Using discrete event simulation : Improving efficiency and eliminating nonvalue added work

Abstract: Process improvement is one of the challenging tasks within manufacturing companies. This study has been focused on analysing a packaging station by using a discrete event simulation tool. Packaging is an important part of the production and logistics process, but it is seldom considered when analysing non-value added activities. Discrete event simulation has been used in the analysis of non-value added activities in production systems, but noted by the low number of articles related to the usage of discrete event simulation within packaging, there exists a limited understanding of discrete event simulation use in this area. The authors divided the scope of the research into the following research questions, which are presented below: RQ1: How can discrete event simulation be used as a tool to identify time wastes and create efficiency in a packaging station? RQ2: What method is suitable when creating a simulation project? These questions were to be answered by performing a literature review and a case study in ABB AB Control Products Vasteras, mentioned as ABB in later in the thesis, where the packaging station were in need of improvements. The results from theoretical and empirical finding were analysed, they highlight the importance of packaging and its impact on logistics and supply chain management performance. By creating discrete event simulation models for both current and future stage, the authors were able to provide analysed improvements of the packaging station. The result of the models illustrated by implementing the improvements it could generate in less pressure on the operators as well as an approximated improvement of 125% more packed product. The improvements of the model involve a better material handling and a more optimized packaging station in order to create a more efficient workstation. The conclusion of the study is that the company should develop the product simultaneously as the production, were every activity and process should be included. They should also consider what impacts the development has on the entire supply chain.  This could be a way to eliminate non-value activities from the start.  Discrete event simulation is a tool that could be of help when visualizing the process and it allows the developers to see the impact of a change or improvement on the other processes.