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Abstract This project investigates the implementation of Lean in Arla’s production, and how Lean affects the logistical efficiency and Arla’s value chain. Furthermore the project surveys what competitive advantages Arla can get from the implementation of Lean. The study of Arla showed that dairies could achieve improved efficiency up to 10-30%. The result of efficiency is that Arla's logistical efficiency will be improved significantly in the delivery of service, although logistical costs increase slightly. The introduction to Lean in the value chain can be seen by the creation of flow in their value chain using Lean tools-SMED and 5S. Arla
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