Recommendations for an Improved Delivery Process after Business Model Change
Paganus, Max (2018)
Paganus, Max
Metropolia Ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201805188994
https://urn.fi/URN:NBN:fi:amk-201805188994
Tiivistelmä
This thesis describes the objective of the case company to improve functions within the delivery process after the case company had a shift of focus from a service-based business model to a retail-based one. The previous business model was based on a make-to-stock style of production, which enabled pushing of long production orders of a single product into stock and stockpiling of materials accordingly. The retail-based business model has a much faster-paced shorter ordering window, which makes production planning, forecasting and material procurement more challenging.
The objective is approached by describing the current state delivery process and identifying the issues in it together with the stakeholders in the different functions of the delivery process. The current state analysis described both the strengths and weaknesses of the delivery process. The main issues were identified in the functions that both initiate and enable production: Production Planning and Material Handling. The issues were then explored in literature, utilizing practices and tools used in the industry, to create a conceptual framework. The conceptual framework was then used together with suggestions from the stakeholders to build an initial proposal.
The outcome of this thesis is a list of recommendations for the case company to improve on the weaknesses and issues found in the delivery process. The list of recommendation includes suggestions on reviewing customer service level, forecasting accuracy and making the material handling department overall leaner.
By implementing the recommendations, the case company can better support the value making production by removing the bottlenecks brought by the remnants of the service-based business model, with implementations in the higher levels of the organization having a compound effect on the functions below them. These implementations would then enable the functions of the delivery process cut down on costly wastage due to more accurate forecasting and improve reaction and lead times due reorganization of the storage department.
The objective is approached by describing the current state delivery process and identifying the issues in it together with the stakeholders in the different functions of the delivery process. The current state analysis described both the strengths and weaknesses of the delivery process. The main issues were identified in the functions that both initiate and enable production: Production Planning and Material Handling. The issues were then explored in literature, utilizing practices and tools used in the industry, to create a conceptual framework. The conceptual framework was then used together with suggestions from the stakeholders to build an initial proposal.
The outcome of this thesis is a list of recommendations for the case company to improve on the weaknesses and issues found in the delivery process. The list of recommendation includes suggestions on reviewing customer service level, forecasting accuracy and making the material handling department overall leaner.
By implementing the recommendations, the case company can better support the value making production by removing the bottlenecks brought by the remnants of the service-based business model, with implementations in the higher levels of the organization having a compound effect on the functions below them. These implementations would then enable the functions of the delivery process cut down on costly wastage due to more accurate forecasting and improve reaction and lead times due reorganization of the storage department.