FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

INTERNSHIP REPORT

Topic:

OPERATIONS MANAGEMENT SITUATION IN ABB

TRANSFORMER TANK WORKSHOP QUANG TRUNG
MECHANICAL ENGINEERING LIMITED COMPANY

Student: Trinh Thi Hai Yen

Student ID: 1413250026
Class: English 10, High quality program of business administration
Professor: Tang Thi Thanh Thuy

Hanoi, July 2017

TABLE OF CONTENTS
LISTS OF TABLES, CHARTS AND PICTURE
 INTRODUCTION
Someone say that: Manufacturing is the root of the economy. Mechanical
engineering has been around for a very long time. It has grown tremendously over the
years and has been an integral part in sharing our world today. Mechanical engineering
enables people to increase the productivity, create machines and means of replacing
manual labour. It makes the living of people become more gentle and more interesting.
Mechanical engineering is also the foundation of many other industries. Thanks to
mechanical engineering, the vision and knowledge of people is enlarged. Without the
advance in mechanical engineering, our lives would be nowhere near as luxurious as
today. However, in Vietnam, the mechanical engineering has to face with many
difficulties and some experts even call it the broken industry.

Being a third-year-student, I understand the importance of mechanical engineering

industry and want to examine the problems to find some suggestions or solutions to help
the company as well as the mechanical engineering industry, and also gain knowledge for
myself, I choose the topic: Operations management situation in ABB tank workshop -
Quang Trung Mechanical Engineering limited company.

The structure of this report is divided into three chapters:

Chapter 1: Overview of Quang Trung Mechanical Engineering limited company
Chapter 2: Current operations management situation of ABB transformer tank
workshop
Chapter 3: Assessment and recommendations.

This report is based on researching documents, summarize by the author when

directly observe in the company and also the experiences of the companys staffs.

Because of lacking knowledge in mechanical engineering processes, and the

internship time is pretty short, the report may be not really professional, may not reflex
all the aspects of the problems and also may contains some disadvantages, mistakes.
Therefore, I wish to be received comments, improvements from teachers and the ones
who care about this topic so that I can improve it.

