Improving the packaging efficiency and performance in Logistic Center Vaasa by using Lean

Logistics is one of the main pillars of supply chain management and improvement of packaging efficiency is necessary in logistics to enable the efficient operations. By meaning improving pack-aging efficiency, it is widely understood as only packaging of the products in general, but un-packing and unboxing of same products are sidelined or overseen. It is important to understand that packaging in logistics consists of both packing and unpacking of products. The main objec-tive of this thesis is to improve the packaging efficiency of the materials arriving from Italy to Logistic Center Vaasa (LCV) by utilizing lean principles. The thesis endeavors the area that can be improved for obtaining the packaging efficiency and thereby, could play important role in implementing the changes for further development. The case company chosen for this thesis is Wärtsilä Oy, Finland primarily located at Vaasa, Fin-land. Wärtsilä is a global leader in lifecycle solutions and innovative technologies for the energy and marine markets. The company is headed to transit 100% renewable energy future by providing efficient, reliable, safe and world- class environmental performance. The idea for the topic of thesis cultivated from Logistic Center Vaasa, part of Wärtsilä where most of the goods are received from different parts of globes. The aim of the thesis is to under-stand three key major questions: (1) How to improve the handling of packages coming from Italy for both supplier and LCV end by implementing the lean principles? (2) How to create ergonomical and safe work environment for warehouse workers in LCV? (3) How to uniform EUR-pallet for all inbound deliveries coming from Italy? The thesis uses literature review to understand the topics and all the important topics are demonstrated thoroughly. The data was collected with semi structured interviews carried out among seven workers working in “Goods Receiving Area”. The data collected from these valuable workers acts as the backbone for the analysis and implementation of the results. The results were obtained and analysed based on the interviews. The results manifest that all the three key questions can be improved to increase the packaging efficiency and performance. The results show that lean principles can be applied for the inbound packages, ergonomical as-pect can be improved and usage of EUR-pallet can be increased for many packages coming from Italy

Who Really Made Your Car?: Restructuring and Geographic Change in the Auto Industry

The authors present the key characteristics of the vast network of auto parts suppliers and describe the changing geography of U.S. motor vehicle production at the local, regional, national, and international levels.https://research.upjohn.org/up_press/1011/thumbnail.jp

Building best practice automotive after sales network:The Volkswagen case

This thesis aims to analyze the service operations and networks in the automotive industry as research into the automotive After Sales service network lacks the necessary fine details and industrial feedback. Its purpose is to present the insights and lessons learned from studying the After Sales service network of Volkswagen, thereby defining a roadmap for further research, and to discuss the needs of the sector. The foremost idea in defining the research question was based on the observation that the automotive After Sales business could be improved by applying and adapting principles and methods used in other industries and in the field of Business Operations research. The initial step thereafter was an extensive external and internal literature research. The key characteristics of the automotive industry in Germany, at the VW Group, at OEMs and at the wholesale level were identified and are described in chapter two. In chapter three the primary After Sales processes are described and analyzed, from the interaction with the customer to the necessary activities at wholesale and OEM level. The proposed research methodology relied on extensive external and internal research and a qualitative and quantitative approach based on structured, in-depth interviews and direct observation. The objective of the interviews was to highlight the most important activities in the service delivery operations within the network and identify the major key factors for success or failure. The best practice dealer model is described in chapter five and was subsequently abstracted and generalized so that it can be applied to other industries too. A Data Envelopment Analysis (DEA), described in chapter six, was undertaken to determine the “efficient frontier” of service operations. Key performance indicators were identified from the important elements discussed and the best practices. In order to achieve an in-depth understanding of their general business models a benchmark analysis of six companies from industrial sectors complementary to the automotive business was then carried out and is described in chapter seven. The thesis highlights the development of a “best practice” network in chapter eight. This network grasps the dynamics of After Sales activities in the light of new technological developments and the experience gained from the benchmark with other industries. The thesis closes with an evaluation of the research work

Selecting cost-minimal delivery profiles and assessing the impact on cost and delivery schedule stability in area forwarding inbound logistics networks in the automotive industry

