Designing warehousing Principles for Volvo Car Parts Central distribution center

Abstract

The aftermarket sector is one of the most profitable parts of the automotive industry, which has led to more attention and investments. Due to them being highly profitable, the organizations are constantly looking for ways to improve in order to provide a higher level of service in the most efficient way. Recently there has been a major adaptation of Toyotas lean principles in the automotive industry which has showed to help boost productivity and efficiency. Due to its inarguable benefits Volvo Cars has decided to use parts of the lean principles and compile a documented framework, purposely created to help assist with standardization within their processes. The purpose of this thesis has consisted of investigating and documenting the various processes and barriers that exist within the operation. Alongside documentation, the thesis has consisted of conducting studies on how the various processes can be improved with the help of supporting principles. The principles have been established with the support of engineers and fundamentals from the lean philosophy. The conclusion drawn from the analysis is that the organization should focus on optimizing the storage methods, frequency classifications and housekeeping to set the proper grounds in their operations. The principles recommended are established to help create a more structured and effective way of work and providing a more proactive approach to dealing with other barriers that may be stumbled across.