leadtimereductionin a global manufacturing environmentor ...€¦ · 20/05/2014  · lead time...

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 1

Anders Carlsson

Volvo Cars Group

Lead time reduction in a global manufacturingenvironment or The Volvo Journey…

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 2

“Stand alone”

Our journey

2011

• Transformation

strategy initiated

2013

• China volumes take off

• Profitability

• Renewal of major product lines

• Chengdu and Zhangjiakou

operations started

• Plug-in-Hybrid launched2014

• All new XC90

• China biggest market

• US focus

• Connected services launch

2012

• New Product Strategy

Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary

Our journey

2011

• Transformation

strategy initiated

2013

• China volumes take off

• Profitability

• Renewal of major product lines

• Chengdu and Zhangjiakou

operations started

• Plug-in-Hybrid launched2014

• All new XC90

• China biggest market

• US focus

• Connected services launch

2012

• New Product Strategy

Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 5

CHINACar & Engine Production

Product Development

BELGIUMGentCar production

USACamarilloDesign centre

SWEDENGothenburgHead office

Product development,

Car production

Skövde, Floby and OlofströmComponent manufacturing

MALAYSIAKuala LumpurAssembly factory

SPAINBarcelonaDesign centre

DENMARKCopenhagenRD Centre

The world of volvo Cars

7,5B€

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 6

82,8M 0,4M

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 7

Our journey forwardLong term goal:

800 000/year

Date Created: April 2, 2014Living in the Point Cloud, Magnus Rönnäng, Volvo Cars Group 8

Moremodels!

Rapidfollower!Designed

around you

0

200

400

600

800

1000

1200

1400

1600

1800

1990 1995 2000 2005 2010 2015

11

10

14

27

8

Audi operating profit 2012 : 7,5 B$

Salesvolume

Date Created: April 2, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 9

Moremodels!

Rapidfollower!Designed

around you

But how?When your are small…

Date Created: April 2, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 10

ShortDevelopingLead-time

Date Created: April 2, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 11

50% REDUCTION OF develop lead-time UNTIL 2020

202020162012

42 months42 months

38 months38 months

20 months20 months

33 months33 months

30 months30 months

25 months25 months

Lead-time reduction

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 12

Indus factoryConcept

VP Build

VP Verification ReDV

MP2 MP1

Build

TT

Build

PP

BuildX1 Build VP updateTT PP

V0/V1 V2 VP Dwg.

VP

Sourcing

PC PAPS LR J1 FSR

Prod

Rel

Ordering

Tool rough cut VP final cut

SM Build

CAE CAE CAE CAE

BC@

Staggered launch

Syst Mule/Rigg

Systems Dev

Project start Final release

Start of

production

Start pre-

production

Certification

Ramp-up production

Design done – product aging

Funding release

No physical

verification on

complete vehicleFew loops with

enhanced CAE

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 13

AA2

Indus factoryConcept

VP Build

VP Verification ReDV

MP2 MP1

Build

TT

Build

PP

BuildVP updateTT PP

V0/V1 V2 VP Dwg.

VP

Sourcing

PC PAPS LR

OKtB

MP1

LS J1 OKtB FSR

Prod

Rel

Ordering

Tool rough cut VP final cut

CAE CAE CAE CAE

BC@

PSC systems

Final release

ERP/MES

PLM

Issue detection

Lead-time reduction

Date Created: April 2, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 14

ShortDevelopingLead-time Decoupled

Engineering

ShortDevelopingLead-time

Architecute technology scope

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 15

Modularity & interfaces

Date Created: [YYYY-MM-DD]Issuer: [Name] [CDS-ID]; [Organisation]; [Name of document]; Security Class: [Proprietary] 16

A module is defined by the bandwidth and standardized interfaces enabling a modular product and assembly architecture

Bandwidth Interfaces

Examples of Modularity

Date Created: [YYYY-MM-DD]Issuer: [Name] [CDS-ID]; [Organisation]; [Name of document]; Security Class: [Proprietary] 17

8 Different Architectures & InstallationsX.000 Part numbers

1 ArchitectureVED and VEP 75% part number common or similar Y.000 part numbers

Modularity & Bandwith

D5

D4

D3

D2

T?

T6

T5

T3

T2

Our journey

2015-16

• New products on

Scalable Platform

Architecture (SPA)

2011

• Transformation

strategy initiated

2013

• China volumes take off

• Profitability

• Renewal of major product lines

• Chengdu and Zhangjiakou

operations started

• Plug-in-Hybrid launched2014

• All new XC90

• China biggest market

• US focus

• Connected services launch

2017

• New C-segment

modular platform

• Autonomous Drive

/Drive Me

Long term goal:

800 000/year

2012

• New Product Strategy

Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary

”Cars are driven by people. The guiding

principle behind everything we make at

Volvo, therefore is – and must remain –

safety.”

Assar Gabrielsson & Gustaf Larson, the founders of Volvo

Our heritage - Designed around you

Designed around you in 2014

Our journey

2015-16

• New products on

Scalable Platform

Architecture (SPA)

2011

• Transformation

strategy initiated

2013

• China volumes take off

• Profitability

• Renewal of major product lines

• Chengdu and Zhangjiakou

operations started

• Plug-in-Hybrid launched2014

• All new XC90

• China biggest market

• US focus

• Connected services launch

2017

• New C-segment

modular platform

• Autonomous Drive

/Drive Me

Long term goal:

800 000/year

2012

• New Product Strategy

Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary

CMA Stake holders

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 22

CMA

CEVT: China Europe Vehicle Technology

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 23

Money

Market

Technology

Engineers

Perfectmatch!?

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 24

”But we are from completelydifferent worlds….”

Different History

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 25

1927 1943 1960 201419981984

1998 20141986 2010

Different development

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 26

• World market base• Go up and down• Firece competition

• China market base• Fast increase market• Grow up quickly

Different employees & experience

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 27

• 20~45 years in age• 2~7 years experience• High dynamics and mobility• Engagement Top-down

• 35~55 years in age• 10~30 years experience• Specialist and high loyalty• Engagement Bottom-up

Different way of working

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 28

• Immature system and missed functions• Different criterias• Result oriented process• Delivery on time is the key• Who can give me a decision after the

meeting• …

• Sophiscate system and functions• Standardization• Process oriented result• Quality is the key• Who should join the meeting• …

pRODUCT vs Architectures

Date Created: 2014-03-06Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use 29

S80

S60

V50

S40

C70

V60

XC90

XC70

XC60

V70

C30

C S V XC

V40

CMA: C-Modular Architecture

SPA: Scalable Platform Architecture

Date Created: April 2, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 30

The strategy…

202020162012

42 months42 months

38 months38 months

20 months20 months

33 months33 months

30 months30 months

25 months25 months

Date Created: May 20, 2014Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group 31

Our journey forwardLong term goal:

800 000/year

Thank you for your attention