Improvement of Internal Production Logistics by Using Lean Production Concept (on the Example of JSC(N) Volvo-Vostok)

Keywords: Lean Production, internal production logistics, safety stock, product cost, 5s, Poka -Yoke, model of strategic profit. The purpose of graduate qualification work (GQW) is to improve the internal production logistics using Lean Production concept in the company JSC(N) "Volvo Vostok". The objectives of GQW are to: describe Lean Production concept, its elements and tools; analyze business activities in JSC(N) "Volvo Vostok"; analyze production system of JSC(N) "Volvo Vostok"; analyze the problems of internal production logistics in JSC(N) "Volvo Vostok"; develop recommendations. The following problems have been identified during the analysis of activities in the company: high level of safety stocks of components in the warehouse and assembly lines, unnecessary in-plant transportation, problems regarding to negotiation of orders with customers. This GQW has come with the following recommendations: the reduction of safety stocks of exhaust pipe by changing the current European supplier on the supplier having its own production facilities in Russia, reduction of inventory levels of components at assembly lines as a result of changing the methods of delivery to the lines, changing the route of the automatic train’s movement between the assembly lines, the implementation of tools of Lean Production – 5S and Poka-Yoke in order to reduce the number of errors in the production process.The economic feasibility of the proposed recommendations was proved. As a result, the production cost decreased by 1.5% . ROE ratio in the model of strategic profit grew only by 0.01 % but after reducing of safety stocks of other components supplied to the plant, in the same way (described in QQW), this can be increased. GQW volume: number of pages - 72, number of figures - 16, number of tables - 12, references – 31.