On Remanufacturing Systems : Analysing and Managing Material Flows and Remanufacturing Processes

Abstract: The aim of remanufacturing is to retrieve a product’s inherent value when the product no longer fulfils the user’s desired needs. By taking advantage of this inherent value through different product recovery alternatives, there is a potential for both economically and environmental advantageous recovery of products.Remanufacturing is a complex business due to the high degree of uncertainty in the production process, mainly caused by two factors: the quantity and the quality of returned products. These factors have implications both on the external processes, e.g. coordinating input of returned products with the demand for remanufactured products, as well as the internal processes that coordinates the operations within the factory walls. This additional complexity needs to be considered when organising the remanufacturing system.The objective of this dissertation is to explore how remanufacturing companies can become more competitive through analysing and managing material flows and remanufacturing processes. The first issue discussed in this dissertation is the drivers that make companies interested in remanufacturing products in the first place. The conclusion is that the general drivers are profit, company policy and the environmental drivers. In a general sense, the profit motivation is the most prevalent business driver, but still there are situations where this motivation is secondary to policy and environmental drivers. Secondly, the need to balance the supply of returned products with the demand for remanufactured products shows that the possible remanufacturing volumes for a product are dependent on the shape of the supply and demand distributions. By using a product life cycle perspective, the supply and demand situations can be foreseen and support is given on possible strategies in these different supply and demand situations. Thirdly, how used products are gathered from customers is categorised by seven different customer relationship types. These types all have different effects on the remanufacturing system, and the characteristics of these relationships are disused in detail.When considering the remanufacturing process within the factory walls, a generic remanufacturing process was developed that divides the remanufacturing process into five different phases; pre-disassembly, disassembly, reprocessing, reassembly and the post-assembly phase. These different phases are separated by three different key decision points in the process that also have a major impact on the material planning of the process. For the remanufacturing material planning and production planning, the possibility to apply lean principles can be difficult. One foundation for implementing lean principles in new production is the existence of standardised processes that are stable and predictable. In the remanufacturing system, the possibilities to realise a predictable process is limited by the “normal” variations in quantity and the quality of the returned cores. Even though lean principles can be problematic to implement in the remanufacturing environment, this dissertation proposes a number of solutions that can be used to make the remanufacturing process leaner.