Applying dmaic method to reduce setup time of m8326 product in medical line at II VI vietnam CO, LTD

ĐỒ ÁN TỐT NGHIỆP NGÀNH QUẢN LÝ CÔNG NGHIỆPAPPLYING DMAIC METHOD TO REDUCE SETUP TIME of M8326 PRODUCT in MEDICAL LINE at II-VI VIETNAM CO,.LTD GVHD: NGUYEN THI MAI TRAM Tp... FACULTY O

ĐỒ ÁN TỐT NGHIỆP NGÀNH QUẢN LÝ CÔNG NGHIỆP

APPLYING DMAIC METHOD TO REDUCE SETUP TIME of M8326 PRODUCT in MEDICAL LINE at

II-VI VIETNAM CO,.LTD

GVHD: NGUYEN THI MAI TRAM

Tp Hồ Chí Minh, 2020

S K L 0 0 7 0 0 9

SVTH: NGUYEN THI KIM PHUNG MSSV: 16124056

FACULTY OF HIGH QUALITY TRAINING

GRADUATE THESIS

APPLYING DMAIC METHOD TO REDUCE SETUP TIME of M8326 PRODUCT in MEDICAL LINE at

II-VI VIETNAM CO,.LTD

Student’s name : Nguyen Thi Kim Phung Student code : 16124056

Major : Industrial Management Instructor : MI Nguyen Thi Mai Tram

Ho Chi Minh – 2020

SUPERVISOR

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ho Chi Minh,………

Supervisor

REVIEWER

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ho Chi Minh,………

Reviewer

Nguyen Thi Kim Phung - 16124056 i

ACKNOWLEDGEMENT

It was my fortune to have an internship in II-VI Vietnam as well as great chance for learning and professional development in II-VI Vietnam Being a part of company, I experienced and worked with many professional and kindly people who led me though this internship period with many lessons

I also have hearty thanks for Ms Nguyen Thi Mai Tram to support placing my thesis on good grade for her careful and precious guidance in graduate thesis which were extremely valuable for my study both theoretically and practically

I express my deepest thanks to Mr Ha Hai Hung – CI manager, Mr.Huynh Anh Tuan - manager of System for taking part in useful decision, giving necessary advices and guidance and arranged all facilities to make project easier I choose this moment to acknowledge his contribution gratefully

Bearing in mind previous I am using this opportunity to express my deepest gratitude and special thanks to the my mentor Mr.Van Quoc Tien – Production Engineer who in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep

me on the correct path and allowing me to carry out my project at their esteemed organization and extending during the training I also appreciate the supporting from engineers, line leaders and operators in System to finish the project

I perceive as this opportunity as a big milestone in my career development in Industrial Engineering I will strive to use gained skills and knowledge in the best possible way, and I will continue to work on their improvement, in order to attain desired career objectives Hope to continue cooperation with all of you in the future

Sincerely,

Nguyen Thi Kim Phung

Ho Chi Minh

May 5th 2020

Nguyen Thi Kim Phung - 16124056 ii

LIST OF ABBREVIATIONS

time of M8326 in System

process

area and have similar procedure

in lean six-sigma

Method, Measure and Environment)

– Where – Who and How much or How many

Nguyen Thi Kim Phung - 16124056 iii

LIST OF TABLES

Table 1 Traveler of Medical products in System 17

Table 2 Traveler of Other products (Introduction of System of II-VI Vietnam) 18

Table 3 Tools applicationin project (Synthesize by author) 29

Table 4 Focused Problem Statement 1 as 5W1H 56

Table 5 Focused Problem Statement 2 as 5W1H 57

Table 6 Focused Problem Statement 3 as 5W1H 57

Table 7 Potential causes for long setup time at FPS1 Assembly stage of M8326 59

Table 8 Potential causes for long setup time at FPS2 Inspection stage of M8326 59

Table 9 Potential causes for long setup time at FPS3 Preparation stage of M8326 60

Table 10 Improvement idea for root causes summarisation 68

Table 11 Prioritisation Matrix for solutions 70

Table 12 Build Action Plan for reducing setup time M8326 (Source: Synthesize by author) 72

Nguyen Thi Kim Phung - 16124056 iv

LIST OF FIGURES

Figure 1 Network of II-VI Incorporated worldwide 3

Figure 2 Periodic Table 4

Figure 3 Group II-VI Logo 5

Figure 4 Logo of II-VI Vietnam Co., Ltd 7

Figure 5 Products for Automotive 8

Figure 6 Products Thermal-electric Cooler (TEC) (Introduction of System of II-VI Vietnam) 9

Figure 7 Product Select Comfort 9

Figure 8 Gesture Recognition products 10

Figure 9 Product for DNA test 10

Figure 10 Application of Thermal-electric Cooler (TEC) 11

Figure 11 General organization chart of II-VI Vietnam Co.,ltd 11

Figure 12 Production process diagram at II-VI Vietnam Co., Ltd 14

Figure 13 System Organization of II-VI Vietnam Co.,Ltd 15

Figure 14 Change-over time (Downtime here) 20

Figure 15 Story board of DMAIC project 23

Figure 16 Prioritization Matrix 27

Figure 17 Histrogram chart 29

Figure 18 The Pareto chart illustration 30

Figure 19 Process mapping symbols 34

Figure 20 Setup time per unit by module of Medical line 37

Figure 21 Forecast of quantity for Medical line in 6 months (June – December, 2020) 38

