Value Stream Mapping for Waste Reduction in Playing System Components Flow : Case study: Leaning the Value Stream of Origo family components at HAGS Aneby AB

University essay from Högskolan i Jönköping/Internationella Handelshögskolan; Högskolan i Jönköping/Internationella Handelshögskolan


Introduction. Improvement of the product flow by means of applying the lean principles, including the value stream mapping tool has become an important component in the at-tempt of many companies to make transition from traditional production to the lean manu-facturing system. It often implies modernization of organizational structure, relationships with sub-contractors, suppliers and transportation companies. The topic of this master the-sis originates from company HAGS Aneby AB that produces playing systems comprising different components. This report is an attempt to understand and analyze the problems in the product flow on the example of playing system Agito that includes Origo product fam-ily components as the main constructive part.

Purpose. The purpose of this case study has been to identify, analyze and propose solu-tions for waste-related problems in the Origo product flow, by applying the lean thinking principles and the data collection methods.

Method. The proposed case study methodology combines both theoretical and empirical approach. Data collected in interviews with sub-contractors and suppliers, and observa-tions at the mechanical workshop and warehouse, have constituted the input for the value stream mapping method. The value stream mapping method has been applied to construct the current state map of the Origo value stream and identify the wastes. Furthermore, other methods including the decision point analysis, the postponement theory, and the supplier/buyer dependence grid have been subsequently applied to analyze the company relationships with key business partners and assist in designing a draft of the future state map.

Conclusion. It has been concluded from the constructed current state map of Origo value stream that the most critical wastes are waiting, transportation, unnecessary inventory, un-necessary motion and defects. Furthermore, the requirement of minimum quantity of raw material to be purchased from the supplier and the improper workshop layout has been recognized as the main reasons for the wastes. The measures to reduce the identified wastes have been pointed out. It has been proposed to better integrate the key actors into the HAGS supply chain. Adopting the cellular layout in the mechanical workshop has been found beneficial as well as orientation of production on customer orders rather than on forecasting. The mentioned measures to reduce wastes have been summarized in the draft of the future state map. The main advantages of the proposed future state are faster order fulfillment process, gained visibility and control of raw material and reduced costs in the flow of Origo components.

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