Optimization of kitting process: A case study of Dynapac Compaction Equipment AB Jonas Hantoft Department of Industrial Economics and Management Blekinge Institute of Technology Karlskrona Sweden 2015 Master of Science thesis in Industrial Management and Engineering in cooperation with
(This page was left intentionally blank) ii
Abstract A case study has been done at Dynapac Compaction Equipment AB in Karlskrona in order to improve the internal flow of the production. The Supermarket Storage, an adjoining storage that feed material to the lean production in the Z-line assembly line with the help of kitting, was chosen to be focused during the optimization of the internal flow. Also, due to the little academic research about kitting it was decided to focus the research on the kitting process and identify how to optimize it. The purpose of the research is to determine optimization methods of a kitting process and fill in the kitting optimization gap in the subject field. Given the research time limit, the focus will only focus on the kitting process in the Supermarket Storage and no optimization could change the storage s layout. This resulted in three research question that will be investigated in the thesis. Which common approaches exist when it comes to optimizing a kitting process? What is the result of each optimizing method in the time aspect? When should an optimization method be used, compared to the other methods that will be tested in this research? In order to solve these questions, was needfinding used to identify the kitting process current problems and the needs of the employees. With this, three optimization methods were identified and selected to be used to optimize the kitting process; optimization of routing, optimization of family grouping and optimization of an electronic system. The optimization of routing focused on the route that the kitter travel and the optimization of the family grouping focused on the article distribution in the Supermarket Storage there each kitting operation s articles should be stored in the same zone. Finally, the optimization of the electronic system, investigated the possibility to utilize a pick to scan system with the kitting process. iii
Each optimization was implemented in different field experiment in order to identify how each optimization affected the kitting process. This resulted in that each optimization has improved the kitting process time efficiency and the electronic system had the biggest impact. Some other results were also observed during the experiments. The route optimization improved the learning curve of the kitting process and the family grouping optimization decreased the bottlenecks in kitting process. The electronic system optimization also implemented new benefits that resulted in a profit 2.5 times the cost of the system. Some of the benefits include removal of unneeded processes, quality control of the kitting process and statistics gathering that can be used to improve the process in the future. These results imply that all three optimization methods can be used in order to improve the time efficiency of a kitting process in a similar storage layout. The routing optimization should be used in a kitting operation with a high rotation of new kitters. The family grouping should be used in a kiting process with bottlenecks in the process and low organization of the article distribution. Ultimately, the electronic system optimization should be used in a kitting process that has unneeded processes and has the need of new tools that the electronic system can implement. iv
Acknowledgements This thesis was carried out at the department of Industrial Economics and Management in Blekinge Institute of technology to complete my Master degree in Industrial Management and Engineering. I would like to take this opportunity to thank the people, especially family and friends, which have helped or supported this master thesis. I would also like to thank my supervisors for their effort in helping me complete this thesis. Great thanks are therefore dedicated to Lawrence Henesey, Anna Cosaro and Stefan Hjelm. Lawrence for assisted me in writing the thesis and the study design. This support has proved invaluable and I m grateful for the help with the grammar. Anna for guiding and supporting me at Dynapac. Without her support in this, I would never have come so far as I did. Stefan for allowing me to work in his office at Dynapac and for always having the time to answer my questions in his busy schedule. I would also thank Dynapac and its employees that had the patience and the will to help me in my research and gave me a pleasant time at Dynapac. Karlskrona Jonas Hantoft 2015 v
References Literature: Arbnor, I. & Bjerke, B. (2009). Methodology for Creating Business Knowledge. 3rd edn. SAGE Publications. Bartholdi, J. J. & Hackman, S. T. (2010). Warehouse and Distribution Science. The Supply Chain and Logistics Institute, School of Industrial and Systems Engineering, Georgia Institute of Technology Atlanta US. Berg van den J. P. (1997). A literature survey on planning and control of warehouse systems. IIE Transaction, vol. 31. Bicheno J. (2004). The New Lean Toolbox: Towards Fast, Flexible Flow. Productivity Press. Bozer, Y. A. & McGinnis, L. F. (1992). Kitting versus line stocking: A conceptual framework and a descriptive model. International Journal of Production Economics, Vol. 28. Bryman, A. & Bell, E. (2007). Business Research Methods. Oxford University Press. Brynzér, H. & Johansson, M. I. (1995). Design and performance of kitting and order picking systems. International Journal of Production Economics, Vol. 15. Björklund, M. & Paulsson, U. (2003). Seminarieboken - att skriva, presentera och opponera. Studentlitteratur. Corakci, M. A. (2008). An Evaluation of Kitting Systems in Lean Production. University College of Borås School of Engineering. 88
Dennis, P. (2002). Lean Production Simplified. Taylor & Francis, Inc. Drury, J. (1988). Towards more efficient order picking. The Institute of Materials Management, Cranfield, U.K. IMM Monograph No. 1. Ghauri, P. & Grønhaug, K. (2010). Research methods in business studies. Financial Times. Hanson, R. & Brolin, A. (2012). A comparison of kitting and continuous supply in in-plant materials supply. International Journal of Production Research, Vol. 51. Hanson, R., Johansson, M. I. & Medbo, L. (2011). Location of kit preparation Impact on in-plant materials supply performance. International Journal of Industrial Engineering, Vol. 2. Hua, S. Y. & Johnson, D. J. (2010). Research issues on factors influencing the choice of kitting versus line stocking. International Journal of Production Research, Vol. 48. Koster, de R., Le-Duc, R. & Roodbergen, K. J. (2007). Design and control of warehouse order picking: A literature review. European Journal of Operational Research, vol.182, No. 2. Lindstedt, P. Burenius, J. (2003). The Value Model: How to Master Product Development and Create Unrivalled Customer Value. Sweden: Nimba AB. Marchwinski, C., Shook, J., & Schroeder, A. (2008). Lean Lexicon: a graphical glossary for Lean Thinkers. 4th ed. The Lean Enterprise Institute. Maxwell, J. A. (2005). Qualitative research design: An interactive approach. Thousand Oaks, CA: SAGE Publications. 89
Nicholas J. & Avi, S. (2006). The Portal to Lean Production: Principles and practices for Doing More with Less. Auerbach Publications. Ohno, T. (1988). Toyota Production System: Beyond Large-Scale Production. Taylor & Francis Group. Plattner, H. (2007). Need finding tools. Institute of design at Stanford. Plenert, G. (2006). Reinventing Lean: Introducing Lean Management into the Supply Chain. Butterworth-Heinemann. Reichardt, C. S. & Cook, T. D. (1979). Beyond qualitative versus quantitative methods. Evaluation Research, Beverly Hills, CA: Sage. Ronen, B. (1992). The Complete Kit Concept. International Journal of Production Research, Vol. 30, No.10. Seddon, J. & Caulkin, S. (2007). Systems thinking, lean production and action learning. Action Learning: Research and Practice, Vol. 4, No. 1. Sekaran, U. (2003). Research Methods for Business: A Skill Building Approach. 4th edn. John Wiley & Sons. Wallén, G. (1996). Vetenskapsteori och forskningsmetodik. Studentlitteratur. Womack, J., Jones, D., Roos, D. & Sammons, D. (1990). The machine that changed the world. HarperPerennial. 90
Websites: Dynapac. [http://www.dynapac.com/]. (Last checked on 2015-05-27) Vision-lean. [http://www.vision-lean.com/lean-manufacturing/lean-house/]. (Last checked on 2015-05-27) Industrial Data and Information Inc. [http://www.idii.com/wp/adscompare.pdf]. (Last checked on 2015-05-27) 91