VU = VU + Six Sigma by hijuney9

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									    The Volvo Way is the most important
       factor for our competitiveness

                            Britta Börjeson
                          Volvo OD coordinator




Operational Development
Dept: 20560, 2006-03-22            1
               Historic reminder of our company culture



                    -Company philosophy (1995)




                                   -The Volvo Way (1999)




                                      The Volvo Way
                                                                 -The Volvo Way (2004)

                                            volvoway@volvo.com




Operational Development
Dept: 20560, 2006-03-22                          2
                     1995 CORPORATE PROJECT
                       “STRATEGY OF CHANGE”

Focus:                     • Ability to Change

Purpose:                   • Establish a high level of knowledge about change
                           • Develop a change acceleration process that will support the
                              Volvo Group transformation to a world class company


The challenge:             Develop the organization working simultaneously with:
                            - the best way of running the existing operations
                            - continuously improve and change the operations




 Operational Development
 Dept: 20560, 2006-03-22                         3
                          The OD concept is established




                                   Strategic focusing,
                                 co-worker involvement
                                and breakthrough results!


                                 OD makes the company
                                  more maneuverable.




Operational Development
Dept: 20560, 2006-03-22                     4
                      OD starts in the strategy process …
• Business environment
• Business plan                      Strategic
• ’The Volvo Way’                    focusing




Operational Development
Dept: 20560, 2006-03-22                  5
                            Towards the Operative Vision




                                                           ?   ?
                                                   ?
                                       ?   ?           ?
                                                                   Operative Vision

                                  ?



                                      Strategy
Today                                                                 2-3-4 years

  Operational Development
  Dept: 20560, 2006-03-22                      6
Strategic Focus - the most important step to take right
   now towards the Operative Vision, and where the
         contribution from everyone is critical
   Performance




                          Why?                 Operative Vision




                                                      Time

Operational Development
Dept: 20560, 2006-03-22          7
     … creating structure, energy and commitment …

• Business environment
• Strategy                Strategic
• ’The Volvo Way’         focusing




                                         Creating
                                        structure,
                                       energy and
                                      commitment




Operational Development
Dept: 20560, 2006-03-22       8
                                            How does OD work
Why and what:

• Business environment
• Strategy
• ’The Volvo Way’
                                       Strategic focus and reasoning



                           Leader &                      Follow-up     Follow-up
How:                       Co-worker                     seminars      seminars
                           Seminars



                                   0                     6             12   Months




         Operational Development
         Dept: 20560, 2006-03-22                     9
                              Communication

                                  


   Depth
   in the
Organization




                                Reach out
                               Involvement
                                Feed back
                                  Agility

    Operational Development
    Dept: 20560, 2006-03-22           10
                            The strategic dialogue at


Volvo Bus - Mexico                            Volvo Aero - Sweden




  Operational Development
  Dept: 20560, 2006-03-22                11
                           The strategic dialogue at Volvo Aero




    “Through the open and straight forward dialogue that
characterizes our OD seminars, we are provided with a natural
opportunity to muster our resources around a key area, namely
     increased productivity, which is our Strategic Focus.



                                                                Thomas Ellström,
                                                                Director Production,
                                                                Components, Volvo Aero




     Operational Development
     Dept: 20560, 2006-03-22                 12
                          … delivering results and change …
• Business environment
• Strategy                               Strategic
• ’The Volvo Way’                        focusing




                                                         Creating
                                                        structure,
                                                       energy and
                                                      commitment




                                         Delivering
                                        results and
                                          change




Operational Development
Dept: 20560, 2006-03-22                      13
                                            How does OD work
Why and what:

• Business environment
• Strategy
• ’The Volvo Way’
                                       Strategic focus and reasoning



                           Leader &                       Follow-up    Follow-up
How:                       Co-worker                      seminars     seminars
                           Seminars



                                   0                      6            12   Months


                                     Supported by Management,
                                   Coaches and Internal consultants

         Operational Development
         Dept: 20560, 2006-03-22                     14
                        How the team works at Volvo Aero
                                     Team’s improvement area
                                                                         The team’s goal and
     Agenda                                                                 measurement
 OD team meeting

1. Why are we here?
2. Goals and
   measurements
                                                                       ACTION PLAN
3. Follow up actions                                                   tram24   tram24       2006-10-54   2006-10-54

4. New action items                                                    tram24
                                                                       tram24
                                                                                tram24
                                                                                tram24mkkk
                                                                                             2006-10-54
                                                                                             2006-10-54
                                                                                                          2006-10-54

                                                                       tram24   tram24       2006-10-54
5. Reflection                                                          tram24   tram24       2006-10-54


                                Tim Nylander, OD team leader,


“It’s my job to act as a pilot and make sure that everyone has the same objective.” says
Tim Nylander, when he describes his role as an OD team leader at engine service.
The team meets every two weeks and he describes the lively discussions and suggestions they
produce.
“One of them was that we should modify our tools ourselves. As a result, we will save about SEK
34,000 in one year.”

