“Our customers must succeed if we are to succeed. That’s why our customers’ success is vital for us.”
Martin Lundstedt, President and CEO of Volvo Group.
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ACKNOWLEDGEMENT
This project report could not have been prepared if not for the support and guidance of a number of a people.
Hence, for the same reason I would like to thank my Head of the Department, Dr.Siddhartha Bose for her overall support and guidance.
I would like to thank my faculty guide, Prof.Nirmal Iyenger, Professor in the department of operations for his guidance and support throughout the internship and for being one of the main reasons for the successful completion of this project.
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Table of Contents
INTRODUCTION ....................................................................................................................................... 6
ORGANIZATION STRUCTURE ............................................................................................................ 7
PLANNING OF OPERATIONS IN MANUFACTURING ......................................................................... 8
QUALITY SYSTEMS: ............................................................................................................................. 8
MAIN ASSEMBLY: ............................................................................................................................... 9
GEAR BOX ASSEMBLY: ..................................................................................................................... 10
CABS-PAINT SHOP AND WELDING................................................................................................. 10
ENVIRONMENT AND SAFETY.......................................................................................................... 11
TECHNOLOGICAL PROCESSES IN THE PRODUCT .......................................................................... 12
TECHNOLOGY- VOLVO DEALER NETWORK ............................................................................... 13
REMOTE DIAGNOSTICS .................................................................................................................... 14
YELLOW CASES .............................................................................................................................. 14
RED CASES ...................................................................................................................................... 14
VOLVO GEO-FENCING ................................................................................................................... 15
PREMIUM MAINTENANCE PLANS .............................................................................................. 15
PRODUCT DEVELOPMENT PRACTICES ............................................................................................. 16
PRODUCTION TECHNOLOGY............................................................................................................... 19
CAPACITY MANAGEMENT ................................................................................................................... 20
PURPOSE OF THE INITIAL CAPACITY ASSESSMENT SHEET (ICAS) &CAPACITY ASSESSMENT SHEET (CAS) .............................................................................................................. 21
FACTORS AND STRATEGIES TO ACHIEVE COMPETITIVE ADVANTAG E ................................. 22
STRENGTHS ........................................................................................................................................ 22
WEAKNESSES ..................................................................................................................................... 22
OPPORTUNITIES ................................................................................................................................. 22
THREATS ............................................................................................................................................. 22
STAKEHOLDER’S ANALYSIS FOR VOLVO TRUCKS: ...................................................................... 23
CONCLUSION .......................................................................................................................................... 24
REFERENCES ............................................................................................................................................... 26
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Introduction
Volvo is an 89 year (April1927) old group it was founded by Assar Gabriel son and Gustav Varson in the Gothenburg, Sweden it is a publicly traded aktiebolag whereas its first product came out is a car now in the present market they are linked with the products like
trucks
buses
construction equipment
heavy engines
Financial services
It this project is deals the operation of production process of Volvo and deals with the management of new technology utility.
Volvo Group is providing an employment about 100000 people in the present market, Production was taking place in the 18 nation and it has the sales in the 96% of countries across the world. Their mission is “Driving prosperity through transport solutions”. Their tag line is “For life”.
Now they are occupied roadway and seaway and they concentrate on the safety of travelling and the people. They started with the production of cares but they occupied a large market in the trucks and buses.
Step points of Volvo
In 1999 is the period where Volvo had step down by selling Volvo car to Ford Motor.
In 2001 Volvo had a step by over taking the Renault trucks and Mack trucks.
In 2007 Volvo has a step by taking Nissan trucks
In 2007 it has one more step by purchasing Lingong, Chinese manufactures of construction equipment.
In 2008 Volvo has a step by starting a joint venter with Eicher motors ltd
In 2012 British engineering group GKN has taken the rights of the aerospace component company Volvo aero.
In 2014 Volvo has purchased Terex trucks.
