Lean Supply Chain Management Assignment

Assignment Task

I. Abstract

The purpose of this essay is to find out the defects that are occurring in the service model in the parking lot at facility A of UEH; research on the importance and effectiveness of Lean in today's operations and supply chains; thereby proposing and offering solutions related to digital technology for existing problems in this model. The evidence and arguments appearing in this essay are based on actual personal experiences, through exchanges and interviews with other experienced individuals as well as conclusions from scientific and research articles. Specific studies and references are listed under the References section.

II. Introduction

The concept of Lean (lean) has been applied for a long time by countries around the world, pioneered by Japan, probably because of the enormous benefits it brings to unit organizations Enterprises apply it such as saving costs improving service quality etc. However, in Vietnam, Lean has not been widely applied especially for units organizations and enterprises. Small specializes in services. Unlike tangible goods, service products have their own characteristics. The basic feature of services is that they are invisible cannot be stored, and depend on many external factors, so service supply chains are largely formed from the connection of information about demand and supply capacity. The service will be consumed as soon as it is created, so there is no reserve activity. Realizing that although UEH is a leading national university with many achievements in terms of education, some services under UEH have not yet operated effectively. One of them is the parking service at the garage at campus A located at 59C Nguyen Dinh Chieu Ward 6 District 3. Every year, every August and September when a new class joins the university. UEH's family, clubs often publish media articles to educate students about parking and humorous messages related to the problem at the school's parking lot and get a lot of sympathy effects. It can be seen that not only a few but the majority of students feel that UEH's parking model is not really effective. It is not easy to survive perfection in all the operating processes of an organization. Common problems encountered by the parking garage at campus A, which are reflected by many students are: The space is quite narrow the parking space is lacking; The entrance to the car is small so you should enter during "peak" times such as leaving or when the school has some big event, it is almost congested, crowded The traffic jam in front of the school gate causes insecurity and disorder for other traffic participants; The upper parking floor has a rather small and steep way down, which easily causes unwanted risks; The area and capacity is quite small there is no clear division for each parking space, so it is often crowded, intentionally putting the car in to have a place to set up The status of the vehicle's position is different from the original parking position Identifying the problem is the foundational step to finding a solution. Today people have a different view of the production process/service operations. They understand that the value of a tangible product or service is determined from the customer's point of view, not from the producer/supplier's point of view. Relying on the simple fact that customers will pay for what they get, but not for mistakes (Rawabdeh, 2005). Because of this, UEH needs a solution by applying scientific and technical advances as well as advances in the field of operation and supply chain for its service provision activities to bring students and students the best possible solutions. students have better experiences, more attachment and trust in the school. This essay aims to find out the problems and offer some solutions to make the service provision of UEH's A-base parking more efficient.

However, due to limited knowledge and ability to absorb reality, there are still many surprises. Although I have tried my best, it is certain that the essay is hard to avoid errors and many inaccuracies, I hope you will consider and give suggestions to make my essay more complete.

III. BODY

1. The role of suppliers and customers in applying Lean

For parking services at UEH, the staff involved in the parking work of the Economic Service Center are those who directly provide the service, the service provider here is the Economic Service Center by UEH was established and the customers are officers, employees, students, etc., who use the parking service at UEH's facility A garage.

• For service providers: The goal of the organization is to better meet customer needs and create value for customers. Understandably, from the point of view of the customer - the user of the parking service in A, it can be seen that if the garage no longer meets the minimum requirements for operation, management, and support. If the service is good for students, it will automatically switch to parking at other private parking lots. Service Providers - Economic Service Centers (UEH) need to understand the role of Lean today, as it is the perfect operating strategy to achieve and maintain optimal system performance and customer satisfaction. customer satisfaction; This requires leaders and managers to recognize the changeable nature of the environment, detect defects that appear in the system, and learn new knowledge and technologies to apply to their models. .
• For employees - who are seen as the face of products and services, it is also necessary to have certain understanding of the new improvement model and what it means if applied in the service delivery process. . Parking attendants need to be trained to understand how it works, why and what this innovation means, and how it affects customers, so that staff can understand it. be better applied to improve service quality. The foundation for this is to create cohesion, close relationships between employees and management that build trust and loyalty.
• For customers: It can be said that customers are the center of every improvement. Any dissatisfaction with the service if the customer's feedback will be a valuable source of information for the organization to change, improve and perfect its system for the better. For example, when the Economic Service Center applies the Lean model to parking at UEH facilities, when applying a new model, there will still be some errors or defects, but it cannot be completely solved. 100% perfect right from the first time, now customers who are officials, employees, students who park cars in the school will feel and give feedback about this new operating system, a source of information. This will help the service provider to find the point of need for improvement more quickly, offer solutions faster, make the system better in less time, save more resources and thus will provide better quality service to customers.

