Service Productization and Product Servitization in The Contract Manufacturing Company

The role of contract manufacturing and subcontracting has been seen in black and white in product and service point of view. It used to be seen either as a product or a service. In the thesis product-service system, offering combining products and services, was discussed. Theory was created from two perspectives; Service productization via Business Model generation and product servitization via New Service Development process. Target for the case study was to point out new ways of service thinking and ways for changing business environment in contract manufacturing, especially in customer satisfaction and profitability point of view. The case study is following the New Service Development process phases. First ideas were collected from literature and via sales management interviews. Service offering and tool for service requirement evaluation was created. Last financial results of example service scenarios were calculated. It is recommended to take service offering into internal use and further develop it into modular service model. It is also recommended to take created customer service requirement evaluation tool into use for capturing customer service needs but also for communicating those internally.

Kattilan ja kanaviston eristykset 3D-laitossuunnitteluohjelmassa

Työn tavoitteena oli kehittää kanavistojen ja kattilan eristyksien mallintamista 3D-laitossuunitteluohjelmassa sekä siitä saatavia materiaalilistoja. Kanavistojen eristeitä kuvastavaa geometriaa muokattiin vastaamaan eristyksen todellista tilanvarausta. Kattilan eristyksen mallintaminen on aikaisemmin jouduttu tekemään manuaalisesti, työssä kehitettiin työkalu, jonka avulla eristysten materiaalitiedot ja oikeat tilanvaraukset saadaan lisättyä 3D-malliin. Kaikkia eristyksen mallintamista ei kuitenkaan pystytä mielekkäästi toteuttamaan automaattisesti työkalujen avulla, näitä kohteita ovat tukikehikkorakenteet kuten kattilan vinttikehikko. Lisäksi täytyi selvittää, mitä tietoja eristyksien materiaalimäärälistoille vaaditaan, ja kuinka nämä tiedot saataisiin listoihin mukaan. Jotta kaikki eristettävät kohteet saadaan tuotettaviin materiaalilistoihin, on ohjelmaan lisättävä käytettäväksi uusia komponentteja. Näitä ovat uudet kanavistojen osat sekä muun muassa venturit ja huoltoluukut kanavistoille. Kattilaan asennettavat laitteet kuten näkölasit ja polttimet vaativat tukirakenteen, joka samalla toimii kotelona putkistojen taivutuksille. Näitä kohteita on aikaisemmin tuotu vanhoista projekteista tai ne on tehty suunnittelijan toimesta uusiksi. Työssä esitettiin uusi tapa mallintaa kattilan pinnat, jolloin niihin voidaan liittää koteloita erillisestä komponenttikirjastosta. Kanavistojen eristyksien materiaalimäärälistojen tuottaminen suoraan ohjelmasta auto-matisoitiin. Kattilan ja siihen liittyvien eristyskehysrakenteiden listojen tuotanto kuitenkin vaatii yhteisten toimintamallien kehittämistä. Tämän työn uudet menetelmät mahdollistavat yhä uusien työkalujen kehittämisen, esimerkiksi automaattisen eristysten teknisten piirustusten kuvatuotannon tulevaisuudessa.

Quality, Productivity and Economy in Welding Manufacturing - Case Study: West Africa

