Binh Duong province, where plant loc

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR TRAN PHUONG THAO

Ho Chi Minh City – Year 2018

Table of Contents

List of Acronym 3

List of Figure 4

List of Chart 4

List of Table 4

EXECUTIVE SUMMARY 5

CHAPTER 1: PROBLEM IDENTIFICATION 6

1.1 Company overview 6

1.1.1 Company introduction 6

1.1.2 Plant introduction 7

1.1.3 Manufacturing processing in KC’s plant 10

1.2 Problem mess 11

1.2.1 Symptoms 11

1.2.2 Insight analysis production line BD03 13

1.2.3 Initial Cause-effect map 14

1.3 Problem identification 15

1.3.1 High turnover rate 17

1.3.2 Lack of training and refresh training 18

1.3.3 Inefficiency in product flexibility 19

1.3.4 Inefficiency in engineering change management 20

1.4 Main problem definition and consequences 21

1.4.1 Definition 21

1.4.2 Consequence of the problem 23

CHAPTER 2 SOLUTION SUGGESTION 25

2.1 Cause validation 25

2.2 Alternative solutions 27

2.2.1 Effective document control for engineering drawing during implementing engineering change 28

2.2.1.1 Overview on document control for engineering drawing 28

2.2.1.2 Document control for engineering drawing in Kimberly Clark’s context 29

2.2.1.3 Implimentation 30

2.2.1.4 Budget planning 32

2.2.2 Develop a design for reliability model to eliminate the operation risk 32

2.2.2.1 Overview on design for reliability 32

2.2.2.2 Design for reliability in Kimberly Clark’s context 33

2.2.2.3 Implementation 33

2.2.2.4 Budget planning 35

2.2.3 Develop a engineering change process in new product development 36

2.2.3.1 Overview on engineering change process in new product development 36

2.2.3.2 Engineering change process in Kimberly Clark’s context 37

2.2.3.3 Implementation 37

2.2.3.4 Budget planning 39

2.2.4 Solution selection 40

2.3 Action plan in organization 41

2.3.1 Details action plan for solution engineering change process in new produce development 41

2.3.2 Detail action plan for solution develop a design for reliability model to eliminate the operation risk 44

2.3.3 Conclusion 47

CHAPTER 3: SUPPORT INFORMATION 49

3.1 Methodology 49

3.2 Trancript 49

3.2.1 Overview interview on the symtoms 49

3.2.2 Overview interview on the comfirmation 64

Appendices 69

Engineering Change Management Aseesment _ Questionnaire 69

Procedure to executing a product development at Kimberly Clark 71

List of Acronym

BD03: Production line 3- BD is abbreviated of Binh Duong province, where plant located

BD04: Production line 4- BD is abbreviated of Binh Duong province, where plant located

BD05: Production line 5- BD is abbreviated of Binh Duong province, where plant located

BD06: Production line 6- BD is abbreviated of Binh Duong province, where plant located

BD07: Production line 7- BD is abbreviated of Binh Duong province, where plant located

BD08: Production line 8- BD is abbreviated of Binh Duong province, where plant located

BD09: Production line 9- BD is abbreviated of Binh Duong province, where plant located

BD10: Production line 10- BD is abbreviated of Binh Duong province, where plant located

BD21: Production line 21- BD is abbreviated of Binh Duong province, where plant located

BD22: Production line 22- BD is abbreviated of Binh Duong province, where plant located

BD23: Production line 23- BD is abbreviated of Binh Duong province, where plant located

BD24: Production line 24- BD is abbreviated of Binh Duong province, where plant located

FDI: Foreign Direct Investment

VSIP: Vietnam Singapore industrial park

FMCG: Fast moving consumer goods

EMEA: Europe, the Middle East, and Africa

LAO: Latin American Operations

APAC: Asia Pacific

OEE: Overal Equipment Effectiveness

CMM: Capability Maturity Model

BOM: Bill of Material

ISO: International Organization for Standardization

DRCS: Design Release Control System

NPD: New Product Development

DfR: Design for Reliability

TCO: Total cost ownership

ECR: Engineering change request

EC: Engineering Change

PCR: Process change request

List of Figure

Figure 1: Kimberly Clark Plant vision 8

Figure 2: Kimberly Clark plant organization chart 9

Figure 3: Production line process 10

Figure 4: Initial Cause and effect map 15

Figure 5: Update Cause and effect map 16

Figure 6: Update cause-effect map 24

Figure 7: Final cause and effect map 26

Figure 8: Equipment life cycle 33

Figure 9: Engineering change process 37

Figure 10: Engineering change request 39

Figure 11: Interview summary Lead operator 51

Figure 12: Interview Summary Process Specialist 53

Figure 13: Interview summary Process Engineer 56

Figure 14: Interview summary Asset Leader 59

Figure 15: Interview summary Continuous Improvement Engineer 62

List of Chart Chart 1: Mid- Year Performance –OEE 11

Chart 2: Mid- Year Performance – Waste 12

Chart 3: Engineering change management assessment 25

List of Table Table 1: The production performance of another line from 2016 to Jun 2018 12

