Analysing the current situation and proposing solutions to improve the line balancing at factory 1 of thai binh investment joint stock company

ACKNOWLEDGEMENTS
First of all, the author would like to thank the teachers of the High Quality Training
Department of Ho Chi Minh City University of Technical Education and the school's
teachers for providing knowledge in learning process for the past three years. In
particular, the author would like to thank Mr. Truong Van Nam, who accompanied and
guided the author to perform the graduation thesis, and he is also an IE specialist at the
company, so the learning and learning process. The author's internship always has the
observation, support and answers to questions about professional issues in the work
quickly.
Next, the author would like to thank Thai Binh Investment Joint Stock Company for
creating conditions for the author to have a practical learning and exchange environment
in a dynamic and professional working environment. Perform line balancing at the
Factory 1. Also, in the company's operating environment, the author has noticed the
difference between the work pressure, the way of working in practice and in theory. At
the same time, the author also thanked the brothers / sisters in the company for always
supporting, taking their precious time to answer questions in the process of learning
about the business, creating favorable conditions for partners. Fake support at work, get
used to the pressure of work and integrate into corporate culture of the company.
The author is looking forward to receiving suggestions from teachers so that they can
be more complete in this graduation thesis. We wish your company, you and your
teachers a lot of health and success.
Sincerely thank!
Ho Chi Minh City,……………………………
Author
Tran Minh Chien

Page iii


LIST OF ACRONYMS
ACRONYMS

EXPLAIN

A

Abstemious

B

Bend

BP - PO - GE

Balanced plan - production operations - goods export

CM

Cutting machine

CS

Commercial services

CT

Cycle time

DP

FA

Decathlon
Deploy technology - finance & human resource
development
Factory

FG

Finish garment

GA - EPD

General administration - execution plan

HR

Human Resources

IA

Industrial area

IB

inner body

ICD

Inland Container Depot

IE

Industrial engineering

LB

Labor

ML

Manual labor

OB

outer body

OEE

Overall equipment effectiveness

P

Page

P&S

Products and services

PM

Prepare material

PT

Production time

QC

Quality control

RFT

Right First Time

S

Second

DT - F&HRD

Page iv


SFP

Semi-finished products

SK

Skechers

T

Technique

TBS

Thai Binh Shoe

WT

Working time

WWW

Wolverine

Page v


LIST OF TABLES
Table 1.1: Business performance of Thai Binh Investment Joint Stock Company in the
period 2015-2019 ........................................................................................................... 11
Table1.2: Shoe production ability of TBS group .......................................................... 15
Table 2.1 Human transplant method ............................................................................. 22
Table 3.1 Percentage of wasted time at the sewing workshop 2 ................................... 37
Table 3.2: Analysing IE table at phase MP1 ................................................................. 40
Table 3.3: Human transplant method ............................................................................ 43
Table 3.4: Table of difference of jobs on line 26 .......................................................... 46
Table 3.5 Employment situation at line 26 as of August 1, 2020 ................................. 48

Table 3.6: Machine failure and maintenance time of MP1 order .................................. 51
Table 3.7: Statistics on the quantity of raw materials lacking in August 2020 at Factory
....................................................................................................................................... 53
Table 3.8: Additional costs of materials in 2019 at Factory 1 ...................................... 54
Table 4.1 OEE parameters from September 2020 to November 2020 .......................... 59
Table 4.2 OEE measurement results of the sewing factory 2, stage 09/2020 - 11/2020
....................................................................................................................................... 60
Table 4.3 Percentage of employees at the Sewing Workshop 2 ................................... 67
Table 4.4 Raw material supplier evaluation criteria...................................................... 71
Table 4.5 Scoreboard evaluation criteria ....................................................................... 71

