BT Powered Trucks (BTP) is a company belonging to the Material Handling Division of Toyota Industries Corporation. BTP is located in the town Mjölby where they produce different types of forklifts for indoor use. The year 2008 was for BTP, similar to many other companies, a year with a high turnover. Though, since then the inflow of orders has been drastically reduced, a phenomenon that more than anything else can be said to depend on the worldwide economic turndown. That has in turn brought a higher cost awareness to the company. Today BTP believes that its material supply is costing a large amount of money every year and therefore the company wants to investigate if they can reduce these costs. To do that, a complete picture of the material supply costs is needed, and in particular how a changed transport strategy affects this total cost. Thus, the purpose with this study has been to perform a total cost analysis of BTP´s raw material flow from suppliers to the own production process and in the next step investigate how this total cost can be reduced with a changed material supply strategy. A basic delimitation that is done is that the study only analyzes the supply from BTP´s Swedish suppliers. In the study we have made an analysis model, which we later on follows in order to fulfil the purpose of the study. The first step in the model involved a mapping of the material flow as it is today followed by cost calculations of the flows´ different parts. Finally, a number of different material supply strategies have been evolved. With the theoretical framework and BTPs’ organization as base, we separated the material flow into different parts. The total cost which has calculated in the study can be seen in the following table. Transport 10 700 000 kr Material planning 3 485 000 kr Material handling 8 545 000 kr Inventory carrying 5 180 000 kr Total cost 27 910 000 kr The biggest contribution by this study is the full scale approach that has been taken involving the whole material supply from the Swedish suppliers. By that we have showed which parts of the flow that stands for the largest costs and, in the next stage, left suggestions of possible improvements and the consequences the suggestions would have on an article level. It has been shown how the four separate costs; Material planning, Transport, Material Handling and Inventory carrying costs is related to each other and how the total cost is affected when you try to reduce one of these costs. The cost changes that have calculated for the new strategies have been done for number of different articles. If BTP wants to implement these strategies full scale they first have to calculate how a changed strategy would affect a larger amount of articles. The suggestion that where supposed to reduce the largest cost, the transport cost, affected the total cost different for different articles. The result of the suggestion is presented report. The study is also supposed to give BTP a method for the company to use when it want calculate costs or analyze effects of changes in the material flow structure.
Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-51047 |
Date | January 2009 |
Creators | Johansson, Markus, Larsson, Marcus |
Publisher | Linköpings universitet, Institutionen för ekonomisk och industriell utveckling, Linköpings universitet, Institutionen för ekonomisk och industriell utveckling |
Source Sets | DiVA Archive at Upsalla University |
Language | Swedish |
Detected Language | English |
Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
Format | application/pdf |
Rights | info:eu-repo/semantics/openAccess |
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