Figure 22 Forecast of setup time for Medical line in next 6 months (June – December,2020) 38

Figure 23 Timer series plot setup time per unit of M8326 by WO (October- December, 2019) (Source: Synthesize by author) 39

Figure 24 Voice of customer and Critical to quality Matrix Diagram 39

Figure 25 Is & Is not Matrix for problem statement 40

Figure 26 Time series plot setup time of target setting 40

Figure 27 Total hour deduction for setup time improvement 42

Figure 28 Timeline for setup time improvement project 42

Figure 29 Project charter of setup time improvement project 44

Nguyen Thi Kim Phung - 16124056 v

Figure 30 Process mapping of setup operation of M8326 at Preparation (retainer 1) 45 Figure 31 Process mapping of setup operation of M8326 at Preparation (retainer well

block) 46

Figure 32 Process mapping of setup operation of M8326 at Preparation (retainer 2) 46 Figure 33 Process mapping of setup operation of M8326 at Assembly (Solder and cleaning) 47

Figure 34 Process mapping of setup operation of M8326 at Assembly (In-Inspection) 47

Figure 35 Process mapping of setup operation of M8326 at Assembly (Assemble heatsink) 48

Figure 36 Process mapping of setup operation of M8326 at Assembly (Assemble board) 48

Figure 37 Process mapping of setup operation of M8326 at Test 49

Figure 38 Process mapping of setup operation of M8326 at Inspection 49

Figure 39 Identify stratification criteria: Criteria 1 Type of Setup 50

Figure 40 Identify stratification criteria: Criteria 2 Setup at Stage 50

Figure 41 Collection data form (used at Final Inspection stage) 51

Figure 42 Diagnostic Report (One-Way ANOVA for Types of Setup) 52

Figure 43 Summary Report (One-Way ANOVA for Types of Setup) 52

Figure 44 Diagnostic Report (One-Way ANOVA for Setup at Stage) 53

Figure 45 Summary Report (One-Way ANOVA for Setup at Stage) 53

Figure 46 Setup time per unit of M8326 by Stage 53

Figure 47 Process of capability of Setup at Stage of M8326 54

Figure 48 New specification control for Setup at stage 55

Figure 49 Complexity for each priority issue 55

Figure 50 Tree diagram to achieve target 56

Figure 51 Potential causes for long setup time at Assembly stage of M8326 61

Figure 52 Potential causes for long setup time at Inspection stage of M8326 61

Figure 53 Potential causes for long setup time at Preparation stage of M8326 61

Figure 54 Prioritization Matrix of potential causes for setup time of M8326 63

Figure 55 5Whys for root causes of preparing cleaning tools 63

Figure 56 5Whys for root causes of calibration 64

Figure 57 5Whys for root causes of unpacking wraps of materials 64

Figure 58 5Whys for root causes of carrying materials from pass box to production position 65

Nguyen Thi Kim Phung - 16124056 vi

Figure 59 5Whys for root causes of opening BOM report 65

Figure 60 5Whys for root causes of finding code of events 66

Figure 61 5Whys for root causes of getting hand tools 66

Figure 62 Impact – Effort Matrix for priority solutions 71

Figure 63 Time for carrying heatsink at Assembly stage 74

Figure 64 Trolley for transporting heatsink before improvement 75

Figure 65 Trolley for transporting heatsink after improvemnt 75

Figure 66 Time for carying materials per unit at Preparation stage 76

Figure 67 Calibration time series plot at Inspection stage 77

Figure 68 Bar code card before improvement 78

Figure 69 Bar code card after improvement 78

Figure 70 Time series plot of scan labor time per unit 78

Figure 71 Check sheet for ouliers of setup M8326 after improvement 80

Nguyen Thi Kim Phung - 16124056 vii

LIST OF APPENDIX Appendix 1 I-MR Chart of setup time of M8326 for Overall process 85 Appendix 2 Process Capability Report for setup time of M8326 for Overall process 85 Appendix 3 I-MR Chart of setup time of M8326 at Preparation Stage 86 Appendix 4 Process Capability Report for setup time of M8326 at Preparation stage 86 Appendix 5 I-MR Chart of setup time of M8326 at Assembly stage 87 Appendix 6 Process Capability Report for setup time of M8326 at Assembly stage 87 Appendix 7 I-MR Chart of setup time of M8326 at Inspection stage 88 Appendix 8 Process Capability Report for setup time of M8326 at Inspection stage 88

