Optimization of a cutting tool procurement process at a manufacturing company

This thesis is focused on lean thinking and its application on a real case of a logistic process in a manufacturing company. Firstly, the concept of lean thinking is described together with its history and relation to other management concepts. Key terms for lean thinking are defined, such as value and waste. Value stream mapping method and basic inventory management models are also described. Secondly, the real case part is focused on process optimization of procurement of cutting tool in a company that manufactures aluminum pistons mainly for automotive industry. The value stream was mapped and lead time calculated. Several data analyses were performed, such as ABC analysis, analysis of inventory costs and description of consignment stock option. Finally, several measurements for optimization of the cutting tool procurement process were recommended based on theoretical and practical research. The goal was to increase the process stability, flexibility and to reduce cost. The measurements include formalization of the whole process and implementing supplier evaluation system. The part includes detailed proposal of such system. The goal of this thesis was to verify a hypothesis that application of lean thinking tools can help with optimizing the cutting tool procurement process. The hypothesis was verified on theoretical level. The actual implementation of the measures will show the real benefits for the company