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On the use of product wheels to cope with bottlenecks A case study of a Norwegian foundry

Bergé, Nathan
(2018)

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Berge_60311300_2018.pdf
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Details

Supervisors
Agrell, Per Joakim ; Nonås, Sigrid-Lise
Faculty
Louvain School of Management
Degree label
Master [120] en Ingénieur de gestion
Abstract
This thesis is a case study of Elkem Bremanger foundry, a Norwegian foundry producing inoculants, a metal additive for properties enhancement of alloys. Following a significant demand increase, the plant is facing planning issues. The utilization rate of its crusher is particularly high. Throughout the thesis, the possibility of implementing a push production system is reviewed by looking at the decoupling point possibilities and investigating the products characteristics. The current planning method is assessed and potential production improvements are evaluated with the help of the product wheel methodology and a MILP mathematical model. The findings indicate that a push production system is possible and advised for part of the production. Findings further indicate that investing in an additional inventory point after the crusher’s operation can be a first step towards mass customization. An updated version of the current planning schedule is presented. The results from the MILP mathematical model show substantial improvements over current schedule. To further sustain its growth, the foundry needs urgent investments in crusher capacity as benefits from planning are limited. Further research may look at evaluating issues and opportunities with raw materials or warehouse and shipping practices.