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Affärsnytta i användandet av simulering - En fallstudie av Holmen skog

Niklasson, Henrik and Sallmén, fredrik (2007) MIO920
Production Management
Abstract
Problem discussion: The process of paper production includes numerous steps from
that a customer order is received to that a finished product is
delivered to the customer. A desire exists at Holmen Paper to be
able to ease and improve the complex operational methods
through the use of computer-aided simulation.
Based on the reasoning above the problem to solve in this master
thesis is to resolve whether or not the use of computer-aided
simulation is an appropriate tool for the Holmen organization,
with a starting-point at Holmen Paper’s paper mill in Braviken:
Within which area would the greatest profitability be able to
be gained, by the use of a computer-aided simulation?
How is the true business advantage proven from the... (More)
Problem discussion: The process of paper production includes numerous steps from
that a customer order is received to that a finished product is
delivered to the customer. A desire exists at Holmen Paper to be
able to ease and improve the complex operational methods
through the use of computer-aided simulation.
Based on the reasoning above the problem to solve in this master
thesis is to resolve whether or not the use of computer-aided
simulation is an appropriate tool for the Holmen organization,
with a starting-point at Holmen Paper’s paper mill in Braviken:
Within which area would the greatest profitability be able to
be gained, by the use of a computer-aided simulation?
How is the true business advantage proven from the use of a
computer-aided simulation?
Purpose: The purpose with this master thesis is to decide if, and in that case
where, a computer-aided simulation can be used in the range
between customer order to customer-deliverance at Holmen Paper
to add value and/or minimize costs. Subsequently the main target
can be described in the two parts:
Clarify the business advantage by the use of computer-aided
simulation in the Holmen Paper organization and with an
intention to come more absorbed in a specific area.
Through an implementation with a general character on the
chosen area illustrate how a simulation-tool can be designed
and from the outcome of that the contingent business
advantage.
Methodology: During the initial part of the project, regarding the walk through
of the enterprise in Braviken, the writers used an explorative with
elements of an explaining study-methodology; this was made to
ensure that enough information was collected. This information
mostly consisted of primary data, obtained through interviews and
observations. During the second phase a normative with elements
of explaining approach were used. The case-study method was
chosen as the methodology of study, for this part of the thesis, as
we carried out a case-study of the supply chain of Holmen Skog.
The collected information during this process consisted of both
primary, but mostly secondary data, for the simulation model. The
scientific approach, in which the studies were conducted, had
through the entire thesis their take-off point in the systematic
view.
Conclusions: The initial process-mapping of the organization of Holmen Paper
resulted in eight projects with the potential for improvement, in
which all would use a simulation tool to increase profitability.
Based on a qualitative evaluation, strongly connected to theory
and benchmarking studies, the projects were ranked between
themselves to determine which of them has the greatest effect on
the financial result of the Holmen corporate group. Three projects
were chosen from the 8 which were produced. The first one
consisted of coordinate and organizes the logistics of finished
products for Holmen Paper, to improve profitability. The goal
with the second project was optimize and coordinate the
production which hopefully would result in a more even
production curve. It was finally decided to do the more thorough
case-study within the supply chain of logs and by developing a
systematic method for the way to work, the authors were able to
prove the business advantage for the use of computer-aided
simulation in this case-study. Based upon a reasoning concerning
the logistic target-mix, a decision was made to make the
distribution of logs more efficient. Both with respect to the cost of
logistics and at the same time try to keep the high service-level of
deliverance, towards their main customer, Holmen Paper. The
changes were made in the distributions-network of Holmen Paper
by creating a new transportation structure, in the simulation
software Extend. The result of this simulation shows a
minimization of the cost of logistics with up to 18.8 million Skr,
according to the data of the produced logs-volume during the year
2006. This resulted in an improvement of the profitability, of
Holmen Skog’s enterprise, with 0.2% and a pay-back time of 15
weeks for an estimated project. It should be pointed out that the
model and the scenario created are both neglecting some
parameters and the result is therefore not suitable to base any real
decisions of changes on. The focus of the study was consequently
not to result in a real distribution pattern. The aim was instead to
illustrate the possibilities in using a computer-aided simulation
tool. (Less)
Please use this url to cite or link to this publication:
author
Niklasson, Henrik and Sallmén, fredrik
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Computer-aided simulation, process-mapping, business advantage, Holmen Paper, supply-chain, distribution
other publication id
07/5274
language
Swedish
id
1981617
date added to LUP
2011-06-21 13:55:35
date last changed
2011-06-21 13:55:35
@misc{1981617,
  abstract     = {{Problem discussion: The process of paper production includes numerous steps from
that a customer order is received to that a finished product is
delivered to the customer. A desire exists at Holmen Paper to be
able to ease and improve the complex operational methods
through the use of computer-aided simulation.
