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This report is a result of a thesis written by two students at Mälardalens Högskola. The students are majoring in Innovation, Production and Logistics.

Today's prevailing climate in the financial world requires that companies review their operations and constantly strive to evolve and become more competitive. One of the world's largest companies, ABB AB, constantly work towards these goals and apply Lean tools to optimize their performance. ABB supplies products in power and automation technology and the subdivision Logistics Center provides the aftermarket with the repair, upgrade or exchange units.

The task of this study was to conduct a current state analysis of the Logistics Center's office in Västerås in order to find improvement opportunities. The flow of information has been reported in a Value Stream Map which shows how the information flows through the organization. In the process of mapping, the staff was observed and interviewed and through this the writers found different forms of waste/Muda that existed on Logistics Center. Waste in the department has been identified as waiting, over work, rework and unnecessary transportation. From these wasteful activities, solutions have been presented which leads to more optimized process.

The main Muda that was identified was about technology used today in Logistics Center. There are various computer systems used in the process, but they have a difficulty communicating with each other and that leads to waste in different forms and does not endorse the staff. At the warehouse, which supplies retail, the technology is not reliable. For example there is a set of scales that is not fully accurate. The warehouse also sends incorrect deliveries for other reasons, for example that pickers of orders have picked wrong. The writers recommend measures such as purchase of equipment that is proven and reliable and double inspection before delivery. The problem with the various computer systems that malfunctions can be resolved by a single system used, which is possible but could be more costly

Both qualitative and quantitative methods of data collection have been used. The core of our work has been tools and methods within the frames of Lean.