Abstract

Today’s business environment involves a globalised market, greater than before competition and more challenging customers, all factors which contribute to higher uncertainty and variability. Manufacturing flexibility is becoming more important in order to cope with the complexity of products through frequency volume changes and evaluations of the technological requirements of products.

The research for this thesis was performed within a subcontractor company, Laserkraft AB, who focus on laser cutting, turning and welding processes in their production. The company utilises a variety of volume and product mixes, which is in correlation with the objective of this study.

The purpose of this research was to investigate the common source drivers in order to achieve volume and product mix flexibility on batch production systems. First, a literature review was conducted in order to build the framework of common source factors between volume and product mix flexibility. Then, a single case study was conducted to examine the outcomes of framework on batch production. In this case, qualitative techniques included interviews and an observation of the shop floor.

The analysis of this study was conducted with empirical research on a case study and theoretical framework from literature. From the literature stand point; it was found that flexible manufacturing competencies (FMC) and strategic flexibility approaches are two main elements to determine internal source drivers between volume and product mix flexibility. The groups of common source factors were then analysed with respect to characteristics of batch production systems at the chosen company.

A comparison between the framework and the empirical findings identified source drivers in order to achieve volume and product mix flexibility. Due to the limited nature of the study, all source factors that have an impact on achieving volume and product mix flexibility might not be presented in this thesis. Besides, it is difficult to generalise the result on a single case study.

As a result, each organisation and industry refers to their product, process and type of layout, and requires a group of practices to achieve volume and product mix flexibility. This thesis concludes with the top three common source factors between volume and product mix flexibility such as: set-up time reduction, multi-trained employees and advanced manufacturing technology.