Improving the efficiency of belt quality management system by digitalization application at bosch vietnam co , ltd

MINISTRY OF EDUCATION AND TRAINING
HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY FOR HIGH QUALITY TRAINING

CAPSTONE PROJECT
INDUSTRIAL MANAGEMENT

IMPROVING THE EFFICIENCY OF BELT QUALITY
MANAGEMENT SYSTEM BY DIGITALIZATION
APPLICATION AT BOSCH VIETNAM CO., LTD

LECTURER: HUYNH ANH TUAN, Ph.D.
STUDENT : TRAN THI NGOC TRA

SKL010204

Ho Chi Minh City, May 2023


HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY FOR HIGH QUALITY TRAINING

THESIS

IMPROVING THE EFFICIENCY OF BELT QUALITY
MANAGEMENT SYSTEM BY DIGITALIZATION
APPLICATION AT BOSCH VIETNAM CO., LTD

Student: TRAN THI NGOC TRA
Student ID: 19124004
Major: INDUSTRIAL MANAGEMENT

Advisor: HUYNH ANH TUAN, Ph.D.

HO CHI MINH CITY, May 2023


HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY FOR HIGH QUALITY TRAINING

THESIS

IMPROVING THE EFFICIENCY OF BELT QUALITY
MANAGEMENT SYSTEM BY DIGITALIZATION
APPLICATION AT BOSCH VIETNAM CO., LTD

Student: TRAN THI NGOC TRA
Student ID: 19124004
Major: INDUSTRIAL MANAGEMENT
Advisor: HUYNH ANH TUAN, Ph.D.

HO CHI MINH CITY, May 2023


COMMENTS OF ADVISOR
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------HCMC, 03/May/2023
Advisor

i


COMMENTS OF REVIEWER

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------HCMC, 03/May/2023
Reviewer

ii


ACKNOWLEDGEMENTS
The author would like to thank the teachers in the Faculty of Economics, Ho Chi
Minh City University of Technology and Education for imparting useful knowledge during
the years of studying in the university lecture hall. With the knowledge the author has
acquired during the study process, it is not only the foundation for the research process but
also a valuable baggage for the author to start a job in a new environment. Moreover, the
author would like to express the most sincere and profound thanks to Huynh Anh Tuan,
Ph.D the teacher who always loved, supported and guided wholeheartedly throughout the
process complete the Graduation Thesis.
Besides, the author would also like to thank the Board of Directors of Bosch
Vietnam Co., Ltd. for allowing and creating favorable conditions for the author to practice
at the company. The author would like to thank Ms. Nguyen Thi Giang and Ms. Ho Thi
Hao of QMM6 department for supporting and creating conditions for the author to
complete the graduation thesis during the internship at the company.
With the inevitable limitations in the process of implementing the graduation thesis,
the comments from teachers are extremely valuable for the author to complete the essay
more carefully.
Sincere appreciation from the author.
HCMC, 03/May/2023
Student name
Tran Thi Ngoc Tra

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LIST OF ABBREVIATION
ABBREVIATION

EXPLANATION

HcP

Ho Chi Minh City Plant

PC

Commercial Plant Management

PT

Technical Plant Management

CTG

Controlling

HRL

Human Resources

FCM

Facility Management

HSE

Health Safety Environment

MSE

Manufacturing

ICO

Information Coordination & Organization

LOG

Logistics

TGA

Technical Industrial Apprenticeship

QMM

Quality Management and Method

ETC

Engineering Technology Center

CVT

Continuously Variable Transmission

PQA

Purchasing Quality Assurance

BQMS

Belt Quality Monitoring System

QMM1

Customer Relationship

QMM3

Quality Assurance

QMM7

Quality Management System and Method

QMM6

Product Quality

FTE

Full-time equivalent

PAS

Production Acceptance Standard

EAS

Engineer Acceptance Standard
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LIST OF TABLES
Table 3. 1 Document number for each process ................................................................. 31
Table 3. 2 Operators’ test results in 2021 .......................................................................... 32
Table 3. 3 Operators’ test results in 2022 .......................................................................... 34
Table 3. 4 Internal service quality survey to find out the reason for not detecting failure
modes on operators’ tests .................................................................................................. 39
Table 4. 1 Pareto chart data ............................................................................................... 51
Table 4. 2 Project member................................................................................................. 58
Table 4. 3 Detailed implementation plan .......................................................................... 59
Table 4. 4 FTE ................................................................................................................... 69

