This thesis work has been written both for and in co-operation with the company IAC Group Gothenburg. The main purpose of the report is to find a new alternative material replenishment system which will improve the internal material flow and eliminate unnecessary work activities such as manual call offs. The aim is to find a new system to reduce the incidental costs incurred and improve customer service in quality and performance. Observations and interviews were conducted and an analysis of the current situation was made. Waste was identified in the form of unnecessary transport, specifically in milk runs, where time was spent looking for materials to be loaded. This creates uncertainty and may contribute to increased costs and poor customer service. Three different options for a new replenishment system were developed which were compared with the theory and present situation. The proposal was evaluated with respect to cost, available support, complexity and future compatibility. The analysis of the theory and current state shows the importance of a long-term solution with few risks of waste. The solution that best cope with this is an e-Kanban system that automates the replenishment system and would make manual material call offs disappear completely. The conclusion is that an e-Kanban system is the best long term option for a manufacturing company like IAC because it is highly adaptable to change, and can be integrated in the company’s ERP system. The recommendation is to implement a new e-Kanban system. First, it should be tested on a pilot station and then introduced to the whole production process.

Companies can satisfy their customers and stakeholders, become competitive and develop their effectiveness through effective logistic. The customers do not only request the right product andquality but also delivery precision. For the industries to deliver in time it is essential to have raw material and components in time to produce the products that the customer request. A correct inventoryrecord makes it easier to see when ordering is required and makes it possible to implement automatic order system. Many companies though, are struggling with their record accuracy. A company thatcould benefit from improving their record accuracy is SweProd Graphics AB. This student thesis aims therefore to find possible solutions to improve the inventory record accuracy. The issues that are treated in this thesis are the following: How well does the actual stock balance match the reported inventory balance? How to improve the inventory record accuracy? Which are the possibilities with the new ERP that the company are planning to implement and how can they use it? The method to answer these questions are interviews, researches in Visma, inventories, benchmarking, process mapping and literature studies. The theories deal with the importance of correct stockbalance, how stocktaking can be simplified and followed up, different methods for inventory accounting and different material planning system. The result showed that there is a need of improving the inventory record accuracy. Today the inventoried quantity is both more and less than the reported inventory balance. Nine potential reasons areidentified, these are among delivery, outbound and stocktaking. The suggestions to improve the inventory record accuracy are to record the transactions at the start of an order, simplifying the stocktaking, keep statistics over stocktaking and establish reorder points and two bin system. / Genom effektivare logistik kan företag tillfredsställa kunder och övriga intressenters behov, bli konkurrenskraftiga och öka sin effektivitet. Möjligheten att tillfredsställa kundernas behov är beroende av tillgång till material. Kunden efterfrågar inte bara rätt produkt och kvalitet utan också leveransprecision. För att de producerande företagen ska kunna leverera i tid krävs det att de har tillgång till material och komponenter för att kunna producera de produkter som kunden efterfrågar. Ett korrekt redovisat lagersaldo gör det enklare att se när material behöver beställas in och gör det möjligt att införa automatiska beställningssystem. Många företag har dock inte korrekt redovisade lagersaldon idag. Ett av de företag som skulle ha nytta av att förbättra sin lagerredovisning är SweProd Graphics AB. Examensarbetet som utförs på SweProd Graphics AB syftar därför till att finna möjliga tillvägagångssätt för att förbättra lagersaldosäkerheten. Frågeställningarna som behandlas i arbetet är:  <ul type="disc">Hur väl stämmer det verkliga lagersaldot med det redovisade lagersaldot i Visma?   Hur kan lagersaldosäkerheten förbättras?  Hur kan företaget använda sig av det systemstöd som ska införas? För att besvara frågeställningarna har intervjuer, undersökningar i Visma, inventeringar, benchmarking, processkartläggning och litteraturstudier använts som metod. Teorierna behandlar vikten av korrekt lagersaldo, hur inventeringar kan förenklas och följas upp, olika metoder för lagerredovisning och olika materialplaneringssystem.  Resultatet visade på att det finns ett behov av att förbättra redovisningen av lagersaldot. Som det ser ut i dagsläget är det inventerade antalet både mer och mindre än vad systemet redovisar. Nio potentiella orsaker till varför lagersaldot inte stämmer har identifierats, dessa återfinns både inom inleverans, utleverans och inventering. För att förbättra lagersaldosäkerheten ska förslagsvis materialuttag registreras vid start av produktionsorder, inventering förenklas, statistik föras över inventering och beställningspunkt och tvålådesystem införas.

