Streamlining the flow of material through buffer simulation and multi-objective optimization, with regards to sustainability : A case study at Volvo Construction Equipment

Sammanfattning: This thesis will provide knowledge on how to maintain a well developed flow of material while at the same time finding an optimal level of capacities for buffers. Simultaneously, aspects that allow for positive sustainability practices will be regarded.  Buffers have a considerable impact on the performance of a production system. However, the process of optimizing buffers remains a complex task, and is therefore in need of further research. Through a thorough data collection process, simulation modeling and Multi-objective Optimization, the authors will present evidence-based recommendations for managing buffers in an optimal manner. The case company currently has two buffer zones that are to be investigated if they could be improved by finding an optimal capacity level. The current flow of material consists of certain variations in the components that will be taken into consideration, some variations need further investigation in order to be representative and applicable to this study. By applying amongst other things, Lean concepts, Gemba walks, simulation modeling, interviews and knowledge within the specific field of buffer optimization, the authors were able to provide evidence-based recommendations. These recommendations both take into account optimal buffer capacities as well as brief sustainability and economical aspects. The authors have found that one buffer zone has the potential of being removed, which will contribute to positive environmental aspects. However, if this solution is to be applied, the need of planning and managing the distribution of components is required.  Another buffer zone has been investigated by applying the concept of Multi-objective Optimization, where the objectives are to maintain high throughput while minimizing the buffer capacities. The optimization procedure generated a decrease in buffer capacities in the zone by a total of 35%. This newly acquired space can either be used for other manufacturing processes, or be discontinued, which would decrease the energy consumption and positively affect the sustainability aspect.