Automobilhersteller in Europa nutzen Gebietsspeditionsnetzwerke, um Frachtkosten im Stückgutverkehr einzusparen. Die Materialflüsse im Logistiknetzwerk werden durch vom Automobilhersteller erzeuge Lieferabrufe gesteuert. Verschiedene Ansätze zur Erzeugung von Lieferabrufen können eingesetzt werden, um die Ziele Kostenreduktion und Lieferabrufstabilität auszubalancieren. Ein vielversprechender Ansatz zur Optimierung der Lieferabrufe, der in der Literatur diskutiert und in der Praxis angewandt wird, sind Anlieferprofile. Geschickt ausgewählte Anlieferprofile können sowohl die Logistikkosten reduzieren als auch die Stabilität der Lieferabrufe erhöhen. In dieser Arbeit wird eine Methode zur Auswahl kostenoptimaler Anlieferprofile zur Steuerung von Gebietsspeditionsnetzwerken in der Automobilindustrie vorgestellt und hinsichtlich des Einflusses auf die Logistikkosten und die Stabilität der Lieferabrufe bei einem Einsatz im rollierenden Planungshorizont im Rahmen einer Fallstudie untersucht. Die wesentlichen Aspekte der Problemstellung werden im Kontext der Planungsprozesse in der Automobilindustrie durchleuchtet, wobei ein besonderer Fokus auf der operativen Bestellmengenplanung liegt. Ein auf einem Dekompositionsverfahren basierender Lösungsalgorithmus für das Planungsproblem wird vorgestellt. Neben einem gemischt-ganzzahligen Modell werden zwei heuristische Lösungsansätze für das Problem vorgestellt. Eine Erweiterung von Modell und Lösungsalgorithmen für den Einsatz in einem zweistufigen stochastischen Verfahren werden präsentiert. Eine Fallstudie mit praxisnahen Daten wird genutzt, um den Einfluss auf die Logistikkosten und die Stabilität der Lieferabrufe darzustellen und einen Vergleich zu neuesten algorithmischen Ansätzen zu ziehen.Automotive manufacturers in Europe use area forwarding based inbound logistic networks to obtain cost advantages in the inbound logistics section. Delivery schedules that are frequently generated by the automotive manufacturers are used to control the material flow in the area forwarding networks. Different delivery schedule generation approaches can be used to balance between the objectives of cost reduction and delivery schedule stability. A promising approach discussed in literature and successfully applied in retailer business are delivery profiles. When chosen wisely, this control rule is said to reduce both logistic cost and schedule instability. In this thesis, a method to select cost-minimal delivery profiles under the consideration of area forwarding networks in the automotive industry is presented and its impact on both cost and delivery schedule stability in a rolling horizon environment is assessed in a case study. To identify the aspects of the problem setting that have to be considered, a description of the planning processes in the automotive industry and the operational order lot sizing in particular is given. An appropriate solution algorithm which uses a decomposition technique to overcome runtime issues is developed. A mixed integer formulation and heuristic algorithms, a sequential algorithm and a genetic algorithm that can be used in the solution algorithm are presented. The model and the solution algorithms are then extended to a two-stage stochastic program in order to consider demand uncertainties in the solution process. A large scale industry case study is then used to assess the impact on both cost and delivery schedules. A comparison with state-of-the-art algorithmic delivery schedule generation approaches is conducted to enlighten the pros and cons of both approaches.Tag der Verteidigung: 13.06.2013Paderborn, Univ., Diss., 201

Leveling the workload at the interface between internal and external supply chains

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2001.Includes bibliographical references (leaves 95-96).by Trent M. Guerrero.S.M.M.B.A

Suppliers Evaluation and Selection: A Comprehensive Model to Minimize the Risk Associated with Quality and Delivery

This research focuses on one of the main steps in outsourcing, supplierevaluation and selection. The main contributions of this research were twofold.First, best practices in the supplier’s value stream were identified that directly orindirectly impact a supplier’s quality and delivery. Second, a comprehensivesupplier evaluation and selection model was developed based on the valuestream concept to minimize the risk associated with two very critical supplierselection factors, quality and on-time delivery.A survey was conducted to identify best practices. The outcome of the surveywas used to develop a computer based supplier evaluation model, which couldbe used in conjunction with other existing supplier selection factors, such as price and others, to select suppliers

Support for the industrial packaging development process: Buyer and supplier perspectives

