Material flow improvements - An investigation of the picking process at Scania

Abstract: Problem description: At Scania in Oskarshamn, there is a phenomenon referred to as external picking. External picking is in the context of this report defined as the process where stock-keeping units, not intended for the main production lines, are picked at one of Scania’s Oskarshamn facilities. These items are intended for various organizations within Scania, but also external business partners. The external picks are currently managed by different departments with different processes, based on the recipient. Scania believes that there is potential to improve and streamline these processes. Thus, the company has requested help to (1) investigate and map the material flow related to the external picking processes, (2) examine the involved organizations, and (3) develop suggestions for increased efficiency. Purpose: The purpose of this master thesis is to propose improvements for the process of external picking at Scania’s production unit in Oskarshamn and to provide suggestions on how such changes can be implemented. Research questions: RQ: How can Scania’s process of external picking be improved? RQa: What do the material flow and processes related to external picking currently look like? RQb: What are the problems and drawbacks of the current solution? RQc: Which changes can be done to improve the current logistical setup? RQd: What changes should be done and how can they be implemented? Methodology: An exploratory study was desired since the previous knowledge about the phenomenon was limited. As the goal was to explore and describe the phenomenon, and the data collection would primarily consist of interviews and observations, a case study was conducted. Conclusion: The material flow related to the external picking can be arranged into four categories, based on recipient/customer and involved organizations. To improve the external picking process, Scania should, e.g., improve the level of digitalization, implement assistive devices, standardize processes, appoint a process owner, and restructure the organizational responsibilities.