What to Expect From a Corporate Lean Program Harvard Case Solution & Analysis

Following the Toyota Production System, the Corporate “lean” could be helpful in developing the effectiveness of production plants. It helps to find out the non value added activities in a manufacturing process and to promote the value added parts. Many of the times, the unwise projections lead to ineffective implementation and consequently reduce the outcomes. The case describes that how the implementation could be effective if the managers determine the actual rates of improvement. The authors analyzed the manufacturing process’ implementation at Volvo Group, a leading manufacturer of trucks and heavy vehicles. Since the introduction of Volvo Production System in 2007, the company has incorporated it in its worldwide factories. The authors conducted the interviews with 200 managers of 44 plants from Volvo’s 67 plants and concluded that to enhance the performance there were four key stages of change and determine a relationship between a plant’s maturity in a production process implementation and its performance; progress after the shape of an S-curve: as the plant’s maturity in a production system implementation increases its rate of improvement also changes in the shape of a bell curve. At first, the enhancement in performance is gradual but than at with a rapid pace before the improvement rate slowly reduces. Non financial metrics related to the cost, quality, delivery and safety of the plant’s output are considered by the authors to measure a plant’s performance and then to find patterns they utilized statistical approaches. Volvo’s evaluation system present a framework that makes easier for the manager to compare their plants. It also presents a process to transfer technical expertise to each individual at the plant. The evaluation creates a significant impact: They convey the commitment of the organization to the manufacturing system. However, it requires some major efforts for the implementation of a production system, but the case presents it as a key part in accomplishing the objectives.

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