Designing gainsharing model variations with logistics service company

This thesis studies, in collaboration with a Finnish logistics service company, gainsharing and the development of a gainsharing models in a logistics outsourcing context. The purpose of the study is to create various gainsharing model variations for the use of a service provider and its customers in order to develop and enhance the customer’s processes and operations, create savings and improve the collaboration between the companies. The study concentrates on offering gainsharing model alternatives for companies operating in internal logistics outsourcing context. Additionally, the prerequisites for the gainsharing arrangement are introduced. In the beginning of the study an extensive literature review is conducted. There are three main themes explored which are the collaboration in an outsourcing context, key account management and gainsharing philosophy. The customer expectations and experiences are gathered by interviewing case company’s employees and its key customers. In order to design the gainsharing model prototypes, customers and other experts’ knowledge and experiences are utilized. The result of this thesis is five gainsharing model variations that are based on the empirical and theoretical data. In addition, the instructions related to each created model are given to the case company, but are not available in this paper

Cost efficient supply processes for the Compact Slim Elevator Door

The aim of this thesis was to observe possibilities to enhance the development of manufacturing costs savings and competitiveness related to the compact KONE Renova Slim elevator door. Compact slim doors are especially designed for EMEA markets. EMEA market area is characterized by highly competitive pricing and lead times which are manifested as pressures to decrease manufacturing costs and lead times of the compact elevator door. The new elevator safety code EN81-20 coming live during the spring 2016 will also have a negative impact on the cost and competitiveness development making the situation more acute. As a sheet metal product the KONE Renova slim is highly variable. Manufacturing methods utilized in the production are common and robust methods. Due to the low volumes, high variability and tight lead times the manufacturing of the doors is facing difficulties. Manufacturing of the doors is outsourced to two individual suppliers Stera and Wittur. This thesis was implemented in collaboration with Stera. KONE and Stera pursue a long term and close partnership where the benefits reached by the collaboration are shared equally. Despite the aims, the collaboration between companies is not totally visible and various barriers are hampering the development towards more efficient ways of working. Based on the empirical studies related to this thesis, an efficient standardized (A+) process was developed for the main variations of the compact elevator door. Using the standardized process KONE is able to order the most important AMDS door variations from Stera with increased quality, lower manufacturing costs and manufacturing lead time compared to the current situation. In addition to all the benefits, the standardized (A+) process also includes risks in practice. KONE and the door supplier need to consider these practical risks together before decisions are made.