Examensarbete C-nivå, Ekonomihögskolan vid Linnéuniversitetet, Ekonomistyrning, Kurskod 2FE90E, VT 2012 Författare: Mats Avalvi, Åsa Lind & Rasmus Olheden Handledare: Elisabeth Kjellström Titel: Lean Production – Press & Plåtindustri AB Bakgrund: Processtyrning handlar om att se och styra en verksamhet utifrån en horisontell värdekedja. Lean production strävar efter att resurseffektivisera flödet och därmed skapa ett mervärde för kunderna och stärka konkurrenskraften. Detta görs genom att minimera allt slöseri med hjälp av Kaizen som innebär att små ständiga förbättringar eftersträvas. För att detta ska kunna lyckas spelar individen en central roll. Det gäller att värna om människan och dess kompetenser samt att få alla involverade och delaktiga. Lean och Kaizen har sitt ursprung i Japan och framför allt i Toyota Production System (TPS) som består av 14 olika principer. Press & Plåtindustri AB (PPI) är ett plåtföretag som är underleverantör till fordonsindustrin. Företaget ägs av japanska Press Kyogo co ltd och arbetar sedan några år tillbaka med Lean. Syfte: Syftet med denna uppsats är att, med Toyota Production Systems 14 principer som bakgrund, undersöka hur Press & Plåtindustri AB:s produktionssystem ser ut samt hur företaget hanterar olika efterfrågevariationer. Metod: Den här uppsatsen bygger på en fallstudie av Press & Plåtindustri AB. Vi har med en kvalitativ metodik samlat in data genom att intervjua personer från företaget samt genom observationer av produktionen. Slutsats: De flesta av TPS 14 principer kan identifieras hos PPI, utifrån företagets unika situation och förutsättningar. Företaget hanterar fluktuationerna i kundernas efterfrågan genom att balansera personalstyrkan med hjälp av bemanningsföretag.

Lean Manufacturing (LM) is widely accepted as a world-class manufacturing paradigm, its currency and superiority are manifested in numerous recent success stories. Most lean tools including Just-in-Time (JIT) were designed for repetitive serial production systems. This resulted in a substantial stream of research which dismissed a priori the suitability of LM for non-repetitive non-serial job-shops. The extension of LM into non-repetitive production systems is opposed on the basis of the sheer complexity of applying JIT pull production control in non-repetitive systems fabricating a high variety of products. However, the application of LM in job-shops is not unexplored. Studies proposing the extension of leanness into non-repetitive production systems have promoted the modification of pull control mechanisms or reconfiguration of job-shops into cellular manufacturing systems. This thesis sought to address the shortcomings of the aforementioned approaches. The contribution of this thesis to knowledge in the field of production and operations management is threefold: Firstly, a Multi-Agent System (MAS) is designed to directly apply pull production control to a good approximation of a real-life job-shop. The scale and complexity of the developed MAS prove that the application of pull production control in non-repetitive manufacturing systems is challenging, perplex and laborious. Secondly, the thesis examines three pull production control mechanisms namely, Kanban, Base Stock and Constant Work-in-Process (CONWIP) which it enhances so as to prevent system deadlocks, an issue largely unaddressed in the relevant literature. Having successfully tested the transferability of pull production control to non-repetitive manufacturing, the third contribution of this thesis is that it uses experimental and empirical data to examine the impact of pull production control on job-shop performance. The thesis identifies issues resulting from the application of pull control in job-shops which have implications for industry practice and concludes by outlining further research that can be undertaken in this direction.

<p><strong>Introduction</strong></p><p>Overtime the execution and control of business activities to meet and even exceed customer satisfac-tion has become an absolute top priority. This is because with an increase in the demand for diverse products and services of quality in unprecedented numbers, there is an automatic injection of complexi-ty into the activities and processes which companies undertake in order to fulfill customer satisfaction. This complexity which could be logistical in nature is usually centered on the provision of quality prod-ucts and services on a timely basis for customer satisfaction. In order to keep this complexity aspect in check while fulfilling customer satisfaction, there is the need to manage the different facets of complex-ity that relate to quality and agility.</p><p><strong>Purpose</strong></p><p>The purpose of this study is to understand the managerial actions on the logistical challenges of quality and agility in a Newspaper Distribution Company.</p><p><strong>Method</strong></p><p>In order to fulfill the purpose, the authors undertook a qualitative-single case study following an induc-tive approach. Interviews were conducted with two managers and these were basically face-to-face in-terviews though we also conducted some of the interviews by phone.</p><p><strong>Findings</strong></p><p>Managing complexity challenges of quality and agility requires the utilization of Total Quality Manage-ment (TQM), Just-in-Time (JIT) and Information flow (IF). Through the utilization of TQM, quality standards are enhanced through continuous improvement and the pursuit of excellence in the activities of the company. JIT as a philosophy helps in the elimination of waste and in the speeding up of processes within a company’s supply chain that result to the timely delivery of goods and services to customers in order to enhance customer satisfaction. Also, Information flow through the aid of diverse technologies such as mobile phones, radio phones, the internet, the World Wide Web, Customer Rela-tionship Management systems, Structured Query Language relational database but also word of mouth transmission have helped in the facilitation of decision making in the company relating to the delivery of quality products and services in an agile or responsive manner for customer satisfaction.</p><p><strong>Practical and Theoretical Implication</strong></p><p>The attainment of the requisites of agility while maintaining delivery quality may not be sufficient to enhance customer satisfaction. The information in the model provides management with a pathway to follow in solving logistical challenges towards enhancing customer satisfaction. The study offers theory development opportunities.</p><p><strong>Originality</strong></p><p>A model of logistical complexity management was designed for the attainment of customer satisfaction.</p>