<p>Today many companies face problems with inventory management. The importance of adequate inventory management has become more evident, while organizations try to reduce their costs and increase their service level.</p><p>This master thesis was conducted at VSM Group AB in Huskvarna, which is a manufacturer that produces and delivers sewing machines to a worldwide market. VSM Group AB has problems with the management and the refilling of the work-in-process (WIP) inventories and also with lack of information about component balance and location in the production and material planning system.</p><p>Therefore, the purpose of the thesis was to improve the control of the WIP inventories and the information about the components in the production and material planning system. In order to achieve the purpose, interviews and observations were performed, theories in inventory management were reviewed and the production process was studied.</p><p>Afterwards solutions for improvements were proposed. To solve the management and refilling problem, a kanban ordering system was proposed, which would use kanban cards to order components from the storages to the WIP inventories. To develop the component information displayed in the production and material planning system, an additional feature was proposed to the system. So instead of showing one inventory balance for each component, the system would display balances for three different places in the factory: the goods arrival and quality control area, the storage and the production.</p><p>The proposed solutions can provide several benefits to the company. The kanban ordering system can increase the material handlers’ efficiency, set a standard refilling quantity and be a tool for reducing the WIP inventory levels. The more detailed information in the production and material planning system can improve the decision making for the purchasers and planners and give the ability to measure the flow and level of material inside the factory.</p><p>These solutions will provide a more appropriate inventory management to the company, with better control of the components and improved information quality.</p>

In order to be competitive, one way is to focus on the internal logistics in a cost effective manner. The concept of material control covers how to control the flow of material resources from the customer to the supplier. This study intends to look at how internal material control can be done efficiently in a manufacturing company. In order to achieve an efficient internal material control, methods and approaches should be evaluated based on a situational approach. Therefore, the purpose of the study is to develop a model for analysis and improvement of internal material control in manufacturing companies. The study is a case study and has been conducted on site at Atlas Copco Tierp Works. Atlas Copco in Tierp, produces components and assembles hand-held power tools. The empirical data has been conducted with employees at Atlas Copco Tierp Works and with direct observations of the processes that the study has been limited to. Literature reviews have been made in parallel with the empirical data collection with an emphasis on internal logistics, material control and lean production. The study shows which factors that are important for an effective internal material control. Furthermore, the report presents an analysis model, which has been applied to Atlas Copco Tierp Works. The analysis model presents a recommendation on appropriate material planning method, as well as the conditions that should be complied in order to achieve an efficient internal material control. The analysis model strengths are considered as mainly to be that it covers many areas, by including the planning environment, material planning methods, efficiency and decision-making. Accordingly, the model is considered to have potential for development by including a cost analysis as a part of the decision-making part. / Att styra sin interna logistik, på ett kostnadseffektivt sätt, är en nödvändighet för att kunna konkurrera på en redan hårt utsatt marknad. Materialstyrning kan ses som en delmängd av logistik och innefattar aktiviteter för att styra och planera materialflödet från leverantör till kund. Denna studie visar på hur den interna materialstyrningen kan ske effektivt, i ett tillverkande företag. För att uppnå en effektiv intern materialstyrning så bör metoder och tillvägagångssätt utvärderas utifrån ett situationsanpassat synsätt. Studiens syfte är därför att utveckla en modell för analys och förbättring av intern materialstyrning i tillverkande företag. Fallstudien har bedrivits vid Atlas Copco Tierpverken. Vid fabriken i Tierp sker tillverkning av komponenter samt montering av handhållna industriverktyg. Den empiriska datainsamlingen har skett genom intervjuer med medarbetare på Tierpverken och observationer över det interna materialflödets processer som studien avgränsat sig till. En litteraturundersökning har gjorts, med betoning på intern logistik, materialstyrning och Lean Production. Studien visar vilka faktorer som är av betydelse för en effektiv intern materialstyrning. Rapporten presenterar en analysmodell, vilken har tillämpats på Atlas Copco Tierpverken. Analysmodellen ger en rekommendation på lämplig materialstyrningsmetod, samt vilka förutsättningar som bör uppfyllas för att uppnå en effektiv intern materialstyrning.  Analysmodellens styrkor anses främst vara att den täcker in många områden, där planeringsmiljö, materialstyrningsmetoder, effektivitet inkluderas för att beslut och rekommendationer kan utföras. Modellen bedöms ha utvecklingspotential genom att inkludera en kostnadsanalys som en del vid beslut.

