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Cost calculation and process improvement for the introduction of new included parts at Volvo Powertrain in Köping
2010 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Product development is one of the most important factors in whether the company will be a market leader or a market follower. By continuously improve the product and satisfy customer needs, there is importance in well managed implementation of updates of the product. These updates create an administrative process which, at Volvo Powertrain in Köping where the thesis was written, is in need of improvements. Process improvements are made possible by mapping a process and from an overview perspective eliminate unnecessary activities. Moreover, in continuous process improvement there is need for process management. Process management treats a process in form of roles and responsibility as a foundation of process survival in the long run. However, every process, whether administrative or manufacturing, is a cost for the company and a part of improving a process and eliminating waste is a way of reducing unnecessary cost. The purpose of this thesis is: …to calculate a template cost for implementation and preparation of a new included part at Volvo Powertrain in Köping. Moreover, a process map is going to be conducted to get an overlook of the process in order to recommend process improvements to minimize the yearly process cost. By combination of literature review, interviews at Volvo Powertrain, secondary data, and a comparing study of process management at SKF, a process map was conducted. The process map gave an overview of the process of implementing updates in the end product. Furthermore, by studying the process map unnecessary activities were discovered. These unnecessary activities were cost bearers and by eliminating these, monetary savings could be made in the process. Moreover, there were problems regarding process management as there were no implemented roles in the process. By illuminating the need of role descriptions and responsibility in the process, Volvo Powertrain in Köping were recommended to conduct role descriptions for every employee in the process. By doing this Volvo Powertrain have savings potential in securing the process get positive key performance indicators instead of the current negative. As there were no process owners at Volvo Powertrain in Köping, there were no top responsibilities with the power in decision making which, on every level in the process create confusion. Furthermore, by calculating the cost of the process and illuminate possible savings by securing the process with scientifically proven methods, a bi-product of the thesis might as well be that Volvo Powertrain start working process management throughout the entire company.

Place, publisher, year, edition, pages
Keyword [en]
Technology, Process mapping, Process management, Value stream mapping, template cost, Process roles, Process improvement
Keyword [sv]
URN: urn:nbn:se:ltu:diva-53068ISRN: LTU-EX--10/015--SELocal ID: a22cc1a9-8c74-4658-bc0d-d4bfc276aec0OAI: diva2:1026441
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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