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Organization Structure
Source: Volvo Group 2016(2016),26Jun, 2016, [online], available: http://www.volvogroup.com/
Group functions
Group trucks technology
CEO and group executive board
Group trucks operations
Group trucks purchasing
Volvo trucks
UD trucks
Renault trucks
Mack trucks
Group trucks Asia & JVs
Volvo construction equipment
Volvo bus
Volvo penta
Governmental sales
Volvo financial services
Customers
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Planning of operations in manufacturing
In 1928 the first production of Volvo truck was started and by the year 2011 there are 19000 people are working in the Volvo.
The production system starts in the step by step process as given in the billow table
Quality systems:
Transport and infrastructure should be the customer fulfillment. All the activated which are doing in the company will lead to the customer attention towards the product and increase the value of the product in the customers.
The performance of the quality is dignified by the customer involvement. The success in the marketplace based on the customer satisfaction when we are able to reach the customer requirement. We have to overcome our market defender to lead the success. By the customer requirement we have to full fill there needs according to the operation process.
The employers in the company should be the customer attentive and able to deliver the quality production. Everyone should have a clear view about delivery of the quality product in their
Quality systems
Main assembly
Gearbox assembly
Paint shop & cab
Environment & safety
• creating value for customers in selected segments
• pioneering products and services for the transport and infrastructure industries
• driving quality, safety and environmental care
• Working with energy, passion and respect for the individual.
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mind set this is the policy of the Volvo group. The various co-relations within or outside the Volvo has to follow the quality system.
Quality of the trucks will be known by the rewords, sales and product developing with the new technology. Knowing the customer individual move towards every product and improving the product according to the customer want by this process we can win the market share. this process should be continuous to lead the market.
(Written by: Olof persson ,president and CEO of the Volvo group on date july9, 2012 plo000-0005 http://www.volvotrucks.com/SiteCollectionDocuments/VTC/Corporate/Values-2012/VTC_Quality_Policy%20-%20English.pdf)
Main assembly:
Starting from the riveting frame rails till the point where the truck is on the roads, the truck undergoes a 9 stage operation process. This is the main assembly framework and it is well defined by set of instructions and tools and equipment. These are checked for quality and have a defined calibration cycle.
“Each preceding stage and forward stage act like customer and supplier concept”.
A computerized process quality check is implemented at the end of the assembly line. These electro mechanical functional checks are important because the trucks have large electronic integration. The processes include microprocessors for vehicle, engine management etc. all the software and hardware programs are checked via computers and every truck is connected to a remote server in Sweden.
Functions like lighting , accelerators, brake ,gear shift operations and even cases of faults are checked through computers.
All the trucks will be sent for test driving on real road conditions for atleast about 50kms and all the above functions are checked once again before it is been delivered to the customer.
Recently Volvo trucks has started its assembly operations for heavy trucks in Bangkok, Thailand. The expected production this year is expected to be around 150 volvo FM trucks, increasing to 350 vehicles next year. The investments in the main assembly factory functions amount to USD 1 million.
It is one of the first foreign manufacturers of heavy trucks to establish facilities in Thailand with and expected capacity of the factory at full operation being 500 trucks per year in a single shift operation. The employment from the plant is expected too be around 30 people. The main
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investment components will include new production line tooling, rigs etc. All these components are to be supplied by local sub-contractors at a larger level.
Gear box assembly:
Volvo has only two units outside of Sweden that assembles gear boxes. India is one of those two units. The assembly is carried out in a controlled environment.
The gear box assembly consists of the latest machinery which supports the process of washing and degreasing the parts. All these gear boxes are filled with recycled oil and are tested for even the slightest of leakages.
There is a driveline simulator in the gearbox assembly line where in the noise levels and gear engagements are put into severe tests.
Cabs-paint shop and welding
Volvo trucks has world class facilities for painting of cabs ,plastic parts, trailers and chassis components. All these materials and systems confirm to the international standards of Volvo specifications.
The painting requirements as from customers perspective is that it should give protection against corrosion, weathering and should give ultra violet resistance. The paint shop is completely dust proof and a pressurized enclosed area for dust control. The paint system gives special protection in all cavities and box sections to ensure that there is complete corrosion resistance. In addition to all these there is also a shot blasting facility for trailers and tipper bodies.
