A Calculation Model for Packaging Demand - Calculating the basis for investment for inbound packaging with the variable packaging per car at Volvo Cars

Examensarbete på grundnivå

Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.12380/238218
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Type: Examensarbete på grundnivå
Title: A Calculation Model for Packaging Demand - Calculating the basis for investment for inbound packaging with the variable packaging per car at Volvo Cars
Authors: Andersson Ericsdotter, Evelina
Rosenkvist, Emma
Abstract: Report no. E2016:009, Volvo Cars handles and plans its own returnable packaging material and the purpose is to serve the suppliers, plants and terminals with packaging material like pallets, boxes and frames. Returnable packaging is made out of durable materials so it can be used several times. To be able to in time serve the production plants with packaging material the company needs to make calculations based on real factors and numbers. One of the tasks for the department Packaging Operations is to secure the packaging availability. If there is shortage of packaging it can cause a stop in the production line and this is caused because the suppliers are short of packaging to pack their products on, which can cause delays in the production. To prevent this problem, the department has developed a calculation model in Excel to calculate the required packaging in circulation for different time periods and the outcome is an investment sum. This model is based on three variables: production volume, loop time and packaging per car. The last variable defines the amount of packaging needed to manufacture one car model and loop time is the time it takes for one packaging to travel from the terminal to the supplier, from the supplier to the plants and finally back to the terminal before it is sent out again. However, the department saw an opportunity to develop this model with more accurate numbers and data, make it more user-friendly and general so the data and assumptions could be updated easily. The purpose of this thesis was to improve and verify the original model and the wanted outcome was to develop a new model and make it useful according to two perspectives. The short-term perspective that the model will achieve is to secure packaging availability and make investments in time to always be able to serve the suppliers with packaging. Moreover, the long-term perspective is to plan the cost for future car models and the time span for this is over three years from now. Today there is lack of reliable data at the department to get an understanding if there is enough packaging in circulation and to decide the cost for future car models, so the new model will fulfil both these perspectives. Using information from an analysis of the original model, requirements for the new model and by making a gap analysis between the original model and the requirements developed the new model. First, the new model consists of two documents, one to calculate packaging per car and the other to calculate the investment sum. Both of the documents are improved and are now more general than the original model, the raw data can be updated easily and the calculations will automatically using the updated data and present it. Another improvement is that the assumptions for example loop time can be regulated at any time and the calculations will adjust to the changes automatically. A user manual exists to facilitate the transfer of knowledge to the concerned department. However, it is a prerequisite that the user has prior knowledge about the organization and processes to also evaluate the outcome’s reliability. There are some improvement potentials and weaknesses to further consider for Volvo Cars. The purpose of this thesis was to develop a model and not to evaluate the numbers used in the model. However, the raw data changes frequently and thus the investment sum. A first step to increase the reliability of the investment sum is to verify the numbers and assumptions. In conclusion, a functioning model is delivered to Volvo Cars, but the numbers need to be evaluated and analysed to be able to trust the investment sum
Keywords: Transport;Övrig industriell teknik och ekonomi;Transport;Other industrial engineering and economics
Issue Date: 2016
Publisher: Chalmers tekniska högskola / Institutionen för teknikens ekonomi och organisation
Chalmers University of Technology / Department of Technology Management and Economics
URI: https://hdl.handle.net/20.500.12380/238218
Collection:Examensarbeten på grundnivå // Basic Level Theses

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