Production Development : Layout Project at Lundqvist Trävaru AB

Abstract: The purpose of the master thesis has been to examine the production system at the company Lundqvist Trävaru AB and use the gathered information to create a layout suggestion together with a couple of improvement ideas. The thesis is the final part of the Industrial Design Engineering programme at Luleå University of Technology (LTU). Lundqvist Trävaru AB is a manufacturing company that specializes in producing prefabricated building kits out of wood, but the insufficient size of their current factory located in the industrial area of Öjebyn on the outskirts of Piteå, have created a need to relocate to alarger site. This new site is located at Haraholmen south of Piteå. The aim and objective have therefore been to develop a layout suggestion as well as a couple of improvement ideas, with the purpose of solving the identified problems at the current factory, thereby making sure that they do not reappear at the new site. Methods in the form of interviews, observations and documentation reviews were performed to identify potential problems with the production system and the work organization. To aid the investigation of the current factory, literature reviews of scientific books and articles were also performed during the project, with the purpose of giving the thesis a solid scientific foundation. After an overview of the production system had been created, the next step was to analyze the identified problems. These affected many different aspects of the company, for instance the material handling, work organization, flow ofinformation, production flexibility, inventory capacity and production flow. The main problem that in turn caused many of the identified problems was the insufficient inventory capacity, which led to problems with overflowing inventories and long delivery times for materials. This in turn affected thematerial handling negatively and made it hard to keep track of materials in the factory.  Additional problems that were identified was divided workstations, scattered areas for material storage, an increasing amount of special orders with dimension outside of the ordinary size range, a lack of standardized working methods and lack of communication between the office and the production team. After the problems had been identified, the next part of the project was dedicated to performing creative methods with the purpose of developing layout concepts as well as improvement ideas. The methods that were used to fulfill this task was brainstorming, mind map, requirement specification, proximity chart and workshop. After these methods had been performed the result was four layout concepts and several improvement ideas.  The next step was to evaluate the layouts and the ideas with the help of the requirements that had been specified together with the management at Lundqvist. The evaluations resulted in a final layout together with the most promising improvement ideas. These ideas were to standardized drawings and working methods, increase the work with creating manuals for the different stations and machines, adapt the workstations for special orders, purchase tablet computers for each workstation thereby allowing better information sharing and contact between the production team and the office, create a digital map of the factory, use markings and colors at inventories to facilitate identification of specific materials, better routines for the disposal of production waste and larger passages for trucks and wheel loaders. The result of the last part of the project was a 3D-model of the factory and the site, which showed the placement of the different machines, workstations and inventories used during the production of the prefabricated building kits. The benefits of the suggested layout and improvement ideas are bettermaterial handling, increased inventory capacity, better information sharing, standardized working methods and drawings, a straighter production flow and an increased production flexibility, which gives a better ability to produce special orders. If it turns out that it is hard to implement the layout at thepresent, the recommendation for Lundqvist Trävaru AB is to start with implementing the improvement ideas and then successively implement the layout. The suggested ideas and layout will make the company more prepared for the future and increase their ability to handle the planned productionincrease, while also making sure that they are able to better keep production deadlines, attract more customers and successfully establish themselves at Haraholmen. Which in turn will lead to reduced unemployment and increased tax revenue for Piteå municipality