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LIST OF FIGURES
Figure 1. 1 Facts and figures about Bosch in Vietnam in 2021 .......................................... 5
Figure 1. 2 Some Bosch brands ........................................................................................... 6
Figure 1. 3 Some Bosch customers ..................................................................................... 6
Figure 1. 4 Logo of Bosch Vietnam Co., Ltd ...................................................................... 7
Figure 1. 5 Company’s products ......................................................................................... 8

Figure 1. 6 Organizational chart .......................................................................................... 9
Figure 1. 7 Organization chart of quality department ....................................................... 10
Figure 1. 8 Organization chart of the department ............................................................. 12
Figure 2. 1 PDCA cycle..................................................................................................... 20
Figure 2. 2 Fishbone .......................................................................................................... 24
Figure 2. 3 Pareto chart ..................................................................................................... 25
Figure 3. 1 Operators are performing the BQMS test ....................................................... 28
Figure 3. 2 Webform Test BQMS ..................................................................................... 29
Figure 3. 3 BQMS Testing process ................................................................................... 30
Figure 3. 4 Chart shown Operators’ test results in 2021 ................................................... 33
Figure 3. 5 Miss defect rate of operator in 2021 ............................................................... 33
Figure 3. 6 Chart shown Operators’ test results in 2022 ................................................... 35
Figure 3. 7 Miss defect rate of operator in 2022 ............................................................... 35
Figure 3. 8 Results of the internal service quality survey in 2021 .................................... 40
Figure 3. 9 Results of the internal service quality survey in 2021 .................................... 41
Figure 3. 10 Failure quantity slip through in loopset in 2022 ........................................... 42
Figure 3. 11 The process of solving defective products complained by customers .......... 44
Figure 4. 1 Slip through rate in Loopset in 2022............................................................... 50
Figure 4. 2 Missed defect rate in Loopser in 2022 ............................................................ 51
Figure 4. 3 Pareto chart the main causes .......................................................................... 52
Figure 4. 4 Fishbone diagram of cause Operator visual inspection skill .......................... 53
Figure 4. 5 Fishbone diagram of cause Training ............................................................... 54
Figure 4. 6 Gantt chart ....................................................................................................... 59
Figure 4. 7 Main page of the BQMS Management System .............................................. 61
Figure 4. 8 Main items in BQMS Management System ................................................... 61
Figure 4. 10 BQMS Navigation......................................................................................... 64
Figure 4. 11 Acceptance standards display ....................................................................... 64
Figure 4. 13 BQMS Test results ........................................................................................ 65
Figure 4. 14 BQMS reports display ................................................................................... 65
Figure 4. 15 Add new failure mode display ...................................................................... 66

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Figure 4. 16 Update failure mode complained display ..................................................... 66
Figure 4. 17 Failure mode change logs display ................................................................. 67
Figure 4. 18 About display ................................................................................................ 67

