Invalidating equipment in a cost-saving project: A case of FSX Vietnam company

Abstract

This thesis investigates a business problem within the project management division of the solar panel manufacturing company FSX, focusing on cost-saving initiatives. The primary objective is to address challenges in projects aimed at reducing the material costs of solar panels, a key strategy for enhancing the company's competitiveness in the solar panel market. As global policies and industry practices increasingly support competitive cost-per-watt pricing, businesses like FSX are pressured to deliver affordable energy solutions. Through a combination of desk research and qualitative interviews, this study identifies equipment invalidation as the core issue within the cost-saving projects. The research highlights three potential causes: miscommunication during project handover, lack of preventive maintenance, and insufficient training. Analysis reveals that the predominant cause of the problem is the absence of a preventive maintenance system, a conclusion corroborated by internal company data and theoretical frameworks. The thesis proposes two potential solutions: implementing a preventive maintenance system and establishing vendor partnerships. The preventive maintenance system is recommended as the optimal approach, with a detailed action plan provided to facilitate its successful adoption. This solution is aligned with FSX’s strategic vision of leading the sustainable energy sector through operational excellence and innovation.