This thesis studies quality, productivity and economy in welding manufacturing in West African states such as Ghana, Nigeria and Cameroon. The study consists of two parts: the first part, which forms the theoretical background, reviews relevant literature concerning the metal and welding industries, and measurement of welding quality, productivity and economy. The second part, which is the empirical part, aims to identify activities in the metal manufacturing industries where welding is extensively used and to determine the extent of welding quality, productivity and economy measurements in companies operating in the metal manufacturing industries. Additionally, the thesis aims to identify challenges that companies face and to assess the feasibility of creating a network to address these issues. The research methods used in the empirical part are the case study (qualitative) method and the survey (quantitative) method. However, the case study method was used to elicit information from companies in Ghana, while the survey method was used to elicit information from companies in Nigeria and Cameroon. The study considers important areas that contribute to creating awareness and understanding of the current situation of the welding industry in West Africa. These areas include the metal manufacturing industrial sector, metal products manufactured, metal production and manufacturing systems deployed, welding quality, productivity and economy measurement systems utilized, equipment and materials on the markets, general challenges facing companies in welding operations, welding technology programs and research in local universities, and SWOT analysis of the various West African states. The notable findings indicate that majority of the companies operate in the constructionindustrial sector. Also, majority of the companies are project manufacturing oriented, thus provide services to customers operating in the growing industries such as the oil and gas, mining, food and the energy industry. In addition, only few companies are certified under standards such as ISO 9001, ISO 3834, and OHSAS 18001. More so, majority of the companies employ manual welding technique, and shielded metal arc welding (SMAW) as the commonly used welding process. Finally, welder salary is about € 300 / month as of June 2013 and the average operations turnover of medium to large companies is about € 5 million / year as at 2012. Based on analysis of the results of the study, it is noted that while welding activities are growing, the availability of cheap labor, the need for company and welder qualification and certification, and the need to manufacture innovative products through developmental projects (transfer of welding expertise and technology) remain as untapped opportunities in the welding industry in the West African states. The study serves as a solid platform for further research and concludes with several recommendations for development of the West African welding industry.

Surface characterization of chemically modified fiber, wood and paper

Inorganic-organic sol-gel hybrid coatings can be used for improving and modifying properties of wood-based materials. By selecting a proper precursor, wood can be made water repellent, decay-, moisture- or UV-resistant. However, to control the barrier properties of sol-gel coatings on wood substrates against moisture uptake and weathering, an understanding of the surface morphology and chemistry of the deposited sol-gel coatings on wood substrates is needed. Mechanical pulp is used in production of wood-containing printing papers. The physical and chemical fiber surface characteristics, as created in the chosen mechanical pulp manufacturing process, play a key role in controlling the properties of the end-use product. A detailed understanding of how process parameters influence fiber surfaces can help improving cost-effectiveness of pulp and paper production. The current work focuses on physico-chemical characterization of modified wood-based materials with surface sensitive analytical tools. The overall objectives were, through advanced microscopy and chemical analysis techniques, (i) to collect versatile information about the surface structures of Norway spruce thermomechanical pulp fiber walls and understand how they are influenced by the selected chemical treatments, and (ii) to clarify the effect of various sol-gel coatings on surface structural and chemical properties of wood-based substrates. A special emphasis was on understanding the effect of sol-gel coatings on the water repellency of modified wood and paper surfaces. In the first part of the work, effects of chemical treatment on micro- and nano-scale surface structure of 1st stage TMP latewood fibers from Norway spruce were investigated. The chemicals applied were buffered sodium oxalate and hydrochloric acid. The outer and the inner fiber wall layers of the untreated and chemically treated fibers were separately analyzed by light microscopy, atomic force microscopy and field-emission scanning electron microscopy. The selected characterization methods enabled the demonstration of the effect of different treatments on the fiber surface structure, both visually and quantitatively. The outer fiber wall areas appeared as intact bands surrounding the fiber and they were clearly rougher than areas of exposed inner fiber wall. The roughness of the outer fiber wall areas increased most in the sodium oxalate treatment. The results indicated formation of more surface pores on the exposed inner fiber wall areas than on the corresponding outer fiber wall areas as a result of the chemical treatments. The hydrochloric acid treatment seemed to increase the surface porosity of the inner wall areas. In the second part of the work, three silane-based sol-gel hybrid coatings were selected in order to improve moisture resistance of wood and paper substrates. The coatings differed from each other in terms of having different alkyl (CH3–, CH3-(CH2)7–) and fluorocarbon (CF3–) chains attached to the trialkoxysilane sol-gel precursor. The sol-gel coatings were deposited by a wet coating method, i.e. spraying or spreading by brush. The effect of solgel coatings on surface structural and chemical properties of wood-based substrates was studied by using advanced surface analyzing tools: atomic force microscopy, X-ray photoelectron spectroscopy and time-of-flight secondary ion spectroscopy. The results show that the applied sol-gel coatings, deposited as thin films or particulate coatings, have different effects on surface characteristics of wood and wood-based materials. The coating which has a long hydrocarbon chain (CH3-(CH2)7–) attached to the silane backbone (octyltriethoxysilane) produced the highest hydrophobicity for wood and wood-based materials.