Volvo is expected to commence its welding of stamped panels for the cab this year. It is believed that this breakdown in the cab aggregate will help to increase the local content in the local operations and will add even great flexibility. Volvo in India is planning to upgrade its paint shop to a multi-layer paint process.
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Environment and safety
Volvo in India follows the global Volvo in its environmental strategies. The main focus is on minimizing resource consumption and waste management besides ensuring that significant energy savings is achieved periodically. The Volvo group also aims to integrate the suppliers also in line with the core values of the organizations.
The Volvo factory at Hoskote is ISO 9001 and EMS 14001 certified.
Some of the activities with regard to environmental conservation includes usage of some advanced techniques and systems. Some of them are listed below:
Closed loop systems in paint shop
Tertiary treatment in waste water treatment
Reverse osmosis and effluent treatment
Painting process in environmental control booths
100% treated waste water reutilized for gardening
Other special steps taken towards environmental conservation are
No use of asbestos
Refrigerant in cab and building is not a CFC based
Halton free fire extinguishers
Factory noise levels at boundaries are well within legal limits
All the activities of the factor are subject to strict safety precautions and all the movements are carefully planned. All the operators are equipped with special suits, safety gear, necessary gloves and ear cover. The leakages are tested using recycled oil which is recycled in the silos located nearby.
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Technological processes in the product
Volvo trucks are the specialists in applied materials technology. Volvo materials technology is a department of specialists who have expertise in applied material science and technology. They assist the Volvo group, Volvo Corporation and other external customers. All the required competence and the developmental resources are provided by this department. The main tasks also the resources for metallic materials science for product process and development is also supplied by this department.
The main tasks performed by the technological department are failure analysis, new materials development, mechanical testing, materials selection and characterization, production process advice and standard interpretation.
Materials technology has all the facilities like laboratories for metallic materials located in Gothenburg, Lyon, Ageo and Hagerstown. The non-metallic materials laboratory is located in Lyon with local support in Greensboro. The materials technology laboratories have approximately 75 employees.
The main areas of focus for competence are within the following:
Forged materials
Heat treatments
Cast materials
Surface technology
Polymers
Corrosion
Sheet metals
Welding
Bolted joint technology
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Technology- Volvo dealer network
The world class dealer network ensures that the trucks are never far away from the quality care and maintenance that comes along with the Volvo truck. There are more than 360 dealers and thousands of service locations across north America.
The option of Volvo truck’s uptime services are very useful in every step of the service event and makes sure that the trucks stayed in the places where they belonged.
Exclusive technology for getting access to a range of benefits through the Volvo dealers including online parts ordering, online credit facilities etc.
Volvo certified uptime centers – all the service bays are redesigned by adopting standardized processes and work flows to speed the repair time through faster diagnostics and more efficient services. The process is carried on all across north America. But to become a certified uptime center dealers must implement lot of strategic changes and modifications to their service processes.
The Volvo uptime center offers round the clock assistance anywhere in the world in united states and Canada. Volvo action service comprises of a team of highly qualified and trained uptime experts who are capable of managing service, scheduling repairs, and tackling any other issue that happens on the road. Within minutes, the driver is connected to a member Volvo action service.
Support from the uptime center through the Volvo action service is available at no charge for 2 years with every Volvo truck and offers access to these services.
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REMOTE DIAGNOSTICS
This technology helps whenever there is an unexpected downtime in times of monitoring the Volvo engine and during the after treatment. It offers a unique range of benefits. Some are listed below:
Proactive diagnostics
Detailed analysis of critical fault codes
Streamlined service procedures
Volvo aims to go beyond the diagnostic technology and to deliver actionable and sustainable solutions.
YELLOW CASES: these codes do not interrupt truck operations and these do not pose an urgency to be attended and can be attended at a later date. These codes just help to make some proactive decisions.
