Volvo's Product Development Practices: Focus on Safety
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Case Details:
Case Code : OPER042
Case Length : 18 Pages
Period : 1991 - 2004
Organization : Volvo Car Corporation
Pub Date : 2004
Teaching Note :Not Available
Countries : Sweden
Industry : Automobile
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Volvo's Production System
Right from its inception, Volvo was known for its innovative
approach towards product development in the automotive industry.
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Larson and Gabrielsson innovated
the practice of 'building cars the Volvo way.' According to this concept, as
against the usual practice of purchasing parts and assembling them, most car
parts at Volvo were designed in-house and then manufactured by outside
contractors according to strict technical specifications.
Volvo conducted a major experiment in the field of automobile production during
the 1970s. The company decided to deviate from the traditional assembly line
system of manufacturing cars, in which the car was moved automatically along the
assembly line at a pre-determined pace, while workers located at fixed positions
performed their respective assembly roles...
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Commitment to Safety
Volvo's emphasis on safety dates back to its early days, when in 1927, the
company installed a safety glass windshield, equipped with automatic
windshield wipers. Over the years, Volvo came to be recognized for the high
safety standards of its vehicles. Volvo's major contribution to automobile
safety was the three point shoulder/lap seat belts developed by its
engineer, Nils Bohlin in 1958. In 1959, Volvo became the first car company
in the world to offer the three- point seat belt as a standard feature in
all its cars...
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The Volvo Safety Centre
Continuing with its commitment to safety, in 2000, Volvo established the
Volvo Safety Centre (VSC) at Gothenburg at an investment of £50 mn. The VSC
was believed to be the world's most advanced automobile safety testing
laboratory.
Volvo conducted various types of tests on cars, including computer
simulation, component testing and crash simulation, to get a comprehensive
understanding of how to make cars safer for drivers and passengers. Commenting on the importance of VSC,
its head, Stefan Nilsson (Nilsson) said, |
"We have the ability to move the reality of the roads into
our crash laboratory. This unit gives us the technology and the capacity to continue
being the world leaders in this field. Our new centre means we have the ability
to create an unbeatable safety development package for new cars. When it comes
to safety, Volvo leads the way." (Refer Exhibit IV for the various tests
conducted at the Volvo Safety Centre)...
Excerpts Contd...>>
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