Linking warehouse with production - Determining where and how to design a pull system at Tetra Pak

Abstract: Problem description: Tetra Pak is currently using a push system for most movements of material between their component warehouse, the yard and the PPCL production site and are interested in how a potential implementation of a pull system could affect the efficiency of the material flow. Purpose:The purpose of this master thesis is to create decision– and design propositions for determining when it is appropriate to utilize a pull system and how a pull system can be designed at Tetra Pak PPCL. Research objectives: RO1: Describe the current state of the material flow between warehouse 111, the yard, and the PPCL production. RO2: Identify how the current material flow between warehouse 111, the yard, and the PPCL production is performing. RO3: Determine which parts of the material flow between warehouse 111, the yard, and the PPCL production that are suitable for a pull system. RO4: Define, at determined suitable parts, how the material flow between warehouse 111, the yard, and the PPCL production can be set-up as a pull system. Methodology: The methodology to accomplish the purpose have been a design research process in six steps. The six steps have been (1) identifying the problem, (2) framing it, (3) creating an analytical framework to solve it, (4) theorizing the findings from the second and the third step, (5) apply the analytical framework, and (6) communicate the solution. Steps 2, 3, 4, and 5 was done as an iterative process. Conclusion/Findings: The thesis resulted in decision propositions for determining when it is appropriate to utilize a pull system and design propositions for how to design a pull system. These propositions were used to develop recommendations for Tetra Pak PPCL. To develop the propositions an analytical framework was created. This framework was a useful tool for accomplishing the purpose and can be used in other similar situations.