RED CASES: these codes actually disrupt the normal truck operations and it causes an engine de-rate or even a shut down and this will imply that there is an immediate repair that is to
VOLVO UPTIME CENTERVOLVO UPTIME CENTERVOLVO UPTIME CENTERVOLVO UPTIME CENTERVOLVO UPTIME CENTERVOLVO UPTIME CENTER
ROAD SIDE ROAD SIDE ROAD SIDE ROAD SIDE ROAD SIDE ROAD SIDE ROAD SIDE ASSISSTANCE ASSISSTANCE ASSISSTANCEASSISSTANCEASSISSTANCE
LOCAL LOCAL LOCAL FORWARDINGFORWARDING FORWARDING FORWARDING
PARTS EXPEDITINGPARTS EXPEDITING PARTS EXPEDITINGPARTS EXPEDITING PARTS EXPEDITING
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be done. This technology provides the technicians with critical information well in advance before the arrival of the truck so that they have enough time to repair and address the issue.
VOLVO GEO-FENCING: this technology uses the functions of GPS to establish a virtual perimeter around all the Volvo’s North American dealers. This technology identifies if the truck is coming for service to the dealer so that he can prepare for a well-planned and an efficient service.
ASIST SERVICE MANAGEMENT PLATFORM:
It is a service management platform that enables the users to monitor the vehicle status , receive electronic estimates, approve repairs, issue purchase orders and to communicate directly with the dealer. It is a simple user friendly web based tool.
For the trucks with the remote diagnostics ASIST also provides seamless communication between the service manager and the truck and also with the dealers and the Volvo uptime center.
The main reasons for establishing this web based technology was for three main reasons
Manage assets with ease
Streamline communication
Ensure accurate estimates
PREMIUM MAINTENANCE PLANS:
This is the method to plan ahead. This technology believes that preventive maintenance plans will improve vehicle uptime, increases productivity and makes sure that all the tasks are done efficiently. Proactive repair management is a part of this technology that triggers an automatic check for pending maintenance recalls and service programs.
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PRODUCT DEVELOPMENT PRACTICES
Since its inception Volvo had always laid emphasis on automobile safety. The production system was oriented towards the production of world’s safest automobiles and vehicles. All the vehicles are subject to strict checking procedures and are made to undergo several tests. These tests include computer simulation, component testing and crash testing.
Earlier Volvo used to suffer a lot from high amount of absenteeism and employee turnover. There were issues with the vehicles that left the factory and huge costs were incurred in replacing them. Traditional assembly line model posed many problems as there was no room for flexibility of operations and thus it made the work atmosphere unattractive.
The management practices of Volvo aim to build and create value for their shareholders. Volvos strategic objectives are based on customers’ requirements and for operational excellence. They believe that focusing on their objectives is there competitive strength. Emphasis is laid also on
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short term profitability and it is believed that it is the main key for sustainable growth and allows the organization to manage its business cycles and compete on a global scale. Volvo believes that operational excellence is the only way to achieve customer satisfaction. The best practices of Volvo improve the effectiveness and the productivity of the firm. The management practices aim at improving the business cycle management and by means of the same to reduce the costs, improve flexibility and adding customer value.
The corporate values of Volvo emphasizes on quality, safety, and environmental care. They believe in delivering best of the services and reliable products. Continuous improvement in the processes and products based on the customers’ needs results in specialization and excellence. Safety is not about reducing the amount of accidents but aims at completely avoiding the occurrence of such unforeseen events by providing the best of the safety equipment’s and maintaining high levels of standards. And the environmental care makes sure that no single action of Volvo and its operations affect the nature in any small way. The fuel efficiency is improved and the emissions are well controlled and treated before they are let out in the environment. These three values of quality safety and environmental conservation forms the pillar of all the brands of Volvo and it is believed that investment in these values brings unique benefits to their customers.
The management practices make sure that all the strengths are utilized to the fullest way and in a most optimum manner. The power lies in leveraging the all the synergies across the group in all different areas and departments. Volvo believes that integration and coordination across the activities of the firm will result on increased volumes increased efficiency and in developing the capabilities of the firm and to improve cash flow and profitability.
