Developing sustainable value proposition: A case study from manufacturing industry

Increasing pressures to reduce costs, inprove productivity, and lower the environmental impact are forcing suppliers to present evidences of the monetary and societal value they create for the customers and society around. The extant academic literature on the practical activities related to topic is still sparse and this study addresses the gap by developing sustainable customer value proposition for Valmet’s recycled fibre line solution for the Chinese market. The research is based on literature review and single case study method. Theoretically the study is connected to the emerging literature of customer value and life cycle engineering, and to the research of sustainable development in the field of marketing. For exloiting empirical evidences, in-depth supplier interviews and customer survey were conducted. The results suggest that selling of recycled fibre line solution requires tangible and credible evidence of the value and utility which is delivered for the customer. In addition to the economic benefits also societal benefits should be included in the value proposition that are the focus of attention in China. Still, the role of discovered benefits may be contradictory until they are communicated to appropriate decision makers. Managerially the study contributes to the customer value management and quantification knowledge and practices in Valmet’s organization.

Cooperative strategy in emerging markets - analysis of interfirm r&d cooperation and performance in Russian manufacturing companies

Emerging markets have come to play a significant role in the world, not only due to their strong economic growth but because they have been able to foster an increasing number of innovative high technology oriented firms. However, as the markets continue to change and develop, there remain many companies in emerging markets that struggle with their competitiveness and innovativeness. To improve competitive capabilities, many scholars have come to favor interfirm cooperation, which is perceived to help companies access new knowledge and complementary resources and, by so doing, enables them to catch up quickly with Western competitors. Regardless of numerous attempts by strategic management scholars, the research field remains very fragmented and lacks understanding on how and when interfirm cooperation contributes to firm performance and competiveness in emerging markets. Furthermore, the reasons why interfirm R&D sometimes succeeds but fails at other times frequently remain unidentified. This thesis combines the extant literature on competitive and cooperative strategy, dynamic capabilities, and R&D cooperation while studying interfirm R&D relationships in and between Russian manufacturing companies. Employing primary survey data, the thesis presents numerous novel findings regarding the effect of R&D cooperation and different types of R&D partner on firms’ exploration and exploitation performance. Utilizing a competitive strategy framework enables these effects to be explained in more detail, and especially why interfirm cooperation, regardless of its potential, has had a modest effect on the general competitiveness of emerging market firms. This thesis contributes especially to the strategic management literature and presents a more holistic perspective on the usefulness of cooperative strategy in emerging markets. It provides a framework through which it is possible to assess the potential impacts of different R&D cooperation partners and to clarify the causal relationships between cooperation, performance, and long term competitiveness.

Lean Six Sigma in a Manufacturing Lead Time Improvement Project

The objective of this research is to demonstrate the use of Lean Six Sigma methodology in a manufacturing lead time improvement project. Moreover, the goal is to develop working solutions for the target company to improve its manufacturing lead time. The theoretical background is achieved through exploring the literature of Six Sigma, Lean and Lean Six Sigma. The development will be done in collaboration with the related stakeholders, by following the Lean Six Sigma improvement process DMAIC and by analyzing the process data from the target company. The focus of this research is in demonstrating how to use Lean Six Sigma improvement process DMAIC in practice, rather than in comparing Lean Six Sigma to other improvement methodologies. In order to validate the manufacturing system’s current state, improvement potential and solutions, statistical tools such as linear regression analysis were used. This ensured that all the decisions were as heavily based on actual data as possible. As a result of this research, a set of solutions were developed and implemented in the target company. These solutions included batch size reduction, bottleneck shift, first-in first-out queuing and shifting a data entry task from production planners to line workers. With the use of these solutions, the target company was able to reduce its manufacturing lead time by over one third.

Toward including the effect of manufacturing processes in the pre-estimated losses of the switched reluctance motor

The estimation of losses plays a key role in the process of building any electrical machine. How to estimate those losses while designing any machine; by obtaining the characteristic of the electrical steel from the catalogue and calculate the losses. However, this way is inaccurate since the electrical steel performs several manufacturing processes during the process of building any machine, which affects directly the magnetic property of the electrical steel and accordingly the characteristic of the electrical steel will be affected. That means the B–H curve of the steel that was obtained from the catalogue will be changed. Moreover, during loading and rotating the machine, some important changes occur to the B–H characteristic of the electrical steel such as the stress on the laminated iron. Accordingly, the pre-estimated losses are completely far from the actual losses because they were estimated based on the data of the electrical steel obtained from the catalogue. So in order to estimate the losses precisely significant factors of the manufacturing processes must be included. The paper introduces the systematic estimation of the losses including the effect of one of the manufacturing factors. Similarly, any other manufacturing factor can be included in the pre-designed losses estimations.

Pyörivän keskiökärjen rakenteen kehittäminen työstövärähtelyjen välttämiseksi sorvauksessa

