Material replenishment system

Abstract: This thesis work has been written both for and in co-operation with the company IAC Group Gothenburg. The main purpose of the report is to find a new alternative material replenishment system which will improve the internal material flow and eliminate unnecessary work activities such as manual call offs. The aim is to find a new system to reduce the incidental costs incurred and improve customer service in quality and performance. Observations and interviews were conducted and an analysis of the current situation was made. Waste was identified in the form of unnecessary transport, specifically in milk runs, where time was spent looking for materials to be loaded. This creates uncertainty and may contribute to increased costs and poor customer service. Three different options for a new replenishment system were developed which were compared with the theory and present situation. The proposal was evaluated with respect to cost, available support, complexity and future compatibility. The analysis of the theory and current state shows the importance of a long-term solution with few risks of waste. The solution that best cope with this is an e-Kanban system that automates the replenishment system and would make manual material call offs disappear completely. The conclusion is that an e-Kanban system is the best long term option for a manufacturing company like IAC because it is highly adaptable to change, and can be integrated in the company’s ERP system. The recommendation is to implement a new e-Kanban system. First, it should be tested on a pilot station and then introduced to the whole production process.