Firstly, I would like to express my deeply sense of gratitude to Quang Trung

Mechanical Engineering limited company, especially is the ABB tank shops managers
and staff helped me a lot to complete this report. Secondly, I would like to express my
gratitude to Foreign Trade University (Hanoi campus) has imparted knowledge to the
author in recent years, especially is Mrs. Tang Thi Thanh Thuy has a dedicated guide and
helped authors during practice to complete the subject.
 CHAPTER 1: OVERVIEW OF QUANG TRUNG MECHANICAL
ENGINEERING LIMITED COMPANY.
Quang Trung Mechanical Engineering limited company is converted according to
the decision No 84/2004/Q-BCN on 31 August 2004 of the Minister of Industry, the
Regulation No. 63/2001/ND-CP dated 14 September 2001 and the decision No. 125/QD-
TTG dated 28 January 2003 from the Prime Minister's approval of the overall innovation
Of State-owned companies and State enterprises belonged to Ministry of Industry.
From the organization formerly known as Quang Trung mechanical plant
established under the provisions of 95 / CNN-TCliB dated 27 th April, 1962 of the
Ministry of Light Industry on the basis of merging Internal Trade Mechanical Workshop
(Ministry of Internal Trade) and the Tay Do Mechanical Workshop (Board central
unified communications).
Name of the company: QUANG TRUNG MECHANICAL ENGINERING COMPANY
LIMITED
Short name: QTMEC
Address: 360 Giai Phong - Thanh Xuan district Hanoi.
-New address: CN1A,CN1F Batch, Quat Dong Industrial clusters - Nguyen Trai - Thuong
Tin Hanoi
Phone number: (04)38642215
Fax: (04)38647255
Email: ckqt.hn@gmail.com
website: cokhiquangtrung.com.vn
BRANCH:
46/5, 1A National Road Linh Xuan - Thu Duc - Ho Chi Minh City
Tel: (08) 37.24 0.711
Fax: (08) 37.24 0.712
Email: nvtrieu@hcm.vnn.vn
CEO:
Nguyen Van Thanh PhD.
COMPANY UNITS:
Technical planning department.
Finance and accounting department
 The labor organization's office
Supplies office
Military guard.
Administrative office
Industry equipment workshop
pMechanic workshop
ABB transformer tank workshop
KYOKO workshop
MEMBER UNITS:
1. Southern Branch.
46/5, 1A National Road Linh Xuan - Thu Duc - Ho Chi Minh City
2. Import and export business enterprise
360 Giai Phong - Thanh Xuan Hanoi
COMPANYS VISION AND MISSION:
With over 50 years of construction and development, leaders and employees of the
company's generation had been acutely aware of the success of the development process
today. Implementation of the Directive No. 08 / CT-CDVN BCN LT- May 30, 2006 of
Ministry of Industry and the Vietnam Trade Union of launching the emulation with
specific objectives in order to make your party's 10th Congress. Quang Trung Mechanical
Engineering limited company has built action programs in the period 2006 - 2010. The
content of the program is task-oriented and strategic development of the company until
2010 shown on the working aspects of production and business, make a save against
wastefulness and negative phenomena. Improve working conditions of industrial hygiene,
environmental sanitation. Holding checked, controlled the financial affairs seriously tight.
Business investment and asset utilization are used in most effective way. Scientific and
technical work and product quality is improved. Education of industrial culture lifestyle.
The work of security defense, disaster prevention, prevention of fire and explosion safety,
security and geographical production area and the company. The management of labor,
wages, bonus material living conditions and morale to employees. Implementation of
labor emulation movement in production.
OPERATING FIELDS:
Design, manufacture, repair and installation of technology transfer pulp & paper
production line with a capacity of 5,000 tons / year.
Boilers with a capacity of 20 tons / hour, pressure to 30 Kg / cm 2. The types of
pressure containers with a capacity of 250 m3 to 60 kg of pressure / cm3
Fabrication of steel structures, workshops, non-standard structures, manufacture
and install gantry crane, the complete equipment and spare parts for industry.
Ultrasonic testing, radiography devices under pressure.
Produce packaging paper, cardboard sand, steel pipes, steel construction.
Import-export business equipment, supplies, machinery and mechanical parts.
Business services, warehousing and offices.
Import and export electrical equipment, industrial electronics and consumer
electric products
COMPANYS ACHIEVEMENT:
Third-class Labor Medal (1968); Hero of the People's Armed Forces (1973);
Second-class Labor Medal (1975); Second Class Labor Medal (1980); Third Labor
Medal (1984); First-class Labor Medal (2007); And many other noble titles.
OVERVIEW OF ABB TRANSFORMER TANK WORKSHOP:
ABB Transformer Tank Workshop is an unit of Quang Trung Mechanical
Engineering limited company, which produces and is the supplier that supply transformer
tank for ABB Group.
Organizational chart of the workshop:
CHAPTER 2: CURRENT OPERATIONS MANAGEMENT SITUATION OF ABB
TRANSFORMER TANK WORKSHOP
2.1. Operations strategy:
2.1.1. Planning time:
The process of production planning is done at the end of each year. The director of
technical planning department, chief accountant design the plan and send to the Chef
executive officer to examine and confirm. The chief executive officer then send the
confirmed plan to the Corporation and receive approval from Corporation.
The plan - after being approved - will be stored by ISO department during the
carrying time, until there is a new innovation. The plan is built once in a year and stored
in technical planning department for 5 years after released time.
2.1.2. Product design time:
The product design time is flexible for each bill of ABB company.
2.1.3. Processing time:
The processing time is also rely on the time that ABB company require, usually are
2 weeks, 3 weeks and 1 month.
2.1.4. Changeover time:
About 1 week
2.1.5. Delivery time:
Usually right after completion of the products.
2.1.6. Response time for complaints:
When there is a complaints from customer, manager and technical staffs will hold a
meeting together to find the solutions for the complaints/problems and then fix the
mistakes right after that. The response time is usually 1 to 2 weeks and more depending
on the difficulty of the problems.
2.2. Product and service design
Transformers tank is an integral part of the transformers production process.
Transformers tanks after completion have to meet the technical as well as aesthetics
standard. Therefore, during production process, the employees as well as the technical
staff have to ensure that there is no deviation from the applied standard. The surface of
the product must be smooth, no sharp edges, sharp points.
2.2.1. Legal factor: The design of the product obey national standard and companys
standard.
2.2.2.Technical and aesthetics factor:
Based on ISO 9001 2008 standard.
Material: shown in the technical drawings and related technical materials of ABB
transformers tank (ISO TR 15 608 document)
Capacity and size: General parts is as in 1ZBA206001-8 document; Tooth grooves
is as in 1ZBA215012-2 document.
Welding design: as ABB Groups standards and ISO 5817
Quality of surface after processing: as in 1ZBA206001-9 document.
Chemical composition of the material: as EN 10025-6:2004 standard.
Some models of the product:

Picture 2.2.2.1. VN00982-20MVA transformers tank - Source: Companys website

Picture 2.2.2.2. VN00420 transformers tank Source: Companys website

2.2.3. Strategic capacity planning for products:
The capacity planning for products is built by technical planning department. The
capacity planning is based on the production plan that the Corporation approved at the
end of each year (fixed factor) as well as the customers demand and the resources of the
company (flexible factors).
The capacity plans are built based both on fixed factor and flexible factors to ensure
to be up - to - date and suitable for current situations of the company.
3. Process selection and facilities layout:
3.1. Process selection:
Technical planning department: in charge of the technical contents
Mechanical design engineers: in charge of releasing the technical drawings in
time, control the copies of technical drawings, help the suppliers understand
correctly the drawings as well as solving problems arise with the released
technical drawings.
Quality assurance department: in charge of quality documents such as inspection
labels, main checking requirements in testing and inspection plans as well as in
charge of helping, innovating the quality assurance system of the suppliers as well
as supervise mistakes, unsuitable points arise, checking the probability of tanks
units, cowling when brought on.
Purchasing office: in charge of inspecting the ability of suppliers quality
management system, judging, supervising as well as innovating
Outside order shell department: in charge of inspecting the quality, delivering in
time, conditions and environments of the manufacturer, contact to the suppliers in
case of there are unsuitable points arise under the responsibility of suppliers,
distribute the reference documents of ABB to the suppliers. The order supervisors
- besides the responsibility to check the detailed units in the workshop of the
suppliers - have to supervise the employees of the suppliers when conducting
repairs in the factory. Outside order departments manager has to supervise and
report the productivity of the employees in the department to the CEO and the
quality assurance department.
The suppliers are in charge of approve their suppliers as well as in charge of
corrective action and precautions that do not match are mentioned in the report.
 Announce to ABB's purchase room changes in welder, welding process, NDE
inspection personnel and the major changes in shell manufacturing technology.
The process layout of the ABB transformer tank workshop of Quang Trung
Mechanical Engineering limited company is the process for batch because the company,
especially ABB transformer tank workshop have to obey the requirements provided by
ABB company in each business transaction, each bill. This seem to be similar to the Job
shop process; However, the transformers tank can be produced with a large number, they
only have some features that are different from that of others. Therefore, it is not Job
shop process.

