2014.TEL.7830, J.G. Engbers, Final Thesis
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Summary
Summary
Summary
Summary
Since the start of the financial crisis of 2008 Europe’s bus market is under big pressure. The competitiveness increased due the fact that the production capacities of all bus producers remained the same, while the demand decreased. Although BVA was able to increase its market share in Europe, the company has faced decreasing results.
This competitive market demands for an improvement of BVA’s company performance by increasing its productivity. This desire was the starting point of this research. The productivity can be increased by the reduction of the seven categories of wastes, described in the theory of Lean.
In order to determine the underlying problems which result in waste, the Delft Systems Approach was used. This methodology helped to identify the discrepancies between formal and informal structures of the assembly process within the company. (In this, the process locations standards and the bill of material were considered). These differences lead to a system which is hard to control and steer. Such systems are often dealing with instability. In an analysis at BVA this was also found by comparing coach orders to each other. Next to this, it was seen that BVA wasn’t able to increase the stability over time.
To improve all structures into the optimal situation a lot of effort is necessary, since there are many constraints. In order to improve the current situation, a comparison between two methods needed to be made, innovation or incremental innovation (Continuous Improvement). This is done with the use of a multi criteria analysis, weighing and comparing the advantages and disadvantages of both strategies. Mainly on costs, Continuous Improvements was selected as the applicable method.
Continuous Improvement and learning are closely related, both describe improvement as an ongoing process instead of a one-time undertaking. To determine in which degree BVA was able to learn until now, the learning effect was analysed from the start of the production of the Futura 20. In this analysis it was concluded that the learning rate reached by BVA was lower than found in identical industries. Further, based on a literature research it was determined that companies where Lean Continuous Improvement is completely integrated an even faster pattern of learning curve can be realized.
In order to increase the system’s performance continuously, the factors which cause learning need to be stimulated. One of the major aspects for learning to occur is routine. Due to the differences in informal and formal, the processes are less standardized. Consequently, routine to improve isn’t used optimally. To create routine and a basis for Continuous Improvement, assembly employees need to produce according the production order.
Whether the production order is able to fulfil as a complete production document was tested in practice. The test created overview on which problems occur while working with the production order as the only document. The identified problems can easily be reduced, since the expensive ERP infrastructure is already available. The improvements which need to be made are mainly focusing on the set up of the document, rather than the complete structure.
With this basis for Continuous Improvement it is possible to enhance the performance of the system in a more efficient manner. To support this, a toolbox for BVA is developed which allows BVA to recognize optimization potential quickly and to implement improvements.
2014.TEL.7830, J.G. Engbers, Final Thesis
4 One of the major challenges of Continuous Improvement is to keep-on improving. To prevent Continuous Improvement to dilute, it needs to be institutionalized into the organization. Based on research of literature and the structure of the company, it can be stated that a change management team is necessary to keep pressure on improving. This team is also responsible to generate a focus on the total company’s performance instead of the current department focus. Recommendations for tasks and responsibilities for this team are given.
With the use of the learning curve it was possible to estimate the future performance of the company. The coming year’s performance is outlined against the cost involved for the integration of the Continuous Improvement program. The cost mainly consists of labour cost and little on material cost. In a cost-benefit analysis, it was concluded that the direct benefits for the coming year are much bigger than the costs for the improvement program.
Next to the direct improvements, also indirect benefits are expected to occur. In the research the following indirect benefits were discussed: an improved flow, a reduction of the throughput time, WIP and T-T-C, increasing quality and reliability, a reduction of inventory, indirect labour and overhead costs.
The developed CI program in this research is able to enhance the performance of BVA in a feasible manner.
