Packaging Operations in the Automotive Industry - Revealing Operational Gaps Related to Network Inefficiency, using Volvo Cars Packaging Operations as an Example

Abstract

The automotive industry has evolved into an industry of complex supply chains and networks, requiring many activities to be aligned and well-managed in order to avoid abnormalities in both the material flow and information flow. The car assembly requires many different components and material, which also in turn require different types of packaging when being transported to the production plants. This thesis has extended the limited research involving packaging operations of an automotive company, using Volvo Cars as an example. The study focuses on revealing possible gaps that could have a bad impact on the packaging operations and its network balance and flow. The coordination of the packaging requires a well-balanced network of suppliers, production plants, transportation and terminals, where also time management is of high significance as the market demand needs to be responded to. The striving towards efficiency in terms of reducing lead time is however not always flawless. By using the SERVQUAL and CATWOE models as well as previous research, it was possible to reveal and conclude gaps within the organization in terms of communication both internally and externally. Also, by using data compiled by the Volvo Cars Packaging Operations, it was possible to further analyze the packaging network and its lead time between the terminals, production plants and suppliers, and reveal gaps within this operational loop. The study further concluded that the most critical problem in terms of time was found on supplier level, among other factors in the loop.