Potential savings by optimized material flow at Tetra Pak Packaging Materials AB – A study of optimizing Automated Guided Vehicle routes

University essay from Lunds universitet/Produktionsekonomi

Abstract: Background: Optimized and improved logistics along with continuous improvements of efficiency are two main goals with Tetra Pak Packaging Material in Lund. An insufficient material flow conducted by Automated Guided Vehicles at the production site, combined with a desire to restructure the production logistics through a transformation in warehouse location has been an aim for the company. With a deep analysis of the situation and to provide necessary information for future decision, a Master Thesis was created. Purpose: The purpose of this Master Thesis is to map the material flow in the production site in order to find possible improvements. The fundamental condition to succeed with this purpose is to investigate whether a transformation of the warehouse location is possible or not. Problem definition: Two warehouse buildings are connected to the production site at Tetra Pack Packaging Material in Lund. Building 113 store raw material and building 111 hold Work-In-Progress material along with finished goods. The locations of these warehouses are not optimized with a logistic perspective of the internal material flow of the production. Since the material flow is not efficient the material is transported long distances both indoor and outdoor. This is not desirable since the material is to be used in the food industry and the hygiene aspect is crucial. In addition, the warehouse which holds finished goods are located deep into the production site which decreases the safety level since trucks enter and exit in the middle of the production site on a daily basis. Metod: This Master Thesis is written with a system approach mindset. The thesis is a dynamic, logistical project with several depending factors which needs to be considered at the same time and a solution will be specific for Tetra Pak Packaging Material Lund AB. A target is also to provide information of a practical solution in order to ease future implementation. The information was gathered as a mixture of quantitative and qualitative approaches, as information was extracted by databases and similar as well as through personal interviews. Also observations at the production site along with case studies of the Automated Guided Vehicles were necessary to determine the present situation. Conclusion: With a deeper knowledge of the situation at Tetra Pak Packaging Material AB this Master Thesis reveals that several improvements can be made in order to optimize the material flow. A restructuring of the two considered warehouses is possible, which leads to an optimized route for both internal and external transports of goods. This fact will also contribute to better hygiene and increased safety at the production site.

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