Improvement of Material Flow in the Production and Supply Chain of ...

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a material system, not only the specifications of individual system components but also the overall objective of the manufacturing system should be considered” (Tanchoco, 1994). For a production enterprise material flow run through the production line, the route ways between factory and suppliers and customers. Manage and control material flow effectively is a method to increase profit. How to optimize the material flow takes important part in production. In order to optimize production line and supply chain, material flow analysis is necessary. To analyze material flow, each point in it needs to be clearly presented. In the manufacturing system, there are lots of steps and workstations. It is hard to keep all of them with a high reliability. Material flow through all over the steps and can be divided into several types. In real production there is usually at least one unreliable component in different types of material flow system. This feature makes it particularly important to design such a system carefully by taking into account the uncertainties introduced by the component unreliability (Yu., S. & J., 2000). After found the most critical stations or the bottleneck of system, modeling tools can be used to simulate and help to analysis such problem to find out possible solutions. Then based on the analysis, material flow system model can be improved and evaluated according to the expected performance. Modeling is a powerful tool deal with practical problems. It can be used to analyze, design, and operate complex systems. Models are used to assess real-world processes too complex to analyze via spreadsheets or flowcharts, testing hypotheses at a fraction of the cost of undertaking the actual activities. As an efficient communication tool, modeling shows how an operation works and stimulates creative thinking about how to improve it. Models in industry, government, and educational institutions shorten design cycles, reduce costs, and enhance knowledge (Farris, viewed 2007). There are many Visual simulation tools explored to do the modeling job such as VisSim, SIMUL8, Extend, SimCreator, etc. Although each of them is especially good at certain area, in many fields performances of Extend are outstanding and general applications. Along with the development of Extend, more and more cases use it to analyze, especially about the supply chain problems. Extend TM is designed from the ground up to be a flexible, extendable simulation tool. It can be used to model every aspect of an organization at all levels of expertise - from manager to engineer/scientist and from novice to professional modeler (Farris, viewed 2007). Building the model with variances of the most critical stations is a shortcut to analyze problems of a production flow. Subsequent to the analysis of the material flow, evaluation based on reliability helps to filter the possible solutions. System reliability is the probability that the system will perform its intended function under specified working condition for a specified period of time. Analysis of system reliability together with feasibility and cost leads to the optimal solution. 2
1.2 Present problems Haldex faces in the ADB products The Haldex Commercial Vehicle Systems division develops, manufactures and markets brake systems for heavy trucks, trailers and buses. The product offering includes all main components and subsystems included in a complete brake system. Disc brakes are one of the main products in Commercial Vehicle Systems division in Landskrona. There are two types of products: ABA (Automatic brake adjuster) and ADB (Air disc brake). Each of the products has several types to satisfy special customer requirements. The volume of ABA is 1.6 million per year and it shares more than sixty percent market. While the volume of ADB is only 30,000 in 2006 and it got two percent of the market. However, with the development of technology, production volume of ADB products increased sharply. They will share more and more market and might even replace ABA products in a few years. It is predicted that it will reach 200,000 in 2008. Therefore, capacity of inventory will become a critical issue in the supply chain of ADB products. Besides, both ABA and ADB products are packed with standard pallets, which can pack 600 ABA items or 9 ADB items each. Along with the increasing production volume of ADB products, more pallets will be needed. The products will occupy much more space in the warehouse, especially the ADB, because of its big volume and non-isochronous shape. Beside of this, another problem the company faces at present is the unstable assembly line of ADB products. The manufacturing system has difficulties in adapting to the rapid growth of production volume. Bottlenecks appear in the assembly line, which shut down the line frequently and slow down the system. In this project study, an attempt is made to address the following issues: 1. Material flow along the assembly line; 2. Supplier selection based on multiple criteria, especially considering select suppliers associate with the inventory and market; 3. Reduction of inventory of ADB items and more reliable delivery to customer. 1.3 Aim and objectives As stated above, there are two main aims of the project. One is to optimize the material flow of ADB from both internal and external material flows to meet the future demand. Internal material flow indicates the material flow in the assembly line, mainly in the main assembly line. Model of the current manufacturing line needs to be built up to simulate the coming situation. By setting variances in the critical stations, check whether the current line able to sustain the coming big demand. Then, give advises about improving the internal material flow. While external material flows indicate the flows from supplier to Haldex and from Haldex to customers. It can be treated as part of finding a way to optimize the supply chain. 3
Page 1 and 2: ROYAL INSTITUTE OF TECHNOLOGY Impro
Page 3 and 4: Needs to be pointed out is that in
Page 5 and 6: TABLE OF CONTENTS ABSTRACT.........
Page 7 and 8: List of Tables Table 3.1 Descriptiv
Page 9: CHAPTER 1 INTRODUCTION OF THE RESEA
Page 13 and 14: CHAPTER 2 RESEARCH THEORY AND METHO
Page 15 and 16: mindset simply does not accurately
Page 17 and 18: the customers. Both of them are pri
Page 19 and 20: processing in station 5b. In the re
Page 21 and 22: After deleting the un-normal data i
Page 23 and 24: data of preassembly line accords wi
Page 25 and 26: Standard Deviation 68.49 Standard D
Page 27 and 28: Table 3.6 Values of Parameters of T
Page 29 and 30: line. In order to simplify the mode
Page 31 and 32: Table 4.3 Output Date Come From the
Page 33 and 34: Table 4.5 Current Production Volume
Page 35 and 36: Table 4.7 listed the simulation res
Page 37 and 38: 4.3.3 Increasing the operation time
Page 39 and 40: ottlenecks. Obviously, from the poi
Page 41 and 42: the first one. For the third soluti
Page 43: and unforeseen events by keeping sa
Page 46 and 47: separately and the supply chain emp
Page 48 and 49: 5.2.1 Current distribution of suppl
Page 50 and 51: Table 5.2* Delivery Information of
Page 52 and 53: ecause this only gets from experien
Page 54 and 55: 5.3.2 Inventory and suppliers’ se
Page 56 and 57: Table 5.3 Integrative Estimation of
Page 58 and 59: CHAPTER 6 INVENTORY REDUCTION AND D
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How to get the best value from a su
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calculation, 420 pallets can be suc
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each day. The maximum load of one t
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and can also overworking during wee
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CHAPTER 7 CONCLUSION AND FUTURE WOR
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Reference Books and papers • Ahma
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y Chapman&Hall. • Vickery, Shawne
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Appendix A Table 1 TTF & TTR Data o
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Table 5.1 Suppliers & Suppliers’
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Appendix B Figure 1 Assembly line M
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Figure 3 Current Assembly Line Mode
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Figure 5 Assembly Line Model in Sol
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