Mreforsking Molde AS Oddmund Oterhals Kristina Kjersem Karolis

Møreforsking Molde AS Oddmund Oterhals, Kristina Kjersem, Karolis Dugnas Molde, 29. september 2010

Agenda Ø Møreforsking AS Ø Møreforsking Molde Ø Logistics department Ø Recent projects Ø Oddmund Oterhals Ø Kristina Kjersem Ø Karolis Dugnas Molde, 29. 09. 2010 Seminar Hi. M 2

Møreforsking AS (MF) Ø 3 offices: Ålesund, Volda, Molde Ø 53 employees Ø Other 40 people (experienced college employees) are linked to MF through project collaborations Ø Qualifications among employees: Ø 12 professor/researcher I Ø 23 with qualifications as associate professor/ researcher II Molde, 29. 09. 2010 Seminar Hi. M 3

Møreforsking Molde (MFM) Ø Founded in 1986 as a non profit organization Ø 2002: Møreforsking AS – 51% (independent research foundation) and Molde University College – 49% Ø Research areas: Industrial Economics and Policy; Transport Economics; Society, Organization and Management; Logistics Ø 12 researchers Ø Important academic resource base from Molde University College Molde, 29. 09. 2010 Seminar Hi. M 4

Logistics department Ø 5 researchers (2 with Ph. D) Ø Oddmund Oterhals – Leader of the department Ø Research areas: ØLogistic solutions for supply and distribution network ØLogistic solutions for industrial enterprises ØControl systems (modeling and IT solutions) ØSupply chain management. Ø Close collaboration with professors from Hi. M Molde, 29. 09. 2010 Seminar Hi. M 5

Recent projects Ø Lean shipbuilding Ø Ny. Frakt Ø Warehouse optimization and flow of goods at Stokke - Mapping and improving logistics processes Ø Market characteristics and logistics challenges for building, assembling and installing offshore wind farms Ø Ship. INSIDE Ø Global Value Chains for maritime industry Ø Stone. Trans – optimization of logistic solution for Nor Stone Ø Logistics and value chain analysis for Omegaland (Refining of mineral oils from fish – Omega 3 for pharmaceutical products and food supplements) Molde, 29. 09. 2010 Seminar Hi. M 6

About offshore wind farms Ø Market characteristics and logistics challenges for building, assembling and installing offshore wind farms Ø Authors: Oddmund Oterhals, Arild Hervik, Roar Tobro, Lasse Bræin Ø Project finance: VRI program for Møre og Romsdal; 9 maritime enterprises from Møre og Romsdal via Maritimt Forum Nordvest Ø Project focus: Ø Characteristics of the energy market Ø Logistic challenges Ø Market possibilities for the Norwegian maritime cluster Ø Building scenarios Ø European Energy Review; European Wind Energy Association Molde, 29. 09. 2010 Seminar Hi. M 7

Geographical settings Builders ambitions for the offshore wind mills production on North Sea (source: European Energy Review) Molde, 29. 09. 2010 Seminar Hi. M 8

Wind mills - alternative solutions Picture: Aker Solutions Molde, 29. 09. 2010 Seminar Hi. M 9

Logistic model for offshore wind farms Kabling Transformatorstasjoner Turbin/hus (nacelle) Søyle Fundament Montasjebase onshore - repetitiv linje Offshore installasjon - repetitiv Repetitiv serieproduksjon – balanserte produksjonslinjer Molde, 29. 09. 2010 Seminar Hi. M 10

Shipping challenges Molde, 29. 09. 2010 Seminar Hi. M 11

Logistic challenges R&D initiative • Use of simulation/ optimization models for analysing alternative logistic solutions from the design phase • Development of dedicated production lines for industrial fabrication of parts and for partial assembling (ex. Aker Solution Verdal) • Development of assembling site on shore: large areas able too manage massive weight and big dimensions • Maritime operations with customized ships There areas where constructors, suppliers and academicians should work together on analyzing the concept. New R&D initiatives should be put into practice in order to strengthen theoretical foundation. Molde, 29. 09. 2010 Seminar Hi. M 12

Potential for the maritime cluster Molde, 29. 09. 2010 Seminar Hi. M 13

Ny Frakt • 4 sub projects: • • Fleet renewal for the coastal cargo Capacity utilization and possibilities for fleet development Trade flow for Norwegian ports Taxes and fees for the Norwegian freight • Authors: Oddmund Oterhals, Jan Erik Netter, Karolis Dugnas, Cristina Ciobanu • Project finance: • Norwegian Research Council MAROFF program • Project owner: • Fraktefartøyenes Rederiforening Molde, 29. 09. 2010 Seminar Hi. M 14

