Beta 1


Title Optimized production and customer satisfaction
Author Singh, Simranjit Jelena (Copenhagen University College of Engineering, IHK)
Supervisor Raagaard, Søren (Copenhagen University College of Engineering, IHK)
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Global Business Engineering
Education Bachelor of Global Business Engineering
Publication date 2013-05
Abstract Abstract

Olsen Metal A/S has a desire to find possible solutions for the improvement of customer perception. The purpose of the project is to investigate the customers’ perception of Olsen Metal A/S, to develop a strategy for improving communication between Olsen Metal and its existing customers, and to ensure timely delivery by reducing lead time on prototype orders.
From a mercantile aspect, interviews and surveys are created and carried out with Olsen Metal’s customers. Furthermore, the collected data from the interviews is analyzed in order to identify customer concerns and areas where service may be improved. From the data collected it can be determined that 69% of the customers interviewed are dissatisfied with the lead time of prototype orders. It could likewise be determined that 15% of customers are dissatisfied with the communication regarding delayed deliveries at Olsen Metal.
Furthermore, the competitive situation in Denmark is analyzed. Teodan and Steel Products A/S are found to both provide metal manufacturing services similar to those of Olsen Metal. Steel Products A/S is deemed to be more of a partner to Olsen Metal than a competitor, as they cooperate in business and typically attend promotional events together. This leads to Teodan being identified as the biggest threat to Olsen Metal on the Danish market.
In order to enhance customer communication and decrease the lead time, recommendations for possible solution are presented. To enhance customer perception, the implementation of a Customer Relationship Management (CRM) system is recommended. It is also recommended to hire a salesperson with technical knowledge, as this could further strengthen customer relationships and sales.
From a technical aspect, the production of three prototype orders is analyzed. From the investigation of these production processes, it can be determined that the cause of the extended lead time is related to the production of tools. The Gantt chart created indicates a lack of capacity on CNC milling machines and overbooking. This results in time being wasted while waiting for the CNC milling machine
For reduced lead time, it is recommended that Olsen Metal invests in a production scheduling system, Rob-EX, to help organize production for optimal use of capacity.
From a financial aspect, the cost of implementing a Rob-EX planning system is calculated to be a onetime expense of 60,000-70,000 DKK. The cost of implementing a CRM system is calculated to be 159 DKK/month, Furthermore, the cost of hiring an additional sales employee is estimated at 21,583DKK + commissions fee.
It is strongly recommended that Olsen Metal considers implementing the three above mentioned solutions. The long-term benefits of these solutions are expected to be an optimized production, satisfied customers, and greater revenue.
Abstract Abstract

Olsen Metal A/S has a desire to find possible solutions for the improvement of customer perception. The purpose of the project is to investigate the customers’ perception of Olsen Metal A/S, to develop a strategy for improving communication between Olsen Metal and its existing customers, and to ensure timely delivery by reducing lead time on prototype orders.
From a mercantile aspect, interviews and surveys are created and carried out with Olsen Metal’s customers. Furthermore, the collected data from the interviews is analyzed in order to identify customer concerns and areas where service may be improved. From the data collected it can be determined that 69% of the customers interviewed are dissatisfied with the lead time of prototype orders. It could likewise be determined that 15% of customers are dissatisfied with the communication regarding delayed deliveries at Olsen Metal.
Furthermore, the competitive situation in Denmark is analyzed. Teodan and Steel Products A/S are found to both provide metal manufacturing services similar to those of Olsen Metal. Steel Products A/S is deemed to be more of a partner to Olsen Metal than a competitor, as they cooperate in business and typically attend promotional events together. This leads to Teodan being identified as the biggest threat to Olsen Metal on the Danish market.
In order to enhance customer communication and decrease the lead time, recommendations for possible solution are presented. To enhance customer perception, the implementation of a Customer Relationship Management (CRM) system is recommended. It is also recommended to hire a salesperson with technical knowledge, as this could further strengthen customer relationships and sales.
From a technical aspect, the production of three prototype orders is analyzed. From the investigation of these production processes, it can be determined that the cause of the extended lead time is related to the production of tools. The Gantt chart created indicates a lack of capacity on CNC milling machines and overbooking. This results in time being wasted while waiting for the CNC milling machine
For reduced lead time, it is recommended that Olsen Metal invests in a production scheduling system, Rob-EX, to help organize production for optimal use of capacity.
From a financial aspect, the cost of implementing a Rob-EX planning system is calculated to be a onetime expense of 60,000-70,000 DKK. The cost of implementing a CRM system is calculated to be 159 DKK/month, Furthermore, the cost of hiring an additional sales employee is estimated at 21,583DKK + commissions fee.
It is strongly recommended that Olsen Metal considers implementing the three above mentioned solutions. The long-term benefits of these solutions are expected to be an optimized production, satisfied customers, and greater revenue.
Pages 104
External partner Ledere og medarbejdere i private virksomheder
Admin Creation date: 2013-05-21    Update date: 2013-10-22    Source: ihk    ID: ihk-14538124    Original MXD