Today many companies face problems with inventory management. The importance of adequate inventory management has become more evident, while organizations try to reduce their costs and increase their service level. This master thesis was conducted at VSM Group AB in Huskvarna, which is a manufacturer that produces and delivers sewing machines to a worldwide market. VSM Group AB has problems with the management and the refilling of the work-in-process (WIP) inventories and also with lack of information about component balance and location in the production and material planning system. Therefore, the purpose of the thesis was to improve the control of the WIP inventories and the information about the components in the production and material planning system. In order to achieve the purpose, interviews and observations were performed, theories in inventory management were reviewed and the production process was studied. Afterwards solutions for improvements were proposed. To solve the management and refilling problem, a kanban ordering system was proposed, which would use kanban cards to order components from the storages to the WIP inventories. To develop the component information displayed in the production and material planning system, an additional feature was proposed to the system. So instead of showing one inventory balance for each component, the system would display balances for three different places in the factory: the goods arrival and quality control area, the storage and the production. The proposed solutions can provide several benefits to the company. The kanban ordering system can increase the material handlers’ efficiency, set a standard refilling quantity and be a tool for reducing the WIP inventory levels. The more detailed information in the production and material planning system can improve the decision making for the purchasers and planners and give the ability to measure the flow and level of material inside the factory. These solutions will provide a more appropriate inventory management to the company, with better control of the components and improved information quality.

En effektiv materialhantering har en viktig del i hur konkurrenskraftig en organisation är och att utveckla sina arbetssätt inom detta område är en kontinuerlig utmaning. I en organisation utgör lagerhållning av varor en av de mest väsentliga logistikkostnaderna. Ett sätt att reducera dessa kostnader är genom prognostisering.  Det finns därmed ett incitament för organisationer att allokera resurser på detta område för att bedriva sin verksamhet mer kostnadseffektivt och vara fortsatt konkurrenskraftiga. Statliga myndigheter är inget undantag gällande kostnadsreduceringar, speciellt eftersom de hushåller med resurser som tillhandahålls av regeringen. Studiens syfte har varit att undersöka vilka kvantitativa prognosmetoder som kan användas och hur de ska väljas för att uppnå en förbättrad lagerstyrning. Studien genomfördes som en fallstudie på Trafikverket. Genom att studera en organisation och använda verklig data, bidrar studien med en ökad förståelse för hur prognostiseringsprocessen är utformad samt hur prognostisering kan tillämpas utifrån efterfrågan på ett brett sortiment av artiklar. Totalt har prognoser upprättats för 245 artiklar som finns i det nuvarande sortimentet. Fem olika prognosmetoder användes för att upprätta prognoser som sedan utvärderades med två prognosmått. För att sedan välja den bästa prognosmetoden för varje artikel på ett objektivt sätt användes Data Envelopment Analysis (DEA). Studien visar vilka steg som ingår i prognostiseringsprocessen samt vilka aktiviteter som bör genomföras i varje steg. Studiens användning av DEA-analys för att bestämma den mest lämpliga prognosmetoden för ett sortiment av artiklar visar nya användningsområden för metoden. Studiens resultat och analys visade att de prognosmetoder som organisationen använder inte genererar det bästa resultatet. Prognosfelet minskade för sortimentet när den prognosmetod som DEA-analysen föreslog användes. Studiens slutsatser visade att organisationen inte analyserat varför de prognosmetoder som används är lämpliga samtidigt som de inte följer upp och utvärderar resultatet. Vidare gavs rekommendationer till fallstudieföretaget gällande vilka prognosmetoder och utvärderingsmått de kan använda sig av. / For organizations, an efficient management of material is a source for cost reductions and is an important aspect to continuously develop in order to stay competitive. Keeping stock is one of the significant costs related to logistics and one method that can contribute to a reduction in future stock levels is demand forecasting. There is therefore an incentive for organizations to allocate resources to this area of subject, to operate more efficiently and maintain or increase competitiveness. The public sector is not an exception in regard to working with cost reductions and a strict budget, especially since they use funds allocated by the government. The purpose of this thesis is to investigate which quantitative forecasting methods that can be used and how the methods should be chosen. The goal is to provide more accurate forecasts that contributes to a reduction of total material handled. The thesis was performed as a case study at Trafikverket (the Swedish transport administration). Through study and analysis of a real organization who provided real-world data to work with, the thesis contributes with an understanding of how the forecasting process is outlined and how it can be practiced when managing a large set of products. Five different forecasting methods were used in this thesis together with two measurements of accuracy. In total, forecasts were developed for 245 different products by using real data on past demand. Data Envelopment Analysis (DEA) was used to choose the most and least appropriate forecasting methods for each product. The thesis demonstrates which steps and activities are necessary in the forecasting process and the usage of DEA to decide which method is the most and least suitable for a large set of products shows a new usage for the method. The result and analysis of the thesis showed that the forecasting methods used by the case company are not the most suitable ones. The forecast error was reduced for the total set of products when using the methods that the DEA suggested. The conclusions of the thesis revealed that the case company did not perform any analysis on why the current forecasting methods were used and adding to this, no evaluation of the forecast error was performed. Further, recommendations were provided to the case company regarding which forecasting methods and accuracy measures should be employed.

