How Become Leaner

How can Remanufacturing Processes become Leaner?
Erik Sundin Department of Mechanical Engineering, Linköping University, Sweden

Abstract In this paper, seven remanufacturing companies are compared from a lean process perspective. Most of the companies experienced uncertainty regarding how many and when the cores arrived at the remanufacturing facilities, making planning more difficult.Furthermore, the companies reported high inventory levels as a problem. Hence, the companies often had a high number of cores, spare parts or half-finished products in storage, awaiting customers or as spare parts and thus tying up extensive space and capital within the process. The three remanufacturing steps - inspection, cleaning and reprocessing - were also shown to be crucial for most of thecompanies. In summary, one can see that there are some general issues for the remanufacturing firms to improve in order to achieve a more lean/effective process. Although only seven remanufacturing companies are analysed in this case study, one can see that the remanufacturing processes have similar characteristics within the same branch. Keywords Reverse logistics, Product take-back, Lean Production,Rapid Plant Assessment

1 INTRODUCTION The present rate of extraction of material from the earth’s crust is not sustainable. This unsustainability is not only due to the depletion of resources, but also to the waste problems that are related to the extraction that makes them unsustainable. In order to reach a state of sustainable development (i.e. a development that meets the needs of the presentwithout compromising the ability of future generations to meet their own needs [1]), mankind must, to a larger extent, succeed in closing material flows. This can be partially achieved through a greater degree of product recovery, e.g. product remanufacturing [2]. In line with this, the European Union has issued a directive called Waste Electronic and Electrical Equipment (WEEE) in January 2003.The aim of this directive is to prevent the accumulation of waste containing electrical and electronic products, and at the same time promote reuse and material recycling of such products. Moreover, the directive aims at improving the environmental performance at all stakeholders dealing with these products, e.g. manufacturers, distributors, customers and especially stakeholders dealing with theend-of-life treatment of products. During the last few decades, the concept of remanufacturing has spread from the automotive industry to other sectors, such as those involving various types of electrical apparatus, toner cartridges, and household appliances. According to a survey study by Lund [3], it was estimated that around 73,000 companies were active within the remanufacturing industry in theUSA in 1996. In Europe, in the meantime, companies increasingly began to pay attention to remanufacturing process and investigate associated activities such as reverse logistics, due to strict environmental legislation such as the WEEE directive and German take-back regulations. As the interests of product reuse are increasing, remanufacturers in new industry sectors and new countries arebreaking through [4]. The aim of this paper is to explore how remanufacturing facilities can become leaner. This means that the facilities are analysed in order to eliminate all types of waste and thus achieve a better material flow, lower lead-times, fewer obstacles etc.

2 CASE STUDY METHODOLOGY In order to achieve a solid scientific structure for data collection in these remanufacturing facilitycase studies, a case study methodology provided by Yin [5] was used. Case study methodology relies on qualitative evidence and is a way of investigating an empirical topic by following a set of pre-specified procedures. The methodology for the case studies consisted of a combination of existing analysis methods such as semistructured interviews and Rapid Plant Assessments (RPAs). Investigations at...