Industrial packaging contains the parts of final products and is used in the handling and transport of them from the component supplier to the manufacturing company. An increased interest and emphasis on industrial packaging is necessary if the associated potential benefits in terms of costs, efficiency and effectiveness of packaging related activities are to be realized (related activities are those that have an impact on or are affected by the use of packaging). The fundamental conditions for these resource savings opportunities start in the actual development process of industrial packaging. On the whole, insight into how to bring about these savings, or even that there are savings to be made (and in terms of what), has not yet been acknowledged or clearly understood from the point of view of manufacturing companies. In the research presented, two case studies were conducted at companies that are active world-wide. The first study encompasses two manufacturing companies; one in the automotive industry and one in the electronics industry. The second study encompasses three packaging suppliers delivering industrial packaging to these and other industrial segments. The purpose of this research is to describe deficiencies of the industrial packaging development processes and to explore potential changes dealt with in the same. It was found that the establishment of interdepartmental collaboration between the stakeholders of industrial packaging in the areas of logistics, engineering/design, packaging and purchasing was favorable in terms of spreading knowledge of the activities and hence objectives of each of the stakeholders involved. This can in turn remedy the dominance of certain objectives over others, especially when the overall beneficial situation of efficiency and effectiveness of the stakeholder activities is not taken into account. The results indicate that the objectives of manufacturing companies’ purchasing functions to decide on the most cost effective packaging solution were often found to downplay the objectives and priorities of other stakeholders’ activities in the supply chain. Another finding was the value of early supplier involvement, which was acknowledged by both actors as being important in terms of resource efficiency. Although the packaging suppliers argued that there has been an improvement in the timing of involvement, they claimed that manufacturing companies most frequently still involve the packaging suppliers at a late phase in the development process of industrial packaging. These research findings can be used as support for further research into aspects that impact the developmental process of packaging, especially as regards industrial packaging directed to intermediary customers. This research raises the importance, from a systems perspective, of acknowledging these customers’ needs as well as other stakeholders’ needs. To practice the findings of this research favor manufacturing companies interested in developing their packaging development strategy with particular emphasis on industrial packaging used for transport and handling. The research especially raises the importance of integrative and collaborative efforts among functional units

Specific service level expectations that automotive manufacturers have of third party logistics service providers in the Eastern Cape Province

Very few business enterprises, whether as a service provider or manufacturer, operate in isolation. Most business enterprises have suppliers from whom they acquire their resource inputs (inbound processes), and customers to whom they supply (outbound processes) their outputs. These processes include logistics functions such as transportation, warehousing, information technology, packaging and design activities. In an effort to reduce costs, both these inbound and outbound processes are often outsourced to a third party when the business enterprise finds it too costly to do the processes by itself. Logistics outsourcing refers to an arrangement whereby a logistics service provider, called a third party logistics (3PL) service providers, performs services for a firm that could be, or have previously been, provided in-house. 3PL service providers have a strategic role to play especially in the business of automotive manufacturing firms. They act as external suppliers of logistical services that ensure the efficient and effective flow of resource inputs into the firm as well as final products to the end customer. Low cost, despite being a critical success factor, is not the only expectation. 3PL service providers are also expected to be flexible and versatile in its operations, and to cater for the needs of the manufacturing business strategy. Millions of Rands are spent on 3PL service providers, with the hope and belief that they will streamline business processes. Outsourcing of the logistics division to 3PL service providers reduces the costs of getting the right product to the right place for the consumer. Automotive manufacturing firms are not willing to add any costly service to the commodity which is not perceived as value-adding by the customer. Customers have always been classified as value conscious, but in recent times of economic difficulty and uncertainty, this has become even more apparent. This trend has caused many automotive manufacturing firms to prioritise cost saving, and logistics is no exception. The main objective of this study was to investigate the specific service level expectations that automotive manufacturing firms have of third party logistics (3PL) service providers in the Eastern Cape Province. In support of the main objective, it was necessary to source the reasons why automotive manufacturing firms in the Eastern Cape Province find it important to trade with 3PL service providers and to determine whether or not 3PL service providers are meeting the expectations of automotive manufacturing firms in the Province. Furthermore, the study set out to highlight the major problems currently associated with 3PL service providers, as well as to determine the consequences of unacceptable performance levels provided by 3PL service providers. Lastly, to identify the action plans that automotive manufacturing firms have to bring 3PL service providers in line with their expectations. As a starting point to the study, a literature review was undertaken which revealed that the supply chain philosophy is an important operation in any manufacturing environment. In order to satisfy the end customer, business organisations need to ensure that all supply chain operations are completed in the most efficient and effective manner. In addition, modern business strategies, also referred to as international trends, need to be practiced by principal manufacturing organisations in their quest to be more efficient, effective, competitive and successful in an ever-changing business environment. In order to achieve supply chain success, principal organisations need to ensure that all supply chain partners, particularly 3PL service providers, are aligned with the goals of the principal organisation’s supply chain. The review highlighted that business organisations need to review their selection methods for 3PL service providers on a continuous basis and only select providers that can tailor their service offerings according to the principal organisation’s needs. Therefore, in order for automotive manufactures to realise more potential from their 3PL service providers in the future, issues such as early 3PL service provider involvement, cost saving initiatives from 3PL service providers and 3PL service provider development, will become more crucial. Lastly, the review showed that the automotive industry plays a key role in developing countries as it is a significant contributor to GDP and provides a source of employment, which is much needed in South Africa. However, automotive logistics is a highly complex field, demanding considerable capital resources. One of the most important roles of 3PL service providers in the automotive industry is the management of cargos of goods within the supply chain. As a result, the automotive industry is becoming more based on a system of modularity, through a system of modular production. Logistics outsourcing is receiving increased attention, since it is a sector in which productivity and efficiency improvements are possible in order to lower operating costs, while improving customer services. However, 3PL service providers face significant barriers in developing countries such as stringent legal regulations, poor infrastructure and equipment, as well as a lack of competent manpower for efficient operations. This research was performed mainly within the positivist research paradigm of causality, since it was held by the researcher that there should be a clear causal relationship between the variables that may be observed to answer the research questions of this study. A simple random probability sample of participants from the research population of automotive manufacturing firms in the Eastern Cape Province was gathered, and the questions posed in the questionnaire of this study were structured using both Likert-scale and open-ended questions. In order to analyse the data, two popular quantitative data analysis techniques of descriptive statistical analysis and inferential statistical analysis were employed, with particular techniques of Correlation Analysis, Cronbach’s alpha, and tests for normality being performed. The empirical study revealed that the largest group was employed in the assembly sector, and the vast majority of the respondents made use of 3PL service providers for both sending and receiving components and parts. Almost all of the respondents outsourced transportation services to 3PL service providers. Most respondents were satisfied or very satisfied with their transportation 3PL service providers; but fewer were satisfied, and some were dissatisfied or very dissatisfied, with warehousing and VAS 3PL service providers. The range of mean values across all of the ‘consequences’ that had been caused due to inferior 3PL performance was concisely grouped, indicating that no single issue stood out as far more or less of a problem than the others; though three common problems noted were that respondents had not received parts and components on time, experienced production stoppages; and higher costs had impacted their organisations negatively. The Cronbach alphas of each of the transportation, warehousing, VAS and consequences data sets, combined, indicated that the data was reliable, and had suitable internal consistencies. The main corrective actions to be taken by automotive manufactures against 3PL service providers who fail to perform as promised are to impose a penalty as per the terms and conditions of the contract signed between the automotive manufacturing firm and the 3PL service provider or to cancel the contract and look for an alternative 3PL service provider if they do not have a back-up service provider

