Jens Hansen Volvo Car Corporation December 4 2014 2014 JENS HANSEN, VCBC. SECURITY CLASS: PROPRIETARY/PUBLIC 1
Designed Around You 2014 JENS HANSEN, VCBC. SECURITY CLASS: PROPRIETARY/PUBLIC 2
Safety Human Machine Interface Scandinavian Design
#MADEBYSWEDEN 2014 JENS HANSEN, VCBC. SECURITY CLASS: PROPRIETARY/PUBLIC 4
Volvo Car Body Components
Full service Best-in-Class stamping operation Manufacturing Engineering Design feedback & process development Tool & Die ~30 % of dies manufactured in-house 2.200 employees 300.000 m2 factory area Stamping 23 press lines Capacity for high strength steel and boron steel Sub-assembly in 115 lines ~500 Robots Material Planning & Logistics 1200 delivery units to 18 delivery places 50 000 000 parts/year 6
Product Range, examples 7
Volvo Car Body Components Supplies components for 2 body in white per minute. 10 VCC models in production. 2 new car projects per year Unique situation with so many models in press shop at same time 8
VCBC Global Deliveries 2014 External Sales 9% Volvo Car Europe 79% Volvo Car China/MAL 12% 1 200 delivery units 50 000 000 parts / year 18 delivery points at 12 locations 2014 JENS HANSEN, VCBC. SECURITY CLASS: PROPRIETARY/PUBLIC 9 9
Olofström > Göteborg / Belgium Train-8 Outbound material transportation - 85 % by train - 7 % on road - 8 % by boat Approx. 15 trucks/day leave Olofström for Gothenburg. Olofström is the third largest container-harbour in Sweden. 220 train wagons and 1700 20 ft containers in circulation. 35 000 racks och 25 000 standard packings in the logistic flow. Tåg-8:an Göteborg (Torslanda) Gent (VCC & Tower) Olofström* (Älmhult) To Torslanda/Gothenburg: -2 departures/day -26 wagons/departure -3 containers/wagon -78 containers/departure To Gent/Tower in Belgium: -2 departures/day -20 wagons/departure -3 containers/wagon -60 containers/departure *) From VCBC also three train wagons per day to Volvo Trucks in Umeå 10
Olofström Region To Gothenburg Älmhult Train-8 Olofström Karlshamn Sölvesborg (raw material) To Gent, Belgium To China 11
China Flow Challenges 12
Overseas Packaging 13
VA / NVA / NNVA flow In Plant Flow Olofström Goods In Transit Stock Raw Mtrl Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Stock Blanks Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Stock Stampings Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Stock Dispatch Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Stock In Transit Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Safety Stock at Customer Actual Target P9 Cost Mtrl n/a MSEK tbd MSEK DIS n/a days tbd days Stock Raw Mtrl Blanking Operation Stock Blanks Stamping Operation Stock Stamped parts Subassembly Operation Dispatch storage Safety Stock VA = Value Added NVA = Non Value Added NNVA = Neccesary Non Value Added 14
Karlshamn to Chengdu Hburg- 15
Opportunities 16
The Volvo Cars 2020+ scenario 800 000 Volvo Car vehicles (~470K today) Production in EU and China with global sourcing 6 BSEK investments in Olofström 2015 2016 2017 2018 2019 2020+ 17
Opportunities Volvo Cars Global Growth Sydostlänken 18
Sydostlänken Backup/redundancy in Train-8 Road & Rail (Sölvesborg, Karlshamn) 19
Opportunities Volvo Cars Global Growth Sydostlänken Optimize Intermodal Freights Reduce Transport Time and Inventory 20
Karlshamn to Chengdu?? Hburg- 21
Opportunities Volvo Cars Global Growth Sydostlänken Optimize Intermodal Freights Reduce Transport Time and Inventory Logistic Full Service Solutions 22
Full Service Solutions VCBC Storage Repackaging DISPATCH Storage STUFFING 23
Full Service Solutions VCBC Storage Repackaging DISPATCH Storage STUFFING Chengdu VCBC Warehousing Storage Repackaging STUFFING DISPATCH Daqing Chongqing? Malayisia ROW 24
Opportunities Volvo Cars Global Growth Sydostlänken Optimize Intermodal Freights Reduce Transport Time and Inventory Logistic Full Service Solutions 25
Thank You! 2014 JENS HANSEN, VCBC. SECURITY CLASS: PROPRIETARY/PUBLIC 26