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Quality performance and cost analysis within customized production - Two case studies from the worktop industry

Möller, Christoffer (2012) MIO920
Production Management
Abstract
Purpose The purpose is to increase the IKEA knowledge regarding production of custom made worktops at two German suppliers, providing an action plan for the suppliers of how to increase product quality as well as calculating the potential cost savings and the product cost structure.
Methodology The project is performed as two case studies, where both qualitative and quantitative data has been obtained through literature reviews, interviews, observations, provided data and data collections.
Results The results showed that in order to increase product quality, the suppliers must take actions within the following areas:
Lechner must increase operator involvement, improve the measurement system, increase structure and coordination between... (More)
Purpose The purpose is to increase the IKEA knowledge regarding production of custom made worktops at two German suppliers, providing an action plan for the suppliers of how to increase product quality as well as calculating the potential cost savings and the product cost structure.
Methodology The project is performed as two case studies, where both qualitative and quantitative data has been obtained through literature reviews, interviews, observations, provided data and data collections.
Results The results showed that in order to increase product quality, the suppliers must take actions within the following areas:
Lechner must increase operator involvement, improve the measurement system, increase structure and coordination between departments, implement control through documentation and increase the management commitment to quality.
Danform must increase operator involvement, improve the method of product control and structure quality work regarding continuous improvements.
Depending on the actual claim rate, if product quality is increased, the suppliers’ cost savings potential within the manufacturing, is for Lechner between 258 000-920 000 € and for Danform between 175 000-650 000 €.
Similarities of the specific cost structures of both suppliers’ custom made worktops indicated that the material cost had the biggest impact on the total manufacturing cost. Furthermore, the sum of material and wage costs always composed of more than 75 % at Lechner, and 80 % at Danform, of the total manufacturing cost. (Less)
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author
Möller, Christoffer
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Cost Break Down, Cost Of Poor Quality, Critical To Quality, Production Performance Matrix, Root-Cause Analysis, Systematic Production Analysis, Total Quality Management
other publication id
12/5410
language
English
id
2541134
date added to LUP
2012-05-16 11:51:58
date last changed
2012-05-16 11:51:58
@misc{2541134,
  abstract     = {Purpose The purpose is to increase the IKEA knowledge regarding production of custom made worktops at two German suppliers, providing an action plan for the suppliers of how to increase product quality as well as calculating the potential cost savings and the product cost structure.
Methodology The project is performed as two case studies, where both qualitative and quantitative data has been obtained through literature reviews, interviews, observations, provided data and data collections.
Results The results showed that in order to increase product quality, the suppliers must take actions within the following areas:
Lechner must increase operator involvement, improve the measurement system, increase structure and coordination between departments, implement control through documentation and increase the management commitment to quality.
Danform must increase operator involvement, improve the method of product control and structure quality work regarding continuous improvements.
Depending on the actual claim rate, if product quality is increased, the suppliers’ cost savings potential within the manufacturing, is for Lechner between 258 000-920 000 € and for Danform between 175 000-650 000 €.
Similarities of the specific cost structures of both suppliers’ custom made worktops indicated that the material cost had the biggest impact on the total manufacturing cost. Furthermore, the sum of material and wage costs always composed of more than 75 % at Lechner, and 80 % at Danform, of the total manufacturing cost.},
  author       = {Möller, Christoffer},
  keyword      = {Cost Break Down,Cost Of Poor Quality,Critical To Quality,Production Performance Matrix,Root-Cause Analysis,Systematic Production Analysis,Total Quality Management},
  language     = {eng},
  note         = {Student Paper},
  title        = {Quality performance and cost analysis within customized production - Two case studies from the worktop industry},
  year         = {2012},
}