Development of production

layout
A proposal of Lean model for a manufacturing company by using Value
Stream Mapping

Framtagning av produktionslayout

Ett förslag på Lean-modell för ett tillverkningsföretag genom

användning av värdeflödesanalys

Josefin Fransson

Faculty for health, science- and technology

Degree Project for Bachelor of Science in Mechanical Engineering

15 ECTS Credits

Supervisor: Abdulbaset Mussa

Examiner: Jens Bergström

Date: 2020-07-08

Serial number: 2
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PREFACE
This Degree Project for Bachelor of Science in Mechanical Engineering will finish my three years of
studies at Karlstad University before I leave for a Master’s program in another city in Sweden. I
would like to bring attention to thank my supervisor Abdulbaset at Karlstad University for having
patience with all my questions during the course of work. Also, thanks to Emma, Christina, and Leo at
the Department of Engineering Science and Physics at Karlstad University for providing me valuable
advice during the entire project. Last but not least, I would like to thank the persons at the company
where the thesis was written for giving me the opportunity to perform this work.

The Degree Project for Bachelor of Science in Mechanical Engineering gained my knowledge and
inspired me to continue to work with Lean and production-oriented tasks in the future.

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ABSTRACT
A general aim among manufacturing companies is to create a high value for the customer by using
few resources and gain profit as a result. Tools and methods from Lean can be used for streamlining
the production in order to achieve a resource-effective, flexible, and fast production process. An
earlier study has shown that productivity increased by 37% when Lean tools were applied. The aim of
Lean is to have a continuous value stream by eliminating waste that does not add any value to the
customer. The value stream refers to the processing steps a product passes through from the moment a
customer places an order until the finished product whose purpose is being fulfilled. Waste in terms of
transportation, inventory, wait, defects in products, and more impairs the flow efficiency. The choice
of production layout has an impact on the grade of flow efficiency. Making a suitable placement of
machines, inventory areas, shipment positions, and workstations can minimize the number of waste
occurrences hence benefit a continuous value stream.

The purpose of this study is to design a suitable layout for a newly started manufacturing company.
The company does not have a current production facility as its enterprise development is in the
start-up phase. The layout is designed for the future production facility that is under planning. The
goal is to design a layout with minimal waste occurrences that benefit a continuous value stream.

The study is based on literature and data collections. The literature studies include Lean and
production systems as the main field. Relevant data were collected through interviews and study visits
at similar manufacturing companies around Värmland. The value stream regarding the company will
be described through a visual map. This is done by using value stream mapping as a tool from Lean.
Various layouts that are considered to be in alignment with the value stream will be designed and
discussed. One of these layouts is chosen as being the most appropriate.

The results presented a layout and a value stream map with regard to the company’s production
process. These were based on a predictable volume of two similar products that were expected to be
sold during the first production year. Three scenarios of different production schemes with regard to
the presented layout was presented. One production schemed was proved to be the most
resource-efficient. This was proved by calculations of machine capacity, the timeframe for
production, and customer request. Furthermore, a value stream map of a future workshop and business
state was presented. The value stream map provided a comprehensive control over the value stream.
However, some data could not be provided. The starting point of this was considered to be unique as
there was no current value stream to analyze or judge. Several assumptions, estimations, and
simplifications for a future state were, therefore, taken. The presented conclusion of the study was that
the layout was designed according to the required manufacturing processing steps. Waste risks were
assumed to be low in the presented layout due to a suitable placement of machines, inventory areas,
and workstations. Space, material handling, and transportations were being held low hence benefit a
continuous value stream. The layout was assumed to be in alignment with the value stream.
Recommendations for future work were to make simulations of different layouts before any
implementations take place. The value stream map was obtained for future work in order to
distinguish value-added and non-value-added activities by adding process data.

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SAMMANFATTNING
Ett generellt mål för tillverkningsföretag är att på ett effektivt sätt skapa ett högt värde för kunden
med få resurser. Detta för att generera vinst i företaget. Verktyg och metoder från Lean kan användas
för att effektivisera produktionen och på så vis gynna en resurseffektiv, flexibel och snabb
produktionsprocess. En tidigare studie har visat att produktiviteten kan öka med 37% med hjälp av
Leanverktyg. Målet med Lean är att skapa ett kontinuerligt värdeflöde genom att eliminera slöserier
som inte bidrar med något värde till kunden. Värdeflödet avser den väg av förädlingssteg som en
produkt genomgår från det att en kund lägger en beställning fram tills att det är en färdig produkt vars
ändamål uppfylls. Slöserier i form transport, lager, väntan, defekta produkter och mer försämrar
flödets effektivitet. Valet av produktionslayout spelar roll då den är relaterad till graden av
flödeseffektivitet. Genom att göra en lämplig placering av maskiner, lagerområden, lastplatser och
arbetsstationer kan slöserier minimeras för att på så sätt gynna ett kontinuerligt värdeflöde.

Syftet med denna studie är att designa en lämplig layout åt ett nystartat tillverkningsföretag. Företaget
som layouten designas för har inte någon nuvarande produktionsanläggning då de befinner sig i
start-up fasen av deras karriär. Layouten designas åt den framtida produktionsanläggningen som är
under planering. Målet är att designa en layout som gynnar ett kontinuerligt flöde för att reducera
antalet slöserier.

Studien baseras på litteraturstudier och datainsamlingar. Litteraturstudien innefattar Lean och

produktionssystem som huvudområde. Insamling av relevant data skedde i form av intervjuer och
studiebesök på liknande tillverkningsföretag runt om i Värmland. Genom värdeflödesanalys som
verktyg från Lean kommer en visuell karta presenteras för att beskriva värdeflödet inom företagets
anläggning. Olika layouter som anses vara i linje med värdeflödet designas och diskuteras varav en
utses som mest lämplig.

I resultaten presenterades en layout och värdeflödeskarta med hänvisning på företagets

produktionsprocess. Detta baserades på en preliminär produktionsvolym av två snarlika produkter
som förväntades bli sålda under det första produktionsåret. Med avseende på den layout som valts
presenteras tre olika scenarier av produktionsupplägg. Genom beräkningar av maskinkapacitet,
tidsram för produktion och kundförfrågan visade sig ett produktionsupplägg vara mest resurseffektiv.
Vidare presenterades en värdeflödeskarta över ett önskat framtida läge som gav en övergripande
kontroll över värdeflödet. Dock fanns en bristande tillgång på data. Utgångspunkten i denna studie
ansågs därför vara unik eftersom något existerande värdeflöde inte fanns att analysera eller döma. Ett
flertal förenklingar, avrundningar och antaganden gjordes. De slutsatser som presenterades av studien
var att layouten var designad i enlighet med tillverkningsprocessen. Riskerna för slöseri antogs vara
låga i den presenterade layouten på grund av en lämplig placering av maksiner, lagerområden och
arbetsstationer. Utrymme, materialhantering och transporter hölls låga. Layouten antogs vara i linje
med värdeflödet och därmed gynnas ett kontinuerligt flöde. För vidare arbete rekommenderas en
simulering för att utvärdera olika layouter innan implementering. Värdeflödeskartan erhölls som
grund för att vidare arbete för att addera processdata och skilja på icke-och värdeskapande aktiviteter.

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PREFACE 3

ABSTRACT 5

SAMMANFATTNING 7

VOCABULARY 11

1. INTRODUCTION 12
1.1 Background 12
1.2 Problem formulation 13
1.3 Purpose and goals 14
1.4 Limitations 14

2. METHODOLOGY 15
2.1 Approach 15
2.2 Literature studies 16
2.3 Data collection 16
2.4 Thesis research methods 17

3. THEORY 17
3.1 Toyota Production System 17
3.2 What is Lean? 20
3.3 Lean Production 21
3.4 Value Stream Mapping (VSM) - A tool within Lean Production 22
3.4.1 Steps for Value Stream Mapping 22
3.4.2 Process data and calculations 25
3.4.3 Value Stream Mapping Icons 26
3.5 Facility layout 26
3.6 Production process 28
3.7 Basic layouts 29
3.7.1 Product/assembly-line layout 29
3.7.2 Process layout 29
3.7.3 Fixed-position layout 30
3.7.4 Cellular layout 30
3.8 Bottleneck 30
3.9 Lean production and layout 31

4. RESULTS 31
4.1 Description of the current state 31
4.2 Production request 32
4.3 Raw material and machines 33
4.3.1 Scenario 1 40
4.3.2 Scenario 2 41

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 4.3.3 Scenario 3 41
4.4 Production layout 42
4.5 Value Stream Map 44

5. DISCUSSION 44

6. CONCLUSIONS AND RECOMMENDATIONS 46

6.1 Future work 47

7. REFERENCES 47

8. APPENDICES 50
8.1 Appendix A - Grant project planning 50
8.2 Appendix B - Chosen layout proposal 52
8.3 Appendix C - Layout proposal 54
8.4 Appendix D - Layout proposal 56
8.5 Appendix E - Expanded production, layout proposal 57
8.6 Appendix F - Value Stream Map 58

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VOCABULARY
Value stream:​ Sequences of activities a product passes through from the moment a customer places
an order until it is a finished product.