Introduction Overtime the execution and control of business activities to meet and even exceed customer satisfac-tion has become an absolute top priority. This is because with an increase in the demand for diverse products and services of quality in unprecedented numbers, there is an automatic injection of complexi-ty into the activities and processes which companies undertake in order to fulfill customer satisfaction. This complexity which could be logistical in nature is usually centered on the provision of quality prod-ucts and services on a timely basis for customer satisfaction. In order to keep this complexity aspect in check while fulfilling customer satisfaction, there is the need to manage the different facets of complex-ity that relate to quality and agility. Purpose The purpose of this study is to understand the managerial actions on the logistical challenges of quality and agility in a Newspaper Distribution Company. Method In order to fulfill the purpose, the authors undertook a qualitative-single case study following an induc-tive approach. Interviews were conducted with two managers and these were basically face-to-face in-terviews though we also conducted some of the interviews by phone. Findings Managing complexity challenges of quality and agility requires the utilization of Total Quality Manage-ment (TQM), Just-in-Time (JIT) and Information flow (IF). Through the utilization of TQM, quality standards are enhanced through continuous improvement and the pursuit of excellence in the activities of the company. JIT as a philosophy helps in the elimination of waste and in the speeding up of processes within a company’s supply chain that result to the timely delivery of goods and services to customers in order to enhance customer satisfaction. Also, Information flow through the aid of diverse technologies such as mobile phones, radio phones, the internet, the World Wide Web, Customer Rela-tionship Management systems, Structured Query Language relational database but also word of mouth transmission have helped in the facilitation of decision making in the company relating to the delivery of quality products and services in an agile or responsive manner for customer satisfaction. Practical and Theoretical Implication The attainment of the requisites of agility while maintaining delivery quality may not be sufficient to enhance customer satisfaction. The information in the model provides management with a pathway to follow in solving logistical challenges towards enhancing customer satisfaction. The study offers theory development opportunities. Originality A model of logistical complexity management was designed for the attainment of customer satisfaction.

For many retailers, manufacturers, and wholesalers, inventory is their single largest investments of corporate assets. Problems such as stock-outs and bullwhip effect due to sales fluctuation and poor visibility are normal for manufactures. Unnecessary activities, in the purchasing process internally and externally, such as double order handling, cost both money and time. It is widely known that firms no longer can compete effectively in isolation of their suppliers and other entities. The future success of many businesses depends on co-operation and the co-ordination of efforts; making Supply Chain Management important. JIT and VMI are two of the philosophies that have been used to update supply chain relationships and management. By recognising your own supply weaknesses, the need for a supply strategy and a purchasing portfolio which classify suppliers emerges. There is an interest in examining what possible benefits and drawbacks, JIT and VMI collaboration can bring and how they differ from each other. In order to have a successful collaboration and implementation, it is important to know what basis to choose suppliers on and understand what needs to be in place, internally and externally, before starting either a JIT or VMI relationship with different suppliers. An inductive method was used in order to transform the literature review into a case study research. Explanatory and exploratory strategy was combined as well as qualitative and quantitative data collection such as oral interviews and written questionnaires. The case study was carried out at an accessory purchasing department at a large production company referred to as the “Focal company” in this thesis. Also, participating in the study were selected suppliers of the Focal company. The literature review and the case study data was analysed which led to the results that: • JIT and VMI can shorten lead time, improve quality and relationships if used properly, otherwise it can lead to increased inventory levels. • Key factors for enabeling JIT and VMI are common goals, management commitment, accurate information and suitable software systems. • Suitable suppliers for JIT and VMI are companies that have equal dependency and/or have interdependency and are willing and able to contribute to the competitive advantage of the buying firm. • Supplier selection criteria are price, quality, delivery, flexibility, reliability organizational culture, structure and strategy. • Implementation of JIT is not an option today at the Focal company. • With a few IT-system updates, a little bit of education and training the Focal company and most of the suppliers in this study are ready for VMI. • Because of the good balance of power and dependence in the relationships between the Focal company and their suppliers there is a good chance of a successful outcome. • The Focal company’s rating criteria are well correlating with the literatures findings, which further support that they are ready to select suppliers for integrated relationships.