Picture 3.1.1. The production process of ABB transformer tank workshop - Source: Internal document
of the company
3.2. Facilities layout:

Picture 3.2.1. Facility layout of ABB transformer tank workshop Source: Internal document of the
company
4. Work design and measurements:
4.1.Work design:
Working hours:
Morning: 7:30 AM to 12:00 PM
Afternoon: 1:00 PM to 4:30 PM
Behavioral consideration in job design:
Because of the characteristics of the industry and the conditions of the company, the
job of each employee and each department is specialized. The work design method is
production process. They use flow chart, process diagram to keep track and assign tasks.
Picture 4.1.1 The role of each department in the process
Source: Internal document of the company
4.2. Motivation: Besides being equipped with modern equipment, company also care
about spiritual life of the employee. Each year, employees are allowed to go for picnic 2
times. There are also day-offs, subsidizes for employees.
4.3. Work measurements:
ABB transformers tank workshop use process diagram to keep track and measure
the effectiveness. They will place five-day-working-week KPI on each employees. The
manager and vice manager of the workshop are in charge of supervise the employees and
report to the quality assurance department and higher level manager. There is a weekly
meeting on Monday morning that all managers and staff sit together to examine, judge
and/or build work measurement plan.
5. Productivity and quality management:
5.1. Productivity:
Figure 5.1.1. Productivity of ABB tank transformer workshop
Source: Summarize by the author with the help of workshops accountant.
The productivity of the workshop is increase year by year thanks to the development
in technology. In 2015. as the whole company, the productivity of the workshop is
decrease significantly because Quang Trung Mechanical Engineering Co.,Ltd move their
factory from 360 Giai Phong to Quat Dong industrial clusters - this lead to the result that
about half of their staff and employees resign.
5.2. Quality management:
Quang Trung Mechanical Engineering understand the importance of the quality of the
product. Therefore, they focus much on quality management.
The quality management policy is built based on the demand of the customers and the
capacity of the company and each workshop. The quality management process of the
company is based on ISO 9001 2008 standard. With ABB transformer tank workshop,
there are also standards that are required by ABB Group.
Quang Trung Mechanical Engineering company focuses on developing talents,
improving technology and working environment. Each year, the managers of the
company sit together and examine the quality management situation of the company. In
this meeting, the CEO will be the chairman and she/he will review and approve the
suitable proposals.
Identify products origin procedures:
Identify by the physical status: The materials were identified by physical status. If
 in the production process or storing process, detect the infected goods that are not
guarantee the quality standards, the person who detected has responsibility to
inform the supplies office to update and move to collection area.
Identify during the working processes
Identify in the finished products.
Inspection procedures and process:
Inspect the materials: the materials are mentioned in the technical drawings and in
technical documents of ABB Group. The steel plates must be traced the origin.
With the bottom plate, the cover, the lateral surfaces as well as stiffening ribs and the
materials used to work with high stress.
Inspect the size and capacity:
General: as 1ZBA206001-8 documents
Material: shown in the technical drawings and related technical materials of ABB
transformers tank (ISO TR 15 608 document)
Capacity and size: General parts is as in 1ZBA206001-8 document; Tooth grooves is as
in 1ZBA215012-2 document.
Welding design: as ABB Groups standards and ISO 5817
Quality of surface after processing: as in 1ZBA206001-9 document.
Chemical composition of the material: as EN 10025-6:2004 standard.
Trace the origin: If the customers ask to trace the origin, the customers will use the
welding maps or in compliance with the standard requirements.
Inspect the products:
The employees are in charge of inspecting 100% the products that are made by themselves.
Those products that are not in compliance with the quality standard, they have to fix them
immediately. In case that they can not fix those products by themselves, they have to report to
the workshop manager.
The workshop manager dominate technical engineers to inspect the probability in the
stages of the process according to the standard documents and technical drawings. After
inspecting, the workshop inform KCS staff of Technical planning department and make
inspection forms. Only when the products are meet the standard requirement, will they allowed
to move outside the factory.
The methods that ABB transformer tank workshop use to inspect products:
Materials inspection:
The chemical components and computing basis is as EN 10025-6:2004 standard.
 With each project, a full set of samples will be made and stored by the suppliers in 1.5
years from the launching date.
Inspect the materials by samples are conduct quarterly by the suppliers. The inspection
results are sent to the outside order manager of ABB.
Size inspection: according to the inspection labels.
Physical checking: by looking, as ISO 5817 standard or CAWI (AWS QC1: 2007)
standard. The result will be noted in inspection form and welding maps.
Air test: After welding, pressure: 0.35 bar maintaining in 0.25 hour, some cases are based
on the requirements of the customer. Differential pressure allowed: 5%
Non-destructive test
Liquid penetrant test: judged by an engineer who hold ASNT certificate as SNCT-
TC1A2011 standard.
Magenetic particle test (Yoke)
Fitting test
Other requirements:
Health and safety requirements
Environmental requirements.
6. Enterprise resources management:
6.1. Human resources:
Training the employees:
On-job training: Mentoring and collective classes
Outsource: Organize classes and hiring experts from outside to train the
employees.
Fields of training:
Professional skills, industrial practice skills, practice as ISO 9001 -2008 standard, based
on the personal demand if the demand support for objectives of the company.
Subjects of training:
Upgrade, grade transfer for staffs and employees
Mentoring for new employees
Update technical skills
Human resource management:
Quang Trung Mechanical Engineering limited company train the employees,
provide certificates for employees. In return, employees agree to work for company for a
definite time. This strategy enable company to keep the turnover rate of employees low.
 Recruiting: Recruit employees who have skills, have to be in professional training
classes before starting working. The manager of departments, workshops, have ability to
mentor and supervise their employees. Each week and each month, there are meetings to
examine the effectiveness
Tools: Company and workshop have responsibility to provide enough tools and
equipments for the employees
Working environment: the height of the workshop is up to 12m to make the
working environment comfortable. Equip employees with tools to decrease the bad effect
of the working environment such as dust, noise,...
6.2. Financial management
All of the expenditures are accounted weekly. The reports then are sent to CEO and
stored in the finance and accounting department.
6.3. Inventory management
Warehouse management:
List all the warehouse, warehouse maps
The manager, types of materials and supplies, address of warehouseate
Materials and products that are stored in the warehouse have identification marks
that contain names, types, products. The materials that have just bought have to be
collected in a separate area.
Arranging and storing: as the procedures that mentioned in technical drawing of
the warehouse.
At the end of the month: store keeper collect the information about the input -
output situation and report to the supplies office.
7. Project management:
In ABB transformer tank workshop, Gantt chart and process diagrams, working
schedules are used to manage the project. The working schedules are written of a white
board hang in the workshop manager office.
 CHAPTER 3: ASSESSMENT AND RECOMMENDATIONS