Value Stream Mapping (VSM):​ A tool within Lean.

Waste: Activities that do not contribute to any value, non-value-adding activities.

Throughput:​ The time passed to get a product through the entire production process.

Flow efficiency:​ The total time for the value-added activities in the value stream in relation to the
total throughput time.

Lead time:​ The time between the start of a process (putting an order) until the end when its purpose is
being fulfilled (the product can be used by the customer).

Beams:​ Refers to the product used for interior walls, concerning construction manufacturers.

Rods:​ Refers to the product used for bed frames, concerning bed manufacturers.

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1. INTRODUCTION
This chapter will present the background of the study, the problem formulation, its purpose, and
limitations. First, the background provides a general description of manufacturing companies in
general followed by an initiation to the company the thesis will be written for. Second, statements will
be presented in which serve as a basis for the underlying problem formulation of the study. Lastly, the
purpose and limitations will be presented.

1.1 Background
Having a continuous and effective flow of material and information is essential for achieving profit
within industry organizations. A general aim among manufacturing companies is to create a higher
value for the customer by streamlining the production. Transportations, machines, workstations,
operators, and inventory are some of the many elements that must be arranged within a production
facility [1]. A product’s pathway from the moment a customer places an order until it is a finished
product, named value stream, consists of several coordinated activities. Hence waste in terms of time
losses, transportation, inventory, and material waste can be found within the value stream due to the
many operations and steps. As a result, businesses implement methods to develop an effective and
flexible production process with minimal waste and maximum value [2]. Commonly, methods from
Lean are applied for eliminating waste in order to optimize the performance in terms of quality, costs,
and time [1]. Lean is a global concept that is used among manufacturing companies for streamlining
the different areas and processes that exist within a facility. The core concept of Lean is to develop an
effective and flexible process with minimal waste and maximum value [2].

“Lean is a way of seeing, operating and managing a business based on ​resource-efficient,​ f​ lexible​ and f​ ast
processes that are driven by​ customers' current demand”
​ translated from” [1, p. 11]

The manufacturing company the thesis is written for, started in 2016, has developed a beam based on
paper as raw material by using a unique manufacturing technique. Their product is patented in
Sweden and can be used for several applications where a strong and light material is required, but
with less climate impact and for a reduced cost. One application for the company’s paper beam is for
interior walls where steel as a material is regularly used today. Steel beams are ungainly and heavy for
the worker, become sharp after cutting, and have a greater cost compared to the company’s paper
beam. A life cycle analysis done at Karlstad University showed that the manufacturing of one steel
beam generates the same amount of CO2 emissions as 14 paper beams from the company. The
manufacture of the paper beam is based on physics and chemistry. It passes through a number of
process steps before it is a finished product. Firstly, a big roll of paper comes in as raw material that
becomes processed in a rewinding machine into smaller rolls into a certain width. Secondly, the
processed paper rolls are placed in the main machine where the paper is being transformed into the
product. The process in the main machine consists of several subprocesses that are performed
automatically driven after each other. The paper is rolled out and dipped into a special adhesive and
smoothed to obtain the correct amount on the paper’s surface. When entering the machine, the paper
is wrapped around a solid core at a certain speed and tension, in the correct number of layers. As a last
step in the main machine, it is cut to the desired length by means of roller shears. Lastly, the paper

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beam has a certain drying time depending on its size (e.g. profile dimension and length) in order for
the adhesive to solidify completely until it is a finished product and can be dispatched for sale. [3].

However, the company has no existing production facility today since they are in the start-up phase of
their career. Their first market target is to produce two profile dimensions of the product. Beams for
the construction industry and bed rods for bed manufacturers. Right now, quality tests are in progress
to certify the product to enter the two markets. The prototype parts used for the quality tests are
manufactured from a supplier that is based in Germany.

Previous research has verified that manufacturing companies can increase their industrial
competitiveness by having an effective value stream. The choice of the facility layout is strongly
connected to the grade of effectiveness in the value stream. Applying methods from Lean when
conducting a facility layout benefits the value stream and can increase productivity. An earlier study
has shown that productivity can increase with as much as 37% when Lean tools were applied [4].
Planning and scheduling a suitable facility layout that is in alignment with the flow of material is an
important contributor to achieving productivity. Planning a layout includes making an optimal
placement anything needed within the facility such as machines, inventory, and workstations to
reduce possible waste [5,6].

“Facility layout has being a significant contributor to manufacturing performance, has been studied many times
over the past decades. (Tompkins et al 1996) was concluding that a good placement of facilities will contribute
to the overall efficiency of operation and can reduce until 50% of the total operating expenses. (There, 1964)
also state that the good placement of facilities will reduce about 20% to 50% of the total operating expenses in
term of reduction costs by 10% to 30% annually in material handling costs in manufacturing industry.”
[6, p.261]

The procedure of how raw material comes into being a finished product includes the relationship
between machines, material, and workers. Using Value Stream Mapping (VSM) as a method from
Lean provides a comprehensive view of the entire process within the facility. A value stream map is a
visual description that reflects the physical flow of material, products, and customers [1]. It benefits
productivity and effectiveness since waste can be identified and reduced. As a result, the lead time can
be shortened by 50% and the time regarding material handling can be reduced [7].

1.2 Problem formulation

Having a suitable facility layout for manufacturing companies is crucial for achieving profit by having
an effective value stream and thus increase the throughput (i.e. the amount produced). Depending on
volume and product variety, a decent production facility is conducted by making the most convenient
placement of machines, inventory areas, workstations, and shipment position [6]. Waste such as
transportations, time, motion, and material handling can be either reduced or entirely eliminated by
optimizing the facility layout [8]. Based on these statements, the following problem formulation is
presented:

How should the future facility layout for the manufacturing company be designed based on an optimal
layout to achieve an efficient value stream?

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1.3 Purpose and goals
The purpose of this thesis is to examine what aspects manufacturing companies need to take into
account in the planning of a production facility. The thesis will investigate how a production layout
should be designed in order to achieve a continuous value stream. The goal is to:

● Develop a suitable layout that is in alignment with the value stream.

● Design a layout that requires minimal space, time for material handling, and transportation
routes.

This will be done with regard to Lean with its tools and methods as a foundation for creating the best
possible condition for the future production facility. A layout will be presented to define how the
tangible fixed assets can be designed in the most suitable way in alignment with the value stream. In
addition, Value Stream Mapping (VSM) as a tool from Lean will be performed for identifying,
prioritizing, and eliminating the waste risks in the value stream [9]. A value stream map of a future
state with the best guess will be presented.

1.4 Limitations
The study is being limited to a layout that will manage one volume of two products. These products
require the same type of manufacturing technique. The production facility that the layout will be
designed for is under planning as no physical facility exists yet. Several assumptions, estimations, and
simplifications for a future state will, therefore, be taken. Focusing on details regarding the production
will be too extensive for this study. Furthermore, value stream mapping is usually made up by
analyzing a current state in order to make improvements for a future state [9]. In this study, there is no
current state to analyze. The value stream map will present a future state with the best guess. Further
limitations are:

● A value stream includes all activities a product passes through from the moment a customer
places an order until it is a finished product. The value stream will be limited through the
facility in this study, see figure 1.

● The layout is based on a predicted volume that will be produced during the first production
year.

● The layout will not provide any detailed specifications

● Some data can not be provided in the value stream map

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Figure 1: Limitations, modified from [2], with permission.

2. METHODOLOGY
This chapter provides a presentation of how the study was conducted. A comprehensive approach will
be described followed by more specific details about literary studies, gathering of data and
information, and the thesis research method. In addition, qualitative and quantitative research
methods will be highlighted.