Based on the reasoning above the problem to solve in this master
thesis is to resolve whether or not the use of computer-aided
simulation is an appropriate tool for the Holmen organization,
with a starting-point at Holmen Paper’s paper mill in Braviken:
 Within which area would the greatest profitability be able to
be gained, by the use of a computer-aided simulation?
 How is the true business advantage proven from the use of a
computer-aided simulation?
Purpose: The purpose with this master thesis is to decide if, and in that case
where, a computer-aided simulation can be used in the range
between customer order to customer-deliverance at Holmen Paper
to add value and/or minimize costs. Subsequently the main target
can be described in the two parts:
 Clarify the business advantage by the use of computer-aided
simulation in the Holmen Paper organization and with an
intention to come more absorbed in a specific area.
 Through an implementation with a general character on the
chosen area illustrate how a simulation-tool can be designed
and from the outcome of that the contingent business
advantage.
Methodology: During the initial part of the project, regarding the walk through
of the enterprise in Braviken, the writers used an explorative with
elements of an explaining study-methodology; this was made to
ensure that enough information was collected. This information
mostly consisted of primary data, obtained through interviews and
observations. During the second phase a normative with elements
of explaining approach were used. The case-study method was
chosen as the methodology of study, for this part of the thesis, as
we carried out a case-study of the supply chain of Holmen Skog.
The collected information during this process consisted of both
primary, but mostly secondary data, for the simulation model. The
scientific approach, in which the studies were conducted, had
through the entire thesis their take-off point in the systematic
view.
Conclusions: The initial process-mapping of the organization of Holmen Paper
resulted in eight projects with the potential for improvement, in
which all would use a simulation tool to increase profitability.
Based on a qualitative evaluation, strongly connected to theory
and benchmarking studies, the projects were ranked between
themselves to determine which of them has the greatest effect on
the financial result of the Holmen corporate group. Three projects
were chosen from the 8 which were produced. The first one
consisted of coordinate and organizes the logistics of finished
products for Holmen Paper, to improve profitability. The goal
with the second project was optimize and coordinate the
production which hopefully would result in a more even
production curve. It was finally decided to do the more thorough
case-study within the supply chain of logs and by developing a
systematic method for the way to work, the authors were able to
prove the business advantage for the use of computer-aided
simulation in this case-study. Based upon a reasoning concerning
the logistic target-mix, a decision was made to make the
distribution of logs more efficient. Both with respect to the cost of
logistics and at the same time try to keep the high service-level of
deliverance, towards their main customer, Holmen Paper. The
changes were made in the distributions-network of Holmen Paper
by creating a new transportation structure, in the simulation
software Extend. The result of this simulation shows a
minimization of the cost of logistics with up to 18.8 million Skr,
according to the data of the produced logs-volume during the year
2006. This resulted in an improvement of the profitability, of
Holmen Skog’s enterprise, with 0.2% and a pay-back time of 15
weeks for an estimated project. It should be pointed out that the
model and the scenario created are both neglecting some
parameters and the result is therefore not suitable to base any real
decisions of changes on. The focus of the study was consequently
not to result in a real distribution pattern. The aim was instead to
illustrate the possibilities in using a computer-aided simulation
tool.}},
  author       = {{Niklasson, Henrik and Sallmén, fredrik}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Affärsnytta i användandet av simulering - En fallstudie av Holmen skog}},
  year         = {{2007}},
}