ABB transformers tank in detail and Quang Trung Mechanical Engineering limited
company has advantages as below:
The structure of the company and the workshop are pretty neat compared to many
other state-owned enterprise. This help the company has ability to keep up with
the demand of the market. With dynamic compact operating consistent with
market mechanisms. Staff of experienced engineers, technical workers are skilled
professional comprehensive training, equipment, services and technology,
extensive cooperation with enterprises. Quang Trung Co. completely meet all the
requirements of the customer.
The technical documents and technical guides are variety. Therefore, the training
and the working process are smooth.
With the active creative spirit, effort and perseverance in the renovation work, the
business restructuring in a reasonable manner. Quang trung co. grew and became
one of the strong reputation companies of mechanical industry in Vietnam.
The human resources management strategy of the company is pretty good, to some
extent, solved the most difficult problem of the mechanical industry is that the
turnover rate of the employees is very high.
The quality management system works well, enhances the quality of the products,
gains trust of the customer.
The working process is clear and logic, all the employees can understand and work
in the right way.
The process layout and facility layout is convenient for managers to supervise and
for employees to work.
However, the company, as well as the workshop, also has some weak points that
need to improve as below:
The procedures of working is still somewhat cumbersome
Many of the staff is lacking English language skill, that cause troubles and
difficulties when working with ABB group and other foreign partners.
The management level is still low because of the characteristics of the company
and of the industry that almost all of the managers are engineers and may not be
trained in a professional management program.
The inventory management encounters many troubles because there are too many
product labels, product types
The technical planning department focuses more on technical side, the planning
side is weak. Therefore, the working plan is still somewhat unclear, current
manufacturing situation is relying too much on the bills and the demands of the
customers.
The human resource management currently do not have a common standard. For
example, in a common standard human resource management system, the human
resource department will store the employees personal documents for 6 months
and if a employee has to temporarily resign to solve his/her daily problems, when
he/she come back, it is not necessary for him/her to submit the full set of personal
documents to begin working again, avoid wasting time. However, Quang Trung
Mechanical Engineering company do not have those strategy and it take very long
time for a employee to come back. Furthermore, lack of employee causing
 troubles to workshops. If the ABB workshop want to have one or two more
employees to complete the task in time, they have to borrow employees from other
workshop. Sometimes, the employees from other workshops do not want to work
for ABB transformers tank workshop and/or do not have ability to work for this
workshop, it will be a real trouble.
Only using classical management ad scheduling tools such as Gantt chart, working
schedule on a board leads to a situation that some people have to deal with too
many tasks, the others may have too few tasks to do.
After considering the weak points and the strong points of the ABB transformers
tank workshop and Quang Trung Mechanical Engineering company in general, I would
like to suggest some solutions to help the company as well as the workshop improve the
situations as below:
Examine again the working process and cut off unnecessary procedures to make it
more compact, save time for all staff and employees.
Improve the English language skills for the staff by organizing internal English
contests, hiring teachers to teach English for the staff and also ask them to do
tasks, to write reports in English, etc.
Hiring experts training the management skills for the managers, asking them to
improve the skills by themselves by learning, reading books, playing management
games,
The labels for the inventory may be made for clusters, not for individual products
to reduce the number of labels, help inventory management tasks can be
completed more effectively.
Focus more on planning and scheduling process, company and workshop may
compute the expected figures to make plans more detail and less depend on
customers.
Build a more specific, detail and standard human resource management system to
manage the human resource more effectively and save time
Using more modern tools such as CPM, ERP,.. to manage the resource and
scheduling to make the working schedule more effectively.
 CONCLUSION