2.1 Approach
The study started with an initiation meeting with the company the thesis was written for. The study’s
purpose and problem formulation were defined after some discussion and guidance with the
supervisor at Karlstad University and the company. Thereafter, the literature study started in order to
obtain a fundamental understanding of Lean production, facility layout, and the Lean tool value
stream mapping. The literature studies came to create a wide theoretical background. The theoretical
background served as a basis for the rest of the performed activities during the entire work.

The literature study was ongoing in parallel with report writing, study visits, and interviews. Mainly
chapters one, three, and parts of chapter two were written in the report in parallel with the literature
study. The work with developing the requested layout began when the theory chapter in the report was
completed. Various layouts were designed and drafted. This was done by using paper and pen and by
using the software Lucidchart. The layouts relied on the obtained theoretical background from the
previous literature study together with calculations of data that were given from the company. Three
different layouts were presented to the company in which one of them was chosen. It was considered
obvious during the presentation meeting that one of the three layouts were most suitable according to
the request. However, it led to some discussion since all of the three layouts came with their own
advantages and disadvantages. The work with conducting a value stream map as the final activity
started once the layout had been chosen. The value stream map was performed by making further
calculations of the given data. Some estimations were done since the value stream map presented a
future state with the best guess. Maintaining work with writing chapters four, five, and six in the
report was ongoing in parallel.

Furthermore, continuous contact with the supervisor at the university and the company were held
during the entire work. The contact was mainly held through physical meetings and emails. In
addition, meetings with a teacher from the Department of Engineering Science and Physics at

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Karlstad University regarding value stream mapping were held. Three meetings about value stream
mapping took place during the end of the work since it was the last activity.

2.2 Literature studies

The literature studies started with searching for information about the history of Lean to gain
fundamental knowledge. The intention was to discover where it came from and why it has been such a
well-known approach to rely on within manufacturing industries for many years. A strong suggestion
from several professionals at Karlstad University was to start with reading the book “The Toyota
Way” by Jeffrey K Liker. The book came to serve as a basis when searching for further relevant
literature and previous research about how production layout is related to Lean and value stream
mapping. The information searching took place through Karlstad university’s database “Onesearch”
by mainly using the keywords; Lean, Lean production, production system, production layout, value
stream, and value stream mapping. The keywords regarding layout were also used on the platform
ResearchGate when searching for previous research within the subject. The used information comes
from books and articles of previous research. The supervisor and other professionals at the
Department of Engineering Science and Physics at Karlstad University have advised about relevant
literature and articles.

2.3 Data collection

Interviews with the supervisor at the company were held in order to understand the production
process. Several interviews took place since the need for more information about the production
process emerged in parallel with the work in progress. Properties of the raw material and machines
were collected and noted during the interviews. Besides interviews, the manufacturing process was
observed through a recorded video of the main machine where the product is generated. The movie
was recorded by the supervisor at the company during a visit to Germany where the main machine is
currently being located. The supervisor at the company did also contribute with knowledge from
previous experience that increased the understanding regarding manufacturing and production in
general.

Study visits at OptiPack, Vestre, and Volvo were made. All companies are within the manufacturing
industry whereas OptiPack and Vestre are small manufacturing companies similar to the company the
thesis was written for. The aim of the study visits at OptiPack and Vestre was to gain an
understanding of how different layouts can be designed and how it affects the flow of material.
Whereas the aim of the study visit at Volvo was to gain knowledge about how value stream mapping
is used and why it is a good tool within Lean. All three companies adapt to Lean production in
different grades. The study visit at OptiPack AB in Sunne provided a view of a bad layout as it did not
follow the flow of material. The disorganized layout design caused many internal transportations and
intermediate storage between the process steps. The persons at the OptiPack were well conscious
about their bad layout and expressed that they need to change it for performing more efficiently. In
contrast to OptiPack, the study visit at Vestre Production AB in Torsby provided a view of a good
layout. Their layout was well considerate as it followed the flow of material. Internal transportations
and intermediate storage between the process steps were held low because of the suitable layout. The
visit to Volvo in Arvika took place after meeting the company at the job fair Hotspot at Karlstad
university. Volvo provided a presentation during the visit to Arvika regarding how they adapt to Lean

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methodologies. The presentation was mainly about how they are working actively with value stream
mapping. This gave a deeper understanding of how the Lean tool is put into practice and why it is a
valuable tool for streamlining production.

2.4 Thesis research methods

Two different approaches are usually distinguished within methodology; qualitative and quantitative
research. The characteristics of the two approaches differ. Qualitative research aims to create a deeper
understanding of the objective. The purpose is to understand a context in terms of why and how. The
data collection methods in qualitative research are usually made up of interviews, observations, and/or
discussions. The collected data are textual. In contrast to qualitative research, quantitative research
aims at previous research based on existing theories. The purpose is to quantify a problem by
answering how much, how often, or finding correlated variables. The data collection methods in
quantitative research can be questionnaires, opinion surveys, and/or exit interviews. The collected
data are statistical data. [10, p. 41].

The thesis research method concerning this study is mainly qualitative. However, all requirements for
a qualitative method are not fulfilled. There are some factors of quantitative elements combined.

3. THEORY
This chapter examines the literature which has been applied and served as a foundation for the thesis.
Existing theories and philosophies will be presented in order to gain knowledge about Lean
production. The theory will review general practices within production and why it is useful to rely on
Lean when conducting a production layout. Furthermore, the Lean-tool Value Stream Mapping will
be presented.

3.1 Toyota Production System

The aim of this section is to shed some light on the Toyota Production System (TPS) in order to
understand the theory behind Lean and its tools. TPS is the framework that formed and advanced
Lean, which will be addressed in the next section

Toyota has been recognized for being the fastest in the world when it comes to product development.
They are considered as being the leader in the manufacturing industry in terms of quality,
productivity, manufacturing speed, and flexibility. The author of the book The Toyota Way, Jeffrey
K. Liker, explains the leadership methods, the ways of thinking, and the philosophy that underpins
Toyota's success. Liker provides a comprehensive description of the tools and methods that are
included in the Toyota Production System and how its principles establish Toyota's culture with the
key concepts "continuous improvement" and "respect for people" [11]. The Japanese word ​kaizen i​ s a
central concept that is used when the Toyota Production System is put in a context where ​kai​ means
and ​zen ​means good [12]. The two merged words, ​kaizen,​ stands for continuous improvement which
characterizes Toyotas’ fundamental attitude [11].

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The general control of Toyota together with the tools and methods included in the Toyota Production
System is based on 14 principles distinguished into four main areas; philosophy, processes, employees
and partners, problem-solving. The principles were identified by Liker during his research work. A
description of the 14 principles together with its division into the associated main areas is presented in
the following text. [11].

Philosophy

1. Long-term philosophy.
The company should always stay true to the long-term philosophy by making decisions based on it,
even if it might have a negative effect on the business in the near future. Working towards a common
goal and develop by making the right decisions in terms of the company, employees, and customer is
more important than making money. The value should be provided to the society not only to the
customer. This principle is the philosophical starting point and the foundation of all other principles.

Processes

2. Continuous process flow.

Arrange processes to obtain the highest quality with the shortest possible delivery time and lowest
cost. Activities that do not add any value should be eliminated to the maximum extent possible. The
goal is to transform waste into value by having a continuous flow. Having good communication
between activities and people is essential to detect defects and predict errors.

3. Avoid overproduction.
Produce according to customers’ demand - at the right time, in the right quantity. Based on
Just-In-Time (JIT) where you let the customer's demand control the production to eliminate
unnecessary inventory space. A “pull” system is achieved once Just-In-Time is implemented to avoid
overproduction. Smaller batches provide better control of the quality thus identifies mistakes faster.

4. Equalize workload (Heijunka).

Employees should not have too high a workload, it should be distributed as well as the production.
Heijunka​ comes from Japanese and the core idea is about creating a uniform product sequence. It is
better to build a stock of finished products and not produce according to customer demand as it can
vary greatly. Variation can be reduced by dividing production by volume and production mix.

5. Integrate quality.
Use assurance methods to integrate quality into the product to prevent inaccuracies. The Japanese
word, ​Jidoka,​ is about using human intelligence in combination with equipment. Having a system that
notifies directly when something is wrong prevents problems in later steps, which in turn generates
less unnecessary rework.

