Cross-functional supply chain management : recognising the need and implementation
Nietosvuori, Miia (2014)
Nietosvuori, Miia
Lahden ammattikorkeakoulu
2014
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014112516749
https://urn.fi/URN:NBN:fi:amk-2014112516749
Tiivistelmä
The aim of the thesis is to find bottlenecks and root causes of the poor reliability of the deliveries in the internal supply chain in a case company called Lahden Autokori Oy (LAK). The company manufactures bus bodies for Scania CV AB, and the product is called OmniExpress. The departments have difficulties to follow the time schedule and they are lacking methods and metrics (KPIs) which could indicate the problems earlier in the process, and prevent the end result from being poor. The company filed for voluntary bankruptcy in September 2013, but it’ll have a second chance after Scania CV AB has bought it (1st of May 2014).The research gives a current state picture for the new owners.
The aim of the research is to explore cross-functional management, as the organization is struggling to have the information and the materials in time without disturbing the flow in the production line. The theoretical part of the study is built around Lean and how to succeed in Lean transformation. The cross-functionality is explored through Lean leadership; how to see the abnormalities, measure the process, raise the accountability of the operators and how to use visualization in order to understand what is normal and what is not –Eventually, how to eliminate the bottlenecks which prevent the flow.
The research method chosen is an action research including a quantitative method approach and observations. The idea of the method is taken from Scania Slupsk, Poland, but modified according to Mann’s (2010) view of leader standard work. The method is built around cross-functionality, regular meetings and a visual board, which demands accountability of the operators. Through the method, data was collected and the results were shown as numeric facts.
As a result the bottlenecks and root causes were found, however the main conclusion of the research is that there is a lack of cross-functional management in the organization. There is a lack of cross-functional methods and tools to support the information to flow in the process and the company is missing cross-functional KPIs, which indicate the problems earlier in the process as earlier only the end results were measured and known.
As an improvement suggestion the company should implement leader standard work (Mann 2010) for each organization level and use visual planning to help daily steering. Time related KPIs, the response times for each department, should be re-evaluated and visualized to be able to control the process and raise the accountability of the operators. The company should start Lean transformation.
The aim of the research is to explore cross-functional management, as the organization is struggling to have the information and the materials in time without disturbing the flow in the production line. The theoretical part of the study is built around Lean and how to succeed in Lean transformation. The cross-functionality is explored through Lean leadership; how to see the abnormalities, measure the process, raise the accountability of the operators and how to use visualization in order to understand what is normal and what is not –Eventually, how to eliminate the bottlenecks which prevent the flow.
The research method chosen is an action research including a quantitative method approach and observations. The idea of the method is taken from Scania Slupsk, Poland, but modified according to Mann’s (2010) view of leader standard work. The method is built around cross-functionality, regular meetings and a visual board, which demands accountability of the operators. Through the method, data was collected and the results were shown as numeric facts.
As a result the bottlenecks and root causes were found, however the main conclusion of the research is that there is a lack of cross-functional management in the organization. There is a lack of cross-functional methods and tools to support the information to flow in the process and the company is missing cross-functional KPIs, which indicate the problems earlier in the process as earlier only the end results were measured and known.
As an improvement suggestion the company should implement leader standard work (Mann 2010) for each organization level and use visual planning to help daily steering. Time related KPIs, the response times for each department, should be re-evaluated and visualized to be able to control the process and raise the accountability of the operators. The company should start Lean transformation.