Manufacturing industries used to develop their operation strategies focusing on the cost of manufacturing, high volume production, and stabilizing the customer demand. But due to advancements in technology and evolving customer needs, the market demand became highly volatile, dynamic and customers expected customization, low volume products, and faster deliveries. This evolution in customer needs has pushed the companies to improve their operating systems to be more flexible, agile, and adaptable to the market’s dynamic character. In order to effectively evolves themselves and achieve more flexibility, manufacturing companies had to implement effective manufacturing, planning, and control systems.  The first breakthrough in planning systems came in the year 1975 where a systemic approach called material requirements planning was introduced by Orlicky. MRP has become the global for production planning and inventory management in manufacturing industries. Later, over the years, research on the planning systems has brought modifications in MRP and it was evolved into closed-loop MRP. Further into the late 1980’s availability of technology led to an introduction of a newly evolved system called the Manufacturing resource planning which resulted in a holistic approach in material planning involving, financial and accounting functions which improved the planning efficiency. Further advancement in technology resulted in advanced planning systems like Enterprise resource planning and Advanced planning and scheduling.  On the contrary, though there has been a lot of advancement in technology and effective production planning methods, there are still discrepancies in obtained results when compared to theory. This is because the existing systems were based either solely on push production or pull production strategy. There is a lack of a hybrid system that includes the positives of both production strategies and negates the MRP conflict. However, in the year 2011, a new concept called demand-driven material requirements planning was introduced by Ptak &amp; Smith, which was a fusion of the core MRP, theory of constraints, and Lean principles. Since the introduction DDMRP has seen an increase in implementation across industries which claimed a significant improvement in performance, on-time delivery, reduction in inventory, and reduced stock-outs. DDMRP has received very little attention in academia due to a lack of awareness among researchers and industries. A literature review approach was used to collect and analyze the data on DDMRP and its advantages. The objective of this thesis was to shed light on the process of DDMRP, its pros, and cons in implementing the new material planning system.

Background - A company’s distribution system is a critical component and businesses need to consider the aspects of customer service and total cost when designing the distribution system. A distribution system can be defined as the process of making products or services available for customers. The rise of e-commerce has increased the challenge of having a cost efficient distribution system together with a high standard of customer service.  The distribution system is put under heavy pressure to deliver goods as quickly as possible and at the lowest possible cost due to globalization and outsourcing. E-commerce involves a new approach of the distribution system with its small order sizes, daily order volumes and small parcel shipments that are often shipped the same day. Inventory management is being regarded as an important part of the distribution system. Inventory management is the ability to balance the demand of products with the supply of products in a cost-effectively way. Companies therefore need to use material planning methods to coordinate the flow of material effectively throughout the distribution system. Purpose - The purpose of this paper is to study Mionix’s current distribution system with focus on customer service and total cost. Based on the findings, this thesis will identify which costs that are possible to influence and reduce.  Secondly, the aim is to study how material planning methods can help Mionix to improve the inventory management function and propose measures for improvement. Method - This thesis has used a positivistic view with a deductive approach. It is a case study that contains elements of both qualitative and quantitative research strategy. In order to fulfil the purpose of the study the authors have conducted a flow and situational analysis in order to identify services and costs in the distribution system that Mionix can influence. Further, the authors conducted a situation analysis of Mionix’s current inventory management function. The authors then calculated and analysed how material planning methods such as EOQ, Total cost, Sensitivity analysis, Ordering points and optimal safety stock and service levels could improve Mionix’s inventory management function. Next, alternative solutions are presented together with the authors’ evaluations and recommendations for the company. The data that was needed to accomplish this was