More colleagues, more facilities and a broader cultural diversity strengthen the need for common values

and goals to pursue. This is one of the reasons why the Volvo Group in spring 2008 began to establish
the common Group-wide Volvo Production System (VPS). The first to implement were the production
units, but VPS is also successively being incorporated in the administrative functions.

PS is based on the values

ductivity-increasing measures is needed to

presented in The Volvo

further increase competitiveness.

Adding value for the customer is our main

task. So we must always think about which
activities are value-adding and which activities

Way. It involves a common

approach to reduce pro-

More efficient work

drive inefficiencies. We want all employees to

duction costs and increase

The foundation of VPS is more effective pro-

take part in the work on improvements to elim-

quality through identifying

duction where the customer is always the focal

inate inefficiencies, explains Katarina Lind-

what creates customer value, doing it even

point. VPS is designed to eliminate all unnec-

strm, head of global production at Volvo

better and avoiding unnecessary work.

essary work, work that creates no value for the

Power train, who leads the work of introducing

Already today, the Volvo Group has a good

customers. In production for example, assem-

the Volvo Production System.

productivity, but with the stiff competition in

bly workers, should not have to spend time

the market place a continuos work with pro-

looking for components or unpacking boxes.

20 A global group 2008

Concepts and discussions relating to efficient production systems are nothing new. A

VPS
Customer

Built-in
quality

Continuous
improvement

Just-intime

Process stability

Teamwork

The Volvo Way

number of large companies work according to

this model and many suppliers have introduced
similar systems and approaches. The acquisition-driven growth of recent years has made
the work with VPS even more important. At the
same time, it has created new opportunities

The VPS is based on The Volvo Way: the Volvo Groups values, culture and leadership. The system
Teamwork: target-oriented
then comprises fi ve principles or guidelines which will characterize the work.
teams that work to bring about cross-border improvements. Everyone is aware of his/her role and involvement.
Process stability: eliminate disruptions to processes and ensure good organization.
Built-in
Continuous improvement: a long-term program to develop the
quality: get things right from the start.
Just-in-time: get the right things done at the right time.
The focus for the whole of VPS,
process.
the top of the pyramid: is the customer and value for the customer.

and broadened the competence base. There

are a great many good examples within the
Group. Instead of everyone developing their
own systems and toolboxes, the co-operation
within the Group has developed considerably.

A global group 2008 21

Production facilities

Volvo Trucks

Renault Trucks

Nissan Diesel

Mack Trucks

Construction Equipment

Buses

Volvo Penta

Volvo Aero

Volvo Powertrain

Reaching world-class

deal to be learned from on of the Groups new-

over someone elses way

Discussions relating to VPS were initiated in

est members, Nissan Diesel. They have con-

of working. It is all about us using all the know-

2004 and were included in the strategic

siderable experience regarding efficient pro-

ledge and experience from other companies

objectives for 20072009 to drive and follow-

duction systems with high quality.

and within the Group to create something even

up progress.

It is not about taking

VPS Academy

better. Whats most important is that the Volvo

Many have pointed to Volvo Trucks in Curit-

Group's system is based on the Groups princi-

iba, Brazil, as one of the Groups role models.

Work on the VPS is being led by the VPS

ples and values, says Katarina Lindstrm.

At the start of this century, the plant in Curitiba

Academy, which has the task of ensuring that

began developing a system for more effective

the system is introduced. With the Groups

production has contrbuted to a favorable

combined experience as the starting point, the

productivity increase. There is also a great

objective is to have a common basic system for

22 A global group 2008

The work with VPS

is never finished

everyone to use. Based on that, everyone can

then adapt it to match their unique conditions.
The work with VPS is never finished. This is
not a new campaign that will lose focus after a
while. Its a way of thinking. A program that will
continue at all time. The production plants
have come the farthest in the development,
but VPS is gradually being introduced also in
the other functions of the Volvo Group.

A global group 2008 23