Nguyen Thi Kim Phung - 16124056 viii

TABLE OF CONTENTS

SUPERVISOR ii

REVIEWER iv

ACKNOWLEDGEMENT i

LIST OF ABBREVIATIONS ii

LIST OF TABLES iii

LIST OF FIGURES iv

TABLE OF CONTENTS viii

INTRODUCTION 1

1 Problem Statement 1

2 Research Aims 2

3 Research Objectives and Scope 2

4 Research Method 3

1.1 5 Organization of thesis 4

INTRODUCTION OF II-VI INCORPORATED 1

1.1 Introduction of II-VI Incorporated 1

1.1.1 Historical background 1

1.1.2 The company name 4

1.1.3 Logo 5

1.1.4 Quality mission statement 5

1.2 Introduction of II-VI Vietnam 5

1.2.1 History of company II-VI Vietnam 5

1.2.2 Logo II-VI Vietnam 6

1.3 Vision, Mission, The Core Value, Quality policy 7

1.3.1 Vision 7

1.3.2 Mission 7

1.3.3 The core value 7

1.3.4 Quality policy 7

1.4 Areas of Activities and Products 8

1.4.1 Areas of activity 8

1.4.2 Products 8

1.5 The Organization of II-VI Viet Nam 11

1.6 Production process at company 14

Nguyen Thi Kim Phung - 16124056 ix

1.7 Introduction of System Factory 15

1.7.1 Overview of the system department 15

1.7.2 Functional department in System 15

1.8 Production process in System 16

1.8.1 Production process in Medical line 16

1.8.2 Production process in Other lines 18

THEORY BACKGROUND 20

2.1 Background of Setup 20

2.1.1 Set-up time: 20

2.1.2 Change-over time definition 20

2.1.3 Reducing non-valued time 21

2.2 DMAIC Methodology 22

2.3 Tools in DMAIC 29

2.3.1 Histogram Chart 29

2.3.2 Pareto Chart 30

2.3.3 VOC matrix 31

2.3.4 CTQs tree 31

2.3.5 Is & Is not 32

2.3.6 Process mapping 33

2.3.7 5 Why 35

2.3.8 Affinity Diagram 35

DEFINING, MEASURING AND ANALYSING 37

3.1 Defining period 37

3.1.1 Scope and Problems Definition 37

3.1.2 Current Situation and Target setting (VOC, CTQ ) 39

3.1.3 Initial Financial benefit Evaluation 41

3.1.4 Time Planning 42

3.1.5 Project Charter 43

3.2 Measuring period 45

3.2.1 Detailed Process Mapping 45

3.2.2 Identify stratification criteria 49

3.2.3 Data reliability 50

3.2.4 Analyze data 51

Nguyen Thi Kim Phung - 16124056 x

3.2.5 Stability and Capability Study 54

3.2.6 Complexity for each priority issue 55

3.2.7 Tree diagram to achieve target 56

3.2.8 Focused Problem Statement 56

3.2.9 Confirm specific target for each FPS 58

3.3 Analyzing period 58

3.3.1 List potential causes 58

3.3.2 Group similar causes 60

3.3.3 Prioritization of potential cause 62

3.3.4 Root cause verification plan 63

IMPROVING AND CONTROLLING SUGGESTIONS 67

4.1 Improving period 67

4.1.1 Root cause verification plan 67

4.1.2 Priorities and select solutions 68

4.1.3 Build Action Plan 72

4.1.4 Action implement 74

4.1.5 Verify Target Achievement 78

4.2 Controling period 79

4.2.1 Standardization (Standards, OPL) 79

4.2.2 Training the teams 79

4.2.3 Benefits Evaluation 79

4.2.4 Monitoring CTQ’s 79

4.2.5 Control Plan (OCAP) 80

CONCLUSION 81

REFERENCES 83

APPENDIX 85

Nguyen Thi Kim Phung – 16124056 1

INTRODUCTION

1 Problem Statement

In 1926, Henry Ford, the American automobile manufacturer said that Shortening the cycle time of production to decrease the price of products is one of the remarkable achievements That means the longer process time, the more movements (setups and transportation) operation, the higher ultimate cost is

One of the tendency of competitive economic global is company’s capacity to provide products in a wide range products for meeting high demand from the market Customers with high demand, always look for the supplier, manufacturers has capabilities to satisfy their requirements Companies with this production power are in constant struggle to compete for more customers For companies of such caliber to be on top of the market,

by producing quality products at competitive prices have become one of the highest challenges for production manufacturing processes

More and more company update and apply the new methods, new tool for manufacturing

in company that creating a better (effective) production system One of these methods, part of lean manufacturing, is setup reduction time In high production systems, the amount of repetitive work accounts for a great part of the lead time of the product, the rest is usually set up time Companies always optimizing, even eliminating set up time

in possible Even though more companies are applying setup time reduction methods today, the reduction in setup time is a new concept Ford in 1926 was practicing lean manufacturing and just-in-time production and reducing setup times at least 20 years before Toyota and other Japanese companies What ultimately is 8 most surprising of all is that few American companies really have taken these lessons to heart, even 75 years after Ford introduced them

The II-VI Incorporated located in Vietnam has a wide range of culture products applied

in Medical, Industrial, Life sciences, which require a high flexible and diversity of solutions With the experiencing in System factory of II-VI Vietnam, the author received that diversity of products with small orders that causes many change-over times in lines