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TABLE OF CONTENTS
COMMENTS OF ADVISOR............................................................................................... i
COMMENTS OF REVIEWER ........................................................................................... ii
ACKNOWLEDGEMENTS ............................................................................................... iii
LIST OF ABBREVIATION............................................................................................... iv
LIST OF TABLES .............................................................................................................. v
LIST OF FIGURES ............................................................................................................ vi
TABLE OF CONTENTS .................................................................................................viii
INTRODUCTION ............................................................................................................... 1
1. Rationale ...................................................................................................................... 1
2. Objective ...................................................................................................................... 2
3. Scope and object .......................................................................................................... 2
4. Research methodology ................................................................................................. 2
5. Structure of report ........................................................................................................ 3
CHAPTER 1: INTRODUCTION ABOUT BOSCH VIETNAM CO., LTD ..................... 5
1.1 Introduction about Bosch Vietnam Co., Ltd .............................................................. 5
1.1.1 Bosch Powertrain Solutions factory in Dong Nai ............................................... 6
1.1.2. Organization chart of quality department ........................................................ 10
1.2 Overview of the BQMS ........................................................................................... 11
1.2.1 Overview of the QMM6 department (PS/QMM6-HcP) ................................... 11

1.2.2. Overview of the BQMS ................................................................................... 13
CHAPTER 2: LITERATURE REVIEW........................................................................... 14
2.1. Literature review about digitalization ..................................................................... 14
2.2. Literature review about digital library .................................................................... 18
2.3. Some other concepts ............................................................................................... 20
CHAPTER 3: ANALYSIS OF THE STATUS OF BQMS AT QUALITY
MANAGEMENT AND METHOD DEPARTMENT ...................................................... 27
3.1. Overview the status ................................................................................................. 27
3.1.1. Automotive Industry Transformation .............................................................. 27
3.1.2. Importance of Push Belt in CVT...................................................................... 27
3.1.3. BQMS Role in Quality Assurance ................................................................... 27
3.1.4. Current status of BQMS ................................................................................... 28
3.1.4.1. Visual inspection check activities for operators ........................................ 28
3.1.4.2. Current status of operators’ missed failure mode...................................... 32
3.1.4.3. The status of solving defective products complained by customers ......... 42
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3.2. Assess the current status of BQMS activities ......................................................... 46
3.2.1. Strength of current BQMS ............................................................................... 46
3.2.2. Limitations of current BQMS .......................................................................... 47
CHAPTER 4: PROPOSED SOLUTIONS IMPROVING THE EFFICIENCY OF
QUALITY MANAGEMENT & METHOD DEPARTMENT BY DIGITALIZATION IN
BUSINESS APPLICATION: A CASE OF THE DIGITAL LIBRARY OF BQMS AT
BOSCH VIETNAM CO., LTD ......................................................................................... 50
4.1. Solution to reduce slip through in loopset process (Solution to 5th limitation) ..... 50
4.1.1. The goal of the solution ................................................................................... 50
4.1.2. Contents of the solution ................................................................................... 50
4.1.3. Benefits of the solution .................................................................................... 56
4.2. Building the digital library: BQMS Management System (Solution to all

limitations) ..................................................................................................................... 56
4.2.1. Motivation for the solution .............................................................................. 56
4.2.2. Solution Purposes ............................................................................................. 57
4.2.3. Solution Objectives .......................................................................................... 57
4.2.4. Value Proposition ............................................................................................ 58
4.2.5. Contents of the solution ................................................................................... 58
4.2.5.1. Overview the timeline ............................................................................... 58
4.2.5.2. Contents of the digital library: BQMS Management System ................... 60
4.2.6. Benefits of the solution .................................................................................... 67
4.2.7. Future Opportunities ........................................................................................ 69
4.2.7.1. Integration of Other Processes ................................................................. 69
4.2.7.2. Automation and Advanced Functions ...................................................... 70
4.2.7.3. Application to Similar Topics ................................................................... 70
CONCLUSION ................................................................................................................. 71
REFERENCES .................................................................................................................. 72

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INTRODUCTION
1. Rationale
In recent years, digitalization has become an increasingly important trend in various
industries, including quality management. With the rise of digital technologies, companies
can now manage their quality management systems more efficiently by implementing
digital tools and systems.
In the 4.0 technology era, many businesses have been choosing document
digitization solutions to optimize operational processes, improve performance, and save
time and costs. In particular, Bosch Vietnam is a leading supplier of technology, drive belts
and services, and in order to maintain its position in the market, it is necessary to adopt
digitalization and implement digital systems in its quality management processes.

