Improvement of finished goods warehouse in KP Components AB

This bachelor’s thesis studies how a finished goods warehouse can be improved, and how frequent problems in a company’s warehouse management can be diminished. KPC omponents, a component, and machine part producing company in Uddevalla, has afinished goods warehouse in need of improvement. This project is an improvement work, where the current warehouse management in KP Components is examined and studied. This project also includes a literature study on standardized work improvement, logistics, and warehouse management. Observations of the company’s production hall and interviews of relevant workers have been made. Finally, improvement ideas and recommendations are presented. Problems that occur in the finished goods warehouse of KP Components are picking errors and uncertainty in the stock balance. The placement of articles and picking methods are not fully defined and structured. Given these occurring problems, this study formulates the following questions: • How can the occurring problems be minimized or eliminated? • What system can support KP Components in increasing the effectiveness of its warehouse management? SWOT-analysis are used to compare the different principles of article placement and picking methods, which made the selection of improvement ideas possible.This study concludes that KP Components should implement the family-based, size, and similarity principles regarding article placement. The company should also use the bar code reader as a picking method. It is furthermore recommended that KP Components should not yet implement a warehouse management system (WMS) and that the warehouse layout should not be replaced