Cost effect by implementing LEAN

• Main Author: Adam, Hemin
• Format: Others
• Language: English
• Published: Mälardalens högskola, Akademin för innovation, design och teknik 2014
• Subjects: LEAN; cost effect
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-29828

This report is a result of master thesis performed at Volvo Powertrain in Koping, Sweden. Today Volvo Powertrain processes and assembles gearboxes for many of Volvo trucks, buses and dump trucks. It also sends gearbox components to Volvo’s plants in North and South Americas, and additionally produces Volvo Penta’s revolutionary marine gear called “IPS” within the company.In order to meet customer requirements for reduced lead time/ freezing time for order placement of products in Koping, Volvo Powertrain wants to achieve a more resource-efficient production. What will the economic costs be in order to reduce the lead time and implement improvements? Since all decision includes cost investment.The aim of this thesis is to make a deep analysis of Order-To-Delivery process between the customers of Volvo Penta, Volvo VCE as well as aftermarket and clarifying the impact of lead time shortening both in practical and economical point of view.After completing the Value Stream Mapping on the current state, problems and non-value adding time are identified. Problems that are found are the long waiting time between the machines, which is the majority of the throughput time. Other issues are the long setup time, and operations that are not performed correctly. Other types of waste were also observed included the long waiting time of material handling between the different buildings.Based on the Value Stream Mapping and through other Lean tools, various proposals have been presented to simplify and increase machine time availability and flexible the production. There have also been various scenarios calculated about what the economic costs will be if the selected items in this thesis are prioritized over other products.