Terrybvvbv

7/30/2019 Terrybvvbv

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INNOVATIONVOLVO DO BRASIL AND THE

CONTEXT OF THE BRAZILIANAUTOMOTIVE SECTOR


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BRAZILIAN COMMERCIAL

VEHICLE SECTOR ABC - SAO PAULO

SCANIA

MERCEDES (Plus Cars)

FORD (Plus Cars)

GM (Light Commercials, Cars)

Toyota parts; VW Cars

CURITIBA

VOLVO + Renault Cars and Vans + VW/Audi

SETE LAGOAS

IVECO

RESENDE

VW


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SHARE OF BRAZILIAN

MARKET 16 TONNES PLUS

MERCEDES 31.4

VOLVO 13.5

SCANIA 11.4 VW 26.5

7.5 TONNES PLUS

MERCEDES 31.00%

VOLVO 7.14%

SCANIA 7.00% VW 30.30%

FORD 20.00%


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PLANT INTEGRATION

SCANIA

Axle, Engine, Cab, Final Assembly of Trucksand Buses

MercedesAxle, Engine, Cab, Transmission, Final

Assembly of Trucks and Buses.

VolvoEngine, Cab, Final Assembly of Trucks and

Buses (Renault and Volvo)


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VW RESENDE - LAYOUT


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MODULAR CONSORTIUM

7 Miniplants with Volkswagens partners

Delga :Assembly of the cabin; Eisenmann : paint of the cabin; VDO : Interior

trim of the cabin; Iochpe- Maxion :Assembly of the frame; Rockwell :

Preparation and assembly of axles and suspension; MWM/Cummins :

Preparation and assembly ofDashboard pre-assy

Logistics and delivery is direct to each supplier Just-in-Time

Final inspection is by Volkswagen, defect units are delivered back to the

root of the defect

The suppliers had to invest their own money in order to equip their mini

plants. Volkswagen is going to pay for final delivered products

By purchasing the final products of its suppliers / partners, Volkswagen

also incrementally purchases their facilities. VW is mainly in the role of a

supervisor, especially for quality and provides the interface to the market.


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ANALYSIS

Stakeholders argue it is successful

However

Limited flexibility/ Lower wages

Less requirement for skills and training20 months toreach maximum competence

Problems of Health and Safety (44 hours per week)

Competes at lower end of market

Regional manufacturerDevelopment costs (could not

answer question)

Low % of Women in production


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ANALYSIS

Local ProjectsSocial programmes

Food wastage

Positive DiscriminationDisabled

Under privileged backgrounds

Low unemployment in ResendeWe have no secrets here


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MERCEDES

Line production standard layout

Brazilians from all continents, different races and religions

work together to be simply the best axle manufacturers in

the world.

It is easier here to implement principles such asKanban, lower inventories; JIT in Germany than in

ABC

Trade Unions - It is our major problem I would say

because every time we have a claim the companysays well we have VW in Resende they pay much

less than you they have a work time 10% higher

than you It is hours and the level of wages is lower


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MERCEDES HR

It is based on the history of Don Quixote and Sancho Panchez

the Cervantes play. It is a creativity based programme.

They have to go through the divergence way and the

convergence way. The divergence way is the creativity

process the Don Quixote and then they go on to onebased upon the profile of Sancho Panchez the reality of

Sancho Panchez. So they have this multi-functional

worker. Each worker has a different approachone comes

from finance, one comes from production etc and so theyhave different approaches to understand the process and to

the projectthey create the idea to make this project.


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SCANIA SOUTH AMERICA

Least Interesting

Duplicates Swedish Plants

Standard Layout

Modular production

Vertical integration

ProjectsEducation and Training

Least accommodating

Best Hospitality.


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VOLVO DO BRASIL -

INNOVATION Regional/National Context

Collaboarative inter-organisational learning processes

Lean OrganisationUniversity of ParanaNetworks -

Benchmarking

Firm Specific Context

Lean Production + Work Organisation + Brazilian Context

Hybridization

Toyota Production System + Volvo Work Organisation

Lean = Re-organising Time and Space (Pot Plants)

Work Organisation = Re-organising Labour (EAGs)


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VOLVO DO BRASIL

Culture

a culture open to change and an attitude toinnovation totally different from that of its

Swedish parent organization. The apparentfearless approach to the change processamongst blue-collar workers is linked to theeconomic climate in Brazil with its constant

changes in inflation rates, fluctuating exchangerates and the regularity of negotiating and re-negotiating blue-collar wage rates in thefactory.