Page vi


LIST OF FIGURES
Figure 1.1 Logo of Thai Binh Investment Joint Stock Company ................................... 3
Figure 1.2: Organizational chart of Thai Binh Investment Joint Stock Company .......... 4
Figure 1.3: TBS Group's fields of operation ................................................................... 7
Figure 1.4: Pictures of shoe models of 3 customers ........................................................ 8
Figure 1.5: TBS's two handbag customers are Coach and Lancaster.............................. 9
Figure 1.6: TBS's total revenue and profit in 2015 - 2019 ............................................ 12
Figure 1.7: Organization structure of the factory 1 ....................................................... 13
Figure 1.8: Organizational chart of the Balance Planning and Production Operations –
Stockout Department ..................................................................................................... 14
Figure 1.9: Shoe production ability of TBS Group and Factory 1 ................................ 16
Figure1.10: Shoe manufacturing process at Factory 1 .................................................. 17
Figure 2.1 Relationship between Cycle Time and Takt time ........................................ 22
Figure 3.1: Layout of sewing workshop 2 ..................................................................... 30
Figure 3.2: SH ARP 500 WARM JR VEL shoe code ................................................... 31
Figure 3.3: Line balancing process of product .............................................................. 32

Figure 3.4: Standard Operating Procedure .................................................................... 35
Figure 3.5: Layout of line sewing 26............................................................................. 44
Figure 3.6: Line balancing chart .................................................................................... 45
Figure 3.7: Cause & Effect Chart .................................................................................. 48
Figure 3.8: Labor structure 26 by seniority ............................................................... 49
Figure 3.9: Condition of machinery and equipment of line 26 ..................................... 51
Figure 4.1 OEE Index of Sewing Workshop 2 stage 09/2020 - 11/2020 ...................... 61
Figure 4.2 Self-assessment work sample....................................................................... 64
Figure4.3 Training plan template according to Jinzai Map........................................... 65
Figure4.4 Jinzai Map training implementation example ............................................... 66
Figure 4.5 Labor rate of the Workstation 2 ................................................................... 67
Figure 4.6: Layout of sewing workshop 2 before applying the pulling system ............ 69
Figure 4.7: Layout of Workshop 2 after applying the pulling system .......................... 69
Figure 4.8 Best working distance size ........................................................................... 73
Figure 4.9 Standard working posture ............................................................................ 74

Page vii


TABLE OF CONTENTS
ADVISOR’S COMMENT ...............................................................................................i
REVIEWER’S COMMENT .......................................................................................... ii
ACKNOWLEDGEMENTS .......................................................................................... iii
LIST OF ACRONYMS ..................................................................................................iv
LIST OF TABLES .........................................................................................................vi
LIST OF FIGURES ...................................................................................................... vii
TABLE OF CONTENTS ............................................................................................ viii
INTRODUCTION ........................................................................................................... 1
1. Reasons for choosing the topic ............................................................................... 1
2. Research objectives ................................................................................................. 1

3. Object and scope of the study ................................................................................. 2
4. Research Methodology ............................................................................................ 2
5. Structure of the report chapters ............................................................................... 2
CHAPTER 1: INTRODUCTION ABOUT FACTORY 1 - THAI BINH
INVESTMENT JOINT STOCK COMPANY ................................................................ 3
Overview of Thai Binh Investment Joint Stock Company ................................... 3
History and development ............................................................................... 5
Vision and mission......................................................................................... 6
Fields of operation ......................................................................................... 7
Business performance .................................................................................. 11
Factory 1 overview .............................................................................................. 13
Organizational structure of Factory 1 .......................................................... 13
Production ability of TBS Group ................................................................. 15
Shoes manufacturing process....................................................................... 17
CHAPTER 2: THEORETICAL BASIS ........................................................................ 20
Line balancing ..................................................................................................... 20
Definition ..................................................................................................... 20
Target ........................................................................................................... 21
The rules of implement line balancing ........................................................ 21
Steps to perform the line balancing ............................................................. 21
Stopwatch method ............................................................................................... 23
Definition ..................................................................................................... 23
Page viii


Rated time .................................................................................................... 23
Time research factors ................................................................................... 23
Plant layout .......................................................................................................... 24
Definition ..................................................................................................... 24
Rules of plant layout .................................................................................... 24

