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Mixed Model Assembly Line at Volvo Construction Equipment.pdf

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MIXED MODEL ASSEMBLY LINE AT VOLVO CONSTRUCTION EQUIPMENT
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Mixed-model assembly line at Volvo Construction Equipment Requirements for mixed-model assembly line at Volvo Construction Equipment and a case study at the Arvika plant Master of Science Thesis in Production Engineering FILIP HELLMAN BJ?RN LINDAHL JONAS MALMBERG Department of Technology Management and Economics Division of Logistics and Transportation CHALMERS UNIVERSITY OF TECHNOLOGY G?teborg, Sweden, 2011 Report No. E2011: 046 Mixed-model assembly line at Volvo Construction Equipment Requirements for mixed-model assembly line at Volvo Construction Equipment and a case study at the Arvika plant FILIP HELLMAN BJ?RN LINDAHL JONAS MALMBERG ? FILIP HELLMAN, BJ?RN LINDAHL, JONAS MALMBERG, 2011 Technical report no E2011:046 Department of Technology Management and Economics Division of Logistics and Transportation SE-412 96 G?teborg Sweden Telephone + 46 (0)31-772 1000 Chalmers Reproservice G?teborg, Sweden 2011 i Abstract Traditional mass production was based on dedicated assembly lines where only one or few products were assembled in large quantities and thereby achieved a high productivity by the principles of ct variety and short lead times, mass customization has been recognized as the new paradigm for manufacturing. Mixed- model assembly lines are considered to be an enabler for mass customization and are therefore today replacing many of the traditional mass production assembly lines in industrial environments. No general framework covering all important areas of mixed-model assembly has been found in literature. Consequently this Master′s Thesis could be seen as a framework filling that gap. Volvo Construction Equipment (VCE) in Arvika is, to be able to improve in a number of areas, planning to integrate their two assembly lines into one mixed-model assembly line. This Master′s Thesis presents a model that identifies the prerequisites for mixed-model assembly lines, maps the problems and identifies the challenges most important. Methods and solutions to handle the challenges are presented in more detail. General advantages and disadvantages with mixed-model lines and serial flows are identified and presented. The model is valid for VCE operations in Sweden and production systems with similar products. This thesis also presents which of the challenges in the general model that has to be fulfilled in the context of VCE in Arvika. The appropriate methods and solutions needed to be able to solve the potential problems in the Arvika case are identified and analysed. One challenge is analysed more in detail. The problem that causes the largest challenges was found to be the difference in assembly time between different models. The literature poses that the largest difference in assembly time can be about 30 per cent but it has been seen from the empirical findings that a difference of 50 per cent can be handled. Two of the advantages Volvo Construction Equipment hope to gain when implementing a mixed- model assembly line is the possibility to get shorter learning times and less need of floor space. A noteworthy conclusion is that a mixed-model assembly line would require a higher dependability than several dedicated lines. This is due to that the assembly system becomes more sensitive to disturbances when having only one flow. It is recommended that standardised work is fully implemented and in place before a transition to mixed-model line. A pick-to-light system in combination with barcodes and scanners is recommended for VCE in Arvika for them to solve their problems with picking errors, which was the challenge that was analysed more in detail. The model presented in this thesis is considered to be comprehensive but each part of the model is not fully explored. When implementing mixed-model assembly lines, each part of the model could be and context. Keywords: Assembly System, Assembly Line, Mixed-Model Assembly Lines, Mixed-Product Assembly Line, Time losses in assembly system, Methods to handle time losses, Product Variety. iii Acknowledgments University of Technology, Gothenburg, Sweden. The work was carried out during the spring of 2011 in collaboration with Volvo Construction Equipment in Arvika and the Division of Logistics and Transportation at Chalmers University of Technology, Gothenburg, Sweden. We would like to thank our supervisors Erik Olsson and Stefan Wingskog at Volvo CE in Arvika for taking the time to answer our questions and guide us through the project. We also would like to thank Per Magnusson at Volvo CE Arvika for his help during the project. Special thanks go to the people who generously took time to participate in our interviews. Finally we want to thank our supervisor Lars Medbo at Chalmers University of Technology for guidance and valuable feedback on our work. Gothenburg, June 2011 Filip Hellman Bj?rn Lindahl Jonas Malmberg v Table of contents ABSTRACT ......................................................................................................................................................... I ACKNOWLEDGMENTS ..................................................................................................................................... III TABLE OF CONTENTS ........................................................................................................................................ V LIST OF TABLES ............................................................................................................................................... VII LIST OF FIGURES .............................................................................................................................................. IX 1 INTRODUCTION ....................................................................................................................................... 1 1.1 VOLVO CONSTRUCTION EQUIPMENT .......................................................................................................... 1 1.2 BACKGROUND AND MOTIVATION FOR THESIS................................................................................................ 1 1.3 PURPOSE AND RESEARCH QUESTIONS ......................................................................................................... 2 1.4 LIMITATIONS........................................................................................................................................ 3 1.5 REPORT OUTLINE .................................................................................................................................. 3 1.6 TERMS AND ABBREVIATIONS .................................................................................................................... 4 2 LITERATURE REVIEW ................................................................................................................................ 7 2.1 ASSEMBLY SYSTEMS ............................................................................................................................... 