Konsekvensen av minskade ställtider & batchstorlekar på Faurecia
(2005) MIO920Production Management
- Abstract
- During a changeover, that is when the tools in a machine are replaced so that it is able to manufacture another product, no other products can be manufactured and therefore the company looses money. To minimize this loss the production is often organized with big batches to minimize the amount of changeovers. A consequence of this is that the stock of WIP-products (Work In Progress) increases and binds a lot of capital. At the same time the products are occupying at lot of space thereby being in the way for the production and increasing the workload for the employees due to extra handling of the goods. Faurecia is trying to minimize the losses when producing smaller batches by reducing the changeover time with a tool called SMED (single... (More)
- During a changeover, that is when the tools in a machine are replaced so that it is able to manufacture another product, no other products can be manufactured and therefore the company looses money. To minimize this loss the production is often organized with big batches to minimize the amount of changeovers. A consequence of this is that the stock of WIP-products (Work In Progress) increases and binds a lot of capital. At the same time the products are occupying at lot of space thereby being in the way for the production and increasing the workload for the employees due to extra handling of the goods. Faurecia is trying to minimize the losses when producing smaller batches by reducing the changeover time with a tool called SMED (single minute change of die). The attempts that have been made at Faurecia in Torsås have not been successful due to the fact that it has been hard to see the benefits of the SMED activity.
This master thesis has been about the consequences of lower changeover times and batch sizes to be able to see if Faurecia should continue to work with SMED-activities or not. Three different production lines were studied and analyzed, with regards to smaller batch sizes, both qualitative and quantitative.
To be able to put figures to the potential savings an Excel-model was created where new batch sizes and the economic consequences of these were calculated. The delivery frequency to and from the plant proved to be important for lowering the stock levels and therefore this parameter was included in the Excel-model. Many of the consequences of shorter changeover times and batch sizes, for example more space and a less crowded working environment, are hard to value if you just look at the money saved. There are a lot of benefits from decreasing batch sizes and increasing the frequency of the deliveries and the report discusses these.
The report shows that the savings that can be made through smaller batch sizes are not big if you look at the money. This is due to the fact that it is mostly stock of pipes that can be lowered. These stocks don’t tie that much money because they have not been that much processed and therefore the savings potential is low. There are however other reasons to lower the stock.
Like many other companies Faurecia today have to small areas to store incoming and outgoing goods. Because of this, small batches, more frequent deliveries and thereby lower stock levels would be welcomed. Another reason to lower the batch sizes and the stock levels is that to much stock tends to create a disorganized working environment. Shorter changeover times and reduced batch sizes also increase the flexibility and this can be used to improve the deliveries to the customer.
The delivering frequency to and from the plant has the greatest effect on production line 2, which has a big stock of catalytic converters that can only be reduced by more frequent deliveries and not by reduced batch sizes. The stock of catalytic converters ties a lot of capital due to its high value which makes the savings that can be made with bended pipes in this production line very small in per cent. The savings that can be realized in this production line by decreasing batch sizes is further decreased by the fact that the annealing, which is done in the middle of the production, is made by a subcontractor in Sösdala, Skåne. The transport to a subcontractor in the middle of the production decreases the effect of reduced changeover times.
The production lines that this report has studied indicates that there are no big savings to be made if you only look at the economic figures, but there are a lot of other things that would be improved with smaller batches and quicker changeovers. These improvements could in turn lead to savings for Faurecia. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2006354
- author
- Gudmunson, Niklas and Kronqvist, Christoffer
- supervisor
- organization
- course
- MIO920
- year
- 2005
- type
- M1 - University Diploma
- subject
- other publication id
- 05/5241
- language
- Swedish
- id
- 2006354
- date added to LUP
- 2011-06-29 15:14:15
- date last changed
- 2011-06-29 15:14:15
@misc{2006354,
abstract = {{During a changeover, that is when the tools in a machine are replaced so that it is able to manufacture another product, no other products can be manufactured and therefore the company looses money. To minimize this loss the production is often organized with big batches to minimize the amount of changeovers. A consequence of this is that the stock of WIP-products (Work In Progress) increases and binds a lot of capital. At the same time the products are occupying at lot of space thereby being in the way for the production and increasing the workload for the employees due to extra handling of the goods. Faurecia is trying to minimize the losses when producing smaller batches by reducing the changeover time with a tool called SMED (single minute change of die). The attempts that have been made at Faurecia in Torsås have not been successful due to the fact that it has been hard to see the benefits of the SMED activity.
This master thesis has been about the consequences of lower changeover times and batch sizes to be able to see if Faurecia should continue to work with SMED-activities or not. Three different production lines were studied and analyzed, with regards to smaller batch sizes, both qualitative and quantitative.
To be able to put figures to the potential savings an Excel-model was created where new batch sizes and the economic consequences of these were calculated. The delivery frequency to and from the plant proved to be important for lowering the stock levels and therefore this parameter was included in the Excel-model. Many of the consequences of shorter changeover times and batch sizes, for example more space and a less crowded working environment, are hard to value if you just look at the money saved. There are a lot of benefits from decreasing batch sizes and increasing the frequency of the deliveries and the report discusses these.
The report shows that the savings that can be made through smaller batch sizes are not big if you look at the money. This is due to the fact that it is mostly stock of pipes that can be lowered. These stocks don’t tie that much money because they have not been that much processed and therefore the savings potential is low. There are however other reasons to lower the stock.
Like many other companies Faurecia today have to small areas to store incoming and outgoing goods. Because of this, small batches, more frequent deliveries and thereby lower stock levels would be welcomed. Another reason to lower the batch sizes and the stock levels is that to much stock tends to create a disorganized working environment. Shorter changeover times and reduced batch sizes also increase the flexibility and this can be used to improve the deliveries to the customer.
The delivering frequency to and from the plant has the greatest effect on production line 2, which has a big stock of catalytic converters that can only be reduced by more frequent deliveries and not by reduced batch sizes. The stock of catalytic converters ties a lot of capital due to its high value which makes the savings that can be made with bended pipes in this production line very small in per cent. The savings that can be realized in this production line by decreasing batch sizes is further decreased by the fact that the annealing, which is done in the middle of the production, is made by a subcontractor in Sösdala, Skåne. The transport to a subcontractor in the middle of the production decreases the effect of reduced changeover times.
The production lines that this report has studied indicates that there are no big savings to be made if you only look at the economic figures, but there are a lot of other things that would be improved with smaller batches and quicker changeovers. These improvements could in turn lead to savings for Faurecia.}},
author = {{Gudmunson, Niklas and Kronqvist, Christoffer}},
language = {{swe}},
note = {{Student Paper}},
title = {{Konsekvensen av minskade ställtider & batchstorlekar på Faurecia}},
year = {{2005}},
}