Methods to improve the efficiency of line balancing ......................................... 25
Chart of cause and effect ............................................................................. 25
Total Productive Maintenance (TPM) ......................................................... 26
Standardize the process ................................................................................ 28
Management by visual tools ........................................................................ 29
CHAPTER 3: THE CURRENT SITUATION OF LINE BALANCING AT
FACTORY 1 - THAI BINH INVESTMENT JOINT STOCK COMPANY ................ 30
Introduction of sewing workshop 2 and shoe code SH ARP 500 WARM JR
VEL ........................................................................................................................... 30
Layout of sewing workshop 2 ...................................................................... 30
Introduction of SH ARP 500 WARM JR VEL shoes code ......................... 31
Current situation of line balancing at sewing workshop 2 - Factory 1 ............... 32
Analysis of the preparation stage ................................................................. 34
Analyze the measurement phase and calculate the initial data: ................... 35
Analysis of the line balancing phase............................................................ 38
Causes of flow imbalance on line 26 ........................................................... 47
Evaluation of the line balance at Sewing Workshop 2 - Factory 1 ..................... 55
Results achieved .......................................................................................... 55
Limitations and reasons ............................................................................... 55
CHAPTER 4: PROPOSED SOLUTIONS TO IMPROVE THE LINE BALANCING
AT FACTORY 1 - THAI BINH INVESTMENT JOINT STOCK COMPANY ......... 58
Some solutions to improve line balancing efficiency ......................................... 58
Applying OEE index to evaluate and improve the efficiency of machinery
and equipment ....................................................................................................... 58
Solutions to improve the quality of labor .................................................... 62
Additional solution .............................................................................................. 69
Rearranging the sewing workshop 2 ............................................................ 69
Solution to improve quality of materials ..................................................... 70
Solution to improve working posture .......................................................... 72

Page ix


CONCLUSION ............................................................................................................. 75
REFERENCES .............................................................................................................. 77
APPENDIX ................................................................................................................... 79

Page x


INTRODUCTION
1. Reasons for choosing the topic
Line balancing plays a decisive role in the production process, production operations are
operated based on the standard operation time table of the line balancing operator. If the
operator optimizes the physical, manpower and operation time equally through the
stations, it will help businesses reduce PT and unexpected costs in the process, helping
businesses. The goods are delivered on schedule, but the balance depends on the human
factor, but there will be certain errors when they do it. Conversely, the costs associated
with the production process will increase. In fact, the current garment industry in
Vietnam mainly relies on the labor force, thereby showing that this force contributes
significantly to the workflow balance in the work stations.
Besides, due to the influence under the development of technology 4.0, everything is
gradually improved and developed. Therefore, the tools to support the production
process in general and the standard operation time table in particular need to be
improved day by day so that businesses can maximize their production capacity through
reducing operations. mission, waiting time and backlog of semi-finished products
between stations during production.
At Factory 1 of Thai Binh Investment Joint Stock Company, leather and footwear
manufacturing unit has also appeared the backlog of semi-finished products between
stations to find out and discover the causes of problems. above, so the author chose the

topic "ANALYSING THE CURRENT SITUATION AND PROPOSING
SOLUTIONS TO IMPROVE THE LINE BALANCING AT FACTORY 1 OF
THAI BINH INVESTMENT JOINT STOCK COMPANY" to make graduate thesis.

2. Research objectives
Firstly, to learn about the line balancing at each production line in the Sewing workshop
2 at Factory 1, Thai Binh Investment Joint Stock Company.
Secondly, to study and acknowledge the advantages of line balancing of a production
process. On the other hand, finding out the disadvantages that exist, from there find out
solutions to improve efficiency in the production process.
Page 1


3. Object and scope of the study
The object of the study is the execution time manipulation of each worker of line 26,
practical application of shoe code SH ARP 500 WARM JR VEL and then comparison
with standard time operation (table IE).
Subject is limited within the scope of the Sewing workshop 2, Department of Planning
Operations Production - Exporting and Department of Technology - Finance & Human
Development at Factory 1, Investment Joint Stock Company Thai Binh during the period
from August 1, 2020 to October 1, 2020.
4. Research Methodology
In order to do research at Factory 1 - Thai Binh Investment Joint Stock Company, the
author used the following methods: collect information and data related to the line
balancing in the room Science and Technology University of Social Sciences,
Department of Technology - Finance & Human Development and measuring the timing
of each sewing operation of SH ARP 500 WARM JR VEL products. After obtaining the
necessary information and data, the author conducts general analysis, statistics data,
calculates the related parameters in combination with the chart from which to make
comments and find solutions.