6. Continuous improvement and employee engagement.

High production efficiency in combination with high quality can be maintained if standardized work
is followed and if there is information available. Employees should have the right to have opinions

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and share them. Improvement suggestions from employees should be encouraged. Good suggestions
can be implemented and standardized throughout the entire organization.

7. Visualization.
A structured work environment through visual descriptions such as symbols, marks on the floor, or
signals benefits a standardized way of working. It should be obvious through the visual when
working.

8. Technology.
People should not be replaced by technology. New technology can contribute to great improvement
and should be encouraged, but to be taken with caution. It is important to test the technology properly
before implementing it. The aim is to make use of technology as a tool in order to facilitate the
employees' work.

Employees and partners

9. Leaders.
The task of a leader is not just to perform tasks or to distribute them. A leader represents the
company's philosophy and should, therefore, be a role model for the employees. Expertise can be
found within the company, it should be used rather than searching for answers from external sources.

10. Teamworking.
Encourage people within the company to collaborate and achieve improvement by solving problems
together. Working towards a common goal creates a stable culture with clear values to aim and strive
for.

11. Partners and suppliers.

Form a company that supports others by sharing knowledge for mutual long-term advantages. Guide
subcontractors to reach goals and challenge them to develop.

Problem-solving

12. Question problems.

Create a full understanding of a problem-situation by questioning. Questions should be encouraged no
matter what position you are. Defects that have arisen can be deduced from the production back to the
purchasing stage by questioning.

13. Make decisions.

It is essential to consider different kinds of alternatives when making a decision. Persons that will be
influenced by a new decision should be allowed to participate in decision-making.

14. Continuous improvement.

A mistake should be considered as an opportunity to learn rather than a failure. Repair problems by
finding the cause. Finding the fundamental cause of a mistake creates possibilities that can be
discovered.

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The principles are guidelines that represent how an organization should be conducted according to
Toyota’s values. Including all levels throughout the organization and striving for a common goal is
the foundation for prosperity. Toyota Production System is usually illustrated in a house, titled
TPS-house,​ where the principles, tools, and methods are integrated. The house, according to figure 2,
is a structured framework where each part of the house (e.g. roof, pillars, and ground) is essential for
the organization to act together as a whole [11].

Figure 2. The TPS house modified from [11].

3.2 What is Lean?

The Lean concept as in Lean production, Lean management or Lean manufacturing is an approach or
strategy of how an organization should be conducted. The aim is to achieve profitability by being
flexible and productive. Lean emphasizes the quest to eliminate everything that does not add value for
the customer by focusing on the flow efficiency. The flow efficiency is defined by the total time for
the value-added activities in the value stream in relation to the total throughput time [6]. Lean
addresses a number of strategies and methods that can be used to efficiently analyze existing
resources and question its appropriateness. The core purpose is to achieve an efficient and continuous
flow in alignment with the customer’s needs by eliminating unnecessary resources through the entire
value stream (i.e. from raw material to final product) [1].

20
Lean is an extension of Toyota's production system and got its base from the principles pioneered by
the Toyota Production System. The knowledge about Japanese quality thinking began to spread and
became globally acquainted when the world's industries encountered financial challenges due to the
oil crisis in the 1970s. Toyota managed the crisis noticeably better with higher profits than its
competitors. On behalf of the Western European and North American automobile industry in 1979,
researchers from the Massachusetts Institute of Technology got to examine Toyota's profitable way of
working. They studied the background behind Toyotas’ succession for five years and interpreted
Toyota's way of working according to the Toyota Production System model. Massachusetts Institute
of Technology coined the term “Lean production” in association with the publication of the book
“The Machine That Changed The World” as a result of the five years of studies [13]. The founder of
TPS, Taiichi Ohno, expressed himself in 1988 about Toyota's way of working and how it created
value:

“All we are doing is looking at the timeline from the moment the customer gives us an order to the point when
we collect the cash. And we are reducing that timeline by removing non-value-added wastes” [11, p. 25]

However, Lean is more than maximizing the value to the customer while minimizing the amount of
waste (e.g. human effort, equipment, time, space). According to the 14 principles mentioned in section
1.1, Lean includes focusing on engaging and develop people. It is integrated into continuous learning,
quality, and improvement work. Teamwork and supportive leadership that encourages the team
members and is essential to successfully achieve Lean. Therefore, Lean is not something that can be
easily implemented. It requires visions to work against in order to cover the entire organization as it
occurs at the time in which the business is capable to adapt the Lean mentality [1,14].

3.3 Lean Production

When Lean production or Lean manufacturing is put in the context, ​muda,​ is associated as a central
concept. ​Muda s​ tands for waste in Japanese and aims at obstacles that cause interruptions in the flow.
7+1 wastes were identified by Liker, mentioned in section 1.1, are activities and actions that do not
contribute to any value to the product or service. Reducing these 7+1 wastes benefits the value stream
and improve a continuous flow in terms of effectiveness and productivity. In addition, it can also
eliminate risks associated with the activities [11]. The wastes that were identified by Liker are
principal elements to focus on within Lean production to achieve a high flow efficiency and increase
profitability. Briefly, the aim is to convert ​muda​ into value by doing more with less - less human
effort, less equipment, less time, and less space [13]. The 7+1 wastes that were identified by Liker are:

1. Overproduction​: Manufacture too much, early, and for safety.

2. Wait​: Ineffective value stream because of obstacles.
3. Transport​: Internal transportation routes within the facility.
4. Processing​: Doing more than the customer requires.
5. Inventory​: Store more than what is needed.
6. Motion​: Movement for the employees to perform their tasks.
7. Defects in products​: Unnecessary rework.
8. Non-utilized creativity to the employees​: Taking advantage of employees' knowledge, one
of the foundations of Lean.

21
There are a number of Lean tools that can be used to identify waste in order to optimize performance
and improve productivity. Commonly used Lean tools are Value Stream Mapping (VSM),
Just-In-Time (JIT), kanban, Single Minute Exchange Dies (SMED), and more [1].

3.4 Value Stream Mapping (VSM) - A tool within Lean Production

Value Stream Mapping is a tool from Lean that provides a way to describe what different processes
and activities a product passes through before it reaches the end-customer. It encompasses all the steps
from raw material to the final product and covers the mapping, analysis, and design of value streams
that exist within a facility. It is a good approach to use for identifying what needs to be done by
gaining control over the value stream. The foundation is made up of using “paper-and-pen” as it
includes drawing a product’s path by hand. It is useful to physically walk in alignment with the
different processes and observe them while taking notes. It provides a deeper understanding of the
flow of material and information in the value stream. Depending on the situation and purpose, it is
important to recognize what process data needs to be collected [2]. In this way, the lead time (i.e. the
period of time between the placement of an order and the shipment) can be separated into
value-adding and non-value adding activities. As a result, it will benefit to a more efficient flow since
non-value adding activities can be detected and, therefore, eliminated. The aim of using Value Stream
Mapping as a tool from Lean is to improve flow efficiency by minimizing the amount of waste while
maximizing the value. It is a useful method to apply for streamlining production since the concept is
based on giving a comprehensive overview of the total process rather than on individual
sub-processes. It provides a highly visual description of the entire flow and serves as a basis for
improvement. However, it can be used to describe sub-processes if desired and depending on the
process’s complexity [2,9].

3.4.1 Steps for Value Stream Mapping

It is essential to identify a product family before start working with Value Stream Mapping. A product
family is a collection of products that requires the same type of manufacturing technique and passes
through similar processes within the facility. It should be easy to follow the product family's path
along with the process steps and to write down the flow of material and information. However, the
choice of product family does not obviously apply if the factory has one single product or one type of
product family. If that is the case, the product's path can be followed as it is the only type with similar
characteristics [1,2,9].

22
Figure 3: The steps for creating Value Stream Mapping, modified from [2].

According to figure 3, Value Stream Mapping consists of three steps in which are performed after the
product family has been chosen. First, a map of the existing value stream is designed, called “current
state”. The current state describes the actual flow of material and information within the facility. An
example of a current state map shown in figure 4. Second, an analysis of the current state is made
followed by drawing a new map of the desired future value stream, called “future state”. Principles
from Lean can be, if necessary, integrated into the future state map for improvements. An example of
a future state map is shown in figure 5. Third and last, a work plan for implementing and realizing the
future state is made. The third and last step usually takes the longest time since it is where the

23
practical change will be carried out [2,9].

Figure 4: Current state map [15], with permission.

