Sammanfattning

Current manufacturing industries are heavily reliant upon effective economic strategy, as such, the implication behind the economical changes during the transition in manufacturing from low-volume to high-volume production is integral for organisations within the manufacturing industry. Hence, the following thesis explores the economical implications in the transition from low to high-volume production, by combining key frameworks in production strategy and layouts, cost structure, and flexibility with empirical insights gathered through interviews and case site visits. By utilizing a methodology based on an extensive literature study, supported by a qualitative case study at Volvo AB Köping GTO and first-hand interviews, an analysis of the key cost drivers across production phases has been identified and analysed. The analysis identifies key cost drivers across the production phases; introduction, growth, and maturity – and examines how these change as volume increases. Findings highlight the importance of modular layouts, strategic investment timing, and capacity planning to minimize financial risk during scaling. The study emphasizes the value of flexibility and incremental implementation to avoid over-investment and underutilization. By integrating lean principles, cost modeling, and operational KPIs, this report provides actionable recommendations for manufacturing firms seeking to scale efficiently without compromising profitability. The work contributes to a deeper understanding of how companies can align operational expansion with economic viability in volatile market conditions.

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