7 2.2 STANDARDISED WORK .......................................................................................................................... 21 2.3 PRODUCT DESIGN................................................................................................................................ 23 2.4 PLANNING AND CONTROL ...................................................................................................................... 25 2.5 TIME LOSSES ...................................................................................................................................... 36 2.6 MATERIAL HANDLING AND SUPPLY .......................................................................................................... 45 2.7 ASSEMBLY QUALITY ............................................................................................................................. 48 3 VOLVO PRODUCTION SYSTEM ............................................................................................................... 55 3.1 INTRODUCTION TO VOLVO PRODUCTION SYSTEM ........................................................................................ 55 3.2 ASSEMBLY SYSTEMS ............................................................................................................................. 56 3.3 STANDARDISED WORK .......................................................................................................................... 58 3.4 PLANNING AND CONTROL ...................................................................................................................... 59 3.5 TIME LOSSES ...................................................................................................................................... 61 3.6 MATERIAL HANDLING AND SUPPLY .......................................................................................................... 62 3.7 ASSEMBLY QUALITY ............................................................................................................................. 64 4 METHOD ................................................................................................................................................ 67 4.1 RESEARCH STRATEGY ........................................................................................................................... 67 4.2 RESEARCH APPROACH .......................................................................................................................... 68 4.3 QUALITATIVE COLLECTION OF DATA ......................................................................................................... 68 4.4 INTERVIEWS....................................................................................................................................... 68 5 EMPIRICAL FINDINGS ............................................................................................................................. 71 5.1 INTERVIEWS....................................................................................................................................... 71 6 DEVELOPMENT OF MODEL FOR MIXED-MODEL ASSEMBLY LINE ............................................................ 81 6.1 DESCRIPTION OF VCE OPERATIONS IN SWEDEN .......................................................................................... 81 6.2 MODEL FOR MIXED-MODEL ASSEMBLY LINE ............................................................................................... 82 7 APPLYING MODEL AT VCE IN ARVIKA ..................................................................................................... 93 7.1 DESCRIPTION OF PRODUCTION AT VCE IN ARVIKA ....................................................................................... 93 7.2 THE MODEL APPLIED AT VCE IN ARVIKA .................................................................................................. 102 7.3 ADVANTAGES AND DISADVANTAGES RELATED TO MIXED-MODEL PRODUCTION AT VCE IN ARVIKA.......................... 115 7.4 PREVENT PICKING ERRORS AT ENGINE AND TRANSMISSION SUB-ASSEMBLY AT MEDIUM LINE ................................. 116 8 CONCLUSIONS...................................................................................................................................... 123 vi 9 RECOMMENDATIONS FOR VCE ARVIKA ............................................................................................... 125 10 DISCUSSION ......................................................................................................................................... 127 11 REFERENCES ......................................................................................................................................... 128 APPENDIX A - EXTRACT FROM GOZINTO TABLE ............................................................................................ 133 APPENDIX B – EXTRACT FROM PIVOT TABLE ................................................................................................ 135 APPENDIX C – METHODS AND SOLUTIONS ................................................................................................... 137 APPENDIX D – PRODUCT DATA FOR THE WHEEL LOADERS ........................................................................... 139 vii List of Tables Table 1 Performance objectives and their measures according to Slack, Chambers, & Johnston (2010) .............. 7 Table 2 Different assembly systems according to Wild (1975) ............................................................................ 9 Table 3 Advantages with serial flow assembly lines ......................................................................................... 19 Table 4 Disadvantages with serial flow assembly lines ..................................................................................... 20 Table 5 Typical takt times for different industries. After Baudin (2002) ............................................................ 21 Table 6 Information about the interviewees .................................................................................................... 71 Table 7 Number of parts for each model ......................................................................................................... 96 Table 8 Number of items and number of common items for each product ....................................................... 97 Table 9 Commonality ratios for each model .................................................................................................... 97 Table 10 Indexed assembly times for all models ............................................................................................ 100 Table 11 Disadvantages due to the transition to mixed-model assembly at VCE in Arvika............................... 115 Table 12 Summary of advantages gained due to the transition to mixed-model assembly at VCE in Arvika..... 116 Table 13 The wheel loader models and their respective work and fan pumps ................................................ 118 Table 14 Summary of tender ................................................................................................
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