<p>For many retailers, manufacturers, and wholesalers, inventory is their single largest investments of corporate assets. Problems such as stock-outs and bullwhip effect due to sales fluctuation and poor visibility are normal for manufactures. Unnecessary activities, in the purchasing process internally and externally, such as double order handling, cost both money and time.</p><p>It is widely known that firms no longer can compete effectively in isolation of their suppliers and other entities. The future success of many businesses depends on co-operation and the co-ordination of efforts; making Supply Chain Management important. JIT and VMI are two of the philosophies that have been used to update supply chain relationships and management. By recognising your own supply weaknesses, the need for a supply strategy and a purchasing portfolio which classify suppliers emerges.</p><p>There is an interest in examining what possible benefits and drawbacks, JIT and VMI collaboration can bring and how they differ from each other. In order to have a successful collaboration and implementation, it is important to know what basis to choose suppliers on and understand what needs to be in place, internally and externally, before starting either a JIT or VMI relationship with different suppliers.</p><p>An inductive method was used in order to transform the literature review into a case study research. Explanatory and exploratory strategy was combined as well as qualitative and quantitative data collection such as oral interviews and written questionnaires. The case study was carried out at an accessory purchasing department at a large production company referred to as the “Focal company” in this thesis. Also, participating in the study were selected suppliers of the Focal company.</p><p>The literature review and the case study data was analysed which led to the results that:</p><p>• JIT and VMI can shorten lead time, improve quality and relationships if used properly, otherwise it can lead to increased inventory levels.</p><p>• Key factors for enabeling JIT and VMI are common goals, management commitment, accurate information and suitable software systems.</p><p>• Suitable suppliers for JIT and VMI are companies that have equal dependency and/or have interdependency and are willing and able to contribute to the competitive advantage of the buying firm.</p><p>• Supplier selection criteria are price, quality, delivery, flexibility, reliability organizational culture, structure and strategy.</p><p>• Implementation of JIT is not an option today at the Focal company.</p><p>• With a few IT-system updates, a little bit of education and training the Focal company and most of the suppliers in this study are ready for VMI.</p><p>• Because of the good balance of power and dependence in the relationships between the Focal company and their suppliers there is a good chance of a successful outcome.</p><p>• The Focal company’s rating criteria are well correlating with the literatures findings, which further support that they are ready to select suppliers for integrated relationships.</p>

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Bicycle leader brands have shift production overseas to reduce the cost of labor and to implement new technologies at lower cost. Bike manufacturer both in Asia and Europe employ a traditional way of production  based on economics of scale that aims cost per unit reduction. Where MRP systems and forecasting are part of their day basis operations. This traditional way of operation offers room for innovation that must be seen as a business opportunity. Thus, alternative management approaches can strengthen strategic goals and improve responsiveness and flexibility. Bicycle brands producing locally should implement alternative management systems to remain competitive, to take the maximum advantage of their location, to improve customer service and to cut operational cost. The course of action followed was a market analys is to understand the nature of the bicyclemarket within European Union. Similarly, a Business Process Reengineering was conducted to identify with the current operational processes and opportunities within the bicycle industry. Based on the Business Process Engineering, an alternative business model was presented. The main proposed solution to improve the current operational processes:  (a) Implementation of Just-­‐in-­‐time management system and relocation of assembly facilities.  (b) Benchmark IKEA core methods, designing products for supply chain and that customer assemble  the future themselves. (c) Benchmark Dell Computer business model of customization and supply chain. Finally, the fundaments for an alternative business concept were established regarding bicycle design concept, strategy planning and production system design.

This dissertation deals with analysis and follow-up suggestion of efficiency improvement on the production line in DAIKIN DEVICE CZECH REPUBLIC Ltd. Mentioned steps are performed with the help of production philosophy called Lean production or TPS (Toyota Production System) and production procedures like Just in Time, Jidoka and Kaizen. The target of this work is to find out and eliminate inefficiencies of manufacturing process, design an improvement project (saving cost, safeness, reduction of working positions etc.). Perform evaluation of this project and suggest testing procedure for follow-up improvement in the future.