Labor and Materials Cost Reduction in Production Lines. Case Study in a Battery Pack Manufacturer

Abstract

The current semiconductor shortage has implied delays in the supply of a range of products. It is also the case of the products researched in this thesis. This has involved deliveries of more than 1 year and increased supply costs. Companies have found themselves needing to look for cost reduction to maintain the same costs as always. This Thesis will focus on the material and labor costs reduction of the battery assembly production line at National Power Corp. based on analysis methodology. Actual line performance has been analyzed to disaggregate the processes implied as much as possible, to ease the understanding of the production process as a whole. Once the lines were analyzed, improvements were proposed to each of the batteries studied. These improvements have been scheduled based on the potential time reduced, difficulty and cost. A Gantt Diagram has been given as a resource for the company. Then, a new simulated analysis has been performed with the improvements implemented. A line balance with the improvements has been carried on the lines. Lastly, an economical study with the performance results of the improvements seen has been performed