Figure 5: Future state map [15], with permission.

24
3.4.2 Process data and calculations
The required process data that is added in a value stream map depends on the situation. It is important
to identify what process data that is necessary and for what purpose [2,6,9]. A list of commonly useful
process data and how they are calculated is presented in the list:

● Process time (P/T):​ The entire time for an item to pass through a process. It includes the time
for preparation, running time, and the after treatment.

● Cycle time (C/T):​ The time for an item to be in the same state as the previous one.

● Uptime: ​The percentual relationship between operational machine time and the total available
time.

● Set up time (S/T):​ The time taken to change from one activity to another.

● Takt time:​ The pace of producing units at a rate that meets customer demand

Avalible working hours per day

Takt time = Quantity of output required per day ​ (eq. 1-1)

Cycle time = N umberP rocess time

of units produced (eq. 1-2)

25
3.4.3 Value Stream Mapping Icons

Figure 6: Symbols with its meaning and use, modified from [2].

Value Stream Mapping is a quantitative method that provides a detailed description of how the
resources are used in the existing facility. The map is represented in a standardized language by using
visual symbols regarding customers, transportations, inventory, and more. The advantage of using
symbols is that everyone should be able to understand through the visual without having previous
knowledge [2].

3.5 Facility layout

A facility layout, also known as production layout, is an arrangement of everything that is needed
within a facility to achieve desired production outcomes [6]. A layout composes the physical

26
placement of different elements such as transportations, machines, workstations, and inventory [16].
Decisions regarding location, process flow, floor layout, and material handling system must be taken
into consideration in order to achieve a layout that ensures a smooth flow of material [6]. Having a
layout in alignment with the flow of material is essential for performing efficiently and maximize
productivity. However, it is important to point out that a production system usually contains more
than just one flow of material. There is normally a number of different flows that need to be organized
[5].

The principal structure of the layout is strongly dependent on what production system it is designed
for. The manufacturing of the product may require repetitive operations in a certain sequence, special
machines, or equipment. Volume and product variety are two core aspects that need to be taken into
account and how they relate to the process type. Volume and product variety have a strong impact on
the layout design and the grade of provided flexibility. The product can vary from custom specific
products that are produced in a low volume to products that are produced in a high volume with low
variety. The process type, volume, and the product’s variety are strongly connected to one and other.
The process types refer to how processes and activities are organized and can be categorized by a
one-piece process, intermitted process, and continuous process. The relationship between volume,
product variety, and process type can be determined in a product-process matrix, shown in figure 7.
The process type establishes the preconditions that apply regarding the layout in terms of design and
flexibility. [16].

Figure 7: Product-process matrix showing the relationship between volume, product variety, and
process type, modified from [16].

A ​one-piece process​ is characterized by producing unique items according to specific customer

requirements, one by one. An ​intermittent process​ implies when each item is managed in intervals

27
according to the manufacturing order. The two subcategories of the intermittent process constitute a
connected and non-connected flow. The difference between these two is the intermediate storage. The
items are moved without intermediate storage in a connected flow whereas they are intermediately
stored between process steps in the unconnected flow. A ​continuous process​, which is the contrast to
a one-piece process, is characterized where the same type of items with similar properties are
manufactured. The items requiring the same process steps are produced in a continuous flow without
interruption from external changes. [16].

The relationship between the process types, volume, and product variety, shown in the
process-product matrix in figure 6, provides a measure of the process type appropriateness. Going
outside the dashed diagonal line can lead to unnecessary costs by compensating for either low
flexibility or for a process that has untapped flexibility. [16].

3.6 Production process

Regarding the company’s production process, no big changes take place whether beams for interior
walls or rods for bed frames are being produced. The two products require the same type of
manufacturing technique including raw material and after treatment. The difference between the
products is their profile dimension. The rods have a smaller cross-section compared to the beams.

A comprehensive description of the production process is presented through a flowchart diagram in

figure 8. The figure is also attached for a detailed view, see appendix A.

Figure 8: The production process from raw material to the finished product described in a
flowchart diagram.

28
3.7 Basic layouts
The fundamental structure of a layout differs in which it depends on what production system it is
aimed for. Whether the layout supports the production of high volumes and many variants, different
basic layouts can be distinguished and placed into four principal areas, see figure 9. [6,17].

Figure 9: Four basic production layouts.

However, beyond these four basic production layouts, a fifth can be categorized. A combination of
these is also an option since each layout comes with its own benefits and detriments [​8].

3.7.1 Product/assembly-line layout

A product layout, also known as assembly-line layout, is suitable when producing in large quantities
or when the manufacturing technique is continuous. No big changes take place because of a basic
standardized design. It involves performing repetitive tasks in a particular sequence. The various
processing steps are organized in a line where the product determines how the various resources
should be distributed. It is an advantageous layout since it provides a comprehensive view of the
material as it flows in a line and the throughput time can be shortened. Usually, a conveyor is used to
move the material forward between the processing steps at a regular interval of time. However, a
mechanized moving platform makes the layout inflexible. It is difficult to change both the design and
the different processes. In addition, a disruption or collapse of one machine within the line interrupts
the entire production. The maintenance costs are, therefore, high in order to ensure a smooth flow of
material [6,17].

3.7.2 Process layout

Unlike the product layout, the tasks are not performed in a particular sequence regarding the process
layout. This layout is suitable when producing more custom specific products in smaller quantities as
the different processing steps vary among different products. Items with similar processing operations
can be grouped together and produced in batches. The process layout provides higher flexibility
compared to the product layout since no fixed mechanized transport is being used. The movement of
material between different machines is usually done manually by a truck. This facilitates making
changes in design as well as in the processes. It also permits the machines to collapse to a greater

29
extent compared to the product layout. It does not interrupt the entire production since substitute
machines are usually available for replacement. The maintenance costs are relatively low since
low-cost machines for general purposes are more likely to be used. However, the grade of product
variety requires more time effort for material handling. The layout provides a low output rate due to a
more complex processing schedule for each product. The cost per unit is, therefore, higher [5,6].

3.7.3 Fixed-position layout

A fixed-position layout is appropriate when the product is large or too heavy to move (e.g., nuclear
power plants, buildings, airplanes). The required tools, equipment, or material are brought by the
worker to the product’s position as it remains in a fixed position. It is not possible to foresee the
advantages or disadvantages of this layout. There are usually no other options when a fixed-position
layout is needed due to the stationary types of products [6,17].

3.7.4 Cellular layout

The cellular layout includes collecting parts with similar characteristics, called part family, and gather
them into groups according to production similarity. The production equipment is organized
according to production similarity. This serves as a basis for how machines and workstations are
being organized within the facility. The group of products with similar characteristics are
manufactured in a cell of machines (i.e. machines that are grouped together). This saves floor space
and provides better access for the workers due to a smaller distance between the different machines. A
cellular layout provides good flexibility for the production of small batches. It is suitable for products
with a medium variety [6,17].

3.8 Bottleneck
Regarding the choice of layout, it is important to consider the placement of the bottleneck since it has
a significant impact on production efficiency [2]. A bottleneck is defined as the process operation with
the most loaded resource or as a point in production where an operation surpasses the capacity. It is
the narrowest point in the flow with reduced ability to produce units at the same rate as the other
operations within the facility. Every production system has its own bottleneck that needs to be
identified since it has an influence on flow efficiency and affects the total throughput time for the
entire system. Hence, it is likewise the point where the production systems’ limitations are prescribed
[18,19].

Figure 10: Illustration of a bottleneck and how it limits the flow within the production.

30
The bottleneck is identified by calculating what operation having the longest cycle time (i.e. the
operation producing the least amount of unit per hour) [6]. Once the bottleneck is recognized, its
placement needs to be considered in order to reduce its impact. A bottleneck occurrence at improper
placement leads to unnecessary impairment of productivity. If a bottleneck is placed at the beginning
of the flow, subsequent processes will be negatively affected hence increase the amount of non-value
adding time due to queuing. It creates a situation with underutilized resources such as idle machines
and inefficient operators that cannot perform their job properly. As a result, it increases production
costs and lead time [18, 20].

