PRODUCTION EFFICIENCY

Title: A case study for LORAMAX on supply chain strategy & production efficiency. Limitations: Due to the sensitive nature of the information in this thesis, a non-disclosure agreement was signed, and some data cannot be disclosed. Background: LORAMAX, the case company for this thesis produces differentiated products on the basis of quality. They are faced with the challenge of making a product that they recently launched, HERO, more competitive in the market. Even though they have chosen a differentiated strategy, the company understands that cost reduction could as well provide them a competitive advantage and is therefore crucial to the survival of the new product. Research questions: How can the production cost and lead time be reduced for HERO? How would the choice to either buy pre-assembled modules or manufacture them in-house influence the profit margin of HERO? Purpose: The purpose of this thesis is to use relevant theories and practical tool