Nguyen Thi Kim Phung – 16124056 2

Moreover, all procedure which different modules, the change-over process from this module to other module still not be as efficient as possible A major problem emerges

in the production line when changing over other solutions, the set up time tends to be lengthy, complicated and unbalanced, stopping production; therefore the II-VI company

is wasting resources, production and money Such a good chance that company do continuous improvement

That also the reasons for the author do this subject: “An DMAIC application in setup time improvements for Medical line at System factory in II-VI Vietnam Co.,ltd”

2 Research Aims

The project has main goals as follow:

Applying DMAIC method to reduce setup time for M8326 product in Medical line at System factory in II-VI Vietnam

Collecting data of set-up time and change-over time for products on Medical line was being built at System of II-VI Vietnam from October 7th 2019 to December 3rd 2019 Target: Collecting 100% set-up time of product being built in this time

Defining M8326 has the highest setup time in next 6 months (June – December, 2020) and do improvement

Measuring setup time and defining which factors account for the higher percentage in setting up M8326

Analyzing causes for long setup time and defining root causes

Give suggestions for cutting down setup time for M8326

3 Research Objectives and Scope

Medical products with high volume in next 6 month (M8326) (June – December, 2020) Thus, focusing on collecting and improvement setup time waste for this line will brings more benefits for company in this time

Nguyen Thi Kim Phung – 16124056 3

Improvement project is sponsored for Medical line at System factory in II-VI Vietnam Co.,ltd

Project has timeline from 7th October 2019 to 9th June 2020 (collecting time: 16th

October - 3rd December, 2019; improvement timeline: 1st March – 9th June, 2020)

4 Research Method

Progress of project

After have overall setup time situation at factory by processing collected data The author learn knowledge about Six-Sigma, DMAIC methodology, statiscial tools in DMAIC, At the same time, the author also study production process of Medical

products, setup operation for products

Next, defining the team to go on project which applies DMAIC to cut down setup time

of Medical line through 5 period: Define, Measure, Analyze, Improve and Control Detail of project:

• Apply DMAIC to define, measure and analyze the setup time of the products

• Apply tools of Improve and Control phase to give ideas to improve and control the improvement

• Timeline for DMAIC in this thesis:

Phase D: 1st March to 15th March, 2020

Current conditions of setup time Medical line through collected data

Defining VOC, CTQ to meet the need of customers

Making the Project Charter

Phase M: 15th March to 30th March, 2020

Process mapping to clear the process and setup of M8263

Stratification criteria to check data is reliable and enough

Analyze data to capture stability and capability of process before improvement

Phase A: 1st April to 15th April, 2020

Find the root causes by fishbone though 5Whys, Brainstorming

Nguyen Thi Kim Phung – 16124056 4

Using Cause-effects matrix to evaluate priority causes

Phase I and phase C: 15th April to 30th April

Give and ideas for Improvement and Control:

Document for project

Documents for knowledge: Through the private documents of II-VI company about

Lean-manufacturing, Quick change-over and SMED (Dr.BUI NGUYEN HUNG), DMAIC documents: A Revolution in Manufacturing: The SMED System (Shingo, 1985); learn about procedure in private program of II-VI; DMAIC private training documents of II-VI Vietnam, statistics tools in DMAIC,

Data collection method:

Creating form: Interview engineers, operators in System and research procedure; apply 5W1H to create form to collect data from operators

Collecting data: Operators fill time in form with every setup; using camera to check reliable data and get more data in necessary

Using primary data from collecting for project

1.1 5 Organization of thesis

Chapter 1: Introduction of II-VI Incorporated

Chapter 2: Theory of background

Chapter 3: Defining; Measuring and Analyzing the problems

Chapter 4: Improving and Controlling suggestions

Nguyen Thi Kim Phung – 16124056 1

CHAPTER 1

INTRODUCTION OF II-VI INCORPORATED

1.1 Introduction of II-VI Incorporated

II-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically intergrated manufacturing company that develops innovative products for diversified applications in several fields: Industrial; Optical communication; Aerospace & defense; Life sciences; Semiconductor capital equipment; Consumer markets

Headquartered in Saxonburg, Pennsylvania, the Company has research and development, manufacturing, sales, service, and distribution facilities worldwide The Company produces a wide variety of application-specific photonic and electronic materials and components, and deploys them in various forms, including intergrated

with advanced software to support our customers (Human Resoure of II-VI Vietnam)

Pro Forrma Revenue: $ 2.6 Billions

69 Worldwide Locations

Over 24,000 worldwide employees

Historical background

Company Perspectives of Group:

From amber-colored lenses that focus intense laser light, to radiation detectors for nationwide security and nuclear medicine, to high power electrical and microwave components, II-VI Incorporated and its divisions and subsidiaries utilize expertise in synthetic crystal materials growth, optics fabrication, electronics component manufacture, and more to create high-tech products for a wide range of applications and industries

Key Dates:

