Analyzing Bottlenecks and Capacity Scalability in Engine Manufacturing

Abstract

This master thesis investigates the production capacity of the D4/D6 engine lines at Volvo Penta’s manufacturing facility in Vara. The study leverages the combined strengths of Value Stream Mapping and the Theory of Constraints to identify systemic bottlenecks and evaluate optimal staffing configurations under varying production volumes. The research focuses on analyzing a gradual increase in customer demand to determine the scalabil- ity of the current assembly process. Through the development of a capacity model, the study identifies critical constraints that emerge as production scales. A key finding of the analysis is that the current production flow, in its existing configuration, possesses a maximum capacity of 31 engines per day shift, a significant increase from the current demand of 18 engines, without the immediate necessity for operational rebalancing. The analysis specifically identifies the point where the Longest Operation Time (LOT) creates a physical bottleneck. This shows that beyond a certain volume, adding more staff will no longer increase output without changes to the station layout. This serves as a deci- sion support tool for Volvo Penta, highlighting when infrastructure investments become necessary to meet forecasted demand.