Corporate "skimpy" plans, generally modeled after the Toyota Production System, might be powerful tools for enhancing the operation of manufacturing plants. Remove those that do not and they help accentuate portions of the creation procedure that add the most value. However, expectations that are misplaced decrease the benefits and can make implementation difficult.
The authors assert that if managers better comprehended the estimated rates of advancement, then executions would go more smoothly. The writers studied the execution of the Volvo Group's production system. The organization introduced the Volvo Production System in 2007, and since then has been executing it in its factories all over the world. The writers and 44 of the 67 plants of Volvo visited and interviewed 200 managers. They found that there were four distinct phases of change in the speed of performance improvement and that there was a powerful relationship between a plant's maturity in a production system implementation and its particular operation; progress approximately followed the form of an S-curve: a plant's rate of improvement changes in the form of a bell curve as the plant becomes more mature in executing the production system.
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Operation improves slowly at first, and after that at an increasing rate before the advancement rate gradually decreases. To gauge the efficiency of the plants, the authors focused on nonfinancial metrics related to the standard, price, delivery and safety of the plant's output. Then they used statistical methods to discover patterns. Volvo's evaluation procedure offers a structure to help their plants are compared by local managers. Additionally, it provides a mechanism for transferring best practices and expertise. The assessments possess a powerful impact that is representational: the dedication of the company's is communicated by them to the production system. Executing a production system is a long journey, but the writers reason that it is a rewarding enterprise.
PUBLICATION DATE: July 01, 2014 PRODUCT #: SMR491-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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