Enhancing Material Flow Efficiency : A case study at Cummins in Lindesberg

Cummins in Lindesberg has identified a need to improve the efficiency of the material flow for front axle beams, a process that has been deprioritized in favor of other, more value-adding flows. Currently, the material is handled manually by operators and transported using forklifts, which poses both efficiency challenges and significant safety risks. As a result, the company is considering the implementation of Automated Guided Vehicles (AGV). The purpose of this study was to analyze the current state of the material flow and evaluate whether the necessary conditions for implementing AGV are met. Data collection was conducted through observations, interviews, literature review, and informal discussions. The analysis combined empirical findings with theoretical frameworks related to internal logistics and automation. The study reveals that relocating the sequencing area, currently situated in the center of the factory, can shorten transport distances and eliminate two handling points. This would lead to a more streamlined and efficient flow. Additionally, the analysis shows that Cummins meets key requirements for AGV implementation, including environmental, operational, and economic conditions. The conclusion is that the implementation of a AGV system is both feasible and potentially cost-effective for the front axle beam flow at Cummins. It is recommended that the company first carries out the proposed layout and process changes to prepare for automation, which would contribute to improved efficiency and workplace safety.