Reduction of lead times and optimization of inventory levels for meeting on time delivery (OTD) using value stream mapping -A case study for the fast runner product in IMI Hydronic Engineering, Ljung.

Examensarbete för masterexamen
Master Thesis
Pai, Shashidhar
Tamilselvam, Krishna
IMI Hydronic Engineering is the provider of hydronic components for Heating, Ventilation and Air Conditioning systems (HVAC) systems. The main vision for the company is to provide challenging innovative and sustainable energy efficient solutions for hydronic problems with high level of delivery accuracy, customer satisfaction and cost efficiency. Their product range includes various climate control products with integrated intelligent solutions. One of their facilities is located in Ljung. This facility produces many product families and product varieties out of which the product flow of their fast runner product, product SK is investigated in this thesis. Due to the customer requirements, the company produces wide variety of hydronic components. This leads to substantial increase in the product variants which gets reflected in the product mix in the production. The complexity of the production flow increases as the number of variants and the production mix increase. This in turn affects the on time delivery (OTD). Currently the company is striving to keep up their delivery performance with lots of inventories in the production flow. This thesis work mainly focuses on the enhancement of On Time Delivery (OTD) by providing suggestions for the reduction of production lead time with optimal inventory levels in the production flow of product SK. Since the demand is seasonal, keeping safety stock in the inventories and making the production system to reflect to the present demand is an important parameter. The main purpose of this thesis is to reduce the production lead time with optimal safety stock and reorder points in the production flow of product SK in order to make the production system to produce in tune with the customer demand for that period of time. Currently the production lead time is 9.5 days. After setting the optimal safety stock and reorder points, the planned production lead time is 2.17 days. However for running the production system with optimal stocks, this thesis work also suggests some other improvements on the production line. The improvement functions include placement of pacemaker and supermarkets in the production flow. The suggestions for the improvement are shown in the future state map.
Produktion, Transport, Grundläggande vetenskaper, Hållbar utveckling, Övrig industriell teknik och ekonomi, Production, Transport, Basic Sciences, Sustainable Development, Other industrial engineering and economics
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