Conclusions from the project Ø Old and pollutive fleet serving coastal cargo Ø Many small shipping firms (average 2 ships per company) Ø Low capacity utilization of fleet (ca 67%) Ø Many ports and several trade flows Ø Uneven trade flows between regions Ø Different taxation systems in ports Ø Ineffective infrastructure (to and from ports) Molde, 29. 09. 2010 Seminar Hi. M 15

Kategori Statlige Miljø Havneavgifter Vederlag Privatavgifter Molde, 29. 09. 2010 Taxes and fees SJØ VEG BANE Førstegangsgebyr Vektårsavgift Infrastrukturavgift (kraftpris, nettleie) Årsgebyr Omregistreringsavgift Energiavgift NOR/NIS registrene Autodieselavgift Konsesjonsavgift Årsgebyr NIS Bunkersoljesølskade sertifikat Kystgebyr Losberedskapsgebyr Losingsgebyr Sikkerhetsgebyr ISPS avgift CO 2 avgift CO 2 – avgift (på diesel) CO 2 – avgift NOx avgift Smøreoljeavgift NOx – avgift Smøreoljeavgift Miljødifferensiert årsavgift Smøreoljeavgift Svovelavgift marint drivstoff Dekkavgift og Batteriavgift Kaiavgift Anløpsavgift Vareavgift Passasjeravgift Isavgift Trafikkavgift ISPS avgift Lastebilavgift Jernbanevognavgift Levering av vann og strøm Renovasjonsavgift Ankring, sjøsandopptak, bruk av bøyer Arbeidslønn pr. mann/time Fortøyning / Løsskast Klarering, Megling Seminar Hi. MBomavgift, Fergebilletter Godstogavgift (noen havner) 16

Cost distribution Kostnader på land og i havn utgjør 50 % Miljøavgifter blir en liten post Kostnader i havn utgjør 35 % Avgifter utgjør 15, 2 % Lite igjen til vedlikehold og fornying Molde, 29. 09. 2010 Seminar Hi. M 17

Lean shipbuilding Ø Project in collaboration with Fafo, DTU (Danish Technological University), Ulstein shipyard, Aker Yards Langsten and Brattvåg Ø Scope: to develop the concept called Lean Shipbuilding Ø Challenges within shipbuilding Ø Planning which activities to complete in a dynamic and flexible environment Ø Activities are often not completed as planned and are moved to the subsequent phase Ø Such disturbances result in a significant increase of the total costs for the project, task congestion, late delivery, etc Molde, 29. 09. 2010 Seminar Hi. M 18

Results and recent activities Ø Article: “State-of-the-art. Lean shipbuilding in Norway” Oddmund Oterhals and Karolis Dugnas (IGLC conference proceedings, Manchester, 2008) Ø Collaboration on several master theses Ø Possibility for a new project at STX Europe Ø Improving information flow between Norwegian and Romanian shipyards Ø Develop new business models through applying leagile thinking Ø Achieve more flexibility in construction processes Molde, 29. 09. 2010 Seminar Hi. M 19

Stokke “Warehouse optimization and flow of goods at Stokke: Mapping and improving logistics processes” Ø The firm Ø Current challenges / Project focus Ø Managerial implications / Further research Molde, 29. 09. 2010 Seminar Hi. M 20

The firm: Stokke AS Ø Global distributor of own products (app. 50 countries) Ø All production is outsourced (China, Romania, Slovenia, Estonia and the Netherlands) Ø Main products: Molde, 29. 09. 2010 Seminar Hi. M 21

Current challenges / Project focus Ø Significant product variety, global SC Ø Unbalanced inbound and outbound logistics Ø Long planning horizon Ø Low forecasting quality Ø Warehouse optimization: High service level vs. reduced inventory Molde, 29. 09. 2010 Seminar Hi. M 22

Current challenges / Project focus (cont. ) Molde, 29. 09. 2010 Seminar Hi. M 23

Current challenges / Project focus (cont. ) Molde, 29. 09. 2010 Seminar Hi. M 24

Current challenges / Project focus (cont. ) Molde, 29. 09. 2010 Seminar Hi. M 25

Managerial implications/Further Research Ø Forecasting: Combine both causal and quantitative methods Forecast at the aggregate level Calculate and apply trend and seasonal factors (Holt Winters smoothing) Optimize α and N values when applying ES or MA methods respectively Ø Inventory management EOQ method gives general guidelines, values have to be adjusted (Knapsack problem) Be aware of optimal order cycles (significant deviation was observed) Shorten lead times if possible Ø Key Performance Indicators Apply optimal service level for different products (stock out costs have to be weighted against keeping inventory) Standardize use of KPI’s Molde, 29. 09. 2010 Seminar Hi. M 26

Thank you! http: //www. mfm. no/ Molde, 29. 09. 2010 Seminar Hi. M 27