Table 2: The production line 3 performance from 2016 to Jun 2018 13

Table 3: The delay information on Production Line 3 14

Table 4: Turnover ratio 17

Table 5: Newcomer training subject 19

Table 6: Changeover summary 19

Table 7: Financial evaluation on Production line 3 performance 24

Table 8: Criteria evaluate the solution 40

EXECUTIVE SUMMARY

In manufacturing, the key business responsibility is to produce a product that can supply the demand of customer and the performance is made the competitive elasticity with a rival So that the purpose of the thesis is to explore the causes of low performance on overall equipment efficiency of manufacturing and find out that production line BD03 is the lowest performance from early of 2017 to mid-year 2018 in Kimberly Clark Viet Nam The thesis using theory-informed to group possible problem based on interviews and theory-confirmed combined with depth-interview to figure out the main problem The finding of thesis revealed that the inefficiency engineering change management is the main reason that leads to inefficiency in change management during project

implementation for new product development on production line BD03 and strongly impacts to manufacturing performance

The inefficiency engineering change management is a serious problem, it leads to internal and external customer dissatisfaction and cost for redesign, human resource constraint for rework, the author has reviewed the literature and the collected data from Kimberly Clark plant during deep interviews with managers, mini-survey on staffs and reports from

Kimberly Clark plant of head department, and employees to figure out the main problem and the causes of this problem The solution for inefficiency in engineering change

management is developing a design for reliability model to eliminate the operational risk and develop an engineering change process in new product development Both solutions need budget investment approx $27,000 USD for human resource and consultant, this solution will build a strong foundation verification a design change and analysis the

impact to machine performance before application on production

CHAPTER 1: PROBLEM IDENTIFICATION

• Introduced new sustainable products that combine high performance and

exceptional quality with significant environmental benefits

• Strengthened environmental protection through our enhanced fiber

procurement policy

• Continued to measure and make progress in reducing our company’s

environmental impact through the ambitious goals outlined in our

trust has led to Company brands holding the No 1 or No 2 share position in more than 80 countries

The values of authentic, accountable, innovative and caring describe how company A work with and are judged by our consumers, business partners, investors and each other

• Authentic: Our heritage is one of honesty, integrity and courageously doing the

right thing

• Accountable: We take ownership of our business and our future

• Innovative: Our commitment is to new ideas that add value

• Caring: We respect each other and care for the communities where we live and

work

In Vietnam, as one of the leaders in the categories they play in – over the years, they have ensured millions of babies are kept comfortable and thrive through Huggies brand and similarly millions of women are ensured of superior comfortable protection for feminine intimate care needs through the key famous brand

Kimberly Clark Vietnam’s story starts in 1991, we introduced the first product to the Vietnamese consumer and it quickly becomes the #1 brand in Vietnam market

Production lines were located both in Hanoi and HoChiMinh City

Between 1992 and 2000, we also launched the second brand and third brand with lots of success In 2000, we became a 100% FDI Company: Kimberly Clark Vietnam Ltd,

wholly owned by Kimberly Clark World Wide Inc

In 2003, construction started at Binh Duong province at the Vietnam-Singapore Industrial Park (VSIP) and all manufacturing was quickly consolidated at one location

1.1.2 Plant introduction

- The scope of study: Plant of Kimberly Clark Vietnam Ltd

- Size of plant: Plant was built in 2003 with the area is 3,000 sqr, it included

production, Warehouse for material, Office, Facility The total employee is 500 people

- Segmentation of product: Plant of Kimberly Clark Vietnam produce a product

that belongs to FMCG industry, the product is feminine care, adult care, and diaper

- Plant capacity:

In overall, the Kimberly Clark plant does not only produce a product for the local market but also supply product for the internal customers (Kimberly Clark International) such as EMEA, LAO, and APAC regions To momentum support supply chain, there is totally 12 production line at Kimberly Clark plant, in that total amount 4 production line is going to produce Baby care product, 2 production line are going to supply Adult product, the rest

is for feminine care product

- Organization chart

The organization structure of Kimberly Clark based on the manufacturing standard, at the top there is Plant manager and sub-manager for each critical department, there are

Production department, Engineering department, Quality department, Logistic

department, Continous Improvement department, and Safety department In overall, there are around 500 employees, it included 100 office employees, the remaining employee is

following the shift to support the production schedule

Mill Manager

Operations

Manager AFC

Operations Manager BCC

Engineering Manager

Logistics

Process Excellent Manager

Country EHS Leader

Export Project Leader

Office Admin Sup

Asset Leader BD22, BD23, BD24

PTM

Packing Coordinator

Project Engineer

Mechanical Team Leader

Electrical Team Leader

Maintenance Team Leader

Maintenance Engineer

Facility Engineer;

Maint Planner

Planning Team Leader

WH Team Leader

Maintenance Store Coordinator

QA Engineer (QMS)

QA Engineer Exp

Project

Project Leader (Local Project)

QA Engineer (Material)

QA Engineer (QA/QC)

Packaging Engineer

LEAN Coordinator

Imp-Exp Coordinator

Process Engineer Electrical Engineer

Figure 2: Kimberly Clark plant organization chart

1.1.3 Manufacturing processing in KC’s plant

There are 4 key steps that happen continuously during the chain of production

Step1: Make the core absorbency of the product

The core absorbency of the product has formed by cellulose made from wood pulp mixing with SAP supper absorbent polymers material together with the compressed with the

pattern to build the shape of the core product

Step 2: Combine with critical material to cover the core absorbency

After the core product was formed, it will be transferred conveyor and combine with other material likes the poly film, cotton, fragrance, and antibacterial, etc

