Background: Material handling is a large part of a company´s internal work and represents between 15 % and 70 % of the total cost of a manufactured product. By improving the internal handling of material, more efficient distribution and manufacturing flows are possible. The material handling process is an input to the production and assembly process that has to be defined and mapped so that it can be improved. The material handling process studied at Volvo CE Braås includes goods receiving, storage, packaging as well as the order/delivery process to assembly, and will finish with the material transport to the assembly line. Research questions: How can the material handling process, from goods receiving to assembly line, at Volvo CE in Braås be described by using VSM? What kinds of waste can be identified? By proposing a future-state map, how can the identified problems and waste be reduced or eliminated? Methodology: This thesis is a descriptive case study and was conducted with a deductive approach. Data was collected by our own observations, personal interviews, statistics, benchmarking and questionnaire. The scientific credibility of this thesis was secured by for example using many sources, avoidance of assumptions, studying a common process and following standardized steps of the VSM tool. Conclusions: The material handling process was described in the separated areas of goods receiving, storage and assembly line. Visualization was given in a current-state map. Five different kinds of waste were identified. Finally, suggestions of improvements were presented along with a future-state map. Suggestions on future research: A more detailed VSM including information flow and lead times could be studied. Scenario simulations of critical areas within the material handling process could be preformed. Furthermore, an ABC classification of articles and storage locations can be done to optimize storage.

<p>Background: Material handling is a large part of a company´s internal work and represents between 15 % and 70 % of the total cost of a manufactured product. By improving the internal handling of material, more efficient distribution and manufacturing flows are possible. The material handling process is an input to the production and assembly process that has to be defined and mapped so that it can be improved. The material handling process studied at Volvo CE Braås includes goods receiving, storage, packaging as well as the order/delivery process to assembly, and will finish with the material transport to the assembly line.</p><p>Research questions: How can the material handling process, from goods receiving to assembly line, at Volvo CE in Braås be described by using VSM? What kinds of waste can be identified? By proposing a future-state map, how can the identified problems and waste be reduced or eliminated?</p><p>Methodology: This thesis is a descriptive case study and was conducted with a deductive approach. Data was collected by our own observations, personal interviews, statistics, benchmarking and questionnaire. The scientific credibility of this thesis was secured by for example using many sources, avoidance of assumptions, studying a common process and following standardized steps of the VSM tool.</p><p>Conclusions: The material handling process was described in the separated areas of goods receiving, storage and assembly line. Visualization was given in a current-state map. Five different kinds of waste were identified. Finally, suggestions of improvements were presented along with a future-state map.</p><p>Suggestions on future research: A more detailed VSM including information flow and lead times could be studied. Scenario simulations of critical areas within the material handling process could be preformed. Furthermore, an ABC classification of articles and storage locations can be done to optimize storage.</p>

Purpose – The purpose of the study is to Explore how the lean philosophy can affect the value flow of a manufacturing company’s goods receiving. To answer the purpose two research questions has been asked:1. Which lean tools or methods could be applied on a manufacturing company’s goods receiving?2. How can lean-orientated goods receiving lead to improved value flow?Method – To achieve the purpose a literature review and a case study has been conducted. The case study has had a deductive approach and used the both quantitative and qualitative data. The authors chose the data collection methods interviews, observations and document studies to collect empirical data which have then been analyzed against the theoretical framework with pattern matching to reach a result.Findings – The study has showed that Lean philosophy affects the value stream performance in various ways depending on which tools or approaches the managers have. The authors explored different Lean tools and methods both separately and combined and noticed that to gain as much as possible from Lean tools and methods are most effective when combined to an approach. Although some Lean tools in goods receiving affect the value flow in a positive matter some would probably not. Due to the uneven flow of incoming shipments JIT was not seen appropriate to implement unless shipments could be assured to arrive as planned, when needed and with correct amount of goods.Conclusions &amp; recommendations – By the study findings the authors were able to base two conclusions:1. To take full advantage of Lean tools and methods in goods receiving, these are best to be bundled together to an approach that is in accordance with the Lean philosophy at the organization.2. Good and competent leadership in the Lean philosophy is crucial to ensure continuous improvements in the organization.3. A Lean philosophy adapted in goods receiving is likely to ensure stability and reliability across the value stream which makes improvements possible and might lead to improved value stream performance.Based on these conclusions the authors recommend that when implementing or working with Lean managers should practice participatory leadership to ensure the commitment of workers, to lead by example and to get the correct current state view. It is also recommended that when implementing Lean tools in to the goods receiving process the holistic view is of high importance.