Efficient internal material flow of boxes to gain a well-organized supply of components : A case study at Scania engine assembly

Sammanfattning: Within manufacturing organizations, the material flow is a promoted part of the supply chain to evaluate, since it often stands for a significant part of the costs. The evaluation refers to the analysis and optimization of the material flow that arise during manufacturing of products. It can focus on very different levels, such as the material flow in a region or within a company’s internal processes. However, the material flow is concerned with the transportations, operations and storages of materials. A well-organized material flow enables organizations to cutting costs and increase competitiveness, via increased effectiveness and efficiency of operating practices. Scania operates in the automotive industry and they are constantly striving to improve their supply chain in terms of productivity and lower costs, to meet the needs of the market and gain increased competitiveness. Today, Scania engine assembly in Södertälje has operations in two main buildings, approximately one km in-between. One building is the material warehouse, and the other building is the actual assembly. In the future, the two building will be joint together. Consequently, the project logistics department of Scania engine assembly has recognized a possibility to re-organize and improve the material flows. The upcoming merge between the two buildings enables a possibility to investigate how the current material flows could be more efficient, before they are applied in the future state. The purpose of this research is to investigate and improve a material flow, box flow, within an automotive environment. A box flow is concerned with smaller components that use plastic boxes as packaging material. The objective is to derive a more efficient process for the flow of supplying boxes to the assembly building. By efficiency, it is defined as shorter total lead time, higher capacity, lower time/cost per box delivered, and a maintained or improved ergonomics during manual handling operations within the box flow. To fulfil the purpose of this research interviews, observations and data collections have been used to gain an understanding of how the current situation is managed at Scania engine assembly. Conducted benchmarking and literature research have been used to gain an understanding of how other companies in the industry, as well as departments at Scania, are managing their box flows. The findings have been analysed, where the different flow of boxes have been compared with the theoretical frame of reference as well as against each other. The conclusions of the analysis are different key factors, for better logistics efficiency, when managing a box flow. These key factors are providing an increased theoretical understanding, when the aim is to make a material flow of boxes more efficient, in an assembly environment. In this research, they are utilized as guidelines, to derive a more efficient process for the flow of supplying boxes. That is, implementing the findings theoretically into a practical context. To derive a more efficient process, a Business Case have been conducted. Its outcome provides a concept of how the process of boxes should be organized. That is, how the different material handling operations and equipment should be utilized to achieve an overall increased efficiency. How the box flow should be organized are presented as recommendations, which works as guidelines and insights for Scania engine assembly. They are jointly fulfilling the purpose of this research, together with the other achieved research questions.