1. Masterthesis project Master thesis 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 Volvo Technology Chalmers University of Technology

2. I am looking for a job now, if you need a smart and diligent employee in LEAN, welcome to contact: chnxiaoxia@yahoo.com.cn Xiaoxia ChenXiaojin Qiu Trainee at SKF, China operation.

3. 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 Volvo Technology Chalmers University of Technology

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

5. Case study: - Study visit (video, pictures) - Survey - Observation - Avix (time study), Spaghetti diagram (MH analysis) and so on Focus group discussions Research Methodology and Tools Interview Literature review Volvo Technology Chalmers University of Technology 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. Generation of Evaluation Method MethodsChooseAdvantagesDisadvantages Life Cycle Assessment √ Life cycle thinking; Widely used Variable; Detail level Value Stream Mapping √ Visualized; Holistic view; Easy to understand; Compatibility Same unit needed; One flow Lean Assessment X Well roundToo detailed Training needed; Loss Model √ Visualized; Easy to understand Same unit needed Avix (video recording analysis) √ Easy to understand; Visualized Time consuming; Training needed Spaghetti diagram (MHA) √ Easy to understand; Visualized (software work) Questionnaires √ First hand information; Reliable/Practical Time consuming Subjective; Volvo Technology Chalmers University of Technology

9. 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 Volvo Technology Chalmers University of Technology Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

10. 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 Volvo Technology Chalmers University of Technology Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

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

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

13. Volvo Technology Chalmers University of Technology Current MH-VSM

14. Volvo Technology Chalmers University of Technology Current state

15. Volvo Technology Chalmers University of Technology Current state

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

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

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

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

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

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

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

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

24. Future state Volvo Technology Chalmers University of Technology

25. Future state Volvo Technology Chalmers University of Technology

26. Results from improvements Production efficiency (11 8 min.) Station size Movements frequency Feeding frequency

27. Production efficiency Volvo Technology Chalmers University of Technology

28. Station size Volvo Technology Chalmers University of Technology

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

30. Feeding frequency

31. Volvo Technology Chalmers University of Technology Future MH-VSM

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

33. 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 Volvo Technology Chalmers University of Technology Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

34. 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 Volvo Technology Chalmers University of Technology Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

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

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

37. Loss model -Environment perspective: Divided by categories: Overview:

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

39. Conclusion Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry Volvo Technology Chalmers University of Technology

40. Limitation 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 Volvo Technology Chalmers University of Technology Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry

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

42. 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 Volvo Technology Chalmers University of Technology

43. Discussion MethodsTo be usedNotes Avixdepends Manual work Spaghetti diagramdepends MH / operation movements Questionnairedepends Purpose Evaluate the Environmental Impacts of Implementing Lean in the Production Process of Manufacturing Industry Volvo Technology Chalmers University of Technology

44. 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 Volvo Technology Chalmers University of Technology