1971: II-VI is founded by Carl J Johnson

1987: II-VI completes its initial public offering of stock

1997: II-VI's VLOC subsidiary is formed by merging two acquisitions

2000: II-VI acquires Laser Power Corp

Nguyen Thi Kim Phung – 16124056 2

2004: II-VI acquires Marlow Industries, Inc

Group History:

Dr Carl J Johnson, II-VI Incorporated’s co-founder

In 1971, II-VI Incorporated began by exclusively producing the highest-quality cadmium telluride (CdTe) material available for manufacturing high-power industrial CO2 laser optics Today, we have diversified into producing zinc selenide (ZnSe) material, as well as into numerous business units including laser tools for materials

telecommunications components (VLOC); fiber optics, projection and display optics, DPSS laser, crystal materials, and other photonics products (Photop); defense and aerospace optics (Exotic Electro-Optics); tellurium and selenium products (PRM); thermoelectric cooling devices (Marlow Industries); silicon carbide (II-VI WBG); advanced materials development (II-VI AMDC) and Active Optical Products(II-VI Laser Enterprise) Given this diversity of II-VI Incorporated's business units, we have thus christened the company original IR materials and optics business unit II-VI Infrared As II-VI Incorporated continues to grow, II-VI Infrared focuses on the company’s original, industry-leading products: infrared and CO2 laser optics and materials And thanks to decades of innovation in ZnSe and zinc sulfide (ZnS) materials processing, thin-film coating, precision diamond-turning, and finished optics fabrication, II-VI Infrared is the world leader in CO2 laser optics, delivering an unbeatable combination of innovation, quality, and experience II-VI Infrared also delivers the largest vertically integrated CO2 laser optics manufacturing process from raw materials to finished coated products in the world

An optics foundry to CO2 laser original equipment manufacturers (OEMs) the world over, consistently building optics to spec with consistent performance and quality, II-VI Infrared’s products range from replacement CO2 laser optics and nozzles to lenses, partial reflectors, windows, beamsplitters, mirrors, beam expanders, reflective phase retarders, scanning-laser system optics, diamond-turned custom optics, and more The company products and reputation make us the number-one supplier to OEMs of CO2

Nguyen Thi Kim Phung – 16124056 3

laser systems worldwide, while the company capabilities are without rival in the industry

The company diamond-turning facility is among the largest and most advanced in the world, offering services such as fly cutting and multiple-axis turning, as well as fast and slow tool servos for custom optics Single-point diamond-turning is used in finishing transmissive optics and mirrors in a variety of metals and IR materials

Major investments in computer design programs, thin film evaporation equipment, clean rooms, and QA testing facilities enable us to offer a broad range of IR thin-film coatings II-VI Infrared is known for designing and producing consistently low-absorption coatings for high-power CO2 laser optics Additionally, the company talented and experienced engineering team, using optical design software and CAD systems, designs and builds standard and custom optics as well as specialized mounts, components, and electro-optic assemblies

The company quality assurance program includes comprehensive testing, documentation, and statistical analysis to ensure that each optic and component performs to customer requirements

Figure 1 Network of II-VI Incorporated worldwide

(HR Division II-VI Incoporated)

Nguyen Thi Kim Phung – 16124056 4

The company name

Periodic Table:

Group II and VI of the Periodic Table of Elements II-VI Infrared The name is synonymous with the world’s greatest CO2 laser optics and infrared optical materials But what, exactly, does the name mean?

The Roman numerals “II-VI” refer to Group II and Group VI of the Periodic Table of Elements By chemically combining elements from Group II and Group VI, we produce the infrared optical crystalline compounds cadmium telluride (CdTe), zinc selenide (ZnSe), zinc sulfide (ZnS), and zinc sulfide MultiSpectral (ZnS MS) These compounds, and others created from Group II and Group VI elements, are commonly referred to as “II-VI materials.” When we were founded in 1971 to create CdTe, company co-founder Dr Carl J Johnson paid homage

to the company II-VI materials heritage and called the company new company “II-VI Incorporated.” In the ensuing years, as the company infrared material and optics manufacturing capabilities expanded into precision diamond-turning and world-class thin-film coatings, the company corporation grew as well Through strategic acquisitions, II-VI Incorporated expanded far beyond infrared optical materials and finished optics products, building a portfolio of companies that share in the company materials heritage yet bring a vastly diversified range of products to market, including thermoelectric coolers, and silicon carbide substrates In recognizing that “II-VI Incorporated” represents far more today than when originally founded, we recently christened the company core optical materials and finished optics business unit “II-VI Infrared.” This differentiates it from the corporate whole, and reflects upon the company 42-year heritage of producing the world’s finest infrared and CO2 laser optics

Figure 2Periodic Table

(HR Division II-VI Incoporated)

Nguyen Thi Kim Phung – 16124056 5

Logo

Figure 3 Group II-VI Logo

(HR Division II-VI Incoporated)

Quality mission statement

We pledge to exceed the company internal and external customer requirements through employee dedication to continuous improvement

We pledge to deliver to all of the company customers the best optics in the world

1.2 Introduction of II-VI Vietnam

History of company II-VI Vietnam

II-VI Vietnam is a leading company in high technology, with 100% capital of the United States, specializing in manufacturing thermal optics and accurate selection is located in the VSIP 1, Binh Duong Province

