This report is a study made at Pallco AB. Pallco is a subcontractor that is specialized on steel and aluminium components.

The aim of the report is to show an improvement proposal that leads to a reduction of the storage and improve the flow through the production of one item that is a part of a product that Pallco manufactures.

With the increasing competition from other countries who can manufacture with lower costs must Swedish companies try to make theirs manufacturing as efficient as possible and remove all waste. By using the tools of Lean Production it is possible to reduce the costs and increase the efficiency.

The method we used is value stream mapping. A map of the present condition has been made and then different improvement proposal were discussed. A map of a future condition has also been designed.