A model to increase profit by optimizing the production process within a cutting station: A case study

Abstract: Studies have shown that it is necessary for manufacturing industries, in order to stay competitive and increase the profitability, to work with optimizations and continuous improvements of processes. Existing models and philosophies aiming for this, such as PDCA (Plan Do Check Act), IDEA (Investigate Design Execute Adjust), DMAIC (Define Measure Analyze Improve Control), and Lean Production, are either ambiguous or only focusing on one specific area or field. Due to this it is not suitable to apply these singly at a cutting station because root causes to problems can derive from many different factors. The purpose of this thesis has been to develop a model, with the advantage of having a clear and structured approach, and still considering all affecting factors of the cutting station. This leads to a better chance of finding the actual root causes, consequently maximizing the profits gained from the improvement solutions suggested. The model has been applied and tested on a case company and it has been proven to be suitable to use when optimizing a cutting station. Eight alternatives for possible improvements were found, where five of these were estimated to generate more than 800 000 SEK in cost savings each year. For the other three there were no estimations done due to the large extent of the suggestions, but it is believed that these will have an even larger impact on the profitability than the other alternatives. The results found will provide a solid foundation for the company in order to achieve the best possible outcome, when completing the rest of the model. The model has been developed for cutting stations but with small modifications it can be applied on any other production station in a plant.