5. Structure of the report chapters
The graduation essay consists of 4 main chapters:
CHAPTER 1: INTRODUCTION ABOUT FACTORY 1 - THAI BINH INVESTMENT
JOINT STOCK COMPANY
CHAPTER 2: THEORETICAL BASIS
CHAPTER 3: THE CURRENT SITUATION OF LINE BALANCING AT FACTORY
1 - THAI BINH INVESTMENT JOINT STOCK COMPANY
CHAPTER 4: PROPOSED SOLUTIONS TO IMPROVE LINE BALANCING TASK
AT FACTORY 1 - THAI BINH INVESTMENT JOINT STOCK COMPANY

Page 2


CHAPTER 1: INTRODUCTION ABOUT
FACTORY 1 - THAI BINH INVESTMENT JOINT
STOCK COMPANY
Overview of Thai Binh Investment Joint Stock Company
Full name of the company: THAI BINH INVESTMENT JOINT STOCK COMPANY.
Abbreviation name: TBS 'Group (TBS).
International transaction name: THAI BINH INVESTMENT JOINT STOCK
COMPANY.
Legal representative: Nguyen Duc Thuan.
Company's logo:

Figure 1.1 Logo of Thai Binh Investment Joint Stock Company
Source: Thai Binh Investment Joint Stock Company
Head office address: 5A, Xuyen A Highway, An Binh Ward, City. Di An, Binh Duong
Province.
Tax code: 3700 148 737

Establishment License: No. 106 / GP.UB dated March 5, 1993
Phone: (84 28) 37 241 241
Fax: (84 28) 38 960 223
Email:
Page 3


Wed site: www.TBSgroup.vn
Total area: 20,000m2
Charter capital: 770 billion VND
Organization chart: Mr. Nguyen Duc Thuan - the head of the company, holds the
position of Chairman of the Board of Directors concurrently holds the position of
General Director of the company. Below the organizational chart is divided into two
main parts that are the industry/chain executive block operated by the deputy general
directors and the office block undertaken by seven directors: business directors,
administrative directors, sample research and development director, quality director,
planning director, human resources manager, and production manager.
GENERAL MEETING OF
SHAREHOLDERS
ADMINISTRATIVE COUNCIL
CHAIRMAN
GENERAL MANAGER

HOLDING

OFFICE 1
OFFICE 2

SHOES
INDUSTRY

SOLE
INDUSTRY

FACTORY 1
FACTORY 2
BEND 434
FACTORY 3
BEND 285
AN GIANG FACTORY
AN THAI FACTORY
HUU NGHI FACTORY
CENTRAL VIET NAM
FACTORY

HANDBAG
INDUSTRY

LOGICTICS

REGIONAL HANDBAGS 2
HANDBAGS IN SONG TRA
AREA

REAL
ESTATE
AND CS

REAL ESTATE
SONG TRA IA

WOOD FACTOY
COMMERCIAL
SERVICES
GOLF COURSE
HOTEL

Figure 1.2: Organizational chart of Thai Binh Investment Joint Stock Company
Source: Thai Binh Investment Joint Stock Company

Page 4


History and development
Established in 1989, in the development process, TBS has experienced many ups and
downs with milestones marking the growth of the company in each period, steadily
bringing Vietnamese industries to participate deeper into the global value chain.
Year

1989

Event milestones
The three founders Nguyen Duc Thuan - Cao Thanh Bich - Nguyen
Thanh Son together embarked on a career with the desire to get rich in
the homeland.
The company was founded by 500 military officers returning from the
military.

1992

The company initially only produced shoes for women.

