IPREP: Framework for elimination of an internal return process : A case study at Thule Sweden AB

Abstract: Course: Degree project in logistics, the Business Administration and Economics Programme Authors: Anna Jarenfors and Sissela Järsö Supervisor: Hana Hulthén Examiner: Helena Forslund Title: IPREP: Framework for elimination of an internal return process – A case study at Thule Sweden AB Background: Logistics coordination plays an important role regarding the competitive success of an organization. A company has to eliminate unnecessary processes involved in the supply chain in order to decrease cost and to improve the business. This study focuses on the problems with the internal return process at Thule Sweden AB. Thule Sweden AB has in the last decade had an increased production which have had led to a larger material flow which have impacted the internal return process negatively. The internal return process is, in this study, defined as the process where unused material in production is sent back to the warehouse. Purpose: The purposes of this study is to present suggestions of how the internal return process at Thule can be eliminated and construct a framework of how manufacturing companies can eliminate unnecessary internal return processes. Methodology: The study is a qualitative case study with an abductive approach of the internal return process at Thule Sweden AB. The theories used in the study are found from literature and scientific articles while empirical data has been collected mainly through semi-structured interviews and observations. The selection of interviewees has been based on what knowledge they carry and what responsibility they have in the company. Findings: A process map over the internal return process illustrated three general causes creating an internal return. These were incorrect material delivered to production, incorrect stock balance and leftover material after production. The three general causes found formed the basis of a fishbone diagram which identified seven root causes. The seven root causes presented were, not able to scan the barcode on the pallets, pallet put at incorrect production line, incorrect previous internal return, lack of stock counting at internal return, insufficiency in the material- and production planning, suppliers not able to produce in batch size and no kitting station. Suggestions of how to eliminate an internal return process were presented and the fundamental categories of the framework presented were integration, personnel, routines, environment and planning.   Key words: Internal return process, process elimination, general cause, root cause, framework, manufacturing company