Tässä diplomityössä käsitellään sorvauksen työstövärähtelyjen ja sorvin keskiökärjen rakenteen yhteyttä. Työ on osa Lappeenrannan teknillisen yliopiston VMAX-projektia, ja sen taustalla on pyrkimys uudenlaisen, sorvin kärkipylkän puristusvoiman ajonaikaiseen säätämiseen perustuvan työstövärähtelyjen välttämismenetelmän kehittämiseen. Tämän menetelmän toiminnan todentaminen oli työn ensimmäinen tavoite. Menetelmän toteuttaminen asettaa kuitenkin käytetyn keskiökärjen rakenteelle tiettyjä vaatimuksia. Työn toisena tavoitteena oli nämä vaatimukset täyttävän keskiökärjen prototyypin kehittäminen. Tutkimus eteni seuraavasti. Ensimmäiseksi ongelma määriteltiin tutustumalla työn teoreettiseen taustaan ja aiheeseen liittyvään tutkimukseen Lappeenrannan teknillisestä yliopistosta ja muualta. Myös keskiökärkiä valmistavien yritysten tuotekatalogeja tarkasteltiin. Seuraavaksi siirryttiin alustavaan suunnitteluvaiheeseen, jossa verifioitiin menetelmän toiminta ja luotiin konsepteja keskiökärjen rakenteen kehittämistä varten. Tämän alustavan vaiheen jälkeen suoritettiin suunnitteluprosessi keskiökärjen prototyypille. Lopuksi, suunnitellun prototyypin rakenteen käyttäytymistä arvioitiin tietokonemallinnuksen avulla. Lisätuloksena tutkimuksen aikana johdettiin yksinkertaistettu elementtimenetelmään perustuva laskentamalli järjestelmän ominaistaajuuksien selvittämiseksi. Laskentamallin tarkkuutta arvoitiin. Suunnitteluprosessin tuloksena saatiin kaikki menetelmän toiminnan sekä normaalin käytön asettamat vaatimukset täyttävä rakenne keskiökärjen prototyypille. Myös johdetun laskentamallin tulokset ovat varsin lähellä 3D-elementtimallinnuksen antamia tuloksia. Tutkimuksen tavoitteiden voidaan siis sanoa toteutuneen. Koska prototyyppiä ja laskentamallia ei kuitenkaan ole vielä kokeellisesti verifioitu, tämä ei ole täysin varmaa.

3D Mesh Simplification. A survey of algorithms and CAD model simplification tests

Simplification of highly detailed CAD models is an important step when CAD models are visualized or by other means utilized in augmented reality applications. Without simplification, CAD models may cause severe processing and storage is- sues especially in mobile devices. In addition, simplified models may have other advantages like better visual clarity or improved reliability when used for visual pose tracking. The geometry of CAD models is invariably presented in form of a 3D mesh. In this paper, we survey mesh simplification algorithms in general and focus especially to algorithms that can be used to simplify CAD models. We test some commonly known algorithms with real world CAD data and characterize some new CAD related simplification algorithms that have not been surveyed in previous mesh simplification reviews.

Effects of internationalization on packaging decisions of manufacturing companies

The world has witnessed a great deal of globalization and a rise in international activities in recent years compared to decades ago. This has contributed to an upsurge in competition among manufacturing firms resulting in the use of different marketing strategies to survive. Packaging is one of the tools that has been used by marketers to make products different and appealing to both local and international customers. The purpose of this research work was to investigate more on packaging as a marketing tool and how internationalization affects the decisions management makes in relation to it. To this effect, a qualitative research was conducted using five manufacturing companies as case studies and data collected through semi-structured interviews and also personal observation. Secondary sources were also used in order to get deeper insight into the case companies under study. The study revealed that there are many advantages that internationalization provides firms. The general revelations made by the firms that were researched did not point to a negative impact of internationalization on their packaging decisions. Internationalization has provided positive improvements on their packaging and made them more competitive. This proves that for packaging decisions to improve better, one key enabler will be exposure to the international environment since it provides a wider array of options for package improvements for firms.

Cloud computing contribution to manufacturing industry

Manufacturing industry has been always facing challenge to improve the production efficiency, product quality, innovation ability and struggling to adopt cost-effective manufacturing system. In recent years cloud computing is emerging as one of the major enablers for the manufacturing industry. Combining the emerged cloud computing and other advanced manufacturing technologies such as Internet of Things, service-oriented architecture (SOA), networked manufacturing (NM) and manufacturing grid (MGrid), with existing manufacturing models and enterprise information technologies, a new paradigm called cloud manufacturing is proposed by the recent literature. This study presents concepts and ideas of cloud computing and cloud manufacturing. The concept, architecture, core enabling technologies, and typical characteristics of cloud manufacturing are discussed, as well as the difference and relationship between cloud computing and cloud manufacturing. The research is based on mixed qualitative and quantitative methods, and a case study. The case is a prototype of cloud manufacturing solution, which is software platform cooperated by ATR Soft Oy and SW Company China office. This study tries to understand the practical impacts and challenges that are derived from cloud manufacturing. The main conclusion of this study is that cloud manufacturing is an approach to achieve the transformation from traditional production-oriented manufacturing to next generation service-oriented manufacturing. Many manufacturing enterprises are already using a form of cloud computing in their existing network infrastructure to increase flexibility of its supply chain, reduce resources consumption, the study finds out the shift from cloud computing to cloud manufacturing is feasible. Meanwhile, the study points out the related theory, methodology and application of cloud manufacturing system are far from maturity, it is still an open field where many new technologies need to be studied.

Capital investments planning and life cycle simulations for the new valves manufacturing facility in Russia

The focus of the research is on the derivation of the valid and reliable performance results regarding establishment and launching of the new full-scale industrial facility, considering the overall current conditions for the project realization in and out of Russia. The study demonstrates the process of the new facility concept development, with following perfor-mance calculation, comparative analyzes conduction, life-cycle simulations, performance indicators derivation and project`s sustainability evaluation. To unite and process the entire input parameters complexity, regards the interlacing between the project`s internal technical and commercial sides on the one hand, and consider all the specifics of the Russian conditions for doing business on the other hand, was developed the unique model for the project`s performance calculation, simulations and results representation. The complete research incorporates all corresponding data to substantiate the assigned facility`s design, sizing and output capacity for high quality and cost efficient ferrous pipe-line accessories manufacturing, as well as, demonstrates that this project could be suc-cessfully realized in current conditions in Russia and highlights the room for significant performance and sustainability improvements based on the indexes of the derived KPIs.