<p>The purpose of this thesis is to develop a model for assessing cost effectiveness of applying lean tools. The</p><p>model consists of eight phases: it starts by understanding customers' requirements using Voice of Customer</p><p>(VOC) and Quality Function Deployment (QFD) tools. In phase 2, the current state of plant is assessed</p><p>using lean profile charts based on Balanced Scorecard (BSC) measures. In phase 3 and phase 4,</p><p>identification of critical problem(s) and generating of improvement suggestion(s) are performed. Phase 5</p><p>provide evaluation of the cost effectiveness of implementing the suggested lean methods based on life cycle</p><p>cost analysis (LCCA) and phase 6 prefers the right alternative based on multiple criteria decision making</p><p>(MCDM). In phase 7 the selected alternative is supposed to be implemented and finally the user should</p><p>monitor and control the process to make sure that the improvement is going as planned. The model was</p><p>verified successfully using a case study methodology at one Swedish sawmill called Södra Timber in</p><p>Ramkvilla, one part of Södra group. Results obtained from the study showed that the production and human</p><p>resources perspectives are the most critical problem areas that need to be improved. They got the lowest</p><p>scores in the lean profile, 63% and 68%, respectively. Using value stream mapping (VSM) it was found that</p><p>the non value added (NVA) ratios for the core and side products are 87.4% and 90.4%, respectively. Using</p><p>the model, three improvement alternatives were suggested and evaluated using LCCA and MCDM.</p><p>Consequently, implementing 5S got the highest score, second came redesigning the facility layout.</p><p>However, it was estimated that 4.7 % of NVA for the side product would be reduced by redesigning the</p><p>facility layout. The recommendations were suggested for the company to improve their performance. The</p><p>novelty of the thesis is based on the fact that it addresses two main issues related to lean manufacturing:</p><p>firstly, suggesting lean techniques based on assessment of lean profile that is based on BSC and QFD, and</p><p>secondly assessing the cost effectiveness of the suggested lean methods based on LCCA and MCDM. This</p><p>thesis provides a generalized model that enables the decision-maker to know and measure, holistically, the</p><p>company performance with respect to customer requirements. This will enable the company to analyze the</p><p>critical problems, suggest solutions, evaluate them and make a cost effective decision. Thus, the company</p><p>can improve its competitiveness.</p>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:vxu-2292 |
| Date | January 2007 |
| Creators | Al-Hamed, Heba, Qiu, Xiaojin |
| Publisher | Växjö University, School of Technology and Design, Växjö University, School of Technology and Design |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, text |
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