2. (four) types of waste arising in the operating process

Waste is all that “does not create value” and what “does not create value” should be eliminated to save time, reduce costs and still improve product/service quality. . Fujio Cho – former president of Toyota identified 7 types of operational waste that can be eliminated including: (1) waste from overproduction; (2) waste from timeout; (3) waste in transportation; (4) waste of inventory; (5) waste in implementation; (6) wasted motion and (7) waste from defective products. During the operation, the type of parking service at UEH's A facility has generated the following 4 types of waste:

• Firstly - waste from unnecessary movements and manipulations: “Superfluous operations are any unnecessary limb movements or movements of workers that are not associated with product processing. or create a service”. It comes from the layout of the premises and the people. For the parking service at facility A (UEH), it is a waste of time for the parking attendants to arrange and move the vehicles to the wrong position, blocking the way. Because the characteristic of the parking garage at facility A is that the area is small, it is not allowed to draw each box for the parking position of each vehicle, which causes the above situation. And therefore, more than one manager is needed in the parking lot so that one staff member can check the access card and the other staff assist in setting up the car in the correct position or if not, the parking attendant instead of the parking lot. If you sit in the card check position, you must leave the position to arrange the car so that there is space for other cars behind to continue. If the car is set up in the right position from the beginning, it will not cause the loss of resources from the two things mentioned above.
• Second - transportation waste: “Waste due to transportation here refers to any movement that does not add value to the product/service”. In the form of parking service in UEH, transportation waste occurs due to unreasonable arrangement of workplaces and premises, etc., causing many problems such as: loss of car, vehicle damage, increased service time, etc. consumes a lot of resources. It can lead to a waste of transportation due to the small space, the irregular parking, so it often happens that if you want to take this car out, you have to move the cars next to it to have a way, which takes time. and unnecessary workforce. The parking attendants have to spend effort and time to move another vehicle so that one vehicle can be removed and when one is removed, the other vehicle may be stuck, the work continues over and over. repeat; Not to mention at peak times, the parking staff has to work hard to move each vehicle with the phenomenon of blocking the path of another vehicle that needs to be pulled out, while other students want to take the car out. have to wait again. Imagine another common case, because of the lack of resources to support moving the cars for customers, the staff checking the entry and exit cards must assist, creating an empty space in the card check area, if there is an accident. Students or officials, officials at that time want to send the car, they will have to wait again.
• Third - waste due to waiting: "This waste is common in production units such as a worker or a piece of equipment that cannot do its job because it has to wait for another activity". In the operation of the parking garage, the waste of waiting is the waste of time that the staff checking the entry and exit cards have to wait for the staff used to arrange and move the vehicles to students or staff. officials have an exit. The waiting adds up to quite a lot of costs due to labor costs and depreciation costs of equipment used during operation (card checkers, computers, cameras,...). The waiting between stages will make the equipment, machinery as well as labor not use optimal capacity and inherent capacity.

Fourth - waste in implementation: As mentioned, the need for more than one employee on a shift to assist in the repositioning of misaligned, misaligned vehicles, or to assist with customer service. customers take the car out of the parking lot, etc. is a factor that causes waste of the parking garage

It's easy to see the image of 2, 3 parking attendants adjusting the car at all times. Assuming the parking lot is reasonably arranged and has a clear process, with numbering to help customers set up in the right location, etc., one shift only needs 1 parking attendant to take charge of checking the card out. – entering and dealing with unexpected (very rare) situations is possible.

All in all, these make up an inefficient operating model. In addition to increasing costs in the process of creating a service such as the cost of energy, machinery, equipment, labor, etc. A unit does not perform well, reduces productivity and quality, etc. Letting the above wastes continue to occur in the business can also pose a risk to the health of employees, increase the risks of labor safety.

2. internal factors and 2 external factors affecting capacity

Capacity is defined as the level of output that a unit can achieve in a particular period of time. However, in service activities, it is difficult to measure capacity in this way because service capacity is highly dependent on location, time, rapid and erratic fluctuations in demand. Therefore, in simpler terms, the capacity of the enterprise is the ability to use the combined resources purposefully to achieve a desired goal state. Capabilities are formed by the close association and interaction between tangible and intangible resources. “If there is an activity that a business can do better than its competitors (more resource saving and higher results with the same type of waste), it creates a competitive advantage. picture of that enterprise”. It can be divided into two groups of factors, including internal factors and external factors that can affect the operating capacity of an enterprise. Similar to the parking service at UEH's A facility, the ability to operate this service model also depends on two groups of factors:

• Internal factors include:

Personnel capacity:

• Management qualifications: Under the management and direction of officers with many years of experience in administration, typically Master Bui Quang Viet – currently the director of the Economic Service Center (as where UEH assumes functions related to parking, cleaning, security, student dormitory management, etc.). An advantage of UEH in general and UEH affiliated units in particular is the spirit of constant cultivation, innovation and learning from the universities of the world's leading countries. However, there are still many issues that need to be paid attention to, that is, the business itself and the leader providing car parking services must find out and train your own managers. In order to have a team of talented and loyal managers, in addition to the remuneration policy, the enterprise must clearly define the philosophy of using people, give the initiative to the staff, and establish an organizational structure. Flexible enough, highly adaptable to change. Capacity management is one of the most important activities affecting the competitiveness of the unit because almost all activities in the business are managed and performed by people. In addition, capacity management is also a condition for deploying investment in technology development, exploiting and developing human potential.
• Quality of human resources: Regarding the right recruitment and effective use, improving quality training, paying commensurate wages to employees in the enterprise, promoting skill development at work, improve efficiency and efficiency thereby improving service quality, minimizing costs for business operations. For service industries, people are considered the key to success. In the car parking model of UEH, the employees have performed quite well their duties at the present time, shown in such aspects as:
• Understand technology and use it effectively in checking in and out cards, monitoring surveillance cameras.
• Understand the sequential process when providing services to parking customers.
• High self-awareness in adjusting and rearranging parking lots.
• Discipline, serious manners, polite and polite attitude.
• Willing and welcoming when customers have problems in getting the car out of the parking lot.
• Ensure security and be ready to take responsibility in unexpected cases.

However, another important thing that organizations, units, businesses in general and UEH's parking service (base A) in particular need to do from now on is training, coaching, encourage employees to “make observations and then withdraw” working out principles of operation and work" from which "emergence of ideas and initiatives on improvements in the arrangement and arrangement of workplaces", "improvement of the operation process", "improvement of awareness". ", "work analysis ability". Increased experience leads to increased work results, so that operational labor costs gradually decrease, labor productivity increases over time, work quality increases, saving time and resources. .

Technology

Today, science and technology has developed to an amazing level, but there are still many businesses, units and organizations that are afraid to change for many reasons such as high costs, fear of risks, etc. they still keep the current method of operation, gradually causing inefficiencies. To change, the first step is to be open-minded, research and learn from advanced countries, and not afraid to challenge. Enterprises need to focus on investing in technological innovation and applying advanced technology in both production and service activities. At the same time, cooperate with domestic and foreign scientists and scientific and technological organizations to promote trading, exchange, purchase and sale of scientific and technological products and services. receive advice on equipment, modern technology, and provide technology information. This is the strength of UEH, so it needs to be further promoted to become a pioneer not only in education but also in modern facilities and services.

• External factors include changes and fluctuations that occur that can affect customers' tastes and behaviors. The following are two external factors affecting the service capacity of parking garages at UEH (facility A):

Demand

On peak days such as when there is a graduation ceremony, major school events such as Big Arms Link or programs organized by clubs, the number of people wishing to send vehicles in the school spiked. While the amount of space in the parking lot is limited, at this time the capacity of the parking lot is not enough to serve the overwhelming needs of the students, so it is easy to cause bad situations such as traffic jams, loss of security, etc.

Competition:

The parking lot at UEH campus A is very limited, so recently most of the students have gradually shifted to parking in other nearby areas (such as garages near Lake Con Rua, or the garage opposite, the garage of the university of architecture,…) to avoid wasting your time. This more or less harms the parking service at UEH because of losing customers, making customers unhappy and dissatisfied; There are even times when the parking lot is still empty, but students still choose to park their cars elsewhere because it's simply spacious and easier to get out of. It can be said that in the future, many other places near campus A will also open up parking lots with more facilities to make a profit if UEH's parking lot remains the same as it is now without any improvement. extend.

The core competence of a unit, organization or enterprise is reflected in factors such as: difficult to imitate, valuable and long-lasting, etc., so it has an extremely important position, bringing many benefits. beneficial to the organization. Units, organizations and businesses should grasp and change, adapt to the reactions from the environment, customers as well as know how to combine with their strengths and take advantage of opportunities to build capacity. core, creating competitive advantages, satisfying customers.

