This report is the result of a 20-points project at the University of Jönköping. The project was carried out in form of a case study with the object of analysing the value flow at DIAB AB’s confection department in Laholm. The aim of this project is to submit proposals to the production management on how to increase the efficiency of the production flow at the confection department and reduce the capital accumulation in form of products in work. The information in this report is gathered from interviews, observations and measurements. Furthermore, a literature study was carried out in view to find suitable theories when analysing present as well as future suggested production conditions. This report is based on four main questions: • What does the existing process of the value flow for the most produced product family look like? • How does the process of the value flow for GS perform considering the through-put-time? o How long through-put-time does a representative product of the GS-family have? o How long is the value- and no value adding time for that product along its production flow? • Which production related disturbances and cost prompters exist in the present value flow process? • How could the process of the value flow for GS be made more efficient, less persistent to disturbances and more competitive? The existing process of the value flow for the most producing product family has been mapped and is illustrated in appendix 3. For now, the process includes nine working stations along the production chain. The through-put-time of a representative GS-product is according to my survey 18,5 days. The value adding time is only 16,1 minutes, that is 0,061 % of the entire through-put-time. The remaining time, in other words the no value adding time, is 440 hours and it represents mainly storage and transport of products. The representative production disturbances and cost prompters that characterise the process of the value flow contain material related disturbances, a high number of long shifts, long storage time prior to the customer order point and with that, high capital accumulation and finally unnecessary transports. Improvement proposals aim to increase the efficacy of the process of the value flow and reduce the capital amounts by shifting from the present production strategy involving manufacturing towards order (TMO) to assembling towards order (MMO). In order to make this possible a semi-manufactured storage will be introduced after the standard confection which will represent the new decoupling point. The production at the standard confection will then occur according to the semi-manufactured storage. The standard confection should produce in larger aggregated order quantities based on prognosis in order to benefit from the advantages of economy of scale and the production must proceed in a continuous flow according to the FIFU-system (First In First Out). In addition to that, the special confection must produce according to a pull-system and only when the customer makes a request. The tact-time of the GS products should constitute a limit for all the cycle times along the production chain, both on the standard- and special confection. This is partly due to creating a constant and balanced production flow which enables short through-put-time and partly due to avoiding in-between-storage as a result of various bottlenecks.

<p>This report is the result of a 20-points project at the University of Jönköping. The project was carried out in form of a case study with the object of analysing the value flow at DIAB AB’s confection department in Laholm. The aim of this project is to submit proposals to the production management on how to increase the efficiency of the production flow at the confection department and reduce the capital accumulation in form of products in work.</p><p>The information in this report is gathered from interviews, observations and measurements. Furthermore, a literature study was carried out in view to find suitable theories when analysing present as well as future suggested production conditions.</p><p>This report is based on four main questions:</p><p>• What does the existing process of the value flow for the most produced product family look like?</p><p>• How does the process of the value flow for GS perform considering the through-put-time?</p><p>o How long through-put-time does a representative product of the GS-family have?</p><p>o How long is the value- and no value adding time for that product along its production flow?</p><p>• Which production related disturbances and cost prompters exist in the present value flow process?</p><p>• How could the process of the value flow for GS be made more efficient, less persistent to disturbances and more competitive?</p><p>The existing process of the value flow for the most producing product family has been mapped and is illustrated in appendix 3. For now, the process includes nine working stations along the production chain.</p><p>The through-put-time of a representative GS-product is according to my survey 18,5 days. The value adding time is only 16,1 minutes, that is 0,061 % of the entire through-put-time. The remaining time, in other words the no value adding time, is 440 hours and it represents mainly storage and transport of products.</p><p>The representative production disturbances and cost prompters that characterise the process of the value flow contain material related disturbances, a high number of long shifts, long storage time prior to the customer order point and with that, high capital accumulation and finally unnecessary transports.</p><p>Improvement proposals aim to increase the efficacy of the process of the value flow and reduce the capital amounts by shifting from the present production strategy involving manufacturing towards order (TMO) to assembling towards order (MMO).</p><p>In order to make this possible a semi-manufactured storage will be introduced after the standard confection which will represent the new decoupling point. The production at the standard confection will then occur according to the semi-manufactured storage. The standard confection should produce in larger aggregated order quantities based on prognosis in order to benefit from the advantages of economy of scale and the production must proceed in a continuous flow according to the FIFU-system (First In First Out). In addition to that, the special confection must produce according to a pull-system and only when the customer makes a request.</p><p>The tact-time of the GS products should constitute a limit for all the cycle times along the production chain, both on the standard- and special confection. This is partly due to creating a constant and balanced production flow which enables short through-put-time and partly due to avoiding in-between-storage as a result of various bottlenecks.</p>