collected by performing interviews, observations and extracting data from computer system e.g. Excel. Conclusion - The authors have identified two distribution channels within the distribution system: the wholesaler channel and the retailers/e-commerce channel. Mionix has the opportunity to influence two particular costs: capital costs and cost of loss of sales, which are included in inventory- and customer service costs according to the total cost model. Material planning methods can improve Mionix’s inventory management function by deciding safety stock levels, ordering points and EOQ for all products in accordance with the theoretical framework. Further, if Mionix use the authors’ recommendation the company can reduce estimated total annual cost by 23% or 26% depending on what mode of transportation that is used

Electrolux är ett ledande globalt företag inom vitvaror och hushållsprodukter. Electroluxutvecklar, konstruerar och tillverkar varma, kalla och våta hushållsprodukter samt annansmåelektronik under olika varumärken. Varumärket Electrolux står för hög kvalitet som äveninkluderar en världsledande serviceorganisation för att tillhandahålla bra kundservice.Electrolux har på senaste tiden sett en trend i ökande andelar returer av reservdelar frånservicegivarna. Det identifieras som en möjlig kvalitetsrisk inom serviceprocessen. För attförebygga detta har det här examensarbetet utvärderat kvalitén i serviceprocessen ochrekommenderar förändringar för att bibehålla och öka kvalitén inom kundservice.Målet med arbetet har varit att öka kvalitén inom serviceprocessen på alla nivåer, till varje externoch intern kund. För att identifiera förbättringsområden genomfördes enverksamhetskartläggning med fokus på arbetsrutiner och hanteringen av reservdelar inomserviceprocessen. En grundorsaksanalys genomfördes för att identifiera underliggande orsakertill de olika problemområdena och för att ta fram förbättringsåtgärder som sedan utvärderats.Arbetet har varit avgränsat till att bara studera den svenska serviceorganisationen ochgarantireparationer för vitvaror och hushållsmaskiner. Andra avgränsningar för arbetat har varitatt resultatet inte ska påverka dagens målvärden negativt och inte heller påverka dagenstransportflöde.Resultatet av projektet är presenterat i form utav ett framtidsläge för serviceprocessen. För attuppnå detta framtidsläge så har en aktivitetsplan tagits fram med rekommenderade förbättringarsom är utformade för att åtgärda problemen i serviceprocessen. De rekommenderadeförbättringarna eliminerar dubbelt arbete, reducerar antalet arbetsmoment, samlar all tekniskinformation i en informationskanal och gör det möjligt att materialplanera reservdelar som äröverblivna från tidigare uppdrag.Tidsbegränsningen har gjort att fokus har legat på att ta fram konkreta och implementerbaraförbättringsåtgärder. Förbättringsområden har identifierats inom IT-system och organisation,något som diskuteras för fortsatta arbeten. / Electrolux is a leading global company in home and kitchen appliances. Electrolux develops,designs and manufactures home appliances for hot, cold and water applications and other smallhome appliances under different brands. The Electrolux brand stands for high quality whichincludes an excellent service organization to provide good quality in customer care.Electrolux have lately seen a trend with increasing returns of unused spare parts from serviceproviders. This is identified as a possible quality risk in the service process. To prevent this tooccur this Master´s Thesis has evaluated the quality in the service process and recommendsactions to maintain and increase the level of quality in customer care.The aim of the project has been to increase the quality in the service process in every level, toevery internal and external customer. To identify improvement areas a business mapping of theservice process was performed, focusing on the different procedures within the service processand spare part management. A root cause analysis was made to find the underlying causes ofdifferent problem areas and ideas for improvements have been generated and evaluated.The project was limited to only include the Swedish service organization of guarantee repairs ofhome appliances within the Electrolux group. Other limitations of the project were to not affectthe key performance indexes adversely and to not include the supply chain of spare parts in theproject.The result of the project is presented as a future state for the service process. To reach this futurestate an action plan was made were recommended improvements are combined to address theproblems in the service process. The identified problems can be improved by eliminatingduplication of work, reducing the number of steps, gathering all technical information to oneplatform and to make surplus spare parts available for material planning.The outcome of the project was limited by time and therefore focus was to develop concrete andimplementable improvements. On a concept level the IT-system and organization relatedimprovement areas were evaluated, which are discussed and recommended for future work.

