This examination report is a part of a program for Industrial organisation and Economics with specialization in Logistics and Management at Jönköping University. The report contains an analysis of the internal material handling at Kongsberg Automotive, and also an improvement proposal for a new material handling system.

The aim with the report is to find a better material handling system and also make an analyse of the existing system. The goal is to shorten the distance for the operators when they order material, and also to increase the productivity.

The investigation methods for the report have for the most part consisted of observations and interviews of key-persons who daily work in the production. During some time the actual material handling-system has been observed and some shortcomings have been discovered, and these are also discussed in the report.

The shortcomings that have been discovered are for once the indistinct signal that should signal need of material in the production. Some other activities have also been discovered that does not bring any value into the final products. The improvement proposal in the report is basically a routine that is built on kanban-cards and visual signals.

Kongsberg should look over the existing material handling system and implement a system that on a better way signal need of material and also adapt the material in pallets to follow the demands for the products.

In the end the discussion is about how the company should implement the new system in a successful way and what to observe in the different steps. Kongsberg is also recommended to use some sort of tool to follow up the situations when production don’t get the material in time.