Process modeling method for electric accessories manufacturing enterprise

The theoretical research of the study focused to business process management and business process modeling, the goal was to found a new business process modeling method for electrical accessories manufacturing enterprise. The focus was to find few options for business process modeling methods where company could have chosen the best one for its needs The study was carried out as a qualitative research with an action study and a case study as the most important ways collect data. In the empirical part of the study examples of company’s processes modeled with the new modeling method and process modeling process are presented. The new way of modeling processes improves especially visual presentation of the processes and improves the understanding how employees should work in the organizational interfaces of the process and in the interfaces between different processes. The results of the study is a new unified way to model company’s processes, which makes it easier to understand and create the process models. This improved readability makes it possible to reduce the costs that were created from the unclear old process models.

PDM system functions and utilizations analysis to improve efficiency of sheet metal product design and manufacturing

This study will concentrate on Product Data Management (PDM) systems, and sheet metal design features and classification. In this thesis, PDM is seen as an individual system which handles all product-related data and information. The meaning of relevant data is to take the manufacturing process further with fewer errors. The features of sheet metals are giving more information and value to the designed models. The possibility of implementing PDM and sheet metal features recognition are the core of this study. Their integration should make the design process faster and manufacturing-friendly products easier to design. The triangulation method is the basis for this research. The sections of this triangle are: scientific literature review, interview using the Delphi method and the author’s experience and observations. The main key findings of this study are: (1) the area of focus in triangle (the triangle of three different point of views: business, information exchange and technical) depends on the person’s background and their role in the company, (2) the classification in the PDM system (and also in the CAD system) should be done using the materials, tools and machines that are in use in the company and (3) the design process has to be more effective because of the increase of industrial production, sheet metal blank production and the designer’s time spent on actual design and (4) because Design For Manufacture (DFM) integration can be done with CAD-programs, DFM integration with the PDM system should also be possible.

European luxury brands made in China: the effect of low-cost country manufacturing on brand image and purchase decisions

European luxury brands have an image of manufacturing their products in the same country where the brands originate. However, in the past years many luxury brands have shifted their manufacturing to countries outside Europe. China is now a common manufacturing country for European luxury brands despite the country’s poor image as a manufacturer. Chinese manufacturing is often associated with bad quality, bad labour conditions, mass production, and counterfeits. The image of China does not quite match the image luxury brands enjoy including characteristics such as high end quality, craftsmanship, details, design, or premium price. A negatively perceived country-of-manufacture may have an effect on a brand’s image and consumers’ purchase decisions. This thesis is focused on European luxury brands manufacturing in China, and how this effects the brand image and purchase decisions among luxury consumers. The empirical part of this thesis is based on focus group research, which is a popular method in the field of qualitative research. The main focus group is female luxury consumers in Finland. This main group has been divided into three categories: 1) the university students, 2) the young career women, 3) the experienced luxury consumers. This categorization has been done based on their different stages in luxury consumption. All in all, the empirical research consisted of 11 interviews and 29 participants. The main contribution of this thesis was that there is a difference between the opinions of the younger groups (university students and young career women) and the experienced luxury consumers when discussing the effect of country-of-manufacture on brand image and purchase decisions of luxury brands. The younger participants thought that manufacturing luxury products in China might affect the brand image, but their purchase decisions would not be that much affected by the country-of-origin. The experienced luxury consumers had quite a different view on the country-of-origin of luxury brands – they found it an important decisive factor prior making purchases. The majority of experienced luxury consumers would not buy luxury products made in China, and they would always check where these products are made in.

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.