Application of value stream mapping in an engineer-to-order organisation: A case study

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Journal Title

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Volume Title

Insinööritieteiden korkeakoulu | Master's thesis

Date

2024-06-10

Department

Major/Subject

Product Development

Mcode

Degree programme

Master's Programme in Mechanical Engineering (MEC)

Language

en

Pages

79+2

Series

Abstract

In the rapidly evolving landscape of modern industries, the pursuit of operational excellence and efficiency is paramount for organisations seeking to maintain their competitiveness and profitability. This pursuit is especially important for companies specialising in engineer-to-order manufacturing, which is characterised by the production of complex, low-volume and highly customised products based on specific customer requirements. This thesis was commissioned to investigate what factors hinder the operational efficiency of an engineer-to-order product line within the case company. Using Lean principles and Value Stream Mapping methodology, a case study was conducted using a mixed methods approach to examine the entire process from sales to delivery. The study identified some of the critical elements that could negatively impact efficiency, including the inherent complexity of the engineer-to-order environment, communication breakdowns, lack of engineering change management as well as inefficient processes and tools. In addition, the impact of participating in value stream mapping on employees' self-assessed confidence and motivation in relation to the organisation's improvement goals was investigated. However, no clear evidence was found for a statistically significant effect of participation in value stream mapping on these values. This study provides valuable insights into optimising engineer-to-order pro-cesses and cultivating a culture of continuous improvement in manufacturing companies. The study emphasises the central role of effective communication and a shared understanding of the end-to-end process. By extending the application of value stream mapping beyond traditional manufacturing processes to office processes such as sales and management, this thesis contributes to the existing body of knowledge.

Description

Supervisor

Björklund, Tua

Thesis advisor

Eriksson, Vikki
Riihinen, Tytti

Keywords

engineer-to-order, value stream mapping, operational efficiency, end-to-end

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Citation