One area where digitalization can have a significant impact is the implementation
of a digital library. A digital library is a collection of digital resources, including
documents, images, and videos, that are organized and stored in a centralized location. By
implementing a digital library, companies can improve the efficiency of their quality
management processes and methods.
Specifically, in order to ensure the best quality of products produced and marketed,
the BQMS of QMM department at Bosch Vietnam plays a very important role in
controlling, evaluating and managing quality products. However, it is still difficult and
inconvenient to perform tasks in this room when using traditional documents and data
storage tools, which consumes time and effort for employees.
Therefore, the author has chosen the topic “Improving the efficiency of Quality
management and method by digitalization in business application: A case of the
digital library of BQMS at Bosch Vietnam” to help the company monitor and control
product quality more effectively, thereby proposing appropriate digitizing solutions to
improve work efficiency, improve product quality and minimize errors in the product
quality management process in general and management of important documents in
particular.

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2. Objective
- Raised issues raised about quality control activities, especially important
document control issues at the BQMS department of the Quality Management and
Methods department at Bosch Vietnam Co., Ltd.
- Proposing solutions for digitization and implementing digitization solutions to
help perfect the document management system, contributing to improving the
efficiency of quality management activities at the BQMS department.
- Develop a user-friendly application that consolidates all BQMS information,
providing a single point of access for all stakeholders and improving overall

productivity.
- Improve document control with a centralized and standardized the BQMS failure
mode picture library, ensuring easy access, better organization, and secure data
management.
- Evaluating the effectiveness of the implementation process and the results
achieved.
3. Scope and object
Scope:
- Scope of space: BQMS Department - Bosch Long Thanh Factory - Bosch Vietnam
Co., Ltd.
- Scope of time: Analyze the current situation of operations at the BQMS department
from 2021 to 2022.
- Scope of content: Digital application builds failure modes library system based on
standard documents at BQMS department.
Subject: BQMS department at Bosch Vietnam Co., Ltd
4. Research methodology
Using secondary documents through reports from the quality department through
the years 2021 and 2022 to find out the document management problems that contribute to
improving the company's defect detection skills in the future. The approach using
secondary documents will make it easier to collect information, available documents are
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stored in the document directory of the quality department. Data updated and recorded in
the last 2 years 2021 and 2022 will reflect the actual status of employees’ awareness and
detection of defective products.
At the same time, use quality control tools such as survey form, fishbone diagrams,
Pareto charts to collect data to find out the root cause, thereby providing solutions to
improve product defect detection skills at the factory. Moreover, the author combines with
interviews and consultations with quality experts about the status of visual inspection of

employees at the factory. And consult with experts to propose solutions to improve the
skills of employees at the factory. Thereby improving the performance of BQMS at Quality
management and method department.
5. Structure of report
The report consists of four chapters, specifically:
Chapter 1: Introduction about Bosch Vietnam Co., Ltd
In chapter 1, the author will present an overview of the company, the history of
formation and development, the field of operation, the company's products and the
organizational structure of the departments, especially the BQMS department. Thereby,
helping readers have an overview of the business.
Chapter 2: Theoretical Basis
In this content, some concepts and theoretical basis for the topic are included. That is
the theory of digitalization, digitalization in business, EAS, PAS, digital library, etc.
Chapter 3: Analysis of status of BQMS at quality management and method
department
In this section, the author will present some operational issues and challenges at the
BQMS department.
Chapter 4: Proposing solutions to improve the operational efficiency of the BQMS
department at Bosch Long Thanh factory
At the end, the author proposes some solutions based on actual problems that
enterprises are facing to contribute to improving the performance of the BQMS

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department. Finally, evaluate the results of implementing solutions to improve operations
of the BQMS department at Bosch Vietnam.

