Internal Logistics Simulation for a New Production Line under a Risk Assessment Approach: A Simulation study at Company X focusing on Failure Mode and Effect Analysis

Examensarbete för masterexamen
Jalige Ravikumar, Kushal
Manjunath, Tarun
With many industries adhered to the Industrie 4.0, the competitiveness in different domains are prevailing. The technologies are advanced for numerous advantages, trying to benefit in all possible ways. With mass-customization leading to an increase in product variety, urges companies to deliver the products on time, in which, the internal logistics in the production units plays a vital role. Simulating this internal logistic flows helps the companies to predict the flow of materials, material requirement & identify the bottlenecks in the flow. Simulation greatly reduces the cost and time required for bringing a logistic flow into function. Simulation projects are crucial and care should be taken such that a minimum of risk should be faced while conducting these projects. The project team (students conducting the thesis work) develops a framework on how to perform a risk analysis study in a simulation project in theory and application. The thesis starts with building a simulation model for the logistic flow of materials required for the assembly of components at Company X expecting to satisfy their customers with effective delivery. The model is built using the Banks Methodology. This thesis deals with the different kind of risks that might be faced while conducting a simulation project, how to identify, evaluate and mitigate the risk using Failure Mode and Effect Analysis (FMEA) tool. The simulation project at the company is used as a base to conduct FMEA. By the end of the report, the readers can find the results obtained from the simulation study. The model and the results will help the company to evaluate their logistic flow. Also, the FMEA methodology will facilitate the company to identify future risks and serves as a guideline on how to perform a risk assessment. This FMEA methodology can be followed for any simulation projects. The thesis team also provides improvement suggestions for the company.
internal logistics, discrete event simulation, material handling,, failure mode and effect analysis, risk analysis
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