Master thesis project

1. Volvo TechnologyChalmers University of Technology Masterthesis project Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry Xiaoxia Chen Production System Xiaojin Qiu Management and Economics of Innovation

2. Volvo TechnologyChalmers University of Technology Xiaoxia Chen Xiaojin Qiu I am looking for a job now, if you need asmartanddiligentemployee in LEAN, welcome to contact: chnxiaoxia@yahoo.com.cn Trainee at SKF, China operation.

3. Volvo Technology Chalmers University of Technology Agenda • Introduction • Generation and implementation of evaluation method • Conclusion • Limitation • Discussion Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

4. Volvo TechnologyChalmers University of Technology Introduction - Background (lean & environment) - Aim (Research questions ) Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

5. Volvo TechnologyChalmers University of Technology Research Methodology and Tools • Interview • Literature review • Case study: - Study visit (video, pictures) - Survey - Observation - Avix (time study), Spaghetti diagram (MH analysis) and so on • Focus group discussions Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

6. Volvo Technology Chalmers University of Technology Research Methodology and Tools • Interview

7. Volvo Technology Chalmers University of Technology Research Methodology and Tools • Literature review

8. Volvo Technology Chalmers University of Technology Generation of Evaluation Method

9. Volvo Technology Chalmers University of Technology Environmental impacts • KPI – Key Performance Indicator • How are KPIs selected in Volvo • Group and plant level • How KPIs are selected in the evaluation method : - Depends on process - Focus on input and output Life Cycle thinking Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

10. Volvo TechnologyChalmers University of Technology Evaluation method Step 1: Boundary definition Step 2: Measure the production performance and Environmental impacts both before and after lean implementation in VSM Step 3: Visualize the Environment performance by using Loss model Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

11. Evaluation method Volvo TechnologyChalmers University of Technology Step 1. Boundary definition Case study illustration Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

12. Volvo TechnologyChalmers University of Technology Evaluation method Step 2: Measure the production performance and Environmental impacts both before and after lean implementation in VSM Case study illustration Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

13. Volvo TechnologyChalmers University of Technology Current MH-VSM

14. Volvo TechnologyChalmers University of Technology Current state

15. Volvo Technology Chalmers University of Technology Current state

16. Volvo TechnologyChalmers University of Technology Current state analysis • Avix analysis • Material handling analysis • Item category • Replenishment strategy • Price • Size • Suppliers

17. Volvo TechnologyChalmers University of Technology Avix (time study) Task and operations for the bracket 1 assembly for D6 in station 300. Result for station 300 Activity analyses for one of the operation

18. Volvo TechnologyChalmers University of Technology Material handling analysis (Spaghetti diagram)

19. Volvo TechnologyChalmers University of Technology Lean implementation Suggestion 1: Get rid of the wood pallets Non-investment solution: Replace with gray box

20. Volvo TechnologyChalmers University of Technology Suggestion 2: Add containers on carrier (commons used items) Engine illustration Consoles Added containers

21. Volvo TechnologyChalmers University of Technology Suggestion 3 Move the gasket to the turbo cart (Sequence together)

22. Volvo TechnologyChalmers University of Technology Suggestion 4: Move the plastic waste bin to the cart

23. Volvo TechnologyChalmers University of Technology Suggestion 5: Replace the paper boxes with plastic container V-EMB 500 V-EMB 750

24. Volvo TechnologyChalmers University of Technology Future state

25. Volvo TechnologyChalmers University of Technology Future state

26. Volvo TechnologyChalmers University of Technology Results from improvements • Production efficiency (11 8 min.) • Station size • Movements frequency • Feeding frequency

27. Volvo TechnologyChalmers University of Technology Production efficiency

28. Volvo TechnologyChalmers University of Technology Station size

29. Volvo TechnologyChalmers University of Technology Movements frequency (Spaghetti diagram) The spaghetti diagram of the operator’s movement (current state) The spaghetti diagram of the operator’s movement (future state)

30. Feeding frequency

31. Volvo TechnologyChalmers University of Technology Future MH-VSM

32. Volvo TechnologyChalmers University of Technology Time Valued operating time Losses Valued operating time Internal handling & transportation time External transportation time Administration Time in storage Others Necessary environmental impacts ELU Losses Energy Material Transportation Chemicals Others Evaluation method • Step 3: Visualize the Environment performance by using Loss model Case study illustration Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

33. Volvo TechnologyChalmers University of Technology Loss model • Loss definition • Define loss category Loss is “anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely necessary to add value to the product.” - Shoichiro Toyoda, President, Toyota Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

34. Loss model Volvo TechnologyChalmers University of Technology Loss is “anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely necessary to add value to the product.” - Shoichiro Toyoda, President, Toyota Loss definition Define loss category Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

35. Loss model -Production perspective: Volvo TechnologyChalmers University of Technology Divided by categories: Overview:

36. Loss model -Production perspective: Volvo TechnologyChalmers University of Technology Divided by categories: Overview:

37. Volvo TechnologyChalmers University of Technology Loss model -Environment perspective: Divided by categories: Overview:

38. Volvo TechnologyChalmers University of Technology Loss model - Comparison Production: Environment:

39. Volvo TechnologyChalmers University of Technology Conclusion • Answers to the research questions 1. Lean implementation Benefit? Environment Overall: 2. Visualize the Environment performance: YES! VSM & Loss Model Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

40. Limitation Volvo Technology Chalmers University of Technology • Research limitations • Lean Environment • Lean implementation in production Environment NOT lean Environment • Information limitations - Interviewees: access and knowledge - Literature review • Time limitations • No time to see the future state Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

41. Volvo TechnologyChalmers University of Technology Discussion • Applicability in other processes Machining? Assembly Painting? Or Other processes? Also Applicable Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

42. Volvo TechnologyChalmers University of Technology Discussion • Difficulties - The implementation of MH – VSM To sum up different item flows into one flow - Loss model modification (definition of categories) The definitions of categories both in production and environment Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

43. Volvo TechnologyChalmers University of Technology Discussion Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

44. Volvo TechnologyChalmers University of Technology Discussion • Future study - More case studies to verify the evaluation method - Continuous improvement - Implement lean concept into environmental care (make use of the relationship between lean and environment ) Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

45. Volvo TechnologyChalmers University of Technology Thank you! Questions?