Construction project "Factory 1" of TBS was approved and licensed to
operate

1993

Successfully signed the first contract to process 6 million pairs of
women's shoes.

1995

The second factory of the company was started construction with the task
of specializing in manufacturing sports shoes

1996

Signing contracts with many international partners that are prestigious
shoe brands in the world.

2002

Achieved production of 5 million pairs of shoes.
Established the first shoe sole processing specialist workshop
Become a partner of Skechers shoe brand.

2005

Thai Binh Shoes Company officially changed its name to Thai Binh
Investment Joint Stock Company.
Receiving the Second Class Labor Medal.

2007

The company's shoe production reached 10 million pairs.
Establish Song Tra Industrial Park in Thai Binh province.

2008

The company expanded its investment into a new field and established
TBS Logistic.

Page 5


2009

Honored to receive a certificate of merit from the Ministry of Industry
and Trade with the title: Outstanding Enterprise of Vietnam's Textile and
Footwear Industry.
Among the top 5 typical enterprises of leather industry.
Established Injection shoe factory.

2011

2013

Signed a contract to supply the production of handbags for Coach brand
on April 30, 2011, marking a great development of the company. After
that became one of the two key strategic sectors of the company along
with the footwear manufacturing industry.
The company's shoe production reached 16 million pairs.

Set up a kit-bag factory to meet the production of products for the
Decathlon brand.
Established a wooden furniture factory.

2014

Signed production supply contract for Wolverine brand.
Receiving the Government's emulation flag and the First - Class Labor
Medal.
Achieved quantity of 21 million pairs of shoes and 10 million handbags.
Established a shoe factory in Kien Giang Province.

2015

Established base factory in Hoi An.
Signed a production supply contract for Vera Bradley brand.

2016

Established a shoe factory with 50 sewing lines in An Giang.
Signed production supply contract for Victoria Secret.

2017

TBS officially received the certificate of accreditation as a laboratory
international standard test and awarded by SATRA.

2018

MONTGOMERIE LINKS is the best golf course in Vietnam voted by

ASIA GOLF AWARD 2018.

2019

TBS achieved 30 years of establishment and development, reached the
top 10 strong brands in Vietnam, received the First-class labor medal.

Vision and mission
❖ Vision:
With aspiration, determination, along with the spirit of ceaseless innovation of a strong
team and the good leader strategic vision, striving to 2025, TBS will strive for great
Page 6


development to become a reputable multidisciplinary investment company in Vietnam
and in the region, bringing the international class, showing the intellectual stature and
pride of Vietnam in the world.
❖ Mission:
Investing and providing products and services that contribute to the participation of
Vietnamese industry in the global value chain.
Always innovating, creating, accompanying strong development and sharing benefits,
associating corporate responsibility with the community and society and always
bringing confidence and peace of mind to customers, partners and employees.
Fields of operation

Figure 1.3: TBS Group's fields of operation
Source: Thai Binh Investment Joint Stock Company
TBS invests and develops 6 main industries: Leather and Footwear Manufacturing,
Handbag Manufacturing, Investment - Sales - Real Estate and Industrial Infrastructure
Management, Port & Logistics, Trade in Services. Each industry has achieved

remarkable achievements and successes, making an important contribution to the
powerful development of TBS.
Page 7


a. Manufacturing Footwear Industry
TBS is a leading company in the shoe industry in Vietnam with nearly 25 years of
experience with a vision and ability of international standards. Large-scale production
capacity owns many factories throughout the country with closed, professional and hightech production lines. Abundant human resources, passionate, solidarity and creativity:
17,000 officers and employees with 3 product development centers, 2 shoe soles
factories, 33 production lines with current capacity at 25 million pairs of shoes.
Manufacturing and processing casual, waterproof, work shoes, injection and sports
shoes of all kinds for 3 main customers: Skechers, Decathlon and Wolverine.