II-VI Incorporated, specializing in the production of optical glass, infrared glass (NIR) and high-tech thermal products (TEM) The company was founded on Mar 25, 2005 with:

Company name: II-VI Vietnam Co.,ltd

English name: II-VI Vietnam Co., Ltd

Address: 36 Ward 4, Vietnam- Singapore Industrial area , Binh Hoa

Neighborhood , Thuan an Village, Binh duong Provine

Website: www.ii-vi.com

Charter Capital: 15 Million dollar ~ 330 Billion VND

Total number of employees : 500 people

Industries : Semiconductors

Nguyen Thi Kim Phung – 16124056 6

II-VI Vietnam owned by II-VI Incorporated, headquartered in saxonburg, Pennsylvania was founded in 1971 II-VI is a multinational corporation with branch development worldwide such as America, China, UK, Germany, Italy, Japan, Singapore,

II-VI SINGAPORE PTE LTD is one of the subsidiary of II-VI group, during its development has expanded production scale worldwide choice for Vietnam is no exception The Company has appointed Mr Ahmad Bin Mohamed Magad is Executive Director corporation II-VI SINGAPORE PTE LTD as Director General II-VI LTD VIETNAM Register established export processing enterprises and implementation of investment projects on the basis of registration of the LTD IIVI VIETNAM investment license No 135 / GP-KCN-VS 25 March 2005 by the park management boards industrial Vietnam Singapore, built in buildings 20, 26, 28 and 36 VSIP street 4, industrial zone Vietnam Singapore 1, Thuan An district, Binh Duong province with an area of 5000 meters square

Total investment 261.923.850.000 (two hundred sixty-one billion, nine hundred and twenty three million eight hundred and fifty thousand) Equivalents 15,450,000 (fifteen million fthe company hundred fifty thousand) US dollars

The mission of the company II-VI Vietnam is the companycing, production orders of the thermoelectric tech (TEM) from Marlow industries (Dallas, USA), and specializes

in manufacturing optical lenses, glasses pink foreign (NIR) from VLOC (Florida, USA), Photop (China)

To this day, with the ever-expanding larger scale shows that companies increasingly high specialization and create more competitive opportunities has more advantages, and has gained a foothold certain market international optics, infrared and glass products of high-tech thermal power

Logo II-VI Vietnam

Nguyen Thi Kim Phung – 16124056 7

1.3 Vision, Mission, The Core Value, Quality policy

The core value

Honesty and Integrity

Open communication

Teamwork

Working environment safe, tidy and clean

Customer is the first

Continuous Improvement and Learning

Management on the basis of health

Quality policy

We are committed to meeting internal and external customer requirements through the dedication of the company staff to continuous improvement

Figure 4 Logo of II-VI Vietnam Co., Ltd

(HR Division II-VI Incoporated)

Nguyen Thi Kim Phung – 16124056 8

1.4 Areas of Activities and Products

Areas of activity

For group II-VI Incorporated, business area is divided into the company main branches, serving markets such as Marlow (Products thermal power), Photop (Products optics), M-cubed (Products muscle gas), Advanced materials (Products cleaning materials) and Performance metal (Metal semiconductor)

II-VI Co Vietnam II-VI of Marlow branch specializing in the production of thermal products, so learning will not go into other fields

II-VI Vietnam Company has the main product lines including:

Thermal-electric Cooler (TEC)

Figure 5 Products for Automotive

(Introduction of System of II-VI Vietnam)

Nguyen Thi Kim Phung – 16124056 9

Figure 6 Products Thermal-electric Cooler (TEC) (Introduction of System of II-VI

Figure 7 Product Select Comfort

(Introduction of System of II-VI Vietnam)

Nguyen Thi Kim Phung – 16124056 10

Gesture Recognition

This technology utilizes an infrared laser to create an image map of the human body, thereby replacing the remote control with human gestures to perform identical functions

Figure 8 Gesture Recognition products

(Introduction of System of II-VI Vietnam)

Power Generation

Thermoelectric solution harnesses the heat created by a burner or fire to drive a fan that supplies more oxygen to the fuel-air mixture This system increases burn efficiency, which burns fuel to completion and eliminates the emission of harmful by-product

PCR Thermal Cycler for DNA Applification

PCR technology, facilitated by thermoelectric cooling, allows researchers to amplify a single or few copies of a piece of DNA across several orders of magnitude, generating millions or more copies of the DNA strand

Figure 9 Product for DNA test

(Introduction of System of II-VI Vietnam)

Nguyen Thi Kim Phung – 16124056 11

Application of thermal-electric cooler

Figure 10 Application of Thermal-electric Cooler (TEC)

(Introduction of System of II-VI Vietnam)

1.5 The Organization of II-VI Viet Nam

THE GENERNAL ORGANISATION CHART OF II-VI VIETNAM

Figure 11 General organization chart of II-VI Vietnam Co.,ltd

(HR Division II-VI Incoporated)

Organizational structure

Departments in the company are divided into two main groups, according to their functions:

Activities related directly to production Department: PIC (Plan - Incoming -

Warehouse), Purchasing, Maintenance (PPM ), Process Development, Assembly, System, Front-end, M-cubed

Support to production Department: Human resource, Asian Design Center, Finance,

Information Technology, Quality Assurance (QA)

The main functions and tasks of these departments are determined as follows:

PIC Department (Plan - Incoming - Warehouse): Get orders from external

Nguyen Thi Kim Phung – 16124056 12

customers and internal customers (others branch), then co-ordinating with other departments to choose the date of delivery, and creating delivery note, to place orders with delivery confirmation After that, checking the capacity of the production, raw materials, finished products, production planning, creating new orders,getting new production plans with requirements Receiving the single import - export goods and implementing procedures - import of goods to warehouse, warehouse management and transportation of raw materials, goods and equipment Ensuring delivery on time and the right customers Check inputs materials

Purchasing Department: Get the new orders of raw materials, equipment and others

from other departments (planning, manufacturing and computer) This department

is responsible for creating orders, price dealing, the deadline for payment, purchasing materials - devices Performancing import and export operations in the company

Operation Department: The general name for the manufacturing department in

company: Assembly, Front-end, System, M-cubed This department get orders from Planning department, using of materials from inventory, machine from the department, to arrange the production area, operators, then getting the finished products from production

Quality Assurance Department (QA): Checking semi-finished products on a line

production, finished products from packing (sampling) and the entire process Besides, the quality department also assess the quality of raw materials from suppliers and receiving - handling complaints from customers and process improvement Implement ISO 14000 and ensuring occupational safety for employees and operators

Process Development: Handling incidents involving in machine and collaborate

with quality department to find out the roots cause, improve the process Receiving new requests for products from corporations and company at Vietnam to research

Nguyen Thi Kim Phung – 16124056 13

and develop new products Checking software and hardware (code) as well as checking the form of new products, new production methods It is responsible for managing the company's cleanroom (SMT)

Asian Design Center: Designing new machines, tools and processes to ensure the

capacity of the plant is optimized Supporting to produce in improvement projects

Lean-6Sigma Department: Implement, application of modern production systems:

Lean, TPM, TQM, 6 Sigma It is responsible for the improvement projects in the factory

Maintenance Department (PPM): Checking, management, maintenance, operation

and training of the infrastructure system in the factory (power systems - water, security, fire alarm system, vision system close…) Contacting to management team and contractors such as sanitation, security, kitchen departments, management, maintenance in the company

Human Resource department: Performance of the task of recruiting, training,

relationships and motivating employees, organizing the annual event Staff assessment, reward and discipline, supporting and life care staff Ensuring a working environment

Finance Department: It is responsible for payments to suppliers, payroll staff,

financial statements and internal reports with Vietnam's laws, calculation and payment of tax,

Information Technology Department: Providing, supporting, repairing and

maintenance of information technology issues Computer management and intranet

as well as the system applied in the company (system Erms, ECQ, DCC, DMS )

Nguyen Thi Kim Phung – 16124056 14

1.6 Production process at company

Figure 12 Production process diagram at II-VI Vietnam Co., Ltd

(HR Division II-VI Incoporated)

Explain the process

Ceramic Process (ceramic): ceramic materials (white substrate) is produced auto by machines in copper plating, cutting machines, this product is including 2 pieces of porcelain situated at the Top and Base 2 of Cooler

Element Process (Element): The metal materials are inputs of element operation, to produce the two-sided ceramic connector components that cooler The process is produced by automated machinery

Assembly Process: includes multiple assembly - stations of semi-finished products Ceramic and Element together to produce a basic product (Cooler) with the basic field Every product has different layout in production area Product of this department is input

of System Factory, or be sold to internal customers (Dallas) and external customers Micro Cooler process (SMT): the same as Assembly, this department is specialized to assemble micro and small cooler, in a clean environment Working environment need

to be ensured dust level and protective labor equipment high standards

System Department: Using cooler as input to produce customzied products as required

by customers Using cooler to produce Every product has different layout in production area Products are exported to internal customers and external customers

In conclusion, for external customers, the exported products are often the finished product (FFC) labeled and packaged For internal clients (Dallas, Holland, Germany,, ), exported products are typically unpackaged and labeled as basic products

Nguyen Thi Kim Phung – 16124056 15

1.7 Introduction of System Factory

Overview of the system department

SYSTEM ORGANIZATION CHART OF II-VI VIETNAM CO., LTD

Figure 13 System Organization of II-VI Vietnam Co.,Ltd

(Introduction of System of II-VI Vietnam)

Functional department in System

Head of Department: Ensuring and taking the duty for the process and production

activities in the department, handling current situation of department; Making decision and solving incidents of serious impact; Assesement the staff, reporting and confirming the performance of the members

Process Engineers: planning, developing, maintaining and managing the machine and

equipment for the production process; Ensuring to meet the quality requirements and management of the factory area; Researching and improving to change standard levels

of factory

Engineer Production: Managing; checking; and making decisions within production

area Ensuring outputs to delivery as planned schedule and productivity of factory