Step 3: Form the shape of the whole product

To build the shape of the product, manufacturing processing uses the knife module that included the shape requirement and cut on the line of the product right after combining whole components together

Step 4: Package product

This is a final step in the manufacturing process that will pack the product base on the

amount of piece of product requirement

Figure 3: Production line process

1.2 Problem mess

1.2.1 Symptoms

From the mid-year business performance review at the end of June 2018 between Plant Manager, Sub Managers and all heads of department, there were some issues about

operation and management which were raised

Firstly, the person in charge of production department has updated the overall objectives

of production division and there are two key criteria OEE and Waste did not meet

performance from Jan-2018 to June-2018, the year to date for OEE is 88.4% versus target

is 90.3% Moreover, the Waste year to date is 1.2% versus target 0.71% so that there is a risk that the whole mill will not meet performance at the end of the year and directly impact to benefit of whole employees

Secondly, the Logistic manager has raised the potential risk on the shortage supply chain

in term of machine capacity can not a delivery product on time due to low performance It will strongly impact prestige and transportation

Chart 1: Mid- Year Performance –OEE (source: Kimberly Clark plant mid-year business review 2018)

Chart 2: Mid- Year Performance – Waste (source: Kimberly Clark plant mid-year business review 2018)

Obviously, a clear and deeper understanding of the issues which were reported during the June meeting is essential for Kimberly Clark to success in its vision in 2020 Based on the importance of the issue, the author decided to conduct research within the company to collect more information and clarify the real problem

At the first steps, the writer approaches to machine performance from beginning of the year 2016 to mid-year 2018 to figure out how the health of the machine, the data came from the production performance record an official update to the management team

Production line

Table 1: The production performance of another line from 2016 to Jun 2018

(Source: Production performance 2016,2017, and 2018)

▪ Overall Equipment Effectiveness definition: OEE represents the ratio of good units produced over the number of total units that could have been produced over a period of time if the equipment had experienced no losses such as breakdowns, set-ups, bad quality or machine speed losses

▪ Waste (Defect product rate) is the ratio of defect units produced over the number

of total units that have been produced

1.2.2 Insight analysis production line BD03

The production line BD03 in this thesis produces feminine product and support for

approx 25%, the local market is 75% so that this machine is very important for both markets From the data, the researcher found out that the BD03 performance decreased definitely from begin of 2017 and it slightly improves a little during 2018 The writer approaches the person in charge of production team line 3 and management to collect the data and information from operations base on the real situation and verify the machine

performance for each period

OEE (Overal Equipment

Waste (Defect product rate) 0.94% 5.46% 5.01% 2.5%

Table 2: The production line 3 performance from 2016 to Jun 2018

(Source: Production performance 2016,2017, and 2018)

Next, from the first symptoms, the writer discusses with operations team to figure out the potential cause of the problem as below table:

Breakdowns (over

15mins) Moving machine parts and various machine subsystem fail 18% Change product The time required to set up the machine for a different part 24% Minor stop machine

Table 3: The delay information on Production Line 3 (Source: Production Line BD03 performance record 2018)

From the proportion of data above, the Minor stop machine is the highest ratio, the second and the third is a Quality adjustment and Change product Based on the abnormal signal

on production line BD03 performance, the writer has used the qualitative and in a deep interview to understand the insight happened on the machine The interviewee will be production team and stakeholder, it includes Lead Operator, Process Specialist, Process Engineer, Asset Leader, Continuous Improvement Engineer, and Engineering Manager

(refer to chapter 3-3.2 Transcript at page 48 for details information)

1.2.3 Initial Cause-effect map

The writer has filtered from each in a deep interview to summary the item that same content to connect all collaboration findings together as an initial cause-effect map There are three main branches that lead to low performance on production Line 3, first of all, the ineffective project implements on production 3 has impacted the machine capable of running stable, and as interview asset leader that it came from the lacking engineering change control during project planning, evaluation design, and risk control so that

machine could not control the setting and did not perform a mitigation plan for risk

reduction Moreover, it did not only impact on a new product, but the current product also needs evaluation capacity as well

The second branch, during production time, machine have high proportion delay rate, so the might lead to production line 3 low performance As summary feedback from the production team, there are many operator signatures, and the recruitment for replacement also happen right after that, however, they were lacking experience on machine

processing and lacking technical training from Continous Improvement Team Lastly, production line 3 has a complexity product and many category products that have run on this machine, so that this machine needs to perform product change many times during a week and month However, the production time for each product is short so that machine can not approach the loss time for a product change, the key feedback from production

line 3 team is that the current setting for product change was not performing well and it impacts to machine performance

Low performance on Production Line 3 Machine delay is high

Ineffective project implementation on BD03

Changeover not effective

Lack of engineering change management

Machine stop by operator mistake High turnover rate

Lack of training and

Figure 4: Initial Cause and effect map

1.3 Problem identification

As the resulted from the interview, the researcher has approached another thesis for

references the theories that can support to update the initial cause-effect map First of all,

as (1), changeover means a change from one system or situation to another At Kimberly Clark Vietnam, the changeover is a process of converting one product to another

