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Item classification for spare parts at Alfa Laval

Frödå, Erik and Magnusson, Ola (2006) MIO920
Production Management
Abstract
To decide what spare part item that should be kept in
stock or not Alfa Laval, in the year of 2002,
introduced a classification method based on picking
frequency. Now it is time to make an overhaul of
this method. Many different parameters are involved
and Alfa Laval would like to have an evaluation of
how their setup performs in comparison with other
companies, universities and our own ideas.
Purpose- The main purpose of this master thesis is to make an
overhaul of the present classification concept at Alfa
Laval’s DC’s for spare parts. Another purpose is to
increase customer satisfaction and to reduce or keep
cost.
Method- Our approach in this thesis has been to do several
cross section approaches. This means that several
... (More)
To decide what spare part item that should be kept in
stock or not Alfa Laval, in the year of 2002,
introduced a classification method based on picking
frequency. Now it is time to make an overhaul of
this method. Many different parameters are involved
and Alfa Laval would like to have an evaluation of
how their setup performs in comparison with other
companies, universities and our own ideas.
Purpose- The main purpose of this master thesis is to make an
overhaul of the present classification concept at Alfa
Laval’s DC’s for spare parts. Another purpose is to
increase customer satisfaction and to reduce or keep
cost.
Method- Our approach in this thesis has been to do several
cross section approaches. This means that several
setups and differences of data have been compared
with each other. We have gathered our data from
interviews, questionnaires and observations
performed with co-workers at Alfa Laval but also
from theory and other companies.
Conclusions- We recommend Alfa Laval to keep more of the
items in stock. This can be made without an
increasing of costs if a new classification system and
ABC method based on several criteria’s is
implemented. To improve the system further, we
recommend Alfa Laval to introduce certain
limitations to lower the inventory levels. These
limitations mainly comprise the order quantities and
SS. (Less)
Please use this url to cite or link to this publication:
author
Frödå, Erik and Magnusson, Ola
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
inventory management, ABC, benchmarking, spare parts, Item classification
other publication id
06/5247
language
English
id
1988410
date added to LUP
2011-06-28 14:29:14
date last changed
2011-06-28 14:29:14
@misc{1988410,
  abstract     = {To decide what spare part item that should be kept in
stock or not Alfa Laval, in the year of 2002,
introduced a classification method based on picking
frequency. Now it is time to make an overhaul of
this method. Many different parameters are involved
and Alfa Laval would like to have an evaluation of
how their setup performs in comparison with other
companies, universities and our own ideas.
Purpose- The main purpose of this master thesis is to make an
overhaul of the present classification concept at Alfa
Laval’s DC’s for spare parts. Another purpose is to
increase customer satisfaction and to reduce or keep
cost.
Method- Our approach in this thesis has been to do several
cross section approaches. This means that several
setups and differences of data have been compared
with each other. We have gathered our data from
interviews, questionnaires and observations
performed with co-workers at Alfa Laval but also
from theory and other companies.
Conclusions- We recommend Alfa Laval to keep more of the
items in stock. This can be made without an
increasing of costs if a new classification system and
ABC method based on several criteria’s is
implemented. To improve the system further, we
recommend Alfa Laval to introduce certain
limitations to lower the inventory levels. These
limitations mainly comprise the order quantities and
SS.},
  author       = {Frödå, Erik and Magnusson, Ola},
  keyword      = {inventory management,ABC,benchmarking,spare parts,Item classification},
  language     = {eng},
  note         = {Student Paper},
  title        = {Item classification for spare parts at Alfa Laval},
  year         = {2006},
}