A model to guide a company towards a decision of whether to change the due date of work orders or not: a case study

University essay from Växjö universitet/Institutionen för teknik och design; Växjö universitet/Institutionen för teknik och design

Abstract:

The purpose of this thesis is to develop a model that will guide a company towards a decision of whether to

change the current due date of work orders or not. The model will help the company to reveal the technical and

financial factors that will be affected and how these factors can be assessed. After accomplishing a thorough

literature review, we found no existing practical models in this specific area. We developed a model to cover this

gap in the existing theories. A case study approach was used to test the developed model on our case company

Elitfönster in Lenhovda who manufactures windows. We applied our model at the processing department and the

change concerned going from a weekly to a daily due date of work orders. The technical factors that would be

affected by the change of the due date are; setup times, lead time and output of components. The financial

factors that will be affected are the tied-up capital and the manning. We found that a change could not be carried

through without a purchase of an extra plane. The model also showed that the financial benefits that the change

generated could not surpass the costs that an extra plane would cause. Thereby, our recommendations to the

case company are to keep the current due date of work orders until the rest of the company can handle the extra

components that can be produced after the change.

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