All the management practices are built by keeping the fundamental cultural values of the firm as its base. The culture involves empowerment of all the employees and at the same time giving them adequate responsibility for achieving the desired results. This means that each and everyone in the firm is well aware of the fundamental values and cultural orientations and behaves accordingly in achieving the objectives. Unlike a business model, key strengths and strategies, value propositions the culture of any organization is very difficult for the competitors to copy and to implement. The firm believes that cohesive culture that takes into account the
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values of different systems all across the world is the best way to make Volvo group the best employer, business partner and the most trusted business group.
The Volvo group cares about the future of the organization in terms of its development and growth. The main aim of Volvo is to make a difference and to stand out in the long run. All the decisions and changes made are backed up by individual responsibility and a strong sense of commitment to meet the target objectives. Volvo believes that involving the employees in all its strategic decisions would give them empowerment and create a sense of belongingness and helps the employees to clearly define their roles and responsibility.
Volvo acknowledges the fact that there are people from different backgrounds and different diversities and it becomes important that all of them are treated equally with equal respect and importance. This same logic applies when it comes to treatment of customers also. The main strategy is to convert all the differences of the personnel into advantages. It increases the productivity and the ability to innovate. Volvo is actively establishing its management practices and business practices and other networks that enables every individual in the organization to contribute to its fullest.
The Volvo group remains firm on its commitment on significantly reducing its environmental impact and to make a difference. All the employees are made to undergo social responsibility practices and to invoke a sense of eco consciousness among the employees. The behavior as an employee as well as a responsible citizen is both important to contribute significant values to the firm and to the society.
The ethical management practices include strict measures for non-compliance. There is an action plan that is undertaken in case a supplier does not qualify in a particular critical aspect. Volvo aims to work with the non-compliant workers and suppliers and ensures that the issues are resolved. All the Volvos group purchasers and quality engineers have been trained on business ethics , social justice and environmental issues on a global perspective. Volvo practices a self-assessment approach to test the performance of the supplier and to see if it is in line with the ethical standards and requirements. There is a harmonized automobile service evaluation that will help in facilitating accuracy and transparency. There is also a supplier evaluation model that evaluates the potential of current suppliers.
It is a general management policy to source near to the production sites to ensure efficient and smooth flow of supplies. It is a general rule that sales of the Volvo group should not account to less than 30% of a suppliers turnover.
Pursuing some of the responsible sourcing principles is also one of the main practices of Volvo.it results in higher productivity and stable long term relationship that should benefit all the stakeholders. The code of conduct sets out all the required principals and standards. All the innovations aims at building some value to the stakeholders. The involvement of customers ensures that there is deeper understanding of the varied business needs.
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PRODUCTION TECHNOLOGY:
The concept of articulated truck was first developed by the Volvo group. It is still the undisputed leader in terms of global machinery technology. It has the articulated hauling in the most demanding conditions and in extreme terrain conditions and applications. Right from mining tunneling to earthmoving the Volvo trucks makes the job easier and much standardized every day.
Volvos construction equipment includes a variety of wheel loaders, articulated haulers, hydraulic excavators, motor graders, soil and asphalt compactors, pavers, backhoe loaders ,skid steers, milling machines etc.
The production machinery plants of Volvo is situated in wide distributed network of countries such as USA, Brazil, Scotland, Sweden, France, Germany, Poland, India, China, Russia and Korea. The Volvo group also is the leader in offering worldwide services and a range of aftermarket solutions in financing and in used equipment. Volvo Construction Equipment sells machines under three brands: Volvo, SDLG and Terex Trucks.
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CAPACITY MANAGEMENT:
Volvo has the preapproved level in SEM and all the suppliers have to achieve attest a minimum of 50% in an normal SEM and must atleast reach minimum of all the stopping parameters. Volvo is considered as the most preferred customer by its suppliers and to be valued as the most preferred customer by all its key suppliers Volvo has to establish so many parameters.
For example suppliers are the ones to be the beneficiaries of its innovations, from all the quality standards and performance of current businesses. Volvo has always had full commitment and understanding of the requirements of all its stakeholders both in terms of negotiations and procurement. Any agreement that is entered into by Volvo it is important that the agreed upon and honoured by all its suppliers and particular organization as its preferred customer.