Moreover, it is used to describe the change equipment, setting, material from one product

to another product with different characters, shapes, dimension, the capability of output product It means that per each machine will flexibility to produce some segment of

product categories It will support business adapt to the change in the volume from market flexibility when upgrading new product innovation However, follow (2) the process change to support flexibility on the product will impact the manufacturing efficiency, in term of good performance effective flexibility management system, it will enhance the competitor of the company, increasing output and reduce manufacturing cost (3)

Therefore, there is an update inefficiency in product flexibility for changeover branch

In the other hand, from the theory of change management, the explanation of change management is absolutely broad range compare with Kimberly Clark plant

manufacturing, according to (4), the examples of change enablers including: a stated

vision and goals for the change direction, defined roles of employees involved in change, leadership guidance or commitment in involvement, training employees and having

strong human resources to measure and evaluate performance Additionally, (5) has

claimed that the reason for this lacking of success in implementation can be subdivided into four barriers The management barrier reflects the problem that the focus of

management activities is dealing with daily business, not discussing new strategies The vision barriers arise when visions and strategic objectives are not broken down by means

of target definitions on the employees as a whole usually fails If the risk of failure is indeed at its highest in the implementation phase, then it is exactly here that the greatest potential for success in a change of company strategy lies Therefore, the inefficiency change management has been inputted in the middle of ineffective project implementation

on BD03 and inefficiency engineering change management

Low performance on Production Line 3 Machine delay is high

Ineffective project implementation on BD03

Changeover not effective

Inefficiency Engineering

change management

Machine stop by operator mistake High Turnover rate

Lack of Training and

Poor mid-year performance

Figure 5: Update Cause and effect map

At the update cause and effect map and based on the deep interview, there is some

possible problem that leads to low performance on production line BD03, the researcher

will performance interview higher level and look back benchmark data between each production line to study deeply the possible problem

1.3.1 High turnover rate

Refer to the research of (6), change a status of ownership of an individual is a turnover, (7) defined the definition of turnover that can cover the whole organization that is a

degree of individual movement across the membership boundary of a social system More specific is the rate that relates to employee resignation and human resource needs to

recruit new people to fulfill the empty position and it is associated with the reduce the productivity performance of manufacturing (8), (9) have provided the evidence from research that the outcome of manufacturing decrease apparent when employee departure Based on the theory, it has presented that the impacts of turnover to productivity and business, however, to deeply understand the production line 3 situation with overall

Kimberly Clark plant, Researcher has reached to turn over data from human resource during 2016 to mid-year of 2018 for the whole production line This data will support to figure out the proportion per each machine to benchmark together whether the production line is a higher rate

Machine

People Resignation %

People Resignation %

People Resignation %

Finding on the data, it presented that the machine performance is not strong impact by high turnover rate, according to the table, some machine have high turnover rate such as BD21, BD08, BD22, however their machine performance also higher and better than production line 3 As feedback from Engineer manager and Production manager, at the time production line 3 had a high turnover rate, they have assigned operator from another line to support production line 3 to prevent shortage resource and waiting for human resource team recruitment and training until they can work well

1.3.2 Lack of training and refresh training

The training is strong important for people capability development, and it has been

impacted to operating performance over the period time by the analysis individual

training data per hours and resulted in data from performance (10), (11) It is not only the technical training impact on the operator but only the nontechnical also influence on machine performance (12) Moreover, the author has reviewed the training plan of

Kimberly Clark plant and figure the courses and hours required for a newcomer, it

indicated that new operator has been trained the technical knowledge right after boarding the Kimberly Clark plant

In the other hand, Human Resource manager has provided a point of view of the training program at Kimberly Clark Plant that it is going to train for newcomer according to the subject which has been defined as a table as follows Additionally, the training team also develop the master plan for refresh training for old operation with advance knowledge to build people capability Hence, the lack of training and refresh training for the operator is not the main problem that might lead to production line BD03 low performance

Technical Training subject Duration (hours)

1.3.3 Inefficiency in product flexibility

From knowledge of theory, it indicated that changeover is very important for

manufacturing, the writer has approached the production data summary of Quarter 1 and Quarter 2 to figure out how the changeover condition per all machine As the table below, there is two machines that had high changeover times, it is production line BD010 with 78 times, and production line BD03 with 79 times in changeover, as theory, the total time loss will increase together with change over time However, the database has not reflected

as theory, it presents that the highest time loss was on BD23, the second is BD04 From the changeover performance result, “total time changeover is high” is not the main

problem that led to a low performance on production line BD03

Machine Total Changeover Total time loss (mins)

1.3.4 Inefficiency in engineering change management

In general, Engineering change is defined as an alteration made to parts, drawings, a technical improvement that have already been released during the product design process and product lifecycle A change might modify the architecture of the product, function of equipment as a whole or in part (13), the change will impact productivity performance (14), moreover a lack of well-defined the change based on the process interactions and analysis how it operates, truly there is threat to reflect on performance(15)