      Operational Development
      Dept: 20560, 2006-03-22                           15
   The OD team at work at
   Volvo Logistics




By actively chasing documentation from customers, the Customs Department at Volvo Logistics
Inbound saved more than SEK 3.5 million last year.
The group’s OD work focused on helping customers understand the importance of returning customs
declarations and other documents as quickly as possible.
“If we don’t have them in time for the report we are charged a fee based on the invoice value of the
goods.”
In the OD work, they have initiated an extensive information campaign aimed at customers. It also
helped save working hours, chasing lost and delayed documents.
“Both we and our customers are saving large sums of money as a result”

        Operational Development
        Dept: 20560, 2006-03-22                    16
                  Volvo Wheel Loaders, Arvika, 2000-2004

                              Eliminate disturbances in all processes

Faults per loader                         No of loaders per     Delivery time
                                          employee




                             Assembly


                             Logistics    Volume
                             Purchasing
                             Production




   Operational Development
   Dept: 20560, 2006-03-22                           17
                                        Strong “partners”



                     Complexity
                                              TPM
                                                         Lean
                                        Six Sigma
                                                    5S
                                    Pareto
                                          Scatter

                                         Ishikawa
                             Affinity
                                         Measurement & Goal
                          Action plan


                                                                Time


Operational Development
Dept: 20560, 2006-03-22                             18
                                … sharing knowledge …
• Business environment
• Strategy                               Strategic
• ’The Volvo Way’                        focusing




                                                         Creating
                           Sharing                      structure,
                          knowledge                    energy and
                                                      commitment




                                         Delivering
                                        results and
                                          change




Operational Development
Dept: 20560, 2006-03-22                      19
               The OD team’s learning at Volvo Logistics




Operational Development
Dept: 20560, 2006-03-22             20
             Reflection from Volvo Wheel Loaders, Arvika

                               "OD is a long-term, structured way of working, which
                              involves all Co-workers. It gives better conditions for good
                              manoeuvrability of a large organisation.

                              By this way of working, we create an understanding for
                              why we want to make changes. This brings motivation
                              among all Co-workers and a willingness to help.

                              In the OD process our Leadership is exposed, for existing as
Bengt Lundström,              well as potential leaders. It helps us create and maintain our
                              company culture, (The Volvo Way).
Manufacturing, Volvo
Haulers & Loaders
                              All leaders create their own Operative Vision. It is a local
                              translation of the company´s strategic direction. The change
                              work of the whole organisation is aligned in the same
                              direction."


    Operational Development
    Dept: 20560, 2006-03-22                      21
                                                    … building the Volvo Way !
                                                                                                              •Customer focus
                                                                                                              •Clear objectives
        • Business environment                                                                                                       The Volvo Way

        • Strategy                                                    Strategic
        • ’The Volvo Way’                                             focusing                                                             volvoway@volvo.com




                                                                Strategic focusing,                                                           •Energy, passion and
                                                                                                                                              respect for the individual
                                                              co-worker involvement                                      Creating             •Open dialogue
                                                  Sharing    and breakthrough results!                                  structure,
                                                 knowledge                                                             energy and
                      The Volvo Way
                                                                                                                      commitment                                  The Volvo Way




•Company spirit                                               OD makes the company                                                                                      volvoway@volvo.com




•Leadership
                            volvoway@volvo.com




•Utilize common strength                                       more maneuverable.



                                                                      Delivering
                                                                     results and
                                                                       change                                     •Teamwork
                                                                                                                  •Continual improvements
                                                                                   The Volvo Way



                                                                                                                  •Feedback and Follow-up
                                                                                                                  •Quantify, measure & deliver
                                                                                         volvoway@volvo.com




         Operational Development
         Dept: 20560, 2006-03-22                                          22
                               OD connects to VPS …



                                          Customer




                                         Continuous
                                        improvement


                          Teamwork: goal oriented / cross functional


                                    The Volvo Way
                                 … and offers more …
Operational Development
Dept: 20560, 2006-03-22                          23
                          OD makes the connections




                                                 Culture
                          Strategy




                                     Structure



Operational Development
Dept: 20560, 2006-03-22                 24
                        From the foreword to The Volvo Way

The Volvo Way shows what we stand for and want to achieve.

The content and ideas are rooted in our history and dialogue
within our company. It is a direction for developing our operations
toward profitable growth and a recipe for success in which we
strongly believe. It is based on the conviction that every
individual has the capability and the desire to improve our
operations and, by so doing, also develop professionally.




  Operational Development
  Dept: 20560, 2006-03-22                25

								
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