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

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each day. The maximum load of one truck is 24 000kg, and the average weight of ADB is 47kg. Thus, a truck can carry maximum 51 pallets full of ADBs. Nevertheless, the utilization of the truck is often less than 100%. The manager believes that a utilization of around 75% is the best average possible today. So instead of 51 pallets per truck the average at the moment is around 38 pallets per truck. Taking the same working day as the warehouse per year, there are 322 days in a year that the truck is transporting the goods from the warehouse in Landskrona. Multiplying 322 by 38, there are 12 236 pallet sent out from the warehouse. As mentions above, each pallet contains 10 ADBs, therefore, the truck is able to transfer 122 360 ADB items every year. Comparing to the simulation result from Chapter 3, the delivery is able to deal with the current production volume, which is 120 127 per year. However, it cannot satisfy the delivery requirement if the optimized production volume. Transportation costs of ADBs from Haldex and customers are in big percents paid by the customers. Taking the same sample from November 13, 2007 to January 31, 2008 in to analysis, which has been used to analyze the market distribution above, transportation paid by Haldex is sorted out and compared to the total amount in Table 6.2. Table 6.2 Transportation Fee Paid by Haldex during Nov.13, 2007 and Jan. 31, 2008 Customers’ Location Order France (Max 25ton) 108 Holland 240 France (Max 25ton) 3984 Russian (Max 21,5 ton) 1752 France (Max 25ton) 6 Total 6090 Percentage in all the orders 33.61% The result shows that 33.61% of the products’ transportation is paid by Haldex. Since the cost varied from different destinations and those paid by customers are not available, it is hard to calculate by how many percent in cash are paid by the company. According to the manager of Haldex, customers pay around 80% of the transportation costs while Haldex pays the rests. A very important factor to mention is that the company has its own standard pallets to carry all the products and most of the original materials. The pallets are also the package of the products, thus they are sent to customers together with the products. Some of the customers will send the empty pallets back after the goods arrived, but the others won’t. As the result the company has to procure new pallets frequently. The pallets are big and made of wood and one pallet with two layers can only carry 10 pieces of ADBs. Cost of packages will increase rapidly along with the production 56
volume. 6.3 Analysis and Suggestions Generally speaking, the main cause of all the threats in supply chain is the rapid increasing production volume. Because of the increasing, many difficulties will pop up very soon, or even some have already happened and affect the production so far. Optimization is of great urgency. In conclusion, the threats Haldex faces are: • Big inventory occupancy, the warehouse’s capacity is not enough to carry the increased products. • Pallets supply is not enough or not in time, which might delay the delivery of products. • In the future, market both inside and outside of Europe probably will grow fast. Headquarter of ADBs in Landskrona will not capable to carry the big amount of manufacturing according to the demand. One thing before solving the threats above is that the powered pallets jacks have too much idle time. From Table 6.1, even work only in weekdays, the truck is able to transfer 966 000 ADBs every year, which is nearly five time of the predicted production volume in 2008. To save the workforce and enhance the efficiency of the jacks, it is feasible to use only on powered pallets jack and working only during the weekdays. Even in this way, only 10% of the jack’s capability is needed in 2008. To deal with the increasing inventory, method, which can satisfy customer’s demand, is of higher priority. It has been stated earlier that the truck that leave the warehouse everyday will not able to satisfy the demand soon. Once the production volume exceeds the delivery volume, goods will start accumulating. Meanwhile, customers’ demand will not be satisfied. Simply there are two methods to solve this problem: deliver more frequently and deliver more each time. Currently, one truck is usually carrying 38 pallets. Therefore, 200 000 ADB items need the truck to run 527 times, which is much more than the working days per year. Since the utilization of truck is only 75% at present, it is possible to enhance to its capacity, even to its maximum value 100%. Thus, 200 000 ADB items need the truck, who can carry 51 pallets under full load, to run 393 times. As mentioned in Chapter 3 and suggested above, both the production line and the pallets works only during weekdays, the truck is also possible working in the same day. Table 6.3 lists transportation amounts under different suggestions. Once the capacity of truck reach 90% and there are two truck working every weekday, all of the goods will delivered. Moreover, since the truck can achieve 100% capacity, 57
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ROYAL INSTITUTE OF TECHNOLOGY Impro
Page 3 and 4:
Needs to be pointed out is that in
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TABLE OF CONTENTS ABSTRACT.........
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List of Tables Table 3.1 Descriptiv
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CHAPTER 1 INTRODUCTION OF THE RESEA
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1.2 Present problems Haldex faces i
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
Page 60 and 61: How to get the best value from a su
Page 62 and 63: calculation, 420 pallets can be suc
Page 66 and 67: and can also overworking during wee
Page 68 and 69: CHAPTER 7 CONCLUSION AND FUTURE WOR
Page 70 and 71: Reference Books and papers • Ahma
Page 72 and 73: y Chapman&Hall. • Vickery, Shawne
Page 74 and 75: Appendix A Table 1 TTF & TTR Data o
Page 76 and 77: Table 5.1 Suppliers & Suppliers’
Page 78 and 79: Appendix B Figure 1 Assembly line M
Page 80 and 81: Figure 3 Current Assembly Line Mode
Page 82 and 83: Figure 5 Assembly Line Model in Sol
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