3.9 Lean production and layout

Lean production has an impact on layout design as it supports a continuous value stream with minimal
waste. Its methods and strategies facilitate the identification of possible waste and bottleneck
operations that increase the throughput time and impairs the use of production resources [4]. It
supports a layout where the impact of the bottleneck process is held low to obtain a continuous flow
through the entire facility [19]. Applying Lean production as a foundation when making decisions
about how the different elements should be allocated benefits productivity. An optimal layout can
minimize waste and improve flow efficiency [6]. A reduced distance between machines and
workstations provides the workers with better conditions to communicate and work more effectively.
Using the available floor space to its greatest extent reduces the number of transportation routes as
well as the number of operations requiring transportation. As a result, it can shorten the lead time,
reduce production costs, and improve the use of production resources [21].

4. RESULTS
The results chapter provides a description of the current state and preconditions provided for
developing a proposal on production layout. A production request, data on properties of the raw
material, and characteristics of the machines will be presented. Three different scenarios of
production schemes will be provided. The scenarios are based on calculations of data given by the
company the thesis was written for. A proposal layout is designed and a value stream map is
performed. The result is based on the theory and calculations of the given data.

4.1 Description of the current state

The manufacturing company is in the startup phase of their business. Their products have not yet
entered the market. Quality tests are currently underway to get required certificates before the
business can begin. Their first market target is to enter the house construction business and furniture
production where it is a great chance of selling large volumes. The company has identified two
demanded products in these business areas; beams for interior walls and rods for bed frames.
However, there are several other applications where a strong and light material is required such as in
traditional building, modular building, pallets, and packaging. The products that are used for the
quality tests are currently being manufactured from a supplier in Germany where the main machine is
located. The main machine is specially designed as the manufacturing technique of the products is
based on physics and chemistry. Both beams and rods have a drying time of 4h after the main
machine. The drying takes place on a 24 m long conveyor. The raw material consists of a special

31
adhesive and paper that comes from the Swedish forests. The paper comes in a big roll with a width of
2.4 m and a diameter of 1.0 m. The big roll is then being cut into 20 smaller rolls in a rewinding
machine. The rewinding machine is located at Stora Enso Skoghall in Sweden. The small processed
rolls are then shipped to Germany where they are being placed in the main machine.

In the meantime, while the quality tests are carried out, the company is raising capital through
investors in order to start their own production facility. The future facility is planned to be located in
Sweden. The whole production chain, from raw material to the end-product, will be managed within
the facility without any external suppliers (i.e. both rewinding- and main machines will be provided).
A proposal of a suitable production layout is needed in order to get a perception of how much space is
required for the future facility. The layout will serve as a basis when searching for existing facilities to
rent.

4.2 Production request

The company has identified an estimated volume of the two demanded products, beams and rods, that
will be sold during the first production year. One production year is equal to 45 weeks. The requested
volume of the two products are:

● 14.6 million meter beam with the standard profile 45x70mm

● 5.0 million meter rod with the standard profile 14x67 mm

The volume of the two products is based on previous data gathered from its competitors within the
same industry. The two products in its application are shown in Figures 11 and 12.

Figure 11: Beams for interior walls with its standard profile 45x70 mm.

32
Figure 12: Rods for bedframes its standard profile 14x67 mm.

However, the estimated volumes are highly preliminary. The future production layout must, therefore,
be designed so that an expanded production can take place in a short amount of time. The demand is a
production layout that is in alignment with the flow of material based on the predictable volumes. It
should also provide good flexibility and use of the floor space to its greatest extent. Furthermore, the
distance of internal transportations, as well as the number of transportation tours, should be kept low.

4.3 Raw material and machines

The raw material for manufacturing the products mainly consists of paper. There is also adhesive
required but data on its properties were not provided. However, the adhesive is included in the
calculations that will be presented, but its particular amount can not be specified.

33
Raw material - paper roll

Given parameters:

Paper mass /square meter = 0.175 kg/ m2

ø = 1.0 m

L = 2.4 m

mpaper roll = 2700 kg

Figure 13: The raw material, paper roll.

Calculations

2700 kg
0.175 kg/ m2
= ​15 428.6 m2 /paper roll (1)

1 m*2.4 m*0,175 kg/ m2 = 0.42 kg/one m paper roll (2)

2700 kg
0.42 kg/m paper roll = ​6430 m paper/roll (3)

34
Paper required for manufacturing the requested volume
Given the yearly volume of the two products, beams respectively rods, different amounts of paper will
be required. This because of different profile dimensions and volume requests of the two products.

Beams

Given parameters:

Profile dimension​ = ​45x70 mm

Length = 3000 mm

Paper consumption = 2.07 m2 paper/m beam

Production request of beams:​ 14.6 * 106 m

Figure 14: A simplified CAD-drawing of the beam.

Calculations

(14.6 * 106 m beam )* 2.07 m2 paper/ m beam = 30.22* 106 m2 paper (4)

(1) and (4) gives:

30.22*106 m2
≈1959 paper rolls/year (5)
15 428.6 m2 /paper roll

Rods

35
 Given parameters:

Profile dimension = 14x67 mm

Length = 890 mm

Paper consumption = 1.44 m2 paper/m rod

Production request of beams:​ 5.0 * 106 m

Figure 15: A simplified CAD-drawing of the rod.

Calculations

(5.0 * 106 m rod )* (1.44 m2 paper/ m rod) = 7.2* 106 m2 paper (6)

(1) and (6) gives:

7.2*106 m2
15 428.6 m2 /paper roll
≈ ​467 paper rolls/year (7)

Machines required for manufacturing the requested volume

Two machines, the rewinding- and main machine, are required for manufacturing the two products. In
order to minimize the time regarding set up, two identical main machines will be obtained. One will
mainly manufacture rods working 2-shift and the second machine will mainly manufacture beams
working 5-shift. Furthermore, one rewinding machine working 5-shift will be obtained.

Rewinding machine

36
The big paper roll will be processed in the rewinding machine in order to obtain the correct width.
The roll will be cut into smaller rolls before it will be placed in the main machine. The same width is
required regarding both beams and rods.

Given parameters:

ø = 1.0 m

l = 0.120 m

ηrewinding machine = 95%

v rewinding machine = ​800 m/min

Figure 16: The processed rolls after passing through the rewinding machine.

Calculations

2.4 m
0.12 m/roll = 20 rolls (8)

(1) and (3) gives:

15 428.6 m2 /paper roll

20 rolls = 771.43 m2 /paper processed roll (9)

6430 m/ paper roll

800 m /min ≈ 8 min (10)

20 minutes of manual handling time will be required before and after processing.

P /T rewinding machine = 20+8+20 = 48 min

(eq. 1-2) gives:

48 min
C/T rewinding machine = 20 units = 2​ .4 min = 144 s

Main machine

37
The main machine is going to be the most loaded resource in the facility. It the process where the
actual value for the customer will be generated. The main machine can be seen as one process in
which several subprocesses are included. Whether beams or rods are going to be manufactured, a fully
charged main machine requires 9 processed rolls. Adjustments regarding the product’s length and
feeding rate can take place while the machine is still producing. The only setup time is when the
profile dimension is changed. Therefore, two main machines will be obtained in order to minimize the
number of setup times.

Given parameters:

ηmain machine = 95%

v main machine = 30 m/min

Setup time (S/T) = 120

min

Figure 17: Simplified sketch of the main machine, viewed from above.

Calculations

(8) gives:

(771.43 m2 / processed roll)*(9 processed rolls) = 6943 m2 (11)

Beams

(11) gives:

6943 m2
2 = 1118 beams
2.07 m /m beam* 3 m
(12)

Time until paper needs to be refilled in the main machine working 5-shift:

6943 m2
= 3354 m beam (13)
2.07 m2 /meter beam

38
(13) gives:

3354 m
30 m/min = 111.801 min ≈ 1h 52 min (14)

P /T paper 5−shif t ≈ 2h

(12), (14) and (eq. 1-2) gives:

C/T paper 5−shif t = 111.801 min

1118 beams ≈ ​0.1 min = 6 s (15)

Rods

(11) gives:

6943 m2
= 5418 rods (16)
1.44 m2 /m rod* 0.89

Time until paper needs to be refilled in the main machine working 2-shift:

6943 m2
= 4822 m rod (17)
1.44 m2 /meter rod

(17) gives:

4822 m
30 m/min = 160,7 min ≈ 2 h 41 min (18)

P /T paper 2−shif t ≈ 3h

(16), (18) and (eq. 1-2) gives:

160.7 min
C/T paper 2−shif t = 5418 beams ≈ ​0.03 min ≈ 2 s (19)

Production takt time

The following calculations are based on that the customer demand for the requested annual volume is
equally distributed throughout the 45 weeks of production.

