A Material Flow Evaluation at Scania Production Slupsk S.P.S

Abstract: This master’s thesis is performed at Department of Management and Engineering Linköping University, for Scania Omni at Scania Production Slupsk (S.P.S). Omni is responsible for development, manufacturing and marketing of city, suburban and intercity buses. After acquisition of the production unit in Slupsk in 2002 lower production cost per bus is possible. But without control over the organisation costs are rising due to late delivery fees and high stock levels. At the outset, the thesis included three clearly defined objectives: - Map the present situation at Scania Production Slupsk regarding material flow from supplier to assembly line including a part and storage analysis. - Benchmark the current routines at Scania Production Slupsk with other successful companies. Furthermore, conduct literature research in order to find theories and philosophies that support problem analysis and thesis solution. - Develop standard routines for material control methods (MCM) and material supply methods (MSM). A complimentary objective is to work as a catalyst during the time of the thesis. The mapping of the present situation showed that MCM and MSM are very tight connected to each other. It was questioned whether this structure was the best way to manage the material flow. After a parts and storage analysis, material was divided into different segments depending of price, consumption and movement. The benchmarking studies showed different ways to manage the material flow. Implementation of unit load, kanban and clear defined interface between departments showed potential to improve the material handling and increase effectiveness. New routines and part segment definitions described in a logistics manual (Appendix I) were made align with a comparison between previous and recommended definitions. The result showed that some parts needs to be controlled differently. Primary recommendations are that logistics manual shall be used when new parts are introduced into the Scala system. Responsible personnel are suppose to give suggestion concerning decision making of MCM and MSM and with help of the logistics manual the work can be more efficient, resulting in a material flow that is flexible and have potential for improvements. Secondary, to avoid material handling to some extent implementation of two-bin system is recommended. Additional recommendations regarding two-bin system is to handle material according to unit load, which enable FIFO, traceability and higher turn over rate