Luận văn thạc sĩ UEH inefficiency in engineering change management in kimberly clark vietnam co ,

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

NGUYEN VAN THONG

INEFFICIENCY IN ENGINEERING

CHANGE MANAGEMENT IN

KIMBERLY CLARK VIETNAM CO.,

LTD

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR. TRAN PHUONG THAO

Ho Chi Minh City – Year 2018

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INEFFICIENCY IN ENGINEERING CHANGE MANAGEMENT IN KCV

1

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

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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

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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

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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

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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.

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CHAPTER 1: PROBLEM IDENTIFICATION

1.1 Company overview

1.1.1 Company introduction

Kimberly Clark Corporation was established in 1872 in the USA and is now a leading

global marketer of a wide range of Family Care, Baby and Child Care, Adult and

Feminine Care, Personal Care, and Professional products for use in the home, business,

and industry. This company focus on providing branded, single-use products in four

business areas:

• Personal Care

• Consumer Tissue

• Professional business

• Healthcare

Kimberly Clark’s remains committed to building sustainability into every aspect of its

business. This approach maintains the company as well-established sustainability efforts

and integrates these existing programs with a number of new initiatives:

• 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

environmental program

• Focused on developing more productive working relationships with our global

stakeholders

Today Kimberly Clark and its well-known global brands are an indispensable part of life

for people in more than 175 countries. Every day, nearly a quarter of the world's

population trust Company brands to enhance their health, hygiene, and wellbeing. This

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