Developing supply chain methodologies for small to medium sized enterprises

SIGLEAvailable from British Library Document Supply Centre-DSC:DXN044646 / BLDSC - British Library Document Supply CentreGBUnited Kingdo

New high volume production, production linkages and regional development: the case of the microcomputer hardware industry in Ireland and Scotland

The dissertation explores the regional development effects, via production linkages, of subsidiaries of multinational enterprises that have adopted New High Volume Production (NHVP) approaches, in non-core regions NHVP approaches are positioned amid other post-Fordist forms of industrial organisation. There are literatures that suggest that the adoption of NHVP approaches will have positive implications for regional development of non-core regions because of greater indirect, backward linkage, effects. Theoretically, local linkage formation or buyersuppher proximity in NHVP industries might be the outcome of three drivers. It can be driven by a search for efficiency in product flow/logistics, efficiency in formal information exchange in the context of inter-firm functional integration and by sociocultural and institutional factors enhancing information flow in a local milieu. This dissertation investigates the role of the first two drivers in shaping the geographical configuration of backward linkages in NHVP industries. This is done in a case study of the microcomputer hardware industry in Ireland and Scotland. The findings of the case study do not support the positive suggestions of greater backward linkage effects. A detailed examination of the supply chains of the subsidiaries of foreign microcomputer assemblers shows that the vast majority of components and parts were imported from the Far East and, to a lesser extent, the USA. It is shown that efficiency in technical information exchange was a relatively insignificant driver for buyer-supplier proximity, and how this fact was related to the particular way NHVP manifested itself m the microcomputer hardware industry. Similarly, in relation to most material inputs, logistical efficiency did not lead to buyer-suppher proximity. It is shown that the supply chains generally involved inbound inventories, stored in local warehouses - ‘hubs’ - from where the manufacturing lines were supplied on a very frequent basis. This logistical solution should, however, not be interpreted as sub-optimal. A detailed examination of the key logistics data shows that the inbound logistics pipelines were tightly managed and that inventory levels and shipment frequencies were consistent with modem comprehensive logistics management principles. The dissertation also explores the actual impact that the NHVP plants had on the quality and competitiveness of their local suppliers in non-core regions. The findings show that, although the subsidiaries of the foreign microcomputer assemblers created few local linkages, they had a significant positive impact on the quality and competitiveness of nearly all local suppliers they were dealing with