Master Thesis: Simulation-Based Industrialization Strategy for Ramp-Up of Volvo CE's New Factory

Master Thesis

Volvo Construction Equipment (Volvo CE), a division of Volvo Group, is one of the world's largest manufacturers of construction equipment such as wheel loaders, haulers, excavators and compact machines. Volvo CE is currently undertaking a major strategic investment to expand its global production capacity for crawler excavators. As part of this initiative, a directional decision is taken to establish a new production facility in Sweden. The project is driven by the need to meet growing customer demand, enhance supply chain resilience through localized manufacturing, and reduce environmental impact by minimizing long-distance logistics.

A critical step in the establishment of the new Volvo CE factory is the development of advanced simulation models. These models are essential for verifying production concepts, optimizing factory layout, and ensuring efficient material flow before physical implementation. By simulating various scenarios, Volvo CE can proactively identify potential bottlenecks and design a more resilient and sustainable production system.

Description of thesis work

The thesis aims to develop a comprehensive industrialization and ramp-up strategy for Volvo CE’s new factory by leveraging simulation modelling. The simulation model will serve as a decision-support tool to evaluate production scenarios, validate layout and process concepts, and optimize resource allocation during the ramp-up phase. The outcome will contribute to a more efficient, risk-mitigated transition from project planning to full-scale operations.

The objective of this thesis is to develop a scalable simulation model to support the industrialization and ramp-up of the new excavator assembly line. The model shall validate assembly concepts, confirm capacity targets, and evaluate different ramp-up strategies. It must be designed for future reusability, allowing the line organization to adjust parameters such as takt time, product mix, and staffing levels after SOP.

Key deliverables:

• Simulation Model: Flexible, parameter-driven model that can easily be updated with new cycle times or product data.
• Ramp-Up Scenarios: Simulation of different production ramp-up profiles and identification of risks and performance thresholds (cost, throughput, WIP, resource utilization).
• Bottleneck Analysis: Identification of process bottlenecks and proposals for mitigation (e.g., rebalance operations, add buffer).
• Sensitivity Analysis: What-if simulations for disruptions (machine downtime, operator absence, supply delays) to ensure a robust plan.
• Handover Package: Clear documentation, user guide, and training session for the future line organization to maintain and update the model.

Outcome: A data-driven, risk-mitigated ramp-up strategy with recommendations for line balancing, staffing, and resource allocation to ensure a smooth transition from project phase to stable operations.

Candidate Profile

This master’s thesis (30 ECTS) is well-suited for two students in the final phase of their Master’s studies in Production Engineering, Industrial Engineering and Management, Mechanical Engineering, or equivalent.

Requirements:
Prior experience with discrete event simulation is essential, as the project relies heavily on simulation-based analysis and decision-making. Familiarity with production systems, logistics, and industrialization processes will be beneficial.

Language: English

Location: Eskilstuna