Reducing the Cost of Complexity of Truck Tyre Production at Prometeon Tyre Group

This thesis aims to analyse how and with which tools it is possible to measure and reduce the cost of complexity in a tyre manufacturing plant. Given the intricate structure of tyres, increasing product customization and abrupt changes in market demand add more complexity to already complex manufacturing processes. In the first section of this paper, all the critical parts of a truck tyre and production procedures are summarized. In the next section, the components of manufacturing costs are listed, and the cost of complexity is defined. Then all the major factors affecting the cost of complexity are analysed one by one. Effects of setups, adjustments after setups, phase-ins, and phase-outs are modelled with the help of statistical tools, and some tangible improvement actions are proposed. Furthermore, the lot size analysis dash application, which was developed by the author, is presented in its full context along with sample charts. Finally, a cost model is set up, and the effects of different loss types on the total cost are studied. One of the significant findings of this thesis is how and why the tread extruders, although having a low to medium effect on the number of setups, increase the total waste, recycle and cost during a code change.