In the capacity management of Volvo the suppliers will have the control over the processes to attain the required capacity.
Cost management includes meeting the necessary payment terms. It is important that all the suppliers should comply with all the payment requirements. Also the supplier must be able to comply with all the cost targets that has been set. The responsibility of taking the warranty cost must also be borne by the suppliers. The suppliers are required to meet certain quality and productivity standards. The suppliers should have both long term and short term plans in order to meet Volvo quality and cost targets and to maintain a competitive market position. The supplier should always be transparent in its operations with the Volvo group whenever it is being asking for inspection.
The main aim of capacity management is to ensure that the information technology services are used to their fullest capacities and that It meets all its set targets and objectives. It considers all the resources available to plan accordingly for short term and long term business requirements.
The main aim of the business capacity management is to translate the business needs and requirements into suitable tools for services and information technology infrastructure. The capacity management of Volvo group has many components to it; like service capacity management that manages controls and predicts the future performance and capacity of operational services. This involves taking proactive decisions and reactive actions that ensures that required targets are met by performance standards. The component
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capacity management includes management and utilization of IT resources and individual IT components. Capacity management reporting is set up to integrate with the other service management processes and to compile information related to service and resource capacity, utilization and performance standards.
Volvo group internal programme
The process of the internal working system into Volvo group was in the systematical way as shown in the finger
Purpose of the Initial Capacity Assessment Sheet (ICAS) &Capacity Assessment Sheet (CAS)
The ICAS and CAS is used to verify and assure that the supplier's production system will be able to produce required customer declared volume stated in the RFQ.Capacity is to be demonstrated in all production steps.One ICAS/CAS is used for every part number.The purpose of the ICAS is to verify that the supplier has a realistic capacity planning in place for how to produce the required customer volume. The ICAS is a self-assessment used by the supplier and then submitted to and approved by Volvo.
The ICAS consists only of 2 sections:
1. Key Information
2. Capacity Planning
One ICAS-file per partnumber is issued/used.The CAS is the tool for documenting the SPR and R@R at the supplier site.
The CAS can be used either as a self-assessment by the supplier or a “live audit” tool by Volvo representatives.
The CAS consists of 7 sections:
1. Key Information
2. Capacity Planning
3. Production Run
4. Capacity Calculation
5. Overall Equipment Effectiveness (OEE)
6. Manufacturing Bottleneck
7. Supplier Operation Management Approval.One ICAS-file is used per part number
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FACTORS AND STRATEGIES TO ACHIEVE COMPETITIVE ADVANTAG E:
STRENGTHS:
The strengths of Volvo group has a strong relationship with its continued success. These includes, more than 100000 employees globally present across all the countries of the world. It has several model variants to meet the varied customer preferences and choices. All the models attract a significant number of elite class customers. Its main inclination is towards the achievement and maintenance of high class driving experience. Volvo subsidiaries include brands like mack trucks, UD trucks, Volvo construction equipments, Volvo cars, Volvo buses etc.
WEAKNESSES:
Because of its high quality and performance standards it attracts mostly elite businesses and the penetration level in the moderate markets is a challenge. Other weaknesses include uncertainty about future profitability, chances of hectic competition in the industry,etc.
OPPORTUNITIES:
There are so many opportunities like the automobile markets are expanding and more market share due to expansion of Volvo trucks all across the world, possibility of developing a technological revolution in this industry. Increase in per capita income and more scope for business entities.
THREATS:
More and more competitors are coming up with more innovative features and there is an increased usage of government transport and the fuel costs are increasing at a faster rate, and there is a possibility of stringent regulations.
Data is collected for Anon.,(july25,2014)[online]http://www.mbaskool.com/brandguide/automobiles/1505-volvo.html
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Stakeholder’s analysis for Volvo trucks:
Suppliers dealers stockholders and customer are the key components of Volvos stakeholders. There are thousands of parts in the production of the Volvo truck so it is impossible for them to survive without the suppliers. All the sales and distribution is purely dependent on the dealers making them also an integral part of the supply chain of the Volvo trucks. And as for every business customers are the kings so it is for the Volvo group. The policies on the trucks and automobiles were loosened during the 1990s so that gave the biggest opportunity for the Volvo truck to flourish all across the global markets. Also the demand for trucks in the US markets reached a completely new level in the year 1998 which also gave a boost to this industry.