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VOLVO DO BRASIL

HYBRIDIZATIONBest of Toyota + Best of Volvo

Borrowed ideas from Lean Institute

Benchmarking (The Tugger)Sweden - EAGs

Rotating TL

Competence Pay

Employee Involvement

Uneven application


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Lean ProductionBrazilain

Style They began the process in August 2001 after the

Production Manager had attended Lean Seminarsorganized through the Brazilian Lean EnterpriseInstitute (BLEI). They began by restructuring thematerial supply process and in so doing realizedthat the process, almost as a by-product, releasedsignificant areas of space. As the projectdeveloped it became increasingly organized

around the triple axes of reductions in tied-upcapital; lead-time reductions and the releasing ofareas for new product lines.


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MOBILE KIT PER CHASSIS

PARTS FEEDING FOR TRUCK LINE


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KITS FEEDING FOR CAB LINE

SEAT KIT DASHBOARDKIT


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KITS FEEDING FOR TRUCK LINE

KIT FEEDING AND BUMPER ASSEMBLY ON THE SAME

WHEEL RACK


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TUGGERS FOR MATERIAL FEEDING

Tuggers made from phased out forklifts by

maintenance people


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AFTERBEFORE

Engine buffer between engine line and truck assembly line

ENGINE FACTORY


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CAB FACTORY-WELDING

BEFORE AFTER

Roof pre-welding station


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CAB ASSEMBLY LINE

BEFORE AFTER

flow


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TRUCK ASSEMBLY LINE

BEFORE AFTER


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RELEASED AREA = 33%

FINAL ASSEMBLY LINE BUILDING

TOTAL AREA : 11.664 m


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BEST MANUFACTURE QUALITY INSIDE VOLVO GROUP/GLOBAL

AUDIT SYSTEM

CLOSE ZERO LEVEL OF MISSING PARTS

HIGH PRODUCTION FLEXIBILITY

BETTER WORK ENVIRONMENT

HIGH TEAMS MOTIVATION

BETTER COMUNICATION

QUALITATIVE


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TO FINISH INDUSTRIAL AREA

TO CONSOLIDATE BASIS

TO FINISH KANBAN WITH SUPPLIERS

TO CONTINUE VISUAL MANAGEMENT

TO DEVELOP IMPROVEMENT GROUPS

TO INTRODUCE IN ADMINISTRATIVES PROCESSES


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ANALYSIS

Sweden

Volvo Philosophy to Volvo Way

Emphasis More on lean & less on Work Organisation

Brazil Here the union is pretty tolerant and you can get

away with a lot here that you cannot in in Europe

Virgin labourUneven education levels

Lean Production as yet to address issues of Labour


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ANALYSIS

Need to integrate into Global Production System

Total TPS would have been A mess

I like to think there is a special Volvo culture.

Everybody is so proud of what they are doing andit is like a huge big family. You have that

culture everywhere, but it is more nationalized. In

Holland you (have) the Dutch Volvo family, in

Belgium the Belgian Volvo family and so on. (Ex

Managing Director, Volvo UK)


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ANALYSIS

Teamwork and lean thinking ideas gleaned from

competitors, universities and research institutions

were taken as the conceptual base by VdoB and

(re)structured to suit local conditions in the Stateof Parana. What becomes clear is a pattern of

development in which subsidiary organisations in

developing economies make unique contributions

to, and in so doing fully establish themselveswithin, integrated production systems in order to

maintain a level of autonomy.


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ANALYSIS

To be able to maintain this competitive advantagethey also have to have production strategiesunderpinned by an export-orientated focus andcost- cutting projects in the distributive sphere. It

became clear during the research visits to theCuritiba plant, that in order to maintain its positionin the global production chain VdoB not only hasto be constantly looking to innovate in the

production arena, but they also have to beconstantly engaging with new marketopportunities in China and East Asia and to applythe cost-cutting techniques of lean thinking to post

production and delivery areas

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