Analysis of waste at a Finnish dairy

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School of Engineering | Master's thesis
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TU-22

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en

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73 + [2]

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Abstract

This master's thesis has been conducted at Arla Ingman's dairy in Sipoo. The dairy produces a large variety of milk-based products of which the yogurt-segment is one of the largest. The yogurt-segment consists of a broad spectrum of products with varying flavours, package-sizes and products suitable for different diets. The variety of products necessitates production of small batches resulting in an elevated waste because of changeovers. Hence, the yogurt-segment has the highest percentage waste among all the produced segments. The elevated waste for the yogurt-segment has attracted the attention of the management which therefore has determined to launch an improvement campaign. The goal for the campaign is to remove all redundant waste. The lack of knowledge regarding root causes and magnitude of the waste requires a preliminary study to facilitate future decisions and planning. The main objective for the study was to analyse emerging sub-base waste in the yogurt manufacturing process and examine possibilities for the elimination of it. The study analyses all stages of the production chain, from the standardization-phase to the end warehouse. The production chain consists of three departments; sub-base production, packing department and warehouse. All departments are examined separately. The study utilizes proven methods, DMAIC-methodology, Pareto-analyses and fishbone-diagrams, to analyse production data and observations and interviews to determine problem areas. The results from the analyses indicate on several areas possible to improve. The improvements result in reduced production costs and improved productivity. Most of the problem areas can be prevented with relatively small recourses. The causes to the waste are divided into three categories, operator errors, technical errors and poor quality raw materials. Each of the categories contributes to an extensive waste and influence the overall efficiency of the production chain. Human induced errors can be prevented with minor recourses. Check-lists, implementation of guidelines, standardization of activities and additional training are simple methods to eliminate these problems. Preventing technical errors demands investments in new equipment and preventive maintenance. Testing the raw materials before usage and ensuring the quality reduces the risk of losses because of poor quality raw materials. The potential savings from a reduction of the waste are great. Eliminating the waste improves production efficiency and motivates employees, resulting in better customer satisfaction and thereby improved customer loyalty. Hence, business profits are eventually improved.

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Supervisor

Lillrank, Paul

Thesis advisor

Ingman, Patrik

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