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Improving Production Efficiency to Increase the Capacity and Profitability of a Swedish Wooden Single-Family House Producer
Linnaeus University, Faculty of Technology, Department of Mechanical Engineering. (Industrial engineering)
Linnaeus University, Faculty of Technology, Department of Mechanical Engineering. (Industrial engineering)
Linnaeus University, Faculty of Technology, Department of Mechanical Engineering.
2015 (English)In: Proceedings of the 58th International Convention of Society of Wood Science and Technology June 7-12, 2015 - Grand Teton National Park, Jackson, Wyoming, USA: Convention Theme: Renewable Materials and the Bio-Economy / [ed] H. Michael Barnes and Victoria L. Herian, Society of Wood Science and Technology (SWST) , 2015, 775-783 p.Conference paper, Published paper (Refereed)
Abstract [en]

After the economic downfall and declining orders for wooden single-family houses in the past, order quantities on the Swedish market are turning upwards again. Yet, production costs for the firms are too high, often due to an inefficient production with too long lead-times. Further, a lot of capital is tied up in stock, leading to a relatively low rate of inventory turnover. Many firms face such production-related bottlenecks that affect profitability in a negative way. At the same time, firms want to increase their production capacity since the market is gaining strength.

In this study, principles and methods of the LEAN production philosophy were applied on a case firm, where the value stream was mapped to explore bottlenecks in the production of a wooden single-family house and to calculate production efficiency. By means of the DuPont scheme for economic analysis, the firm's return on assets was analyzed.

Data reveal how stock utilization, production and material flow, capacity and consequently return on capital are affected by a suboptimal facility planning. Changes in the current facility layout are suggested and measurements performed to exploit the direct effects of such changes and show their potential.

Results show that with the suggested changes, stock could be reduced by 37 %, value-adding space increased by 13 % and production capacity by 50 %. By implementing the suggestions, production efficiency could increase between 10.3 % and 230 % and the firms return on assets could improve from 2.5 % to 37.8 %, which corresponds to an increase of profitability by around 1 506 %.

Place, publisher, year, edition, pages
Society of Wood Science and Technology (SWST) , 2015. 775-783 p.
Keyword [en]
Wooden Single-Family Houses, Lean Production, Production Efficiency, Value Stream Mapping, Production and Material Flow, Return on Assets
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Technology (byts ev till Engineering), Industrial economy; Economy, Ekonomistyrning; Economy
Identifiers
URN: urn:nbn:se:lnu:diva-42420ISBN: 9780981787657 (print)OAI: oai:DiVA.org:lnu-42420DiVA: diva2:805497
Conference
58th International Convention of Society of Wood Science and Technology, June 7-12, 2015, Jackson
Available from: 2015-04-15 Created: 2015-04-15 Last updated: 2017-04-24Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
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  • Other locale
More languages
Output format
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