As check with asset leader of production line 3, “The Finish product specification

management is not good management, the add-on for each material is not reviewed

carefully and not benchmark with another plant It impacted machine performance

Otherwise, there does not have a system to control the change management and just inform by email, the material and quality standard is not consistently and change much time during production”

The process engineer perspective in change control of production line 3 and Kimberl

Clark plant system is that “The change in management is not good on material,

improvement and drawing control And it comes from workload and system support There are a lot of change in the material by change sourcing, and its impacts on machine performance, however, its impacts on the workload of the operator during machine

setting”

The researcher has done in a deep interview with Engineering manager who controls technical and maintains manufacturing He provided the engineering change management

in general as follows: “My perspectives, it is not only production line BD03 has impacted

by engineering change control, but another production is also too However, the impact

on another machine is smaller than production line 3 so that the performance result did not change much The key problem is the lack of evaluation technical change on

production line 3 when implementing the project, and it has not benchmarked and

standardized technology with another machine, plants

In summary, the authors based on the interview with a human resource for turnover rate and training, the data of production flexibility in changeover and discussion with the engineer manager for engineering change management It has been presented that the potential cause was come from the inefficiency in engineering change management

during new product development that changes the technology of machine and impacts to machine performance, to perform change effectively will support production performance better, the machine runs smoothly and handover well to the production line To

implement the solution the engineering team is the main team to control the engineering change management As currently, it is a lack of engineering team and should act

immediately to control the engineering change and laminate the impact to production performance and business as well

1.4 Main problem definition and consequences

1.4.1 Definition

According to (16), the engineering change management is to achieve the greatest return

on investment, engineering change management needs to address all of the data impacted changes, not just the change requests This means that before the technology can be

applied to speed the process of requesting, approving, and incorporation must be brought under control To that end, it is important to understand exactly what information needs to

be managed Broken down into key elements, the structure of information looks like this

o Engineering change management

o Product structure management

o Document and data vault

According to (17), The definition of engineering change is as the upgrade or innovation

on products, technical design in concept or update in documents These changes can be provided at the first stage of preliminary input of program that describing changes with the previous developments, or what different during implement program, describing changes with respect to the anticipated or actual design The challenge for firms is to have the capacity to implement both the small innovations that fit within an existing routine

and the more severe discontinuous innovations that require practices beyond the steady state

Measurement

There are many methods to measure the performance of engineering change and control

as linked with (18), the first focus is the procedure of new product innovation then leading

to three main sections that deploy the change; the first thing is to implement engineering change management; the second is the engineering design and the third is the production phase that is reviewed with the process necessary for the production of this product

Moreover, the other author has claimed that Key performance indicator can be used to evaluate the performance of engineering change, there are 4 simplified layers to measure the performance of engineering change management (19)

- General performance: on this level, the change control will evaluate the change performance based on the variable data of design change

- Focused performance: at this level, the engineering change will focus on within a project implementation It is quite important to get the effects during project

feasibility; the efforts will also be made to allow performance measurement

- Specific performance: it will be measured through the subject of interest

- Detail performance: it will be measured by on how quick alternative solutions were found or how many resources were needed for the approval process This level can

be used to evaluate the risk, possible performance issue in the change process

Additional, as (20) Capability maturity model (CMM) can be used to evaluate the process implementation of engineering design execution and process performance, it will have 5 levels evaluation

• Initial evaluation – the first viewpoint for applying the new process or repeat the task

• Task repeat - the process is at least documented sufficiently such that repeating the same steps may be attempted

• Defined - the process is defined/confirmed as a standard business process

• Capable - the process is quantitatively managed in accordance with agreed-upon metrics

• Efficient - process management includes deliberate process optimization or

improvement

1.4.2 Consequence of the problem

As a theory, there are some authors has claimed that the inefficiency of engineering

management to evaluate the consequence if lack of change control as (21) the outcome of excellent change control will lead to the achievement of project objectives with within the determined cost, timeline constraint, and human resources allocated Additionally, the technical performance can deliver the good result at the end of the project The second, it will satisfy the internal and external customer on the goods delivery on time, the output performance The other author has defined clearly the impacts of lack engineering change management on the process of change implementation during project or improvement happening(17) (22)

- Resource unavailable due to delays in previous programs

- Project work packages are already starting to change resulting in rework for other

projects

- Many problems to be solved were also applicable to other products

- A steady stream of changes during the development of prototypes

- Extra work due to unexpected, extra technological challenges during integration

- Limited time for manufacturing to learn from the prototypes which result in extra

work later on

As summary feedback from Engineering manager, although change is good to maintain the competitiveness of company with competitor, it is lack of control will impact the quality system control and standardize equipment between each machine and spare parts

optimization, especially, the drawing control is a critical system that supports to manage

the asset and it is used to review and communicate when project implementation or

process improvement Moreover, from the Financial analysis for loss on production line

BD03 performance that impacts on the operation cost It was transformed from the

machine delay without produce product In term of machine improve OEE 6.6% and

Waste 2.5%, it will cost saving approx 2,2 billion VND

Cost /

SU

Raw material cost/SU

Machine Improvement (%) Saving VND per year OEE Machine

waste OEE

Machine waste

A B C D E F G=A*B*E H=A*D*F

Production

Line 3 98,723 1,046 856,985 663,184 6.6% 2.5% 681,721,564 1,636,794,385

Table 7: Financial evaluation on Production line 3 performance

(Source: Finance Team analysis 2018)