Beams
Yearly demand:​ 14.6 * 106 m beam
Dimension:​ Profile dimension 45x70mm with a length of 3.0 m
Available working hours per day:​ 24h
Shift​: 5-shift (06-14), (14-22), (22-06) including weekends

39
14.6*106 m beam
45 weeks = 324 444 m beam/week (20)

3244444 m
7 days ≈ ​46349 m/ day (21)

46349 m beam/day
3m ​ 15450 beams/day
≈ (22)

(eq. 1-1) and (22) gives:

24
(T akt time)beams =​ 15450 = 0.00156 days = 0.00156*24*60= 2.23 min (23)

Rods
Yearly demand:​ 5.0 * 106 m rod
Dimension:​ Profile dimension 14x67 mm with a length of 0.89 m
Available working hours per day: 1​ 6h
Shift:​ 2-shift (06-14),(14-22)

5.0*106 m rod
45 rod = 111 111 m rod/week
(24)

111111 m rod
5 day ≈ ​22222 m rod/ day
(25)

22222
​ 24 969 rods/day
0.89 ≈ (26)

(eq. 1-1) and (26) gives:

16
(T akt time)rods =​ 24969 = 0.000641 days = 0.000641*24*60*60 ≈ 55 s (27)

4.3.1 Scenario 1
This scenario presents the maximum volume that can be produced for 45 weeks by the two machines.
The capacity of the two machines is used to their fullest extent. No customer demand is involved.

Limitations:
● 45 weeks for production are available
● Two main machines working 2-shift respectively 5-shift
● The machines are used to their fullest extent with consideration to their shift-time

Main machine producing beams, 5-shift

Avalible working time = 45*7*24 = 7560 h = 453 600 min

40
30 m/min*452600 min = 13.608* 106 m beam

No time kept for safety.

Main machine producing rods, 2-shift

Avalible working time = 45*5*8*2 = 3600 h = 216 000 min
30 m/min*216000 min = 6.48* 106 m rod

No time kept for safety.

4.3.2 Scenario 2
This scenario presents the time of production that is required to fulfill the previously mentioned
customer demand. The production time is being extended with 5 more weeks, i.e. 50 weeks.

Limitations:
● 50 weeks for production are available.
● Two main machines working 2-shift respectively 5-shift
● The demand is 14.6* 106 m beam with the standard profile (45x70mm) and 5.0* 106 m rod
with the standard profile (14x67 mm)

Main machine producing beams, 5-shift

14.6*106 m beam
30 m beam/min = 486 667 min = 8111.11h= 337.97 days = 48.28 weeks

50 - 48.28 weeks = 1 week and 5 days kept for safety

Main machine producing rods, 2-shift

5.0*106 m rod
30 m rod /min = 166 667 min = 2777.78 h

2777.78 h
80h/week ≈ ​35 weeks

50-35 weeks = 15 weeks kept for safety.

4.3.3 Scenario 3
This scenario presents how customer demand can be fulfilled without extending the number of
available production weeks. This scenario is a reflection of the company's request that has been
presented earlier. The scenario includes the required customer demand of 45 weeks for production is
available.

Limitations:
● 45 weeks for production are available
● Two main machines working 2-shift respectively 5-shift
● The demand is 14.6* 106 m beam with the standard profile (45x70 mm) and 5.0 * 106 m rod
with the standard profile (14x67 mm)

41
Main machine producing beams, 5-shift

Totalt time required for producing 14.6* 106 m beam:

14.6*106 m
30 m/min = 486 667 min = 8111.11h

45 weeks = 45*7*24 = 7560 h = 453 600 min

30 m beam/min*452600 min = 13.608* 106 m beam

Main machine producing rods and beams, 2-shift

Producing rods Monday-Thursday:

5.0*106 m rod
30 m rod/min = 166 667 min = 2777.78 h

2777.78 h
8*2*4h/week ≈ ​43.4 weeks

45-43.4 ≈ 1 week 4 days kept på safety.

Producing beams on Fridays:

(8+8)*45 = 720 h = 43200 min

7560h + 720h = 8280 h

8280-8111.11 = 168.89h ≈ 1 week 1 day kept for safety

4.4 Production layout

Three different proposals of production layouts were presented during a meeting with the company.
One out of these three was chosen. The chosen layout is presented in figure 18. The layout in figure
18 shows shipment positions, inventory areas, one rewinding machine, and two main machines with
conveyors. The value stream starts from the left in the figure and follows the required manufacturing
processing steps from left to right.

The other two alternatives, including the chosen layout, are attached for a detailed view, see appendix
B, C, D.

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Figure 18: Production layout proposal.

The flexibility the chosen layout provides if the production volume would expand is presented in
figure 19. The figure is also attached for a detailed view, see appendix E.

Figure 19: Production layout proposal for expanded production.

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4.5 Value Stream Map
The value stream map is presented in figure 20. It shows the value stream within the company's
facility based on the requested volume of the two products. Starting from left, the frequency of raw
material delivery is presented followed by how many papers rolls that need to be in stock in order to
follow the production plan. Further, the rewinding machine processing time and cycle time are
presented followed by safety stock for the processed rolls. In order to have a fully loaded machine, 9
processed rolls are required. The safety stock has, therefore, a minimum of 14 processed rolls.
Furthermore, the two main machines with its sub-processes followed by the after-steps are presented.
The number of products that will be produced every week in order to reach the requested volume is
shown as the last step before shipment to customers takes place. The figure is also attached for a
detailed view, see appendix F.

Figure 20: Value Stream Map of future state with the best guess.

5. DISCUSSION
This chapter will provide a discussion and evaluation of the results. The author's own analysis and
reflections about the method and theory that concluded the results will be presented​.

The purpose of this thesis was to investigate how a suitable production layout should be designed in
order to achieve a continuous value stream. The presented results were performed with regard to the
theory behind Lean production as a backbone. The starting point of the work was highly unique as
there was no actual production process to analyze or judge. Usually, manufacturing companies apply
tools and methods from Lean in order to improve the existing value stream. The purpose is to
minimize the number of non-value-added activities and gain profit as a result [9]. The 7+1 wastes that
were identified by Liker is related to the layout as they have an impact on the flow efficiency. The
number of wastes is connected to the layout design. Generally, it is usual that changes of a current
layout are being carried out during a Lean project as it benefits a continuous value stream hence

44
reduces wastes [6,11].

The results include a presentation of three different scenarios of production. All scenarios involve two
main machines working 5 respectively 2-shift. The machine working 5-shift is mainly intended to
produce beams as the requested demand is higher compared to rods. The machine working 2-shift,
mainly producing rods, will be still at night. However, it is important to point out that not using an
available machine is costly since the resources are not being used. The reason for the choice of shift
time is to provide flexibility and space if any request for increased production volume takes place in a
short amount of time, in addition to the previously mentioned demand for production volume. No
purchasing of an added main machine will be required as the machine working 2-shift will be
available if needed.

Scenario 1 presents the maximum amount of beams respectively rods that can be produced according
to the limitations of 45 weeks of production with regard to the two machines and their shift time. The
results are based on that no unexpected obstacles occur during these 45 weeks (e.g. lacking quality of
raw material, defects in products, machine failure). The presented results in scenario 1 are based on
that the capacity of the machines is used to the fullest. The theoretical output is not equivalent to
reality as it is unreasonable that no obstacles occur that interfere with the production time plan.
However, it can be stated that the machine producing beams in scenario 1 does not fulfill the task with
regard to the required volume. According to the results, the machine has a maximum capacity to
produce 13.608* 106 m beam which is less than the required volume 14.6* 106 m beam. Meanwhile, in
scenario 2, the production is being limited to customer demand. The time regarding production is also
extended with 5 more weeks compared to scenario 1. The results in scenario 2 confirm that 1 week
and 5 days are kept for safety regarding the 5-shift working machine producing beams. 15 weeks are
kept for safety for the 2-shift working machine producing rods. Safety refers to the time of space in
the production where there is room for unexpected situations, but the customer demand can be
accomplished within the time frame. However, extending the production with 5 weeks comes with
high costs as it may include taking in summer workers. There are risks with having summer workers
since quality deficiencies may occur if the regular staff is absent because of vacation, for example. It
can also be stated that the results in scenario 2 reveal that the time for reaching the customer demand
for the two products is uneven with approximately 13 weeks difference. This leads to one machine
being idle for several weeks which is unprofitable since the resources are not being used. Lastly,
scenario 3 has the same limitations as the previous scenario besides having 45 weeks of production
available. In order to fulfill customer demand, the production plan has been adjusted and equalized
but are still being kept under the same conditions. It is advantageous to equalize the production since
it indicates that the resources are being utilized. The time for reaching the customer demand for the
two products is equally with only 3 days difference. In addition, there is space for unexpected
situations as it is likely to occur. The disadvantage is that one setup of one of the machines will take
place. But since the shifts are kept continuous, time is available during the night to do the setup which
takes 120 minutes. With respect to the results, the production plan presented in the last and third
scenario is to prefer.