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CHAPTER 1: INTRODUCTION ABOUT BOSCH VIETNAM CO.,
LTD
1.1 Introduction about Bosch Vietnam Co., Ltd
Bosch established its first representative office in Ho Chi Minh City. Since 2007,
Bosch has expanded its operations in Vietnam with two branch offices in Hanoi and Da
Nang, and a Powertrain factory in Dong Nai province that produces continuously variable
transmission belts (CVTs) in the car. In addition, Bosch also operates an R&D center for
Technology and enterprise solutions and an Automotive Technology R&D center in Ho
Chi Minh City. The Center for Research and Development of Technology and Enterprise
Solutions has expanded its operations in Hanoi in June 2022.
In fiscal year 2021, Bosch recorded a consolidated revenue of approximately 192
million euros in Vietnam. As of December 31, 2021, Bosch employed more than 5,000
associates and has diversified business operations in Vietnam.
As of today, all four Bosch business areas, namely Mobility Solutions, Industrial
Technology, Consumer Goods, Energy Technology and Construction, have operations
in this country.

Figure 1. 1 Facts and figures about Bosch in Vietnam in 2021
Source: Company website
Bosch brands

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Some Bosch brands
Figure 1. 2 Some Bosch brands
Source: Company website
Bosch customers

Figure 1. 3 Some Bosch customers
Source: Company website
1.1.1 Bosch Powertrain Solutions factory in Dong Nai
Name: Bosch Vietnam Co., Ltd
Slogan: Invented for life
Company’s logo:

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Figure 1. 4 Logo of Bosch Vietnam Co., Ltd
Source: Company website
Address: Road No. 8, Long Thanh Industrial Park, Long Thanh District, Dong Nai.
Phone: 0251 6262 585
Tax code: 3603119522
Company website: bosch.com.vn
Area: 17.000 m2
Market: Global, especially China, Japan
History of formation and development
After a long development journey, important milestones of HcP include:
- October 22, 2007: The construction project of HCP factory was started
- August 1, 2008: HPP put into operation the first transmission belt assembly line at
a leased factory in the high-tech park.
- December 16, 2010: Starting to move operations to the finishing factory
- 03/01/2011: The first Element production line started operation
- July 3, 2012: For the first time, HcP can produce Loops by itself
- October 2013: TGA technical vocational training program is applied in Vietnam
- June 2014: HPP produced 10 million transmission belts
- March 2017: Marking the milestone of 20 million products manufactured in Ho
Chi Minh City

- 2018: Celebrating 10 years of establishment and marking the milestone of 25
million products manufactured in HCP
Field of activity and products
Field of activity
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The Bosch Powertrain Solutions factory in Dong Nai specializes in the production
of continuously variable transmission belts (CVT pushbelt). In 2008, Bosch started
producing CVT belts in Dong Nai, Vietnam and in the first year of production, the factory
produced 1.6 million products. As of March 2018, the Bosch Powertrain Solutions factory
in Dong Nai has produced more than 25 million CVT belt products. CVT belt products are
currently manufactured at three Bosch factories worldwide, including the Netherlands,
Vietnam and Mexico. The factory in Vietnam is Bosch's largest CVT belt factory globally.
Product

Figure 1. 5 Company’s products
Source: Company website
Bosch develops and manufactures transmission belts for CVT transmissions. This
is an important component of the CVT transmission because without the transmission belt,
or the transmission belt is damaged, the car will not run. The drive belt ensures that the
engine is running as efficiently as possible, the engine is always maintained at an ideal
level of performance, ensures low fuel consumption and reduces CO2 emissions. A CVT
belt is made up of hundreds of individual, specially designed and strung steel elements
called elements along two loops.
Organization chart at HcP factory
At HcP, the Chief Commercial Officer (HcP/PC) and Technical Director (HcP/PT)
will be responsible for making decisions, goals and development orientations for the entire
company.

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