DECATHLON

WOLVERINE

SKECHERS

Figure 1.4: Pictures of shoe models of 3 customers
Source: Thai Binh Investment Joint Stock Company
b. Manufacturing Industry Bags
As the main manufacturing industry of TBS, second only to the leather and footwear
industry with the organizational model in accordance with the customer orientation, the
team of experienced professional managers and high standard modern infrastructure.
TBS has produced and launched a range of products such as high-class handbags for
women, men's handbags, men's and women's purses, backpacks, travel bags. At the same
time, TBS is a reliable partner for customers such as Coach, Decathlon, Vera Bradley,
Tory Burch, Titleist ...

Page 8


Figure 1.5: TBS's two handbag customers are Coach and Lancaster
Source: Thai Binh Investment Joint Stock Company
c. Investment – Business – Real estate and Industrial Infrastructure Management
Founded in 2000 with abundant capital from the headquarter, TBS LAND has gradually
grown to become a prestigious real estate developer & investor in category such as
apartments, villas, townhouses, commercial centers, offices, resort real estate ... at key
locations of the economic triangle of Ho Chi Minh City - Binh Duong - Dong Nai and
other provinces.

TBS LAND has been successful with major projects such as:
2000: Starting construction of 5-storey building, establishing real estate company
ARECO.
2005: Initial development of Green Square land fund.
2007: Setting up the development project of Song Tra Industrial Park.
2008: The first bonded warehouse and CFS at Tan Van was completed and put into
operation.
2009: Song Tra Industrial Park officially came into operation.
2011: The Zone 2 industrial complex was expanded.
2015: Established Mai House Hospitality and the Mai House Hotels & Resorts chain,
kicking off the tourism, hospitality and resort industry.
2016: Completed construction of Kien Giang industrial production cluster.

Page 9


2017: Thoai Son - An Giang industrial production cluster was completed and put into

operation.
2019: Mai House Saigon Hotel officially opened and put into operation, marking a new
development step of TBS Land in the field of investment - real estate development and
tourism, hotel and resort services.
d. Port & Logistics
ICD TBS Tan Van located in the southern key economic region is a hub for providing
diverse logistics and logistics services, suitable for each customer who needs to develop
and expand logistics services for goods in and Foreign countries also provide so many
services: inland clearance depot (ICD), warehouse rental, warehouse management,
storage, container storage, office services, customs clearance, freight forwarding import
and export, warehousing, security control and other value added services.
ICD TBS Tan Van's customer partners have been cooperated: APL Logistics, YUSEN
Logistics, GEODIS WILSON, EXPEDITORS, DHL Forwarding, DHL Supply Chain,
DULOS International, SCANWELL Logistics ...
e. Travel
TBS Land is one of the Vietnamese brands in the hotel and resort industry in Vietnam,
possessing a comprehensive 5-star standard tourist resort complex in Ho Chi Minh City
and Quang Nam that owns the most beautiful beaches and landscapes in Vietnam. Each
complex is a high-end service complex that includes a range of amenities such as hotels,
golf courses, spa, gym, international conference center ...
The Mai House Montgomerie Links Golf Club of TBS Land Group was constructed and
designed by world-renowned golf expert Colin Montgomerie, which has won numerous
prestigious domestic and international awards for its unique design and facilities, 5-star
standard synchronous material.
This is also the venue for hosting and organizing hundreds of professional, semiprofessional and amateur golf tournaments ... attracting the participation of thousands
of domestic and foreign golfers.

Page 10

f. Trade & Services
TBS Sport is a distributor for leading Vietnamese and international fashion brands and
is gradually asserting its professional role in the field of shoe and handbag distribution.
With a nationwide distribution network, TBS Sport will bring quality products and
continuously increase the value of experience for customers. Proud to be the exclusive
retailer of ECCO brand for many years and helps this brand become the leading comfort
shoe brand in Vietnam. Another famous fashion icon is Cole Haan, a brand from the
US, which was officially introduced into the Vietnamese market by TBS Sport at the
end of 2015 by opening the first store in District 7. This is also the largest store in Asia
of Cole Haan today.
Business performance
Table 1.1: Business performance of Thai Binh Investment Joint Stock Company in the
period 2015-2019
Unit of measure: 1,000,000 VND
Year