Harmony with the trend of the overall development of the economy in the world,
plus with the event that Vietnam joined in WTO has opened up opportunities as well as
enormous challenges for businesses in Vietnam. This requires enterprises to continuously
improve and innovate improve competitiveness to be able to stand in a competitive
playing field is very intense now.

Vietnam Machinery Industry in recent years still encounter many difficulties.

However, not because of that, mechanical engineering industry of Vietnam come into a
dead end, because there are a lot of enterprises in manufacturing, processing mechanical
engineering with the leaders, the enthusiasm engineers , love the industry, including
Quang Trung Mechanical Engineering company. Being a State-owned company, with
efforts to improve and change to meet the globalization requirements, Quang Trung
Mechanical Engineering company will be an typical example for other state-owned and
individual-owned companies.
In the coming years, the company has plans to expand market share and search for
many new customers with high-value contracts. This means that the work of
manufacturing, production and business of the company is expanding. At the same time
the role of the changes, improvements in production processes more and more important.
Armed with knowledge at the University as well as with the company's facts,
through this article, the author tries to give highlights and business restrictions in
fabrication, processing in ABB transformer tank mechanical workshop in particular and
the company in particular. From that put forward a number of recommendations with the
hope of partially fill the shortcomings have not been completed during the
implementation of manufacturing, mechanical processing in the company.
 REFERENCE

1. William J Stevenson, Operations Management (12th Edition 2015), Mc Graw Hill

publisher.
2. Quang Trung Mechanical Engineering limited company, Internal working process
guide
3. Quang Trung Mechanical Engineering limited companys website:
http://cokhiquangtrung.com.vn/
 APPENDIX

Organizational structure of Quang Trung Mechanical Engineering limited company