From the theory and feedback from engineering manager to verify the engineering change management definition, the potential cause that might lead to inefficiency in engineering change control and implementation during improvement and project executive in

manufacturing in general and engineering department in particular The following figure has been build to explain the potential cause and effect of inefficiency in engineering

change management

Figure 6: Update cause-effect map

CHAPTER 2 SOLUTION SUGGESTION

2.1 Cause validation

The researcher has investigated the method to perform assessment the current situation of the control system at engineering department to figure out the system level that during perform technical changing As questionnaire survey from (21), there are five areas that will perform a survey to assess the engineering change system performance is overall assessment, engineering change method, communication, organization, process definition, information system This survey has been inputted by the project team, engineering team and production team, total input is ten employees The chart below is presented the

proportion of each area of the engineering team

Chart 3: Engineering change management assessment

From the chart 3, it is presented that there is a lack of engineer change method, process definition, organization system and information system to documentation and control information It looks that the engineering change management has not been developed at Kimberly Clark plant, in the other hand, it might be controlled at the slow level and has not been integrated together with experienced employees to evaluate the change of

technology

0246810

1 Overall assessment

2 Engineering Change method

3 Communication

4 Organization

5 Process definition

6 Information system

In the details of the fishbone chart, it figured out the lacking of procedure to control the engineering change during the process of change Moreover, the risk evaluation has not performed as well, together with a human resource that controls and manage during the first phase of the proposal, planning, implementation and tracking performance

Moreover, as sharing from engineering manager, there is no system to control engineering change management including product development and process improvement, so that it

is going impact to the whole drawing control, standardize equipment and spare parts, it is hard to track the performance and maintain the maintenance system on the other hand, the current engineering organization has not defined which team will be in charge of change control and manage this system also

Figure 7: Final cause and effect map

Summary, the main cause of this problem is that the Kimberly Clark plant has not built up the procedure and organization the team to implement the engineering change control during operation, that why the project implementation during product innovation has not been evaluated the impact to production performance in details and implement plan for improvement also inefficiency between each production line so that the equipment and parts have not standardized and benchmark learning from each team together So, the next step the researcher will provide a proposal for a solution

2.2 Alternative solutions

From dedicated problem finding after study quantitative and qualitative between

leadership team the author will be based on the theory to define an alternative solution that supports solving ineffective engineering change management Nowadays,

engineering change management does not only happen at one time but rather a steady continuing process that impacts the organization, manufacturing, and people Therefore, the company should consider the change to optimization the impact, add the process value

to the operation, and improving processes As (23) has defined the engineering change must be have a good driven by strong leadership and effective communication, and (24) dedicated that the communication is a key issue for successful implementation of the engineering change for announcing, explaining, and preparing technical and evaluate the effect of technical change, as same though, (25) for communicating to employees the need for change and how it can be achieved is critical to the successful management of change Additional, (26) the engineering change fail due to three factors

- Correct design errors during project implementation fail, due to designer has used the

out of date of drawing, incorrect installation layout, and limited understanding of the complex product expectation

- Inventory issues which were due to the incorrect release of engineering documents

such as Bill of Material (BOM) Also, introduction dates were included by the

designers in the notification of engineering change without communicating with the purchasing department, thus increasing the difficulty of making an efficient change in production

- Manufacturing issues which did not consider recommended manufacturing changes

from designers and communicating this change and its implications for production prior to implementation, such changes can be reduced

As a summary from theory, there is three main solutions that need to focus in next step as develop engineering change document during implementation the change, develop a

design evaluation model to eliminate the operation risk, develop an engineering change process in project implementation

2.2.1 Effective document control for engineering drawing during implementing

engineering change

2.2.1.1 Overview of document control for engineering drawing

Document control for engineering drawings is comprised of both document attributes and

a defined control process Engineering drawings, including technical documents such as specifications, procedures, will usually have these attributes:

• Owning organization, which is ultimately responsible for the document content

• Document identification through the use of a document numbering system

• Title or description

• Document revision or other indication of a specific design iteration

• Author(s), reviewer(s) and/or others who created the information

• And, of course, the appropriate technical information necessary to fulfill their purpose

A document control process consists of a set of procedures for creating and maintaining the attributes of engineering drawings Engineering drawing management processes

include business rules that define:

• Which engineering drawing types are supported, and the contents and format of each type

• How engineering drawings are identified (e.g., owner, number, revision, title)

• Who is responsible for creating, reviewing and approving engineering drawings

• When engineering drawings may be released to interested parties

• The conditions under which existing engineering drawings are revised, replaced or canceled

• How obsolete engineering drawings are controlled, recalled or destroyed

Engineering drawings that reflect a consistent set of attributes, and are controlled using a documented set of procedures, significantly reduce product costs by simplifying design, sourcing, production, customer adoption, and field service the software offers these precise advantages

2.2.1.2 Document control for engineering drawing in Kimberly Clark’s context

From the solution from theory, the authors had interview mechanical team leader to verify the current situation of document control for engineering drawing the existing situation, the design engineering store the manufacturing drawing on the internal folder of