Line Lead : Arranging operators into working shift, tracking the current situation in

factory; managing and reporting incidents to the engineers

Technician: Performance tasks related to machinery; ensuring stable operation of

Nguyen Thi Kim Phung – 16124056 16

machinery; Reported incidents related to machinery and equipment to engineers; Researching activities to improve the process and quality

Operators: Assemble assembly of finished products at the factory as assigned by the

team leader

In conclusion, arranging operators, line leads and technician in factory to help controlling the production issues throughout the department Structure positions are divided as tasks, blue-collars who are responsible to report to line leads, engineers whenever in trouble This helps the manager can manage and control conditions in factory about production, machines, and making the decisions in the right time; moreover, engineers also have right to make decision related to factory

1.8 Production process in System

1.8.1 Production process in Medical line

Nguyen Thi Kim Phung – 16124056 17

Table 1 Traveler of Medical products in System

(Introduction of System of II-VI Vietnam)

Kitting: Receive materials

form inventory and verify, check

(Transportation: is moved to Prepare Area)

Preparing: Making 4

sub-works for ready in next strategy (nailing in retainer, waiting epoxy dry

on well block, finished units, )

semi-(Pass box in) The materials are moved into cleanroom by pass box

Assembly: Assemble TÊC, WB into Retainer then Solder and in-process inspection then assemble into heatsink

Assemble previous steps semi-finished with board

Test: Passing 3 tests to

check pressure, opering inside products

Final inspection: Verify

and checking appearance

of units with standard quality

(Pass box out) Packing: Verify code last

time and pack into box and ship to customers

Nguyen Thi Kim Phung – 16124056 18

1.8.2 Production process in Other lines

Table 2 Traveler of Other products (Introduction of System of II-VI Vietnam)

Description the process:

Nguyen Thi Kim Phung – 16124056 19

- Kitting: Receive materials form inventory and verify, check

- (Transportation: is moved to Prepare Area)

- Preparing: Making sup-works, preparing, cleaning materials for ready in next

strategy

- (Pass box in) The materials are moved into cleanroom by pass box

At this step, it ups to modules which have different another step:

- With Assembly, the units is assembled sharply with other materials then Torque

(by hand or automatic in different modules),

- With Core Assembly, the units is assembled with core – the important of unit, next to Torque ( automatic) to champ screws; move to Test – this often make

sure that pressure in units is good and all previous steps are correctly Units with

a lot of steps is passed by assemble in second/third time called Pre

Assembly/Final Assembly

- Both of two flow chart is lead to Test to check operation inside units (again), and

make sure it works well in certainly standards

- After some of Tests, the products would be verify, check and clean up the appearance to make sure the new face is good with certain standard in procedure

in Final Inspection strategy

- (Pass box out): The products is moved out Packing Area through Pass box out

- Packing: Verify code last time and pack into box and ship to customers or stored

in Inventory

Nguyen Thi Kim Phung – 16124056 20

CHAPTER 2

THEORY BACKGROUND

2.1 Background of Setup

Set-up time:

Set-up time can be defined as the time taken to prepare the manufacturing processes

and system for production (J Bicheno M Holweg)

Setup includes preparation, replacement, location and adjustment activities (see below) When analyzing setup activities, note whether the activity is internal or external Internal setup activities require an inactive (shut down) process, meaning that no orders can be run while the setup activity is taking place External setup activities may be done while the process is operational They are offline activities

Change-over time definition

Change-over time is period required to prepare a device, machine, process, or system

for it to change from producing the last good piece of the last batch to producing the first good piece of the new batch

As also defined as: The time taken to modify the production line for different products

or new batches of the same product

Figure 14 Change-over time (Downtime here)

This means The change-over time includes Preparation (set-up time) and Replacement (clean up and adjustment)

Nguyen Thi Kim Phung – 16124056 21

Replacement: Replacement refers to the tasks associated with adding or removing

items or tools For example, the movement of test fixtures; loading of new material into the hopper; loading paper in the copy machine

Actions to reduce Replacement times include:

• Simplify setups Reduce the number of steps required, such as through a redesign

of fixtures

• Commonality of setups for product families When we establish the same setup procedures for multiple items, we naturally have less instances of change required, reducing the setup time This is the 5S tool of standardization The process is simplified by reducing the number of special items that are processed: the higher the process complexity, the longer the cycle time Henry Ford, in offering the first affordable automobile, realized the efficiency advantages offered by standardization His motto "any color you want, so long as it's black" exemplified the notion of standardization The modern approach to standardization is not that we need to limit options, but rather recognize the advantages of simplified processes, and seek to remove "special cases" where they provide little value at the cost of increased cycle times Decision points and subsequent parallel paths on flowcharts provide indication of process complexities that can sometimes be avoided By grouping parts or services into families, we recognize that there are common methods that can be applied, thus simplifying processes and reducing overall cycle times

• The 5S tools of sorting and straightening also help to reduce movement and wait times

Reducing non-valued time

Incredible reductions is total setup time have been realized simply by making internal activities external activities The following four-step approach may be used to reduce setup times