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  • 1.
    Eriksson, Stefan
    University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production.
    Call-Off Production, Triggered by the Traditional Kanban Card or by Electronic Kanban: A Case Study at Ericsson2010In: POMS 21st Annual Conference, 2010Conference paper (Refereed)
    Abstract [en]

    This study analyzes a concept for materials supply called call-off production, used by the telecom company Ericsson, where a case study was performed. Call-off orders are initiated from the production area and submitted through electronic data interchange (EDI) to an external supplier, a third-party logistics provider, skipping the traditional purchase ordering process. In call-off production Ericsson applies two forms of kanban for triggering the replenishment, namely the conventional kanban card and electronic kanban. For both variants, call-off production implies a short lead time, frequent deliveries, and the potential for controlling tied-up capital, using few resources, and providing a high level of delivery service. The study indicates that the conventional kanban card requires more handling than electronic kanban. On the other hand, electronic kanban could hide problems in the stock. To conduct the analysis, a theoretical framework and an analysis model were created as a foundation. Call-off production could be an uncomplicated and efficient method for manufacturing companies to manage some of the purchased products. This study’s intended contribution is to increase the knowledge of a supply model in practice.

  • 2.
    Eriksson, Stefan
    University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi.
    In-House Delivery: An Analysis of a Materials Supply Model at Ericsson Corporation2008In: Proceedings of ICESAL 2008, 2008, p. 223-237Conference paper (Refereed)
    Abstract [en]

    This paper gives an account of and analyzes a concept for materials supply within Ericsson Corporation. The study is focused on the customer’s point of view. The concept, called by Ericsson In-House Delivery (IHD), could be identified as a manual form of the principle of Vendor Managed Inventory (VMI). In IHD the supplier has the responsibility for dimensioning the customer’s production store and also for physically replenishing the storeroom without any traditional purchase orders or transactions in IT systems regarding inventory control. This method contrasts with the more traditional Material Requirements Planning (MRP), which is more dependent on data than IHD is. IHD also differ to how VMI normally is implemented using IT-based solutions. IHD could be an uncomplicated method for manufacturing companies to manage non-critical purchased parts or standard parts with low economical importance, and its use could help the company achieve its logistics goals.

  • 3.
    Eriksson, Stefan
    University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi. University of Gävle, Center for Logistics and Innovative Production.
    Mobile Inventory: An analysis of a materials supply model at Ericsson corporation2009In: Proceedings of the annual POMS conference, USA, May 2009, 2009Conference paper (Refereed)
    Abstract [en]

    The study analyzes the telecom company Ericsson’s supply model, named Mobile Inventory by the author, focusing on the customer’s point of view. Mobile Inventory involves specially designed carts with electronic components required for production that circulate between a third-party logistics provider (3PLP) and Ericsson. The carts are transported by trucks and rolled out close to the assembly line at Ericsson, where they work as production storage sites. The inventory level inside the cart is kept at a certain maximum level, which covers the requirements until a new cart is delivered. The supply model works without a traditional purchase ordering process, operating instead as a variant of a periodic ordering system with fixed delivery days and where the 3PLP is responsible for the replenishment of the carts. The system runs to a large extent by itself. Mobile Inventory could be an uncomplicated supply model for manufacturing companies to manage some of their products like noncritical/standard and leverage parts, demanding only limited resources and providing a high level of customer service. This study intends to increase the knowledge of an alternative approach for materials supply that could be applied to manufacturing companies other than Ericsson.

  • 4.
    Eriksson, Stefan
    University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production. KTH, Royal Institute of Technology, Stockholm, Sweden.
    Visual replenishment methods in the manufacturing industry and suggestion for a decision tool2013Licentiate thesis, monograph (Other academic)
    Abstract [en]

    In almost all supply chains, materials need to be stored or buffered, implying that manufacturing companies need effective replenishment methods. However, this is challenging, since companies must balance inventory costs and customer service in complex and different situations. Therefore, it is important to choose replenishment methods carefully. One well-known and widespread method is Material Requirements Planning (MRP). But the method has problems, such as regarding volume flexibility. There are other methods, but the literature lacks case studies and detailed descriptions and analysis of them, especially for visually oriented methods. Therefore, it is important to explore different methods for materials supply.

    The purpose of this study is to analyze the application of visually oriented replenishment methods in manufacturing industry and further to design a tentative decision tool for selecting methods. The research aims to provide some answers to three key questions.

    The first research question concerns general factors that are important for evaluating how effective replenishment methods are. From the literature review, different factors emerged such as product characteristics (fit in the Kraljic matrix, volume issues, size, etc.); information, trust, and geographical proximity between supplier and customer; and different logistics goals (delivery service elements, tied-up capital, use of resources, inventory accuracy). It is also import to include the basic principles methods are related to. The factors were summarized in an analysis model, which is structured with three main areas (planning environment/conditions, basic principles, and effects). The model is used to analyze four case studies.

    The  second research  question focuses  on  the  characteristics for  visually orientedreplenishment methods. Examples of characteristics are: easy to understand and operate, offers uncomplicated flows, substantially applicable for noncritical and leverage parts with high yearly requirement and fairly even consumption, provides potential for  reduced  errors  in  stores/flows, potential for  providing high  delivery service and low levels of tied-up capital and resource utilization.

    The third research question focuses on what a tentative decision tool for selecting replenishment methods might look like, based on the factors that emerged from the other research questions and studies by others. In order to achieve an efficient materials supply, companies need to consider these factors when selecting replenishment methods. The decision tool consists of different steps, considering aspects of the planning environment/conditions in relation to the product and the supplier. The importance of the companies’ goals/motives for materials supply must also be assessed. The output from the decision tool is appropriate replenishment methods.

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