Mechanical team and there is only mechanical team can access that folder, there are over 14,000 drawings (1,200 drawings/machine) that need to control and update whenever we modify and upgrade due to parts improvement, change in terms of upgrading by project implementation It is hard for the whole team knows to check and control the accuracy of equipment that used on the machine

According to the ISO requirement (27), the manufacturing needs to have a system that controls the drawing and record any of change during operation As benchmark with other manufacturing at another country of Kimberly Clark, there is an internal system that will support document control for engineering drawing, this system controls the whole

drawing of Kimberly Clark global namely DRCS, moreover, all user can access,

download, upgrade depending on the authority of engineering manager A team member can access to other manufacturing for study or references However, to apply engineer drawing control based on this system, there are fours steps that should be strictly followed

to ensure the effectiveness of implementation

Step 1: Verify and update the current drawing ensure the accuracy with current parts using

This step is to check the current equipment that is using on each machine as same as the drawing if not, the updated version should be processed before loading to the system Like the current situation, due to the drawing control has not strictly followed so that

there is nobody to ensure that the drawing is correct So normal, a lot of time needs to be spent in this step

Step 2: Load the drawing to system

This step will do by manually to load one by one drawing to DRCS system, then there is a person to check and approval for process drawing on DRCS

Step 3: Authority end-user access

This step is to develop the member list that can access and system to view, upgrade the drawing

Step 4: Training to all user

2.2.1.3 Implementation

Based on the Kimberly Clark plant’s context the key steps have been defined and the first steps are the critical task that needs to spend more time for verifying the parts, however, the current human resource in Mechanical team that can not allow to implementation, to solving this solution should have the agency to progress

Action in detail

1 Write a scope of work to require for information from the

agency

2 weeks

2 Perform requirement for procurement fo hire agency 2 weeks

3 Verify the first 1,200 drawing for BD03 machine 2wks

5 Engineering drawing control training for BD03 operation team 1 day

6 Verify the first 1,200 drawing for BD04 machine 2wks

8 Engineering drawing control training for BD04 operation team 1 day

9 Verify the first 1,200 drawing for BD05 machine 2wks

11 Engineering drawing control training for BD05 operation team 1 day

12 Verify the first 1,200 drawing for BD06 machine 2wks

14 Engineering drawing control training for BD06 operation team 1 day

15 Verify the first 1,200 drawing for BD07 machine 2wks

17 Engineering drawing control training for BD07 operation team 1 day

18 Verify the first 1,200 drawing for BD08 machine 2wks

20 Engineering drawing control training for BD08 operation team 1 day

21 Verify the first 1,200 drawing for BD09 machine 2wks

23 Engineering drawing control training for BD9 operation team 1 day

24 Verify the first 1,200 drawing for BD10 machine 2wks

26 Engineering drawing control training for BD10 operation team 1 day

27 Verify the first 1,200 drawing for BD21 machine 2wks

29 Engineering drawing control training for BD21 operation team 1 day

30 Verify the first 1,200 drawing for BD22 machine 2wks

32 Engineering drawing control training for BD22 operation team 1 day

33 Verify the first 1,200 drawing for BD23 machine 2wks

35 Engineering drawing control training for BD23 operation team 1 day

36 Verify the first 1,200 drawing for BD24 machine 2wks

37 Load the drawing of BD24 to DRCS system 2 wks

38 Engineering drawing control training for BD24 operation team 1 day

39 Set the authority for a team member to work on the DRCS

• Training costs 12 days x 1000 USD = 12,000 USD

• Human resource from agency: 40,000 USD/ Machine x 12 = 480,000 USD

In total, the budget needs for this solution is 492,000 USD It has covered all the travel cost for agency and accommodation This budget planning is based on the quotation of the agency has done for one machine at another country to verifying and implementation drawing to the system

2.2.2 Develop a design for reliability model to eliminate the operation risk

2.2.2.1 Overview of design for reliability

The definition of reliability is as the probability that the equipment will accomplish its expectation function under the stated condition for an interval of time (28) Then the design for reliability means that the implementation during design will enhance the

performance of equipment As (29)has defined the development projects are high

uncertainty that likely to adopt engineering changes at a late stage due to it might impact

to the whole project goals So in the project with complexity, the project goals might change during the implementation Moreover, (30) the objective target should develop and indicate during the processing development will significantly enhance the

performance of New Product Development (NPD (31) informed that the design during project implementation should collect the current context and deeply understand

manufacturing and understand where should be improved for reliability

2.2.2.2 Design for reliability in Kimberly Clark’s context

On the journey to relentlessly pursue the permanent elimination of equipment defects, Kimberly-Clark must integrate and institutionalize Design for Reliability (DfR) thinking and practices into their current technology development and engineering change design processes Design for Reliability (DfR) is a systematic, streamlined, concurrent

engineering program in which reliability engineering is woven into the total development cycle in order to meet customer expectations for the reliability of design while

maintaining lower overall Life Cycle Costs Additional, Design for Reliability is applied with the goal of eliminating and mitigating failures early in the design phase, when

influence is at it’s highest, (32) target life cycle cost reduction early in the design phase between 65% -85% of the life cycle costs are already committed at the design phase, meaning the time and money spent trying to improve reliability after design is very costly

