Buffer optimisation of a packaging line using Volvo GTO's flow simulation methodology

Abstract: With the rapid development of computers and their proven usability in manufacturing environments, simulation-based optimisation has become a recognised tool for proposing near-optimal results related to manufacturing system design and improvement. As a world-leading manufacturer within their field, Volvo GTO in Skövde, Sweden is constantly seeking internal development and has in recent years discovered the possibilities provided by flow simulation. The main aim of this thesis is to provide an optimal buffer size of a new post-assembly and packaging line (Konpack) yet to be constructed. A by-product of the flow simulation optimisation project in form of a flow simulation process evaluation was also requested. The simulation project started with a pre-study including the development of the frame of reference and an analysis of the literature focused on merging Lean philosophy with simulation-based optimisation. The simulation model was built based on both historical and estimated data. The optimisation results showed different buffer size alternatives depending on the throughput to be achieved, these are discussed, and near-optimal solutions presented for decision-making. Additionally, four experiments were carried out, both contributing to the model’s credibility as well as providing new and valuable insight to the stakeholders. The conclusions drawn from the optimisation and experiments indicate that Konpack will be able to meet the established throughput goals, provided that the suggested near-optimal solutions are considered. The experiments also unanimously point to the fact that Konpack has a built-in overcapacity, utilizable by optimising certain suggested input parameters. Additionally, an evaluation of the completeness of the standard simulation process employed by Volvo GTO is provided, concluding that no major changes are needed. Nevertheless, there is always room for improvement. Hence, future work regarding the flow simulation process at Volvo GTO is proposed.