The control of material flow between external warehouses and assembly plants in the material supply to automotive industry

Examensarbete för masterexamen

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Type: Examensarbete för masterexamen
Master Thesis
Title: The control of material flow between external warehouses and assembly plants in the material supply to automotive industry
Authors: Koppiampatti Rajaguru, Rajkumar
Chamavalappil Mathew, Brightson
Abstract: In this competitive world, most of the automotive manufacturers focus on updating the production system constantly to satisfy their customer demands. Most of the manufacturing companies found Lean production as a more efficient way of production. Lean production focuses on producing the products with short lead time and throughput time thus delivering the products to the customer in short interval of time. The thesis is a part of an ongoing research project in Division of Supply and Operations Management, Chalmers University. This study is performed on four different automotive manufacturers in Sweden to analyze how different manufacturers control the flow of material between their warehouses and the assembly plant. Out of four different automotive manufacturers considered, three manufacturers using external warehouse and one manufacturer using warehouse within the assembly plant. To focus the flow of material, in each of the cases pallet flow and box flow has been considered for this study. The Material Flow Map (MFM) for different automotive manufacturers that were created as a part of the previous study is used for this thesis work. The main purpose of this thesis is to identify how controlling the flow of material from an external warehouse to the assembly line affects the different activities performed which therefore influences the lead time and throughput time. It involves in analyzing the different activities such as handling, administration, transportation, storage and time involved in those activities which affect the lead time and throughput time. The thesis also contrasts the lead time and throughput time between having the warehouse externally and internally. Our thesis started by identifying the literature for the common factors that affected the lead time and throughput time within the automotive manufacturers. In addition, a plant visit is done to collect the empirical date based on those factors obtained from the literature study requires for this thesis work. Data obtained by means of previous study, literature and plant visit showed us different activities such as handling, administration, transportation and storage are the four main factors that affect the lead time and throughput time. Based on the data obtained, a cross-case analysis has been made to analyze what affects the throughput time and lead time for different manufacturers. The analysis showed the manufacturers with external warehouse store the material for a long time which increases the throughput time greatly when compared to the manufacturer with the internal warehouse. In addition, it increased the handling, administration and transportation activities and time. As a suggestion to all the manufacturers, having their external warehouse within the company premises and following the principle of Just-In-Time (JIT) purchasing will reduce the overall throughput time and lead time. Use of same administration method by both the supplier and the manufacturer reduces the administration activities within the warehouse and the assembly plant.
Keywords: Transport;Hållbar utveckling;Övrig industriell teknik och ekonomi;Transport;Sustainable Development;Other industrial engineering and economics
Issue Date: 2017
Publisher: Chalmers tekniska högskola / Institutionen för teknikens ekonomi och organisation
Chalmers University of Technology / Department of Technology Management and Economics
Series/Report no.: Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden : E2017:066
Collection:Examensarbeten för masterexamen // Master Theses

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