Target
2015
1. Net sales from
sales
2. Financial revenue
3. Total cost of sales
& management
- Cost of goods sold
- Selling expenses
- Financial expenses
- Enterprise Cost
Management
Profits Business
operations

2016

2017

2018

2019

3,156,485 3,216,485 3,795,452 4,250,907 5,101,088
20,001

20,001

23,601

26,433

31,72

2,809,019 2,811,019 3,317,002 3,715,043 4,458,051
2,709,197 2,709,197 3,196,852
23,637
23,637
27,892
34,547
34,547
40,765

3,580,75 4,296,570

31,239
37,486
45,657
54,789

41,638

43,638

51,493

57,672

69,206

367,467

425,467

502,051

562,297

674,757

Source: Finance and Accounting Department of Thai Binh Investment Joint Stock
company

Page 11

TBS's business performance
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2015
Doanh
thu
Revenue

2016

2017

Lợi nhuận HĐKD
Profits

2018

2019

Tổng
Total chi
costphí bán hàng & quản lý

Figure 1.6: TBS's total revenue and profit in 2015 - 2019
Source: Author's synthesis

From the chart, we can see that the company's revenue is increasing strongly over the
years, particularly in the period of 2018 - 2019, total revenue increased the most from
4,277,340 million VND to 5,132,808 million VND (up 20%), while the period of 2017
- 2018 increased only 12%, proving that the financial situation of TBS has made stronger
progress over the years, worthy of being the top 10 strong brands in Vietnam. In addition
to the significant increase in revenue, costs have also increased by a ratio of 1: 1 with
sales. But in terms of the percentage of profit on the company's total revenue, the profit
is always 13% per year. From there, it can be concluded that, although TBS operates in
6 sectors but TBS still maintains its position in the domestic and international markets
through the increasing revenue and expenses but the percentage The profit earned
remains the same over the years.

Page 12


Factory 1 overview
Organizational structure of Factory 1
FACTORY DIRECTOR 1

SEWING VICE PRESIDENT

GA - EPD
DEPARTMENT

SEWING
WORKSHOP 1

Deputy
Supervisor

BEND VICE PRESIDENT

BP - PO - GE
DEPARTMENT

BENDING
WORKSHOP 1

Supervisor

Deputy
Supervisor

DT - F&HRD
DEPARTMENT

SEWING
WORKSHOP 2

Supervisor

BEND
WORKSHOP 2

Deputy
Supervisor

Supervisor

Figure 1.7: Organization structure of the factory 1

Source: Human Resources Department of Thai Binh Investment Joint Stock Company
Factory director board: manages and operates all production and business activities of
the factory. Organize the implementation of the decisions of the Board of Directors,
General Director of the company, take responsibility for the rights and obligations
assigned. Proposing the arrangement of organizational structure, internal management
regulations, appointment and proposal of positions in the factory.
General Administration - General Accounting: is the place to handle, administer and
support other departments in terms of labor quality, salary policy, insurance, machinery
and equipment management, construction production plan and some other jobs ...
Technology - Finance & Human Development Department: is the main responsibility in
the test production phase of a customer's new shoe, setting up the standard timing
operation table for each stage of the shoe code. At the same time, manage the warehouse,
machinery, and human resources of the garment factory.

Page 13


Balance Planning and Production Operations – Stockout Department: managing and
building production and business plans in Factory 1 according to the Corporation's
development orientation. The work of production regulation, the work of statistics on
production and business plans, the management of procurement and storage of materials
for production.
EXECUTIVE VICE PRESIDENT OF MANUFACTURING OPREATIONS
SUPPLY
TEAM

