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Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics. (Ho Van Long, Ebuh Randy, Maxime Haeume)
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
2011 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Title: A case study for LORAMAX on supply chain strategy & production efficiency. 

Limitations: Due to the sensitive nature of the information in this thesis, a non-disclosure agreement was signed, and some data cannot be disclosed. 

Background: LORAMAX, the case company for this thesis produces differentiated products on the basis of quality. They are faced with the challenge of making a product that they recently launched, HERO, more competitive in the market. Even though they have chosen a differentiated strategy, the company understands that cost reduction could as well provide them a competitive advantage and is therefore crucial to the survival of the new product. 

Research questions:               

How can the production cost and lead time be reduced for HERO?

How would the choice to either buy pre-assembled modules or manufacture them in-house influence the profit margin of HERO?

Purpose: The purpose of this thesis is to use relevant theories and practical tools in order to help the company identify potential opportunities and areas where to reduce assembly costs and lead-times. 

Method: The empirical data used to draw conclusions was collected through a mixed research method (both qualitative and quantitative) carried out on site at LORAMAX with the help of the purchasing and production manager, through interviews, questionnaires and observations. This thesis is written from a positivistic perspective with a deductive approach. 

Conclusions: Value Stream Mapping (VSM) and Total Cost of Ownership (TCO) are effective tools for cost and lead time reduction and can be used to support a make-or-buy decision. In this thesis, we arrive at the conclusion that LORAMAX will improve its profit margins on HERO if it buys already assembled modules.


Place, publisher, year, edition, pages
2011. , 107 p.
Keyword [en]
Supply Chain Management, Lean Management, Value Stream Mapping, Total Cost of Ownership, Kraljic Matrix
National Category
Economics and Business
URN: urn:nbn:se:lnu:diva-12304OAI: diva2:421931
Subject / course
Business Administration - Other
Educational program
Business Process and Supply Chain Management, Master Programme, 60 credits
Social and Behavioural Science, Law
Available from: 2011-06-13 Created: 2011-06-10 Last updated: 2011-06-13Bibliographically approved

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