Beräkning av orderkvantiteter i ny produktionsanläggning
(2013) MMTM01 20122Production and Materials Engineering
- Abstract
- Sandvik Rock Processing in Svedala is a business area within the Sandvik Group who manufactures crushers and spare parts. A new production plant, Greenfield, will be completed in 2013 and as part of the change the company makes in connection with the new plant, there is a desire to revise and optimize the order quantities in the production.
There are several models for lot sizing. Economic Order Quantity, Wagner-Whitin-algorithm, Silver-Meals heuristic and Optimal Order Quantity according to Ståhl are all models which have the product value as input parameter. The product value after manufacturing is the accumulated value which is depending on the order quantity. At SRP the product value is calculated from the conditions in the existing... (More) - Sandvik Rock Processing in Svedala is a business area within the Sandvik Group who manufactures crushers and spare parts. A new production plant, Greenfield, will be completed in 2013 and as part of the change the company makes in connection with the new plant, there is a desire to revise and optimize the order quantities in the production.
There are several models for lot sizing. Economic Order Quantity, Wagner-Whitin-algorithm, Silver-Meals heuristic and Optimal Order Quantity according to Ståhl are all models which have the product value as input parameter. The product value after manufacturing is the accumulated value which is depending on the order quantity. At SRP the product value is calculated from the conditions in the existing machine park and from the order quantities of today. Since the calculations are to be done in a new plant with other conditions, the current product value can’t be used which means that a new product value must be calculated.
Among the models studied textitOptimal Order Quantity according to Ståhl is the only appropriate in a manufacturing company. The reason is that this model calculates the product value as a function of the sought order quantity. The model calculates optimal order quantity regarding setup cost, storage- and handling cost, and cost for bound capital in inventory.
In the model there is an assumption that the whole manufactured batch is directly sent to customers or that a part of it is sent and the rest is put in stock. At SRP everything is put in stock waiting for assembling and thus the model is modified to fit the conditions at companies that put the whole batch in stock.
Since the parts have a high product value, the authors find it relevant to investigate if the cost for bound capital in WIP affects the result. An addition to the used model is made. The study shows that the cost is only a few percent and could therefore be neglected.
A calculation tool is built and shows that today most of the parts are manufactured in batches that are too small to be considered economical. To manufacture in optimal order quantities means a cost reduction against the order quantities of today with 30 percentages. It is shown that 42 out of the 140 studied parts stand for 90 percentages of this possible cost reduction. The focus in the improvement work should be on these. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4053765
- author
- Persson, Niklas LU and Svenle, Veronica LU
- supervisor
- organization
- course
- MMTM01 20122
- year
- 2013
- type
- H2 - Master's Degree (Two Years)
- subject
- report number
- CODEN:LUTMDN/(TMMV-5256)/1-140/2013
- language
- Swedish
- id
- 4053765
- date added to LUP
- 2013-09-18 14:51:55
- date last changed
- 2013-09-18 14:51:55
@misc{4053765,
abstract = {{Sandvik Rock Processing in Svedala is a business area within the Sandvik Group who manufactures crushers and spare parts. A new production plant, Greenfield, will be completed in 2013 and as part of the change the company makes in connection with the new plant, there is a desire to revise and optimize the order quantities in the production.
There are several models for lot sizing. Economic Order Quantity, Wagner-Whitin-algorithm, Silver-Meals heuristic and Optimal Order Quantity according to Ståhl are all models which have the product value as input parameter. The product value after manufacturing is the accumulated value which is depending on the order quantity. At SRP the product value is calculated from the conditions in the existing machine park and from the order quantities of today. Since the calculations are to be done in a new plant with other conditions, the current product value can’t be used which means that a new product value must be calculated.
Among the models studied textitOptimal Order Quantity according to Ståhl is the only appropriate in a manufacturing company. The reason is that this model calculates the product value as a function of the sought order quantity. The model calculates optimal order quantity regarding setup cost, storage- and handling cost, and cost for bound capital in inventory.
In the model there is an assumption that the whole manufactured batch is directly sent to customers or that a part of it is sent and the rest is put in stock. At SRP everything is put in stock waiting for assembling and thus the model is modified to fit the conditions at companies that put the whole batch in stock.
Since the parts have a high product value, the authors find it relevant to investigate if the cost for bound capital in WIP affects the result. An addition to the used model is made. The study shows that the cost is only a few percent and could therefore be neglected.
A calculation tool is built and shows that today most of the parts are manufactured in batches that are too small to be considered economical. To manufacture in optimal order quantities means a cost reduction against the order quantities of today with 30 percentages. It is shown that 42 out of the 140 studied parts stand for 90 percentages of this possible cost reduction. The focus in the improvement work should be on these.}},
author = {{Persson, Niklas and Svenle, Veronica}},
language = {{swe}},
note = {{Student Paper}},
title = {{Beräkning av orderkvantiteter i ny produktionsanläggning}},
year = {{2013}},
}