3. Demand forecasting method

In the course of business operations, managers often have to make decisions related to events that will happen in the future in order to allocate resources to respond appropriately. In order for these decisions to be reliable and effective, it is necessary to conduct forecasting. There are many forecasting methods by qualitative such as: market research, expert method, Delphi method or by quantitative such as: moving average method to forecast fixed demand in the short term. (average time is less than 3 months), exponential leveling method, linear regression, etc. For the parking service model at UEH facility A, the most suitable forecasting method is the leveling method. exponential with trends, because firstly, it does not need to use a lot of old data, is easy to set up and has high accuracy, does not need to know a lot of computer skills to use the model,,…; secondly, the demand for parking is not fixed, there are times when the number of cars in and out is very large while there are times when it is less so it is necessary to include the trend factor. This method is generalized by the following equations:

Ft = FITt-1 + α(At-1 – FITt-1) Tt = Tt-1 + δ(Ft – FITt-1)

FITt = Ft + Tt

With Ft: the exponential flattening forecast does not include the trend corresponding to period t

Tt: exponential flattening trend for period t

FITt: forecast includes trend corresponding to period t

FITt-1: forecast includes trend corresponding to period t-1 (previous period)

At-1: actual needs of the previous period

α: leveling constant; δ: equalization constant”

In the first application of this method, one can use the previous month's forecast data by estimating or averaging the first few periods (first 2 or 3 periods).

The exponential smoothing method with the tendency to use two smoothing constants alpha and delta will help minimize the impact of error between forecast and reality; without these two constants, the trend factor will produce a lot of errors.

4. Proposing solutions by applying digital technology

There are many ways to solve the problems related to the existing parking at UEH's A facility, but it must be considered from a feasibility point of view. The application of digital technology to this unit can bring efficiency and solve a number of problems, although it cannot help to expand and increase the number of vehicles sent in, it can help regulate, increase security as well as improve security. Save time and effort for customers as well as employees. First of all, we need to re-stipulate the layout of parking space and provide specific instructions on areas where cars can be parked, dividing areas for officials/students, dividing by colored lines, umbrellas, etc. number between vehicles. Then, we can develop and apply a parking management software that helps manage systems, customers, warehouses, employees, aggregate reports, etc. and integrate with software devices. hardware such as: camera, barrier (bar), LED guide board, horn, signal light, etc. Specifically as follows:

• Software:

System management:

• Administration of users in the system (parking staff).
• Provide login information for employees: each employee will have a separate login code, when they come to work, they will enter the code so that the system can store information, evaluate and calculate appropriate salary and bonus.
• Regulation of ticket prices corresponding to the parking time/monthly fare, etc.

Customers management:

• Manage and look up vehicle information on each parking lot.
• Manage tickets and view monthly ticket information (expiry date),…
• Allow prepayment, payment via bank, e-wallet, etc. to save money collection time.

Parking lot management:

• Manage surveillance cameras, extract video from cameras in case of need.
• Announce the number of cars in the parking lot, how much space is left in the parking lot.

Employee management: Evaluate work efficiency, monitor employees closely, record work efficiency, store information as a basis for salary calculation.

Consolidate reports: Revenue by day/week/month, number of parking lots per day/week/month (store this information to forecast demand).

• Hardware devices will connect with software to store and extract data. Include:

Camera: Panoramic camera and license plate camera

• Panoramic camera type: Recording the driver, saving an overview image of the customer's shape, outfit, etc. entering and leaving the parking area.
• License plate camera type: Helps to read and save information on license plates, capable of clearly recognizing license plates in many different light conditions (dark, dim, with glare, ...)

Magnetic card and magnetic card reader: Similar to a normal bus ticket, but instead of the traditional way of looking at the number plate and then writing it by hand, people use magnetic cards to help control access to the parking lot easier and faster.

Barrier: Taking on the role of a mini gate, helping to control the speed of vehicles entering and leaving the parking lot to ensure security and order of the parking lot; reduce the situation of jostling, fighting for the first entry. When the magnetic cards are scanned, the barrier will automatically open and allow the vehicle to move in/out.

Sound wave sensor : Helps detect vehicles to search easily.

Led board: Displays information about parking time and amount to pay; or instructions for vehicles to move into areas where the parking lot is empty.

It is how the individual hardware or software components work and function in the system. The general operating principle is summarized as follows: Customers who want to park their car in the parking lot when entering the gate will be issued with a magnetic card registered in the system. When swiping the Barrier card will open, the license plate camera is responsible for capturing and saving the license plate information. The card number and license plate number will be stored simultaneously with the image of the driver taken by the panoramic camera so that if something goes wrong, it can be retrieved quickly and easily. When swiping the card out, the software automatically compares the license plate number when entering to check whether the information is valid and matches. If it is wrong, the system will give a warning signal for the staff to re-check. If correct, the LED screen will show the amount to be paid based on the provisions in the system management section set on the software.

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