GARMENT
TEAM

CONTROL OF MATERIALS

Sewing plan

PM UPPER

A SEWING
1

SEWING MATERIALS

BEND TEAM
EXPORTING
PLAN B1
BENDING PLAN

A SEWING
2

BENDING MATERIALS

A SOLE
EXPORTING
PLAN B285

A PROCESSING

Figure 1.8: Organizational chart of the Balance Planning and Production Operations –
Stockout Department
Source: Human Resources Department of Thai Binh Investment Joint Stock Company
Balance Planning and Production Operations – Stockout Department: allocated by route

and divided into 3 small teams managed by 3 different fields: materials, sewing, Bend.
Each team will be managed by a team leader and responsible for the work in the team
they are directly under the management of.
Sewing workshop 1, sewing 2: in charge of Chopping, printing, pressing, embroidering,
laminating, basic sewing and sewing the details of the uppers.
Bend workshop 1, Bend 2: Bend the uppers into the complete shoe sole.
Foreman and Deputy Foreman: each workshop has a Foreman and Deputy Foreman is
responsible for management, responsible for directly in the production process at his
workshop. Implement and distribute raw materials, tools, machines and manpower to
Page 14


the lines through the lead lines to optimize work at the production stage based on
production plan tables, tables IE's Balance Planning and Production Operations –
Stockout Department. Since then, the managers confirm, urge workers to work, identify
faults that often occur in the production process and then report them to their superiors
and quality department to find solutions and solutions.
Production ability of TBS Group
Table1.2: Shoe production ability of TBS group
Index

Costs (Million VND)

P&S
Quantity

WT/8hours

PPH Total

Materials

Labor

Asset

10,500,000

1,339,300 0.98

1,330,000

48.0%

28.5%

3.5%

DP

6,400,000

625,000 1.28

810,600

426,400

336,400

47,800

WWW

4,000,000

476,200 1.05

506,700

266,600

210,200

29,900

SK

100,000

20,800

0.6

12,700

6,700

5,300

700

FA1

2,636,000

274,600

1.2

316,500

157,700

136,900

21,900

FA2

3,364,000

365,700 1.15

458,100

255,200

180,800

22,100

FA3

4,500,000

481,600 1.17

555,400

286,700

234,200

34,500

Factory

Total

CUSTOMER
DP

FA3

4.500.000

4.500.000

FA2

3.364.000

1.500.000

FA1

40.000
2.276.000
Source: Thai Binh Investment Joint Stock Company

Page 15

WWW

1.764.000
2.236.000

SK

100.000


PRODUCTION DENSITY
STRUCTURE OF 3 CUSTOMERS

ALLOCATION OF CUSTOMERS
OF 3 CUSTOMERS AT 3
FACTORIES

1%

100%
38%

50%
61%
0%
NM3
FA3

DP

WWW

DP

SK

NM2
FA2
WWW

NM1
FA1
SK

Figure 1.9: Shoe production ability of TBS Group and Factory 1
Source: Author's synthesis
Currently, TBS shoe processing is mainly done at 3 factories: Factory 1 and Factory 2

are located in Di An, Binh Duong, Factory 3 is located in My Phuoc, Binh Duong. From
the data collected by the Company, the author found that the total volume of Decathlon
customers' orders was the largest, accounting for 61% of the total number of orders
processed, in addition Wolverine customers accounted for. 38% of production and at
least 1% of Skechers' customers. Especially at Factory 1, TBS Company has only factory
1 and factory 2, where mainly processing shoes for Wolverine customers, and at Factory
1 only processes to customers Decathlon and Skechers when other factories can’t meet
their order schedule.

Page 16


Shoes manufacturing process

Sew
Detailed
order

Packing
Bend

Achieved

Inventory
Material

Prepare
the
material

Not
Mesh

Backing
paste

PU
Stage 3
Line

Auxiliary
detail

Bearing

Rent

Prepare
tools,
equipment

achieved

Leather

Main detail
Cutting

Checking

Achieved
Stage 2
Achieved

Silk – screen printing

Stage 1

Squeeze
Stocking
Swing, rolled

Sewing
upper

Not
achieved

Achieved
Prepare
the
material
for sole

Basic sewing
Finishing sewing

Achieved

Prepare the

material upper

Checking

Bend

Figure1.10: Shoe manufacturing process at Factory 1
Source: Thai Binh Investment Joint Stock Company

Page 17

Prepare
the
material
for size