Development of efficient value chain after product development

Abstract: The focus of this thesis is to analyze the management of supplier relationships in a supply chain and develop cost-effective processes for manufacturing of a finished product at a global company in Sweden. The study was initiated when the application of literature was of interest to one of the company's products that is under development. So far, the company's great focus has been on developing the product and getting as close to the finished product as possible. Equal focus has not yet been focused on managing suppliers and on defining the processes that arise after the finished product. The intention has been to facilitate decision-making in supplier management and manufacturing that will arise when the prototype will become a finished product and will be launched on the market. The aim for this study is to analyze the value chain in order to develop and check various production facilities to create opportunities for cost savings. -          RQ1. How does a good manufacturing strategy help in developing cost efficient products? -          RQ2. What are the challenges in developing a value chain containing several external suppliers? The approach applied in the study has been a review of scientific literature that provides a basis for answering the purpose and the questions that have been created. Data collected from the literature have been critically reviewed and adapted based on the purpose of the work and the empirical findings collected from the company. Data collected from the company in the form of interviews and observations have been regularly analyzed. The differences and similarities that exist between the empirical data and the literature have been elucidated by adapting the analysis to a pattern. The analysis provided a basis for the results where the development of two different concepts that can be used as an approach in the future could be created. The concepts were created and analyzed based on the company's prerequisites for applicable solutions. The results from the analysis were then summarized in results and recommendations with the categories: Value Stream Map, Hypothetical Production Line and Recommendations related to the modules of the product. These categories will facilitate decision-making regarding the choice of production in the future. Concepts that will facilitate decision-making for economic factors and process factors have also been developed as a “guideline” for approaches to supplier management and management of financial aspects.