Made available in DSpace on 2016-07-01T11:59:28Z (GMT). No. of bitstreams: 2 license.txt: 1748 bytes, checksum: 8a4605be74aa9ea9d79846c1fba20a33 (MD5) 6.pdf: 1983551 bytes, checksum: fa748c78d045ad8c560c9984c7c0d8de (MD5) Previous issue date: 2016 / Made available in DSpace on 2016-07-21T14:39:34Z (GMT). No. of bitstreams: 2 6.pdf: 1983551 bytes, checksum: fa748c78d045ad8c560c9984c7c0d8de (MD5) license.txt: 1748 bytes, checksum: 8a4605be74aa9ea9d79846c1fba20a33 (MD5) Previous issue date: 2016 / Fundação Oswaldo Cruz. Instituto de Tecnologia em Fármacos/Farmanguinhos. Rio de Janeiro, RJ, Brasil. / A produção de medicamentos como a maioria da produção de produtos manufaturados, requer matérias-primas as quais necessitam inicialmente de um planejamento eficaz e depois um controle eficiente para que o produto final seja entregue nas condições requeridas. A falha no processo de aquisição dos insumos pode resultar negativamente em toda a cadeia produtiva. Farmanguinhos como Laboratório Farmacêutico Oficial (LFO) deve seguir a Lei nº 8.666 de 21 de junho de 1993, que trata do processo de aquisição, o que torna a atividade mais complexa assim como a atividade de Planejamento e Controle da Produção. Assim, o presente trabalho tem como objetivo principal analisar o sistema de suprimento de Farmanguinhos e propor melhorias no planejamento e controle de matérias-primas. Foi realizado um estudo descritivo tendo como estratégia metodológica o estudo de caso referente à Farmanguinhos. Foram realizados cálculos entre os tempos estimados e reais para cada etapa do processo produtivo de antirretrovirais no LFO em questão. Ademais, foram buscadas informações referentes a experiências de outros LFO e por fim foram elaboradas propostas de melhoria. No que tange ao atendimento ao cliente, Farmanguinhos não tem tido bom desempenho, uma vez que apenas 24% dos pedidos foram atendidos no prazo. Possui em tempo médio de atendimento para os anos 2010 a 2014 de 395 dias reais contra uma expectativa do principal cliente, o Ministério da Saúde, de 157 dias. O suprimento das matérias-primas corresponde a 88% do tempo total, sendo que só a requisição e a aquisição correspondem a 72% do tempo total. A primeira vista, a legislação rígida do serviço público parece ser o maior fator de atraso no sistema produtivo de Farmanguinhos. A lei veda a escolha de fornecedores e contratos de exclusividade por longos períodos a não ser em condições excepcionais. Ficando assim, na contramão das empresas de ponta no mercado privado que montam suas cadeias de suprimentos com empresas de sua escolha e com exclusividade. As propostas para tentar reduzir o tempo de suprimento passam pela qualificação de fornecedores e realização de Registro de Preços para aquisição das matérias-primas / The pharmaceutical production, as well as the manufactured products production, requires raw materials, which initially need an effective planning and then an efficient control to guarantee that the final product will be deliver in the required conditions. Failure to inputs of the acquisition process can result negatively on the entire commodity chain. Farmanguinhos, as Brazilian official pharmaceutical laboratories (LFO), should follow the Brazilian law no. 8666 of June 21, 1993, that treats about acquisition process, which makes the activity more complex and turn planning and production control complex too. Thus, this study objective to analyze Farmanguinhos supply chain system the Farmanguinhos and propose improvements in the planning and control of raw materials. It was conducted a descriptive study, having as a methodological strategy a case study of the Farmanguinhos. Calculations were make between theoretical and actual times for each stage of the antiretroviral production process at the LFO in question. In addition, information’s were show regarding the experiences of other LFO and finally improvement proposals were make. According to customer service, Farmanguinhos has not had good performance, only 24% of requests were delivery on time. Has a total average service time in the years 2010-2014 of 395 actual days against an expectation of the main customer, the Ministry of Health, of 157 days. The raw material supply correspond to 88% of the total time and, if we concentrate only the in request and in acquisition this correspond to 72% of the total time. At first glance, the rigid law of public service seems to be the longest delay factor in the productive system Farmanguinhos. The law prohibits the choice of suppliers and exclusive contracts for long periods unless in exceptional condition. Being against the leading companies in the private market that hires their supply chain with companies of your choice and being exclusive. The proposal try to reduce the leading time passes the qualification of suppliers and price record of accomplishment to purchase materials.