Master Thesis: Simulation-Based Optimization of Material Flow in Volvo CE's New Factory
Eskilstuna, SE, 405 08
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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
This thesis focuses on optimizing the internal material flow within Volvo CE’s upcoming production facility through the use of simulation modelling. The objective is to analyze and improve the efficiency of logistics processes, including transport routes, storage strategies, and workstation supply, to support a lean and responsive production system. The simulation will enable data-driven decisions that reduce waste, enhance throughput, and support sustainable operations from day one.
The objective of this thesis is to analyze and optimize the internal logistics processes of the new assembly facility using simulation. The focus is on designing an efficient, scalable, and sustainable material flow system that supports takt-based production and minimizes waste.
Key deliverables:
• Simulation Model: Model of material flows including transport routes, buffer zones, storage strategies, and workstation supply methods.
• Flow Optimization: Evaluation of alternative layouts, tugger/train schedules, and supermarket sizing to maximize efficiency and minimize lead times and inventory.
• Bottleneck Detection & Solutions: Identification of potential material supply bottlenecks during normal and ramp-up operation, with proposals for mitigating strategies.
• Scenario Analysis: Simulation of high-mix / high-volume situations, product mix changes, and disruption scenarios (e.g., missed deliveries, blocked routes).
• Sustainability Considerations: Suggestions to reduce unnecessary transport, and floor space consumption.
• Handover Package: Documentation, user guide, and training to allow future use and refinement of the model by logistics engineers.
Outcome: A robust, simulation-validated material flow concept that supports a lean, cost-efficient, and scalable internal logistics system from day one.
Candidate Profile:
This master’s thesis project (30 ECTS) is designed for two students in the final stage of their Master’s studies in Production Engineering, Industrial Engineering and Management, Mechanical Engineering, or equivalent.
Required Qualifications:
Prior experience with discrete event simulation is essential, as the project relies heavily on simulation-based analysis and decision-making. Additional knowledge of logistics and material flow is highly beneficial.
Language: English
Location: Eskilstuna
Contact:
Christian Fleischmann christian.fleischmann@volvo.com
Bruno Campos bruno.bc.campos@volvo.com
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Who we are and what we believe in
We are committed to shaping the future landscape of efficient, safe, and sustainable transport solutions. Fulfilling our mission creates countless career opportunities for talents across the group’s leading brands and entities.
Applying to this job offers you the opportunity to join Volvo Group. Every day, you will be working with some of the sharpest and most creative brains in our field to be able to leave our society in better shape for the next generation. We are passionate about what we do, and we thrive on teamwork. We are almost 100,000 people united around the world by a culture of care, inclusiveness, and empowerment.
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