Based on the 7+1 wastes, it is assumed in the results that overproduction, transportation, inventory,
and motion are being held low according to the presented layout. The number of transportation routes
and motion can be supposed through the visual whereas overproduction and inventory are confirmed
through calculations. However, it is important to point out that the production volumes the

45
calculations were based on are highly preliminary. In addition, the customers’ needs were estimated to
be equally distributed throughout the 45 weeks of production. This will probably not be the case in the
future as it may change over time. Products in varying dimensions and volumes may be ordered for
example building projects. Furthermore, the layout is designed so that the placement of inventory,
machines, and shipment positions is in alignment with the value stream hence reduces possible wastes
[6]. The other types of waste that were identified by Liker (i.e. wait, processing, defects in products,
and non-utilization of employees), can not be confirmed or assumed in the results. Possible defects
might occur due to a lacking quality of the raw material or machine failure. This can, in turn, lead to
waiting because of idle machines. It is difficult to foresee possible unexpected situations and how it
will turn out in a real-life situation. The results are based on theoretical calculations where no failure
in quality or machine is being taken into account. An alternative for a more fair evaluation of the
results would be to simulate different layouts in variating volumes by making up different scenarios.
The presented layout has therefore several limitations as it was not evaluated in practice.

The presented value stream map, shown in figure 20, illustrates the flow of material and information
of the product family (i.e. beams and rods). The map presents the value stream within the facility
according to the thesis’ limitations. The two machines have the capacity to produce at a rate that
meets customer demand. This statement can be validated in the results according to the calculations
(23) and (27) of the machines' takt time. This result is also presented in figure 20. Value stream
mapping is advantageous since it provides control over the value stream within the facility. The
provided control can prevent possible waste occurrence. In addition, the third and last step usually
takes the longest time when working with value stream mapping as a tool from Lean. The last step
comprises implementing the performed future state in practice and carry out improvements [2,9]. The
starting point of this study was different as there was no actual state to analyze. It can, therefore, be
assumed that a better start regarding the flow efficiency will be provided through the presented value
stream map. The values regarding processing time, cycle time, and takt time in the presented value
stream map, shown in figure 20, were calculated. Usually, these values are being measured from
practice by following a product’s path along with its processes [2]. It can, therefore, be noted that
these values may differ in practice from the presented theoretical values that were calculated.
However, the presented values provide a conception about the time even if they may not be precise.
The value stream map could not provide details about the production control, the number of possible
defective products, how often the adhesive needs to be refilled, and how long time it will take. In
addition, no detailed specifications about the time regarding transportation, material handling, or
where non-value-adding activities might occur could be provided. However, these can be identified
when the production process has been put into practice.

The value stream map serves as a basis when collecting additional data in the future which enhances
the conditions for identifying value-added and non-value-adding activities. Hence benefits a
continuous value stream. It can be assumed through the visual that the value stream is in alignment
with the presented layout.

6. CONCLUSIONS​ ​AND RECOMMENDATIONS

The presented layout provides a design that benefits a continuous value stream. The layout is designed
so that space, material handling, and transportation routes are being held low hence reduces possible

46
waste occurrence. The wastes were shown to be important aspects that should be taken into account
for achieving a continuous value stream. The third scenario, presented in the results, is to prefer since
it indicates that the resources are being most effectively utilized based on the working time and
requested production volume. The presented value stream map illustrates the flow of material within
the facility. It provides control over the value stream in order to identify, prioritize, and eliminate
waste risks. The placement of machines, inventory areas, and shipment positions is determined to be
in alignment with the value stream. It can be considered that the presented layout, together with the
value stream map, will provide good preconditions for the company’s future facility.

6.1 Future work

Some changes occurred during the course of the work due to the situation with the world pandemic
Covid-19. A simulation that was planned to be held at Karlstad Lean Factory at the beginning of April
got canceled. The purpose of the simulation was to evaluate different layouts by reflecting different
scenarios in a real-life situation. However, alternative solutions were found and the work was carried
out. A recommendation for future work is to simulate and evaluate different layouts before any
implementation takes place.

7. REFERENCES
[1]. Sörqvist L. Lean : processutveckling med fokus på kundvärde och effektiva flöden [Internet]. 1.
uppl. Studentlitteratur; 2013.

[2]. Rother M, Shook J. Learning to see. Cambridge, Mass.: The Lean Enterprise Institute; 2009.

[3]. Härdig K, Kämpe P, Söderbom T. Informationsmemorandum [brochure]. Karlstad; 2020

[4]. Tarigan U, Cahyo F, Tarigan U, Ginting E. Facility Layout Design Through Integration of Lean
Manufacturing Method and CORELAP Algorithm in Concrete Factory. IOP Conference Series:
Materials Science and Engineering. 2019;(505):1-7.

[5]. Lumsden K, Stefansson G, Woxenius J. Logistikens grunder. 4th ed. 2019.

[6]. Kadir A.R.AB, Sajidah W.M.K, Mohd Norzaimi C.A, Shahril K, Sabri M. Development of
Production Layout Model to Improve Production Efficiency. Engineering and Technology 2015; (13):
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[7]. Che Ani M, Razali M, Rhaffor K. The Effectiveness of Value Stream Mapping (VSM) as an
Improvement Tool for the Manufacturing Operation. Applied Mechanics and Materials.
2014;(575):905-909.

[8]. Gude A. Facility layout: What is it and why should I care? [Internet]. BDC. 2020 [cited 10 March

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2020]. Available from:
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[9]. Martin K, Osterling M. Value Stream Mapping. 1st ed. 2014.

[10]. Hennink M, Hutter I, Bailey A. Qualitative research methods. 2nd ed. Sage; 2020.

[11]. Liker J, Erkelius L, Hallberg J. The Toyota way. Malmö: Liber; 2009.

[12]. The Kai Zen [Internet]. World-class-manufacturing.com. 2020 [cited 8 February 2020].
Available from: ​https://world-class-manufacturing.com/Kaizen/kaizen.html

[13]. Womack J, Jones D. Lean thinking. New York [i pozostałe]: Free Press; 2003.

[14]. Bicheno J, Anhede P, Hillberg J, Holweg M. Ny verktygslåda för Lean. Göteborg: Revere; 2011.

[15]. Zayko M. VALUE-STREAM MAPPING FOR MANUFACTURING (1 DAY CLASS)

[Internet]. www.lean.org. 2020 [cited 7 April 2020]. Available from:
https://www.lean.org/workshops/WorkshopDescription.cfm?WorkshopId=7

​ ellgran M, Säfsten K. Produktionsutveckling. 1st ed. Lund: Studentlitteratur; 2005.

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[17]. Jonsson P, Mattsson S. Logistik: Läran om effektiva materialflöden. 3rd ed. Lund:
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[18]. Serrano Lasa I, De Castro Vila R, Goienetxea Uriarte, A. Pacemaker, Bottleneck and Order
Decoupling Point in Lean Production Systems. International Journal of Industrial Engineering.
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[19]. Wolniak R, Skotnicka-Zasadzień B, Gębalska-Kwiecień A. Identification of bottlenecks and

analysis of the state before applying lean management. MATEC Web of Conferences.
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[20]. Bergman B, Klefsjö B. Kvalitet från behov till användning. 5th ed. Lund: Studentlitteratur; 2012.

[21]. ​Kikolski M, Ko C. Facility layout design – review of current research directions. Engineering
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8. APPENDICES

8.1 Appendix A - Grant project planning

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8.2 Appendix B - Chosen layout proposal

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8.3 Appendix C - Layout proposal

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8.4 Appendix D - Layout proposal

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8.5 Appendix E - Expanded production, layout proposal

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8.6 Appendix F - Value Stream Map

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