Improving Material Flows By Production Layout Conversion : A case study within the automotive industry

Sammanfattning: The purpose of this study is to investigate how material flows can be more efficient through the conversion from a functional-layout to a cellular-layout. The study wants to clarify how the production layout conversion can be used by organizations who are currently utilizing the functional production layout to become more efficient. For organizations to invest time and money, they must comprehend how the investment decreases waste, and the important aspects for their decision. To fulfill the purpose two research questions (RQ) are formed, these are: RQ1: What factors impact the decision between functional and cellular layout? RQ2: How can the material flows become more efficient through the conversion from a functional-layout to a cellular-layout? To answer the research questions, a case study was conducted at an organization within the automotive industry. Moreover, the method first used was a preliminary investigation to get a broader understanding of the research area. When the field of study was established, the data collection was accomplished by interviews, observations, and document studies. Moreover, a literature review was done to build a theoretical foundation and to answer one of the research questions. The case company is an organization producing in a high-cost country currently using the functional production layout. The findings of the study suggest what is impacting the decision when converting from a functional production layout to a cellular production layout, it is especially four dimensions that must be taken into consideration, these are: type of production system, production flow, product variation and volume. Further on, the case study suggests that the conversion from a functional to a cellular production layout can reduce the travel distance for the product family by 38.8 %, reduce the lead time by 24.2 % and reduce the amount of forklift lifts needed for the product family by 66.7 % at the case company. Moreover, the implications highlight and elaborate on the benefits of a production layout conversion for increasing the efficiency of material flows within a producing organization which utilizes the functional production layout. It sheds further light on how advantageous it may be to an organization when it comes to align with lean manufacturing concepts. The study offers organizations with a functional production layout an understanding of what they need to consider when and if they intend to move from a functional to a cellular production layout, thus the study gives evidence confirming the difference between the two different layouts regarding efficiency. The limitation of the study is results of the material flows improvements, since the results might be greater at the case company in comparison to other organizations using functional production layout. The study only conducts one case study, which means that the results are not necessarily generalizable. Therefore, it could be necessary to replicate the study in other organizations and contexts to see if the same results can be reached.