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Värdeflödesanalys på Tetra Pak – en materialflödesstudie ur ett värdeadderande perspektiv

Byström, Simon and Salman, Isac (2011) MTT820
Engineering Logistics
Abstract
Tetra Pak Dairy & Beverage Systems AB (TP D&B) is a company within the Tetra Pak corporation located in Lund, Sweden, which manufactures processing equipment designed for the dairy and beverage industry. A large amount of stainless steel piping is a necessary part of every unit. As an effect of the great quantity of options the customer can choose from, the piping of each unit is designed according to customer order. The actual amount of piping required for each unit is consequently under influence of substantial variation. Since TP D&B itself refines the pipes to fit these specifications, it is essential for the production to be flexible. The pipes are manufactured by a supplier in Germany and dispatched to TP D&B in Lund in lengths of... (More)
Tetra Pak Dairy & Beverage Systems AB (TP D&B) is a company within the Tetra Pak corporation located in Lund, Sweden, which manufactures processing equipment designed for the dairy and beverage industry. A large amount of stainless steel piping is a necessary part of every unit. As an effect of the great quantity of options the customer can choose from, the piping of each unit is designed according to customer order. The actual amount of piping required for each unit is consequently under influence of substantial variation. Since TP D&B itself refines the pipes to fit these specifications, it is essential for the production to be flexible. The pipes are manufactured by a supplier in Germany and dispatched to TP D&B in Lund in lengths of six meters. They are sent on to EMV Stainless AB (EMV) for cutting and then returned to TP D&B for further refinement and final assembly.<br>
The purpose of this thesis is to create a greater understanding of the complexity of the material flow of the piping, from supplier to final assembly. Furthermore, the purpose is to evaluate the potential savings associated with reorganization of the material flow and handling. To realize this purpose, the following goals were set:<br>
1. Map the material flow from a value adding perspective<br>
2. Identify deficiencies and problem areas<br>
3. Present an action plan with measures<br>
The first goal was reached by mapping the flow from a value adding perspective by what is called Value Stream Mapping (VSM). Based on the VSM, the stock of raw materials was identified as the area with the most potential for improvement. The problem was analyzed and recommendations were generated to attack the causes: stock of raw material pipes in two locations, discrepancies between book and physical inventory, and deficient routines.<br>
The authors suggest moving the stock of raw material pipes to EMV in order to reduce the number of handovers and render the extensive material handling more effective and efficient. In addition, the cutting procedure at EMV could be optimized by the implementation of a computer program developed by the authors. This not only reduces the amount of waste, but also depicts the real consumption of goods. Together with substantial changes in how the business system is connected to the physical stock, the discrepancies in stock can be controlled.<br>
The combination of these measures enables a new dimensioning of the safety stock, which reduces the overall tie-up of capital in stock by 50 percent. By investing in a new pipe-cutting machine that utilizes the pipe length in a more effective and efficient manner, it is possible to achieve an estimated reduction of waste of 80 to 90 percent. The pay-back time is estimated to be less than a year; the authors consider that the total amount of savings each year will exceed 50 000 euros. (Less)
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author
Byström, Simon and Salman, Isac
supervisor
organization
course
MTT820
year
type
M1 - University Diploma
subject
report number
ISNR LUTMDN/TMTP--5720--SE
language
Swedish
additional info
ISNR LUTMDN/TMTP--5720--SE
id
1980536
date added to LUP
2011-06-20 10:04:33
date last changed
2011-06-20 10:04:33
@misc{1980536,
  abstract     = {Tetra Pak Dairy & Beverage Systems AB (TP D&B) is a company within the Tetra Pak corporation located in Lund, Sweden, which manufactures processing equipment designed for the dairy and beverage industry. A large amount of stainless steel piping is a necessary part of every unit. As an effect of the great quantity of options the customer can choose from, the piping of each unit is designed according to customer order. The actual amount of piping required for each unit is consequently under influence of substantial variation. Since TP D&B itself refines the pipes to fit these specifications, it is essential for the production to be flexible. The pipes are manufactured by a supplier in Germany and dispatched to TP D&B in Lund in lengths of six meters. They are sent on to EMV Stainless AB (EMV) for cutting and then returned to TP D&B for further refinement and final assembly.<br>
The purpose of this thesis is to create a greater understanding of the complexity of the material flow of the piping, from supplier to final assembly. Furthermore, the purpose is to evaluate the potential savings associated with reorganization of the material flow and handling. To realize this purpose, the following goals were set:<br>
1. Map the material flow from a value adding perspective<br>
2. Identify deficiencies and problem areas<br>
3. Present an action plan with measures<br>
The first goal was reached by mapping the flow from a value adding perspective by what is called Value Stream Mapping (VSM). Based on the VSM, the stock of raw materials was identified as the area with the most potential for improvement. The problem was analyzed and recommendations were generated to attack the causes: stock of raw material pipes in two locations, discrepancies between book and physical inventory, and deficient routines.<br>
The authors suggest moving the stock of raw material pipes to EMV in order to reduce the number of handovers and render the extensive material handling more effective and efficient. In addition, the cutting procedure at EMV could be optimized by the implementation of a computer program developed by the authors. This not only reduces the amount of waste, but also depicts the real consumption of goods. Together with substantial changes in how the business system is connected to the physical stock, the discrepancies in stock can be controlled.<br>
The combination of these measures enables a new dimensioning of the safety stock, which reduces the overall tie-up of capital in stock by 50 percent. By investing in a new pipe-cutting machine that utilizes the pipe length in a more effective and efficient manner, it is possible to achieve an estimated reduction of waste of 80 to 90 percent. The pay-back time is estimated to be less than a year; the authors consider that the total amount of savings each year will exceed 50 000 euros.},
  author       = {Byström, Simon and Salman, Isac},
  language     = {swe},
  note         = {Student Paper},
  title        = {Värdeflödesanalys på Tetra Pak – en materialflödesstudie ur ett värdeadderande perspektiv},
  year         = {2011},
}