Lead time reduction in a global manufacturing environment or The Volvo Journey Anders Carlsson Volvo Cars Group Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 1
Stand alone Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 2
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 launched 2014 2012 All new XC90 China biggest market US focus Connected services launch 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 launched 2014 2012 All new XC90 China biggest market US focus Connected services launch New Product Strategy Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary
The world of volvo Cars USA7,5B RD Centre Camarillo Design centre DENMARK Copenhagen SWEDEN Gothenburg Head office Product development, Car production Skövde, Floby and Olofström Component manufacturing SPAIN Barcelona Design centre BELGIUM Gent Car production CHINA Car & Engine Production Product Development MALAYSIA Kuala Lumpur Assembly factory Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 5
82,8M 0,4M Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 6
Our journey forward Long term goal: 800 000/year Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 7
Sales volume 1800 1600 1400 1200 1000 800 600 400 8 10 11 Audi operating profit 2012 : 7,5 B$ 14 27 More models! Designed around you Rapid follower! 200 0 1990 1995 2000 2005 2010 2015 Living in the Point Cloud, Magnus Rönnäng, Volvo Cars Group Date Created: April 2, 2014 8
But how? When your are small More models! Designed around you Rapid follower! Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: April 2, 2014 9
Short Developing Lead-time Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: April 2, 2014 10
50% REDUCTION OF develop lead-time UNTIL 2020 42 months 38 months 33 months 30 months 25 months 20 months 2012 2016 2020 Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: April 2, 2014 11
Lead-time reduction Project start Final release Start preproduction Start of production PS PC PA BC@ LR J1 FSR Concept Indus factory Sourcing Ordering Systems Dev V0/V1 V2 VP Dwg. CAE CAE CAE CAE Few loops with enhanced CAE SM X1 Build Tool rough cut Prod Rel VP final cut No physical verification on complete vehicle VP Build VP VP update TT Build TT PP Build PP Staggered launch MP1 Build MP2 Syst Mule/Rigg VP Verification ReDV Design done product aging Funding release Certification Ramp-up production Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 12
Lead-time reduction PLM Final release PS PC PA BC@ LR LS J1 OKtB FSR Concept Indus factory OKtB MP1 AA2 Sourcing Ordering ERP/MES PSC systems V0/V1 V2 VP Dwg. Prod Rel CAE CAE CAE CAE Tool rough cut VP final cut VP Build VP VP update TT Build TT PP Build PP MP1 Build MP2 VP Verification ReDV Issue detection Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 13
Short Developing Lead-time Decoupled Engineering Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: April 2, 2014 14
Architecute technology scope Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 15
Modularity & interfaces A module is defined by the bandwidth and standardized interfaces enabling a modular product and assembly architecture Bandwidth Interfaces Issuer: [Name] [CDS-ID]; [Organisation]; [Name of document]; Security Class: [Proprietary] Date Created: [YYYY-MM-DD] 16
Examples of Modularity Modularity & Bandwith D5 D4 D3 D2 T? T6 T5 T3 T2 8 Different Architectures & Installations X.000 Part numbers 1 Architecture VED and VEP 75% part number common or similar Y.000 part numbers Issuer: [Name] [CDS-ID]; [Organisation]; [Name of document]; Security Class: [Proprietary] Date Created: [YYYY-MM-DD] 17
Our journey 2015-16 Long term goal: 800 000/year 2011 Transformation strategy initiated 2013 China volumes take off Profitability Renewal of major product lines Chengdu and Zhangjiakou operations started Plug-in-Hybrid launched New products on Scalable Platform Architecture (SPA) 2014 2017 New C-segment modular platform Autonomous Drive /Drive Me 2012 All new XC90 China biggest market US focus Connected services launch New Product Strategy Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary
Our heritage - Designed around you 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
Designed around you in 2014
Our journey 2015-16 Long term goal: 800 000/year 2011 Transformation strategy initiated 2013 China volumes take off Profitability Renewal of major product lines Chengdu and Zhangjiakou operations started Plug-in-Hybrid launched New products on Scalable Platform Architecture (SPA) 2014 2017 New C-segment modular platform Autonomous Drive /Drive Me 2012 All new XC90 China biggest market US focus Connected services launch New Product Strategy Issuer: Corporate Communications; Company Presentation 2014, version 2014-03-23; Security Class: Proprietary
CMA Stake holders CEVT: China Europe Vehicle Technology CMA Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 22
Perfect match!? Money Technology Market Engineers Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 23
But we are from completely different worlds. Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 24
Different History 1927 1943 1960 1984 1998 2014 1986 1998 2010 2014 Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 25
Different development World market base Go up and down Firece competition China market base Fast increase market Grow up quickly Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 26
Different employees & experience 35~55 years in age 10~30 years experience Specialist and high loyalty Engagement Bottom-up 20~45 years in age 2~7 years experience High dynamics and mobility Engagement Top-down Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 27
Different way of working Sophiscate system and functions Standardization Process oriented result Quality is the key Who should join the meeting 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 Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 28
product vs Architectures C S V XC XC90 C70 S80 V70 XC70 SPA: Scalable Platform Architecture S60 V60 XC60 S40 V50 V40 CMA: C-Modular Architecture C30 Issuer: Dan Liu (dliu); ME OD; Reflection of CMA Project; Security Class: Only for VCC internal use Date Created: 2014-03-06 29
The strategy 42 months 38 months 33 months 30 months 25 months 20 months 2012 2016 2020 Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: April 2, 2014 30
Our journey Thank forward you for your attention Long term goal: 800 000/year Lead time reduction in a global manufacturing environment, Anders Carlsson, Volvo Cars Group Date Created: May 20, 2014 31