Figure 8: Equipment life cycle

2.2.2.3 Implementation

There are many steps that need to develop to deploy the Design for Reliability program, the authors have defined 4 key steps that should be gone through as follows:

Step 1: Define the program to implement design for reliability, total to implement this

step is four weeks, this step is to know when to consider design risk mitigation

opportunities (new or existing equipment), identify unreliable equipment based on Data,

and an initial understanding of Total Cost of Ownership (TCO) to align on work

(Business Case)

a Program design for reliability could be triggered by any of these types of projects:

• Technology Development (The first time to design)

• Capital Projects (New & Modified Equipment)

• Design Improvements (To existing assets, Mill level)

b Identify need via Data; Reliability Analytics; Total cost ownership

c Align on the need for an event

Step 2: Define the scope and preparation, the total time for implement is two weeks

a Identify Team Members, Leaders, Sponsors

b Create, Align Objectives

c Define System boundaries for analysis

d Establish & Define Success Criteria (Reliability, Accessibility, Maintainability, Centerlining)

e Populate Charter for an event

f Understand system requirements & functions

g Create Functional Flow Block Diagram

h Develop Risk Assessment Criteria for Severity, Occurrence, Detection

i Gather Baseline Data

Step 3: Implement design risk mitigation, access and improve through the tool design

failure and effects analysis, the total for implement is two weeks

a Determine equipment functions

b Define functional Failures

c Define failure Modes

d Design Risk Assessment

e Ideation (Potential solutions) with equipment Standards

f Cost-Benefit with adherence to Equipment Standards

g Rapid Learning Cycle Kickoff (Key decisions & knowledge gaps to close, Create Learning Plan)

Step 4: Apply to learn to the operation, total spend on implement is eight weeks

a Executing the Learning Plan (complete tasks to learn); could be…and/or…

• Experiment/Piloting

• Research Data

• Modeling

b Coordination Meetings (checking progress)

• Confirming completion of tasks

• Identify & remove barriers

c Learning Meetings

• Share learning on a cadence

• Adjust learning

d Project Execution

• Install safely and to the best-known standard

• Track Success Criteria

so this program should get involve consultant engineering from Kimberly Clark global

So the budget implement will cover the training, consultant, documentation

Budget for implementation

• Human resource from an internal consultant: 10,000 USD

• Human resource for employee: 5,000 USD

Total budget: 27,000 USD

2.2.3 Develop an engineering change process in new product development

2.2.3.1 Overview of the engineering change process in new product development

In a world where change is becoming increasingly important, tools such as project

management, if used properly, can provide a useful way for organizations to manage that change effectively The first thing, there is a setting clearly the project implementation requirement for the objectives of cost, schedule and quality standard requirement (17) in new product innovation, the preliminary designs are normal to be proposed for a

continuous design project to adapt with new customer insight The consideration the change, there should have critical criteria for evaluating the change impact to the

customer, even it is a minor change Moreover, the detail information insight of change is clear, it will support the design plan and provide measures to control the effect of change that has not found at first development project Therefore, the mechanism relates to

engineering should be indicated the change process planning and engineering change management

To implement engineering change management even the unrooting product innovation or equipment improvement The process evaluation should develop to mitigate the impact to performance and should be aligned with goals and objectives of the business There is two key sections that need to achieve implementation of engineering change management, such as:

- Aware and alignment of goals, risk, and effects of engineering changes on all business

context levels

- Develop the planning, monitoring, and control project

2.2.3.2 Engineering change process in Kimberly Clark’s context

Look back the procedure to executing a product development project of Kimberly Clark

(refer appendix), there is a finding that this procedure has not defined how to implement

product when the change happens during project implementation such as the technology does not meet expectation, leadership change the timeline longer or shorter time

implementation, over budget or performance does not meet customer requirement It is a huge mistake that project leader does not know how to communicate or work with project team and leadership team in term of change happen

As discussion with engineering manager, to enhance the project react with the change and reduce the resistance of team, the engineering change during product development should

be updated in a procedure that will develop the standard communication, evaluation the change to mitigation the impact to the internal and external customer

2.2.3.3 Implementation

The engineering change process happens when new product development, as (33) There are 3-Phase provide engineering change process that guides leaders through the phases of change management activity during a project

Figure 9: Engineering change process

Phase 1 Preparing for change The first phase in methodology helps change and project teams prepare for designing their change management plans It answers questions like:

• “Why are we making this change?”

• “Who is impacted by this initiative and in what ways?”

• “Who are the sponsors we need to involve to make decision successful?”

Phase 2 Managing change

The second phase advances individuals through change as described in the ADKAR Model by:

• Creating the communication, sponsor, training, coaching and resistance

management plans

• Integrating change management and project management

• Executing the plans to drive adoption and usage

Phase 3 Reinforcing change the third phase focuses on sustaining the change over time:

• Measuring performance and celebrating success

• Identifying and addressing the root causes of resistance

• Transitioning the project to day-to-day operations

The recommendation from (34) had provided the process to communicate the engineering change process during NPD that is collected with the necessary information to process the treatment further