The truck industry is also a cyclical industry so understanding the demand and supply conditions is absolutely necessary. Inflationary pressures and increase in crude oil prices will directly affect the truck industry. There is also an increase in engine development costs that also poses a major challenge. When it comes to social environment different countries have different characteristics and the truck manufacturers have to aggressively market their products in a variety of ways because there is a lot of competition in the market and it becomes important that every firm has some distinct competitive advantage in the market to give a variety of choices to the customers.
Due to the tough political conditions in US Volvo initially failed to enter into the markets with an alliance with a local US company. Factors like restriction on the truck length due to safety reasons and impositions on the total weight of the truck, these factors had an huge impact on the profitability of the truck manufacturing companies. Also due to these regulations the number of owner operated trucks also declined.
The heavy truck industry finally reached its maturity stage in European and American markets. In US a very few companies dominated the markets. If we analyze the truck industry using porters five force model we can come up with the following conclusions
The threat of new entrants is low in case of this industry because of economies of scale and experience effects, switching costs, and the proprietary knowledge is high. The overall bargaining powers of customers are medium to low. Buyers concentration is high at the same time buyers switching costs is also high. The suppliers have the possibility to integrate forward and have their own products that are well differentiated. The overall bargaining power of the supplier is medium. The threat of substitute products is medium to low because heavy truck high utility vehicles are difficult to be substituted. There is a high amount of competitiveness and rivalry among the existing competitors and we can say that the threat is medium until and unless the industry become attractive and competition increases.
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Conclusion
Volvo group is clear with their operation system of production and the capacity of production as well as they are maintaining their suppliers with the good quality of raw materials. Volvo will is providing the satisfying customer services and they have a various spare parts to attract the customers. Volvo has different models of cabins and container to reach different customer perception.
Volvo was using different software to production and for the quality measure. Volvo can also know for its safety driving as trucks are containing a lots of safety measures.
Volvo has achieved a lots of quality and sanity awards
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References
1)Olof persson ,president(july9,2012). The CEO of the Volvo group [online]http://www.volvotrucks.com/SiteCollectionDocuments/VTC/Corporate/Values-2012/VTC_Quality_Policy%20-%20English.pdf
2)Anon.,(july25,2014)[online]
http://www.mbaskool.com/brandguide/automobiles/1505-volvo.html
3)Mukherjee, s.,2009.projct manager for software development. 2ed.mumbai:jaico publishing house.
4)Anon.,(November10,2007)[online]
http://articles.economictimes.indiatimes.com/news/28445609_1_volvo-trucks-business-managing-director-eric-leblanc
5)Anon., n .d.[online]
http://www.silvertipdesign.com/BR(Imperial)/%5B5,17%5D%20Emis_eng_20640_03017.pdf
6)Anon.,n.d.[online]
http://www.volvoce.com/constructionequipment/corporate/en-gb/quality/product_life_cycle_quality/manufacturing_quality/Pages/manufacturing_quality.aspx
7)AB Volvo (publ) ., 2014.
Investor Relations and Corporate Financial Reporting, www.volvogroup.com
8)Anon.,n.d.[online]
https://www.media.volvocars.com/global/en-gb/media/pressreleases/175764/volvo-cars-announces-range-of-updates-for-model-year-2016
9)Anon.,n.d.[online]
http://www.volvogroup.com/group/global/en-gb/VOLVO%20GROUP/OUR%20COMPANIES/GTTECHNOLOGY/Pages/GTT2.aspx
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10)Volvo grup.,2013. Annual report http://www3.volvo.com/investors/finrep/ar13/eng/productdevelopment/introduction.html group.,2013
11)Anon.,n.d.[online]
http://www.volvoroup .com/global/quality
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